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Last month, the Philippines adopted the Ten-Point Policy Agenda on Economic Recovery to accelerate and sustain economic recovery from the COVID-19 pandemic through Executive Order (E.O.) No. 166. Among the principles laid down by E.O. No. 166 is the resumption of economic and social activities, removal of age-based restrictions on mobility, and the further expansion of public transport capacity.

Under its Charter, the Philippine Amusement and Gaming Corporation (PAGCOR) was given the mandate to regulate, operate, authorize, and license games, particularly casino gaming in the Philippines. Through this mandate, PAGCOR is expected to generate revenues for the Philippine Government’s socio-civic and national development programs, as well as help promote the Philippine tourism industry.

Considering today’s economic situation, the primordial importance of having happy and productive employees is gaining popularity. When employees are trusted and involved in the company, yields are higher. Conversely, when people feel unmotivated or undervalued, the company suffers. On top of that, studies show that employees highly engaged in their work commit less mistakes, do better, and are more sympathetic of changes and are eager to embrace such changes.

Last year, new value-added tax (VAT) rules were introduced by Republic Act (RA) No. 11534 or the CREATE Act. This act was followed by other issuances like the CREATE Implementing Rules and Regulations (CREATE IRR), and Revenue Regulation (RR) No. 21-2021. Despite the law and regulations, questions remained like: What is the proper VAT treatment of transactions with registered business enterprises (RBEs)? What type of BIR documentation is required in addition to the endorsement of the Investments Promotions Agencies (IPAs)? What does endorsement from IPAs mean? What rules shall govern when availing VAT incentives?

A basic fact of life is that “nothing lasts forever”. Things can change, whether for better or for worse. It may be said that several entities enjoying tax incentives are left wondering about the many changes and developments in Philippine tax laws. Among the questions of taxpayers is –"Can we still enjoy what we are enjoying now?”

One of the most common inquiries we receive from foreign investors pertains to questions involving setting up of subsidiaries in the Philippines and their concerns with minimum capital requirements relevant to the nature of their business or industry. The restrictions on foreign ownership to some industries surely affect the flow of foreign investments in the country, the Philippines being notably one of the strictest within Asia-Pacific in terms of its foreign investment policies. For some time now, the law easing these restrictions for this matter has been long anticipated to stimulate investments from foreign enterprises.

It has been almost a year since Republic Act No. 11534, otherwise known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was signed into law. It took effect on April 11 last year. Its central focus is to lower corporate income tax rates for domestic and foreign corporations to mitigate the effects of the COVID-19 pandemic on our economy. However, this is not the case for Regional Operating Headquarters (ROHQs), which in the past enjoyed a preferential income tax rate of 10%. With the passage of the CREATE Law, effective January 1, 2022, ROHQs shall now be taxed at 25% Regular Corporate Income Tax (RCIT) or 1% (until June 30, 2023)/ 2% Minimum Corporate Income Tax (MCIT), whichever is higher.

To file or not to file annual income tax returns? This is not a question for corporations, as the answer will always be to file. For corporations following calendar year as their taxable period, there are only 52 calendar days left until the April 15 deadline for filing of annual income tax returns. For diligent corporate taxpayers preparing their income tax returns, the following are the general guidelines and reminders for an easy and stress-free tax return preparation.