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Revised guidelines for tax clearance of government bidders

15 Feb 2016

Revenue Regulations 1- 2016 promulgates that only Tax Returns filed thru Electronic Filing and Payment System (eFPS) will be accepted as attachments to government bids/proposals as required under Executive Order (EO) 398.

Clarification on tax exemption of NSSLAs

01 Feb 2016

NSSLAs, as defined under Section 3 of Republic Act (RA) 8367 are non-stock, non-profit corporations engaged in the business of accumulating the savings of its members and using such accumulations for extending credit to them.  The BIR clarifies that, pursuant to Section 5 of the same law, NSSLAs are only exempted from paying income taxes on income they receive, including interest from bank deposits.   The same Section also provides that income derived from any of its properties, real or personal, or any activity conducted for profit, regardless of the disposition thereof, is subject to the corresponding internal revenue taxes. Thus, any disposition made by a NSSLA of its properties (real or personal) is subject to the applicable income tax depending on the classification of such properties either capital or ordinary asset.   Further, NSSLAs shall also be subjected to gross receipts tax as a nonbank financial institution and to documentary stamp tax on loan agreements and mortgages, among others. 

New policies on compromise/abatement applications

27 Jan 2016

Denial of applications for compromise settlement and abatement at the regional/LTS level shall be considered FINAL, without need to elevate to the NEB.   The regions/LTS shall prepare the Notice of Denial which will be signed by the CIR without any further review by the National Evaluation Board.

Teleconferencing for stockholder’s meeting not allowed

22 Jan 2016

Section 51 of the Corporation Code requires that the stockholders’ meeting “shall be held in the city or municipality where the principal office of the corporation is located, and if practicable in the principal office of the corporation.”  This provision, according to SEC Opinion 16-01, presupposes that the attendees are in the same place during the meeting, which is not the case in teleconferencing.  

Jan 20 deadline for list of employees by all Makati business establishments

14 Jan 2016

The Business Permits Office of the City of Makati announced that it is aiming for the strict implementation of the provisions of the Makati Revenue Code (City Ordinance No. 2004-A-02) concerning employees and business establishments located in the City of Makati.