SEC Security Deposit of Branch Offices in the Philippines

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By: Tax and Accounting Center Philippines Under Section 126 of the Corporation Code of the Philippines, a security deposit is required to be deposited with the Securities and Exchange Commission (SEC) from issuance of License to do Business in the Philippines for the benefit of the  present and future creditors of the Philippine Branch in the Philippines. In simple and plain language, this security deposit is a fund set aside in SEC prescribed investments that would serve as a standby fund of the Philippine Branch for its creditors in the worst case scenario. Upon withdrawal of registration of the Philippine Branch and there remains no liabilities, then, the SEC would release such security deposit. In relation to the above, SEC issued Memorandum Circular No. 2 Series of 2012 (SEC MC No. 2-2012) to provide “Guidelines on Security Deposit of Branch Offices of Foreign Corporations” in the Philippines and we summarized

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September 2015 Tax and Accounting Seminar Workshop Schedules Philippines

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Taxation and accounting rules keeps on changing from time to time. Further enhance your tax and accounting knowledge towards ensuring your tax compliance as a taxpayer moving forward , Tax and Accounting Center, Inc. offers the following seminars and workshops for September 2015 Philippines: Sept. 11-12, 2015 – Friday & Saturday, Basic Business Accounting and BIR VAT Compliance Seminar Workshop Bookkeepers are not always the person you could trust 100%. To determine whether they are delivering what they should be under your terms and agreement with them, you must have a working knowledge on how they are supposed to deliver. Learn in this program how you would handle your accounting and tax compliance of your VAT-registered business. Learn more…Basic Business Accounting and BIR VAT Compliance Seminar Workshop September 18-19, 2015 – Thursday & Friday, Basic Business Accounting and BIR Non-VAT Compliance Seminar Workshop Bookkeepers are not always the person you could trust

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How to Register a Subsidiary of a Foreign Company in Philippines

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By: Tax and Accounting Center Philippines A Philippine subsidiary is essentially a local domestic corporation registered and existing under the laws of the Philippines enjoying the rights, duties, and privileges of a local domestic corporation. It is duly owned and controlled by a foreign entity that is treated as an entity separate and distinct from each other. This ownership and control makes it a subsidiary of the foreign company in the Philippines and you could use this set-up in a number of operations in the Philippines such as in business process outsourcing, consultancies, and more. For the purpose, a foreign corporation will become an investor-stockholder of the local domestic corporation entity of such ownership allowing the same material participation in the management and control of the local company in the Philippines. For registration purposes, percentage of ownership should be to the extent allowed by law in relation such factors as nature

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July 2015 Tax and Accounting Seminar Workshop Schedules Philippines

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Taxation and accounting rules keeps on changing from time to time. Further enhance your tax and accounting knowledge towards ensuring your tax compliance as a taxpayer moving forward , Tax and Accounting Center, Inc. offers the following seminars and workshops for July 2015 Philippines: July 9-10, 2015 – Thursday & Friday, Basic Business Accounting and BIR Non-VAT Compliance Seminar Workshop Bookkeepers are not always the person you could trust 100%. To determine whether they are delivering what they should be under your terms and agreement with them, you must have a working knowledge on how they are supposed to deliver. Learn in this program how you would handle your accounting and tax compliance of your no-VAT registered business. Learn more…Basic Business Accounting and BIR VAT Compliance Seminar Workshop July 11, 2015 – Saturday, BIR Examination: Their Procedures and Taxpayer’s Defenses For a non-experienced taxpayer, BIR tax examination is fearsome and inconvenient.

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June 2015 Tax and Accounting Seminar Workshop Schedules Philippines

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Learning from the lessons of the 2014 taxable year filing season this April 2015 and to further enhance your tax and accounting knowledge towards ensuring your tax compliance as a taxpayer moving forward , Tax and Accounting Center, Inc. offers the following seminars and workshops for June 2015 Philippines: June 4, 2015 – Thursday, How to Analyze Financial Statements for Managers & Entreprenuers Financial statements are not for compliance filing only. Learn how you could understand deeper the implications of the figures on the financial statements to assess risks and avail of opportunities. Learn more…How to analyze Financial Statements For Managers & Entreprenuers June 5-6, 2015 – Friday & Saturday, Basic Business Accounting and BIR VAT Compliance Seminar Workshop Bookkeepers are not always the person you could trust 100%. To determine whether they are delivering what they should be under your terms and agreement with them, you must have a working

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May 2015 Tax and Accounting Seminar Workshop Schedules Philippines

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Learning from the lessons of the 2014 taxable year filing season this April 2015 and to further enhance your tax and accounting knowledge towards ensuring your tax compliance as a taxpayer moving forward , Tax and Accounting Center, Inc. offers the following seminars and workshops for May 2015 Philippines: May 2, 2015 – Saturday, Compensation: Computations and Must Know Exemptions Learn the computations of basic compensation, minimum wage, overtime pay, holiday pays, and other necessary computations for determining how much an employee should receive in any cut-off. Based on such salaries, learn how to compute mandatory deductions, and withholding tax due. You will likewise learn salaries and wages exempted from withholding tax on compensation and fringe benefits tax applications. Learn more…Compensation: Computations and Must Know Exemptions Philippines. May 6, 2015 – Wednesday, How to Analyze Financial Statements for Managers & Entreprenuers Financial statements are not for compliance filing only. Learn

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10 Tax mistakes on financial statements and income tax returns Philippines

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By: Garry S. Pagaspas, CPA Comes 2014 calendar year filing season, taxpayers, accountants, and tax agents in the Philippines are on their respective schedules for the filing of the annual income tax returns with attached audited financial statements not later than April 15, 2015. During tax seasons in the Philippines, the following tax mistakes on the audited financial statements (AFS) and annual income tax returns (ITR) in the Philippines should be avoided: 1. Excessive Retained earnings subject to 10% IAET Improper accumulation of earnings after tax is subject to 10% and an indicator of the same on the face of the audited financial statements is the glaring free retained earnings more than the paid-up capitalization. Under Section 43 of the Corporation Code of the Philippines, as amended, domestic corporations are not allowed to maintain free retained earnings more than 100%. In Section 29 of the Tax Code, as amended, a 10%

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How to determine tax exempt minimum wage Philippines?

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By: Garry S. Pagaspas, CPA Under Republic Act No. 9504 implemented by Revenue Regulations No. 10-2008, statutory minimum wage earners are exempted from income tax, and consequently from withholding tax on compensation. While this is a much welcomed legislation for the labor sector, some employees and employers in the Philippines are not aware on how to determine whether or not the salary or compensation in the Philippines is within the statutory minimum wage. For this purpose, this articles attempts to share simple rules on how to determine tax exempt statutory minimum wage in the Philippines. How to determine minimum wage for daily paid employee Philippines? For a daily paid employee, simply compare the employee rate per day with the minimum wage of NCR (e.g. 481 a day inclusive of ECOLA). If rate is equal to minimum wage, then, the same is exempted from withholding tax on compensation – basic minimum

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Registering Tax Exempt Foreign Corporations in the Philippines

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By: Garry S. Pagaspas, CPA As most would be aware, a foreign corporation outside of the Philippines could have a number of choices on what to register in the Philippines for its intended operations such as the following: Philippine subsidiary where the foreign corporation would own majority of shares of stock of the local domestic company; Domestic corporation where the investor would along with the rest would incorporate a local corporation without the foreign corporation becoming a stockholder; Philippine branch – How to Register Philippine Branch?; Regional Operating headquarters (ROHQ) – How to Register ROHQ in the Philippines? ; Regional or Area headquarters (RAHQ); and, Representative Office in the Philippines – How to Register Representative Office in the Philippines? A good choice of legal entity to be used in the Philippines would be a challenging one for the foreign investor and would depend on a number of factors like intended operations,

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Pope Francis Homily in Quirino Grandstand Philippines January 2015

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By: Tax ad Accounting Center, Inc. On the context of faith, we put God in every thing we do. Please allow us to go beyond business articles (tax, accounting, and etc.) and share our moment of joy with the blessing of Pope Francis visit from January 15-19, 2015. Seeing him strengthened our faith, reminded us of the true meaning of humility, compassion, and love of others. Hearing his homily in the concluding mass at Quirino Grandstand, Metro Manila, Philippines participated by a crowd estimated to be aroung 6-7 million Filipinos  last January 18, 2015 would strengthen our faith and admiration of the Lord Jesus . Below is the full text of the Homily of Pope Francis in Quirino Grandstand, Philippines last January 18, 2015 as interpreted by Msgr. Mark Gerald Miles in English and lifted from GMA. “A child is born to us, a son is given us” (Is 9:5).

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