Successful joint JBD, WMS update seminar for Japanese executives

Successful joint JBD, WMS update seminar for Japanese executives

The Japanese Business Development (JBD) conducted another successful tax and accounting seminar for Japanese executives together with the Worldtrade Management Services (WMS) last 10 March 2015 at the Learning room in our Makati office.

Cost accounting as management accounting

JBD Manager Naoyuki Takahata (in photo, far left) began the seminar with the topic “Cost accounting as management accounting”. Based on his past experiences in a Japanese manufacturing company, Taka shared his practical knowledge that was useful for the participating companies, especially those applying standard costing.

Since many participants are Philippine Economic Zone Authority (PEZA) locators, PEZA project management tips in terms of common cost allocation were helpful. Aside from management accounting, he introduced important points in “PAS2 Inventory”, which is key standard for financial reporting of those PEZA manufacturers or logistics locators. Valuation of inventory, including treatment of non-moving inventory, is frequently discussed in their actual audit.

Alex and Paul on what’s latest in Customs

WMS Partner Paul Sumner (in photo, third from left) and WMS Senior Manager Alex Saborio (second from left) were the resource speakers on Customs updates. Alex discussed the following:

  • Bureau of Customs' (BOC) revenue targets for 2015
  • New post entry audit objectives of the Fiscal Intelligence Unit (FIU) of the Department of Finance
  • How the Bureau of Internal Revenue Importer Clearance Certificate (BIR-ICC) exemption works for PEZA locators
  • Documentation needed by the BOC to grant import license
  • “Regional Comprehensive Economic Partnership", as new development in free trade agreement (FTA) between the Association of Southeast Asian Nations (ASEAN) and its current FTA partners.

Paul gave insights on the challenges in determining origin requirements and technical issues encountered within FTAs. After enumerating the “BOC transparency actions for 2015”, Alex and Paul did a Q&A to hear the participants' concerns and clarifications.

Successful joint JBD, WMS update seminar for Japanese executives

Ken on individual income tax and fringe benefit tax (FBT)

JBD Senior Manager Kentaro Tojo (in photo, far right) said that unlike corporate income taxes, the BIR is still not keenly looking into expats' individual income taxes. Actual filing practice differs from company to company. Nevertheless, more and more Japanese companies have been complying with the tax rules in terms of individual income tax, considering the BIR's current situation.

Q&A with Rick, JM and Gigie

The participants mainly questioned matters in relation to the Japanese expats' individual income taxes. In principle, they shall file a return for all Philippines-sourced income, regardless of the place of payment. Gigie also explained the very high interest rate of 12% under the current tax rule, which is applicable to any type of employee loans for FBT purposes.

Excellent feedback

The participants, mostly C-suite Japanese executives from roughly 40 companies, expressed their positive feedback to the seminar through face-to-face discussions with them and evaluation forms.

  • The written responses show that all have improved their awareness on the topics.
  • The majority understood the discussion and even said that the speakers are kind.
  • A participant also reviewed the seminar as a good occasion to learn about Customs matters, since it is rare to have Customs seminar for Japanese executives.
  • Some want to have future seminars on Customs compliance.
  • Some gained knowledge on the gap between rule and practice for tax.

Contact us

Dennis P. Bautista

Markets Director, PwC Philippines

Tel: +63 (2) 8845 2728

Rocky Saldajeno

Markets Senior Manager, PwC Philippines

Tel: +63 (2) 845 2728

Edwin Padillo

Markets Manager, PwC Philippines

Tel: +63 (2) 845 2728 Ext. 3196

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