No Work, No Pay? Maximize Your PAG-IBIG Membership This Time of Calamity

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Arianne Keith Velasquez, CPA In view of the pandemic the whole world is suffering with recently, it is impossible for Filipinos to ignore the fact that the human respiratory system is not only being compromised here but also the livelihood of family providers such as employees under the no work, no pay policy. The sudden declaration of the Enhanced Community Quarantine in the entire Luzon after 48 hours of General Community Quarantine, which made it difficult to cross along city borders, hurts the pockets of many. On March 17, 2020, Proclamation No. 929, pursuant to Section 16 of Republic Act No. 10121, was issued by President Rodrigo Duterte to declare the Philippines under State of Calamity enjoining the government agencies to provide full assistance to the Filipino community with the great efforts to defy COVID-19. To wit, PAG-IBIG Fund is one of the established national saving programs providing financial assistance

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SEC Extension on Filing 2019 Audited Financial Statements under COVID-19

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By: Garry S. Pagaspas, CPA In line with the government’s handling of COVID-19 and pursuant to its regulatory power under Section 5.1(g) of Securities Regulation Code (SRC) and Section 179(o) of the Revised Corporation Code (RCC) Philippines, the Securities and Exchange Commission (SEC) Philippines has issued Memorandum Circular No. 5 series 2020 last March 12, 2020 granting an extension of time without penalty, within which to submit 2019 Annual Audited Financial Statements in Philippines covering the calendar year ended December 31, 2019 as follows: For companies doing domestic operations only: an extension of time until 30 June 2020; and, For companies with domestic and foreign operations: an extension of time until 30 June 2020 or 60 days from the date of lifting of travel restrictions/ ban by the concerned government authorities, whichever comes later. For such purpose of availing extension of filing 2019 Audited Financial Statements in Philippines of companies

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10 Notable Personalities under the Revised Corporation Code in Philippines

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By: Garry S. Pagaspas, CPA Revised Corporation Code (RCC) or Republic Act No. 11232 in the Philippines signed into law last February 20, 2019 has introduced major changes in the Corporation Code under Batas Pambansa Bilang 68 in the Philippines and among those are related to personalities and officers. Below is a summary of those in the sequence they appeared in the RCC that you could use as easy reference for dealings with your respective corproations, Securities and Exchange Corporation (SEC), and other related discussions. 1. Incorporators Incorporators in Philippines are the ones who originally form a corporation. Under the Old Corporation Code (OCC) or Batas Pambansa Bilang 68, an incorporator must be natural persons numbering at least 5 but not more than 15, must own at least one (1) share, and majority of which must be residents. This was changed under the Revised Corporation Code (RCC) or Republic Act

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Title XV – Final Provisions

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SECTION 313.  Separability Clause. – If any clause, sentence, paragraph or part of this Code shall be adjudged by any Court of competent jurisdiction to be invalid, such judgement shall not affect, impair or invalidate the remainder of said Code, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy. (Re-sectioned by RA 11534)

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Title XIV – Repealing Clause

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SECTION 312.  In General. – All laws, decrees, executive orders, rules and regulations or parts thereof which are contrary to or inconsistent with this Code are hereby repealed, amended or modified according. (Re-sectioned by RA 11534)

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Title XIII, Chapter VI – Transitory and Miscellaneous Provisions

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Sec. 309. Prohibition on Registered Activities. – A qualified registered project or activity under an Investment Promotion Agency administering an economic zone or freeport shall be exclusively conducted or operated within the geographical boundaries of the zone or freeport being administered by the Investment Promotion Agency in which the project or activity is registered: Provided, That a registered business enterprise may conduct or operate more than one qualified registered project or activity within the same zone or freeport under the same Investment Promotion Agency: Provided, further, That any project or activity conducted or performed outside the geographical boundaries of the zone or freeport shall not be entitled to the incentives provided in this Act, unless such project or activity is conducted or operated under another Investment Promotion Agency. Sec. 310. Establishment of One-stop Action Center. – All Investment Promotion Agencies shall establish a one-stop shop or one-stop action center that

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Title XIII, Chapter V – Tax Incentives Management and Transparency

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Sec. 305. Filing of Tax Returns and Submission of Tax Incentives Reports. – All registered business enterprises and other registered entities whether taxable or exempt, are required to file their tax returns and pay their tax liabilities, on or before the deadline as provided under the National Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes with the Bureau of Internal Revenue: Provided, That for purposes of complying with their tax obligations, cooperatives and other registered entities which do not have access to the electronic facilities shall file with their respective revenue district offices. For registered business enterprises and other registered enterprises availing of tax incentives administered by the investment promotion agencies and other government agencies administering tax incentives, they shall file with their respective Investment Promotion Agencies or other government agencies administering tax incentives a complete annual tax incentives report of

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Title XIII, Chapter IV – Qualified Project Activities for Tax Incentives

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Sec. 300. Strategic Investment Priority Plan –  The Board of investments, in coordination with the Fiscal Incentives Review Board, Investment Promotion Agencies, other government agencies, other government agencies administering tax incentive, and the private sector, shall formulate the Strategic Investment Priority Plan to be submitted to the President for approval, which may contain recommendations for types of non-fiscal support needed to create high-skilled jobs to grow a local pool of enterprises, particularly Micro, Small and Medium Enterprises (MSMEs), that can supply to domestic and global value chains, to increase the sophistication of products and services that are produced and/ or sourced domestically, to expand domestic supply and reduce dependence on imports, and to attract significant foreign capital or investment. The Strategic Investment Priority Plan shall be valid for a period of three (3) years, subject to review and amendment every three (3) years thereafter unless there would be a supervening

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Title XIII, Chapter III – The Fiscal Incentives Review Board

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Sec. 297. Expanded functions of the fiscal incentives review board. – The functions and powers of the Fiscal Incentives Review Board created under Presidential Decree No. 776, as amended, shall be expanded as follows: (A) To exercise policy making and oversight functions on the administration and grant of tax incentives by the investment promotion agencies and other government agencies administering tax incentives. In particular the Fiscal Incentives Review Board shall: (1) Determine the target performance metrics as conditions to avail of tax incentives; (2) Review and audit the compliance of other government agencies administering tax incentives, with respect to the administration and grant of tax incentives and impose sanctions such as, but not limited to, withdrawal, suspension, or cancellation of their power to grant tax incentives: (3) Determine the minimum contiguous land area that vertical economic zones should comply with; (4) Conduct regular monitoring and evaluation of investments and non-investment

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Title XIII, Chapter II – Tax and Duty Incentives

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Sec. 294. Incentives. – Subject to the conditions and period of availment in Sections 295 and 296, respectively, the following types of tax incentives may be granted to registered projects or activities: (A) Income Tax Holiday (ITH); (B) Special Corporate Income Tax (SCIT) rate – for export enterprise, domestic market enterprise with a minimum investment capital of five hundred million pesos (P500,000,000.00), and domestic market enterprise under the strategic investment priority plan engaged in activities that are classified as “critical,” a tax rate equivalent to five percent (5%) effective July 1, 2020, based on the gross income earned, in lieu of all national and local taxes. (Vetoed by the President) The domestic market enterprise under the Strategic Investment Priority Plan engaged in activities that are classified as “critical” shall refer to those enterprises belonging to industries identified by the national economic and development authority to be crucial to national development.

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