Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDER (RMO)
RMO No. 4-2024
February 5, 2024
Creates Alphanumeric Tax Code (ATC) for Creditable Withholding Tax on Gross Remittances made by electronic marketplace operators and digital financial services providers to sellers/merchants.
REVENUE MEMORANDUM CIRCULAR (RMC)
RMC No. 20-2024
February 5, 2024
Notifies the loss of one (1) Pad of Unused/Unissued BIR Form No. 2324 — Certificate of Availment
RMC No. 21-2024
February 7, 2024
Clarifies the answer to Question No. 31 of RMC No. 49-2022 in relation to RR No. 4-2022, implementing Section 295(F) of the NIRC (Tax Code) of 1997, as amended by RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises [CREATE] Act)
SECURITIES AND EXCHANGE COMMISSION
SEC MEMORANDUM CIRCULAR NO. 2
February 6, 2024
The Securities and Exchange Commission (SEC) has recently issued Memorandum Circular (MC) no. 2 s. 2024 regarding the filing of Annual Financial Statement and General Information Sheet.
Annual Financial Statement (AFS)
For All Corporation, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign corporations, whose fiscal year ended on 31 December 2023, shall file their AFS through eFAST, in accordance with the following schedule depending on the last numerical digit of their SEC registration or license numbers:
- Those with fiscal years ending on a date other than 31 December 2023 – within 120 calendar days from the end of their respective fiscal years.
- Broker and dealers whose fiscal years end on a date other than December 31 – 30 April 2024
- Those whose securities are listed on the Philippine Stock Exchange (PSE), those whose securities are registered but not listed on the PSE, those considered as public companies, and other entities coved under Sec. 17.2 of the SEC – within 105 calendar days other the end of their respective fiscal years as attachment to their Annual Reports.
- Those whose AFS are being audited by the Corporation on Audit – * Provided that the following documents are attached to their AFS.
a. An official signed by the President and Treasurer (or Chief Finance Officer, where applicable) attesting to the fact that the company timely provided the COA with the financial statements and supporting documents and that the audit of the COA has just been concluded; and
b. A letter from the COA confirming the information provided in the above affidavit.
General Information sheet
All corporation shall file with the SEC, through eFAST, their GIS within 30 Calendar days from:
a. For Stock Corporation , the date of actual stockholder’s meeting;
b. For Nonstock Corporation , the date of actual stockholder’s meeting;
c. For Foreign Corporations, the anniversary date of the issuance of their respective SEC licenses.
d. For One Person Corporation (OPC’s), the SEC form for Appointment of Officer must be submitted within 15 days form the date of issuance of the Certificate of Incorporation or within 5 days from when the change was reflected. OPCs are not required to submit a General Information Sheet.
Important Reminders
- All annual reports shall be submitted online through the SEC Electronic Filling and Submission Tool (eFAST) at efast.sec.gov.ph. No hard copies shall be required.
- No over-the- counter and courier submission shall be allowed. Other reports not yet accepted through eFAST should be emailed at ictsubmission@sec.gov.ph.
- For a step-by-step guide on how to enroll and submit reports on eFAST, watch our tutorial video at bit.ly/eFASTtutorialvideo
The SEC Check App is your convenient 24/7 guide to SEC services on the got
Use the app to verify it an entity is authorized to solicit investments or engage in landing and financing activities.
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 5 Week ending February 2, 2024
BIR Revenue District Offices continue to intensify the conduct of tax enforcement activities from January 22 to 30 to enhance taxpayers’ voluntary compliance with the tax laws and regulations.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024 Weekender Briefs/v15n5 highres.pdf
Lumagui: BIR files criminal case against cosmetic company with P1.6B total tax liability under its Run After Fake Transactions Task Force.
Bureau of Internal Revenue (BIR), headed by Commissioner Romeo D. Lumagui, Jr., filed a criminal case under the Run After Fake Transactions (RAFT) Task Force with the Department of Justice (DOJ) on February 1, 2024. The said criminal complaint was against a known cosmetic brand, Ever Bilena Cosmetics, Inc. that used receipts from several ghost companies. After a thorough investigation, the task force discovered approximately P1.6 Billion in total tax liability.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR10FEB0224.pdf
CTA reverses denial of wind farm’s refund claim
(Business World / John Victor D. Ordoñez / February 5, 2024)
THE Court of Tax Appeals (CTA) has overturned its denial of EDC Burgos Wind Power Corp.’s refund claim for its excess P34 million value-added tax (VAT) traced to zero-rated sales from Jan. 1 to June 30, 2014. In an 11-page decision dated Jan. 31, the CTA full court said that the wind farm is not required to present a Certificate of Compliance (CoC) from the Energy Regulatory Commission to prove that its sales qualified for a 0% VAT.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/02/05/573435/cta-reverses-denial-of-wind-farms-refund-claim/
The taxability of reimbursable or allocable expenses for cross-border services
(Business Word / Juanito Rafael Clemence O. Uy / February 5, 2024)
Is there a flow of wealth when there is a reimbursement at cost? Is there an income to speak of when repaying a cost allocated by a related party? Are these kinds of transactions included in the definition of taxable income or VATable transactions in Philippine law? These are the common questions that taxpayers may ponder when they read the new Revenue Memorandum Circular (RMC) 05-2024 pertaining to reimbursable and allocable expenses. In the recent RMC 5-2024, the Bureau of Internal Revenue (BIR) clarified the tax treatment of cross-border services in light of the Supreme Court’s (SC) decision G.R. No. 226680 dated Aug. 30, 2022. The RMC provided a new framework for assessing the final withholding taxes and final withholding Value-Added Tax (VAT) on services rendered by non-resident foreign corporations (NRFC).
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/05/573707/the-taxability-of-reimbursable-or-allocable-expenses-for-cross-border-services/
SEC warns against investing in SK Pools Mining, SOAO
(Business World / Revin Mikhael D. Ochave / February 5, 2024)
The Securities and Exchange Commission (SEC) has cautioned the public against investing in SK Pools Mining Corp. and SOAO, saying these entities are not authorized to solicit investments. In two separate advisories on its website, the corporate regulator said that the two entities do not have the necessary license to offer and sell securities.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/02/05/573384/sec-warns-against-investing-in-sk-pools-mining- soao/
Digital transactions VAT bill elevated to Senate plenary
(Business Word / John Victor D. Ordoñez / February 6, 2024)
THE COMMITTEE report of a Senate bill seeking to impose a 12% value-added tax (VAT) on digital transactions, which now includes nonresident foreign online marketplaces with customers in the Philippines, has been sponsored out to the plenary. During Tuesday’s plenary session, Ways and Means Committee chairman Senator Sherwin T. Gatchalian, who sponsored Senate Bill No. 2528, said the measure will require nonresident electronic marketplaces to withhold and remit VAT on transactions that are coursed through their platforms, provided the buyer is in the Philippines.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/06/574048/digital-transactions-vat-bill-elevated-to-senate-plenary/
Recto encouraged by further drop in inflation, pushes for more deliberate implementation of inflation reduction strategies
(Department of Finance / February 6, 2024)
Finance Secretary Ralph G. Recto was encouraged by the further drop in the Philippines’ headline inflation to 2.8% in January 2024 and pushed for a more deliberate implementation of the Reduce Emerging Inflation Now (REIN) plan to keep the prices of goods and services stable. “This positive development is very encouraging. As I’ve said before, our top priority is to reduce inflation and protect the purchasing power of the Filipino people. Addressing inflation will not only further grow the economy but it will help boost our revenue collection and improve the quality of life of Filipinos,” the Finance Chief said.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-encouraged-by-further-drop-in-inflation-pushes-for-more-deliberate-implementation-of-inflation-reduction-strategies
BSP to keep policy stance sufficiently tight
(The Philippine Star / Lawrence Agcaoili / February 7, 2024)
MANILA, Philippines — Despite the slowdown in the rise in consumer prices in the past four months, monetary authorities deem it necessary to keep monetary policy settings sufficiently tight until there is sustained decline in inflation.
Inflation eased further to 2.8 percent in January, the lowest in more than three years or since the 2.3 percent recorded in October 2020, from 3.9 percent in December, according to the Philippine Statistics Authority.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/02/07/2331431/bsp-keep-policy-stance-sufficiently-tight
ADB to support Recto’s core enhanced tax collection strategy digitalization
(Department of Finance / February 7, 2024)
The Asian Development Bank (ADB) will provide support for Finance Secretary Ralph G. Recto’s core enhanced tax collection strategy of using digital technologies for a more efficient and aggressive tax administration. The statement came after Secretary Recto emphasized, during a meeting with ADB senior officials, the need to have more unified inter-agency coordination among national and local agencies to harmonize records of registered taxpayers and optimize tax collection efficiency. The policy-based loan focuses on enhancing domestic resource mobilization policies and legal frameworks; modernizing tax administration through digital transformation; and strengthening international tax cooperation and exchange of information. A second subprogram is pipelined for 2025.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/adb-to-support-rectos-core-enhanced-tax-collection-strategy-digitalization/
Latest Labor Force Survey results reflect continued improvement of PH jobs market and quality of jobs for Filipinos
(Department of Finance / February 7, 2024)
Finance Secretary Ralph G. Recto has expressed optimism on the December 2023 Labor Force Survey results which showed that the Philippines recorded a historic-low unemployment rate, declining underemployment, and faster growth in the labor force––all reflecting the continued improvement of the country’s jobs market and quality of employment for Filipinos. “These results are truly promising. We are more optimistic about providing more quality jobs for our people as the Marcos, Jr. administration rolls out the red carpet for investors to enter the country. In tandem, we will prioritize empowering our workforce through substantial investments in human capital development. This will enhance their preparedness for high-quality employment opportunities,” Secretary Recto said.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/latest-labor-force-survey-results-reflect-continued-improvement-of-ph-jobs-market-and-quality-of-jobs-for-filipinos/
Tax waivers during rehabilitation proceedings
(The Manila Times / Nica Marsha Gasano/ February 8, 2024)
The Financial Rehabilitation and Insolvency Act (FRIA), or Republic Act 10142, was enacted with the aim of offering debtors an avenue to preserve and maximize the value of their assets and prioritize claims and, at the same time, ensure fair treatment of creditors in similar situations. In essence, FRIA serves as a mechanism to help debtors navigate financial challenges. Section 19 of FRIA provides a significant benefit by granting a waiver of all taxes and fees due to both the national and local governments. This waiver comes into effect from the issuance of the commencement order until the approval of the rehabilitation plan or the dismissal of the petition (for rehabilitation), whichever occurs first. During this period, all taxes and fees and any associated penalties, interests, and charges due to the national or local government are considered waived.
Click the link below to read the full news from the source:
https://www.manilatimes.net/2024/02/08/business/top-business/tax-waivers-during-rehabilitation-proceedings/1931592
Senate pushes VAT on Netflix, HBO
(The Philippine Star / Cecille Suerte Felipe / February 8, 2024)
MANILA, Philippines the Senate has started discussions on a proposed measure to impose value-added tax (VAT) on foreign streaming platforms like Netflix and HBO Gold operating in the country. In his sponsorship speech on Tuesday afternoon, Sen. Sherwin Gatchalian clarified that Senate Bill 2528 amending the 1997 National Internal Revenue Code is not a new tax measure but is merely for collecting taxes from digital service providers.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2024/02/08/2331791/senate-pushes-vat-netflix-hbo
CTA denies bid of Cap John Hay Trade and Cultural Center to cancel P24.9M deficiency taxes for 2006 to 2011
(Manila Bulletin / Czarina Nicole Ong Ki / February 8, 2024)
The Court of Tax Appeals (CTA) has for denied lack of jurisdiction the petition of Cap John Hay Trade and Cultural Center, Inc. (CJHTCCI) – operator of an event venue with offices at Camp John Hay in Baguio City — seeking to cancel the P24.9 million deficiency taxes assessed by the Bureau of International Revenue (BIR) from 2006 to 2011. In an assessment notice on May 19, 2016, the BIR informed CJHTCCI’s liability for deficiency income tax, value-added tax (VAT), expanded withholding tax (EWT), and documentary stamp tax (DST) from Jan. 1, 2006 to Dec. 31, 2011 in the total amount of P22,993,951.90.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/8/cta-denies-bid-of-cap-john-hay-trade-and-cultural-center-to-cancel-p24-9-m-deficiency-taxes-for-2006-to-2011
SEC orders closure of 5 online lenders
(Inquirer.Net / Doris Dumlao-Abadilla / February 8, 2024)
The Securities and Exchange Commission (SEC) has ordered the immediate shutdown of five online lending operators that are offering loans to the public without authority to do so. In an order issued February 3, the SEC en banc directed Tacoloan, VCash, 365 Cash, SwipeCash, and BootCash to immediately stop their lending and financing businesses as well as related activities until they have incorporated and secured from the SEC their respective certificates of authority to operate as a lending or financing company (CA).
Click the link below to read the full news from the source:
https://business.inquirer.net/340448/sec-orders-closure-of-5-online-lenders
Tax revenues jump to P3.4 trillion
(The Philippine Star / Louise Maureen Simeon / February 9, 2024)
MANILA, Philippines — The country’s tax revenues rose by five percent to hit P3.38 trillion as the government ramped up its tax administration and digitalization program. Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui said during the 2024 National Tax Campaign Kickoff that the 2023 collection reached P2.5 trillion, eight percent higher than the previous year’s P2.33 trillion.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/02/09/2331939/tax-revenues-jump-p34-trillion
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