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For most businesses in the Philippines, the first quarter of the year demands compliance of annual registration renewals, filing of tax returns, submission of financial statements, and payment of taxes. Corporate and tax practitioners have infamously tagged this period as the busy season in which they find themselves working around the clock for longer hours and with countless doses of caffeine.

It’s been almost two years since the Bureau of Internal Revenue (BIR) released several issuances involving updated reporting requirements for related party transactions (RPTs) and compliance with transfer pricing (TP) regulations. Since then, a lot of business entities have been anticipating how the tax authorities will be conducting audit investigations on RPTs, and whether they will be among the first ones to get to experience the TP audit.

During one of my yearly home visits, I asked my father why there were no more cornfields visible along the roads. He replied “Alkanse na ang pang uma karon dong uy” (Farming is no longer profitable nowadays, son). From that reply, I sensed his frustration as he was once a farmer. He then added that the cost of farming inputs, as well as the effects of climate change, prompted him to quit farming.

With the recent surge in the number of COVID-19 cases placing Metro Manila, along with other areas, in General Community Quarantine Alert Level 3, the current situation adds to the anxieties that everyone is experiencing during this challenging time. Perhaps, for a moment, we can think of some light vibes to somehow lighten our burden, particularly for taxpayers who have a lot on their plate.

Just when things were starting to feel normal again, 2022 came and so did the significant surge of COVID-19 cases. This pandemic has changed our lives in different ways. Lives were put on hold, some were overturned, and many lives were lost. Amidst this new normal, however, we have proven time and time again the Filipino’s resiliency and adaptability – finding new ways to persevere and to thrive despite challenges.

The introduction of the Tax Reform for Acceleration and Inclusion (TRAIN) Act in 2018 brought with it an amendment that provides that the “amortization of input VAT” on purchased or imported capital goods will no longer be allowed beginning Jan. 1, 2022. Therefore, the related input VAT on capital goods acquired in 2022 may be fully recognized outright and be claimed as input tax credits against output tax during the month when the capital goods are purchased or imported, regardless of whether the aggregate acquisition cost in a calendar month exceeds P1 million.

The COVID-19 pandemic brought with it an unprecedented and drastic change on how businesses were conducted. Business operations in several countries bore the brunt of its effects, and businesses in the Philippines were no exception. Some businesses managed to survive; however, some struggled, resorting to reduced operational costs or worse, laying off a number of their employees in order to stay afloat and compete in the new normal. Hence, many employees were involuntarily separated from their employers.

Christmas commemorates the birth of Jesus and is observed every Dec. 25. A few days more, and we will be officially celebrating the holiday most associated with giving. And despite the COVID-19 pandemic, it looks like the long-awaited recovery is taking hold.