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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.

Undoubtedly, the pandemic has resulted in monumental changes to global working practices in the short span of two years. In that time, it has also introduced the concept of an employee’s market for recruitment and a fierce war for talent as employees – women especially – found more opportunities amidst the new and more flexible working conditions. Grant Thornton welcomes the seeming continuation of this trend as our research saw more than 70% of businesses are now working to create a more inclusive environment to attract and retain female talent.

Diversity in the boardroom is a recognized imperative for an effective leadership. Successful businesses recognize that leaders must be composed of dynamic and diverse individuals to prevent groupthink and stimulate healthy exchange of ideas. The boardroom must be constantly permeated with different views and backgrounds if it expects to successfully adapt the business in this era of ever shifting tides and radical changes.

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.

Last December 10, 2021, the President signed into law Republic Act 11595, otherwise known as “An Act amending Republic Act No. 8762 or the Retail Trade Liberalization Act of 2000 (RTLA), by lowering the paid-up capital requirement for foreign retail enterprises and other purposes”.

For the longest time, it was a common observation to say that while the Philippines ranked high in surveys for number of internet users and overall usage, the country lagged in terms of connectivity speed compared to its peers. However, as digital enablement and transformation have been the top priorities since the start of remote work, even that seemingly deep-rooted truth is about to change. Telco companies have made a point to offer improved network services, beginning with the deployment of 5G technology.

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.

The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) 19-2022, which provides clarification and guidance to Revenue District Offices (RDOs), revenue officers, and others concerned on Section 8 of Revenue Regulation (RR) 5-2021, particularly on the mandate to issue Certificate Authorizing Registration (CAR) without a prior BIR confirmation or tax ruling on the tax-free exchanges of properties, while at the same time ensuring that proper taxes due to the Government on their subsequent sale or disposition are protected and collected thru the establishment and proper monitoring of their correct substituted basis.