Ease of Paying Taxes: On changes in the regulations
After some agonizing weeks of speculation and anticipation, the final versions are in! Ladies and gentlemen, please welcome, the EOPT RRs!
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After some agonizing weeks of speculation and anticipation, the final versions are in! Ladies and gentlemen, please welcome, the EOPT RRs!
IN January 2024, taxpayers in the Philippines were greeted with a significant law seeking to improve tax administration and compliance. This law, of course, is the Ease of Paying Taxes (EOPT) Act. Following the effectivity of the law, draft revenue regulations (RR) have been circulated for comments from the public. For our short analysis, we will focus on some rules being proposed in relation to value added tax (VAT).
The Ease of Paying Taxes (EOPT) has been in effect for the past couple of weeks and my colleagues have written extensively on it. From a general overview provided by Atty. Rodel Unciano to new specific features of the value-added tax as observed by Atty. Fulvio Dawilan, and all the way to the precise changes in the creditable withholding tax refund as remarked by Atty. Mabel Buted. Despite these extensive write-ups, there is still a lot to unpack in the EOPT.
IF you are a FinTech entity (i.e. e-marketplace operator and/or digital financial services provider) in 2023, you may have been looking forward to a worry-free end of year. However, following Murphy’s Law, anything that can go wrong will go wrong. That “anything” came in the form of Revenue Regulations (RR) No. 16-2023.
A little more than a year ago in my article “OECD’s Pillar Two and the Tax Incentives in the Philippines,” we took a peek at what Pillar Two, or the global minimum corporate tax, is all about and how it can affect domestic subsidiaries of multinational entities.
After several postponements, the Barangay and Sangguniang Kabataan Elections (BSKE) finally made it to the stage. The last BSKE that we had was in May 2018. After more than five years, BSKE candidates came out swinging, dancing, and even singing. Personally, the flair and fervor I see in this year’s BSKEs seem to be at the same level as the regular local elections.
Mediation has been a staple of the proceedings before the Court of Tax Appeals (CTA) since its adoption back in 2019. It gives both the taxpayer and the Bureau of Internal Revenue (BIR) another opportunity to amicably settle the tax controversy between them.
The maturity of tax administration can be measured not only in the policies and procedures implemented to make tax collection efficient and to close tax loopholes, but also on how it effectively handles eligible tax refunds. After all, tax administration must be regarded in a holistic manner.
IN my previous article, “The Phygital Revolution: How FinTechs should navigate,” we dipped our toes to see the prevalent impact of financial technology (FinTech) on our daily lives. Using FinTech, we can buy or pay for something with just a tap on our smartphone or a click on our mouse. It has been a staple of our daily transactions.
One of the biggest tax-related news of recent vintage is the explosive revelation that “ghost” companies manufacture fake receipts that some taxpayers purchase to pad up their respective deductible expenses and input tax credits. The latest estimate from the BIR puts the tax loss at P50 billion. For emphasis, that is a number 5 with 10 zeroes. That is a lot of money!
Constantly emerging buzzwords are reflections of our fast-paced reality.
The colors red, yellow, and green are universal in each and every race. Red means danger or stop. Yellow means caution and yield. Green simply means go!
The beginning of 2023 brought some very significant events to my humble career. Among the most high profile is attending the induction ceremony of the new officers of the Management Association of the Philippines. I had the opportunity to rub elbows with some industry titans and leaders. It was a real treat for a young professional such as myself. Yes, yes. I said young so please just indulge me.
IS the Philippines ready for a looming international tax shakedown? How will we be affected? Do we even have the slightest clue of what is to come?
Another hurdle has been cleared in Congress on September 26, 2022 and it involves making taxpayers’ lives easier. House Bill 4125 was approved by the House of Representatives and transmitted to the Senate. This bill introduces amendments to the Tax Code in the hopes of making it easier for taxpayers to comply with their obligations. But will it really? Let’s take a closer look.
IT is right and proper to ask for what is due. However, asking for too much often leads to no good thing. But how do you know when something is too much? Where do you draw the line between what is acceptable and what is not?
From 2020 to 2021, the BIR came into the transfer pricing scene swinging with a slew of issuances to beef up its abilities to address erosion of tax base. Though the news about transfer pricing had mellowed out since the initial requirement of filing the BIR Form 1709 and preparation of the Transfer Pricing Documentation, the BIR recently issued Revenue Regulations (RR) 10-2022 to remind taxpayers that transfer pricing is not a foregone matter.
The BIR has been front and center in several headlines the last couple of weeks, but unfortunately, not for the best of reasons. From the Megaworld task force fiasco to the missed collection target, the BIR is in a dire need of a sustained win.
The younger generations of Filipinos have always been tech-savvy. From the latest social media crazes to the advancement of cryptocurrencies, we are consistently treated as digitally forward. Enter: Non-Fungible Tokens (NFT).
Even before the Covid-19 pandemic, the Philippine government has been hard at work making the country more business-friendly for foreign investment. As other regional players enhance and improve on their respective business and investment climates, there is a need to adapt and innovate lest the country lag further behind its neighbors.
Among the powers granted to local government units is the power to create their own sources of revenues. This is provided in no less than the Constitution. The prevailing law in local taxation is included on the Local Government Code of 1991 (LGC).
Are you one of the companies registered with an investment promotion agency and enjoying certain tax incentives? If so, you must be aware that there are certain terms and conditions stated in the Certificate of Registration or in your Registration Agreement with the concerned IPA attached to the registration. Compliance to these terms is necessary for the continuous enjoyment of the approved tax and non-tax incentives.
Except for certain types of taxpayers or types of income where no deductions or where there are only limited deductions in the computation of income taxes due, individual and corporate income taxpayers are generally entitled to claim deductions in computing their net income subjected to income tax. Traditionally, these are the costs and expenses incurred by the taxpayer in earning the taxable income or in running the business.
After depositing its instrument of accession in the Hague Conference on Private International Law in The Hague on September 12, 2018, the Apostille Convention officially entered into force between the Philippines and the other State Parties that have raised no objection to its accession on May 14, 2019.
Moves for the implementation of the recent amendments and revisions to the Corporation Code of the Philippines are now in full swing with the release of Notices from the Securities and Exchange Commission (SEC) asking all interested parties for their comments or views on the proposed guidelines for (i) the establishment of a one person corporation and (ii) the conversion of an ordinary stock corporation into an OPC.
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