First Vigan-Laoag-Pagudpup Ilocos Philippines Outing


By; Tax and Accounting Center Philippines As the group of affiliated companies celebrate its second year of successful operations, the group finally decided to go for its annual company outing, an Ilocos, Philippines  tour: Vigan-Laog-Pagudpud Tours.  Everyone in the group is quite excited as they would travel for a company sponsored outing for a look back at history and a witness of the unique tourist attractions in Vigan-Laoag-Pagudpud, Ilocos, Philippines. The Vigan-Laoag-Pagudpud Ilocos Philippines Tour has lot to offer but with the time constraint and the number of the group, we simply made the most of what we could enjoy. Life is not about work and work should be a joyful life activity. The Vigan-Laoag-Pagudpud Ilocos Tour The Vigan-Laoag-Pagudpud Ilocos Philippines Tour is a joyful four (4) days, three (3) nights (4D/3N) tour bound to leave Makati Philippines at 9PM on Thursday and  will leave Pagudpud, Ilocos, Philippines on Sunday 9AM. To

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VAT exemption of livestock and poultry feeds Philippines


By: Tax and Accounting Center Philippines  As we have been aware, certain tax exemptions have been provided by law on some agricultural food products for basic commodities. On top of this exemption on primary agricultural products, Section 109(1)(B) of the National Internal Revenue Code, as amended, states that livestock and poultry feeds in the Philippines are exempted from value added tax (VAT) and hereunder: “Section 109 – Exempt transaction (1)(B) – Sale or importation of fertilizers, seeds, seedlings and fingerlings, fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets)” (Emphasis supplied only) In Revenue Regulations No. 16-2005 – Consolidated Value Added Tax (VAT) regulations, as amended, “specialty feeds” is defined as follows: “Specialty feeds” refers to non-agricultural feeds or food for

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Inurement Prohibition on Non-stock Corporations Philippines


By: Tax and Accounting Center Philippines Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 51-2014 dated 6 June 2014 entitled “Clarifying the Inurement Prohibition under Section 30 of the National Internal Revenue Code of 1997” In relation to the pronouncement of the Supreme Court in the Case of Commissioner of Internal Revenue (CIR) versus St. Lukes Medical Center, Inc. under G.R. No. 195909 and 195960 dated 26 September 2012 the following terms where defined: Non-stock corporation Philippines “Non-stock” means “no part of its income is distributed as dividends to its members, trustees, or officers” and that any profit “obtained as an incident to its operations shall, whenever necessary and proper, be used for the furtherance of the purpose or purposes for which the corporation was organized”. Non-profit corporation Philippines “Non-profit” means that “no net income or asset accrues  to or benefits any member or specific person, with all

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How to Register a Philippine Branch Office?


By: Tax and Accounting Center Philippines A Philippine branch office of a foreign corporation is a form of an operating resident foreign corporation in the Philippines where the legal entity of a foreign corporation is being brought into the Philippines to engage in some activities of its parent company abroad to the extent allowed by laws, rules, and regulations in the Philippines. For the purpose, a foreign corporation is required to secure a License to do Business in the Philippines for its branch office in the country and is allowed to do business in same manner as its head office abroad to some extent. A Philippine branch of a foreign corporation is an income producing entity, and as such, subject to 30% income tax and 12% value added tax on its local sale or zero-rated on its sales abroad other than to its parent company. It is also subject to

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Electronic Certificate Authorizing Registration eCAR Philippines


By: Tax and Accounting Center Philippines Bureau of Internal Revenue issued Revenue Memorandum Circular No. 40-2014 dated 12 May 2014 entitled “Prescribing the Use of Electronic Certificate Authorizing Registration (BIR Form No. 2313-R For Transactions Involving Transfer of Real Properties and BIR Form No. 2313-P for Transactions Involving Transfers of Personal Properties”. Under BIR Revenue Memorandum Circular No. 40-2014 (RMC 40-14), manual issuance of Certificate Authorizing Registration (CAR) in the Philippines shall be discontinued upon the rollout of Electronic Certificate Authoring Registration (eCAR) System in the Revenue District Offices (RDOs) / Large Taxpayers (LTs) / Audit Division. Hereunder are the features of the new CAR: eCAR Philippines an accountable form eCARs in the Philippines for BIR Form No. 2313-R For Transactions Involving Transfer of Real Properties and BIR Form No. 2313-P for Transactions Involving Transfers of Personal Properties is now treated as an accountable form of the Bureau of Internal Revenue

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Who are Resident Agents in the Philippines?


By: Tax and Accounting Center Philippines As you have noticed, foreign corporations are allowed to do business in the Philippines and deal with all of us in their day-to-day operations. When the worst case scenario comes that their Philippine operations has to terminate and leave the country, the question that could come to our mind is: To whom shall the notices, summonses, and legal processes be served? This question has been answered in at least two instances – requiring resident agent in the Philippines of foreign corporations. In other words, Philippine laws, rules, and regulations provides for the appointment of resident agent as follows: A. Resident Agent under Securities and Exchange Commission Under Section 144 of the Revised Corporation Code of the Philippines, and we quote: “Section 144. Who may be a resident agent. – A resident agent may either be an individual residing in the Philippines or a domestic

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How to Register Representative Office in Philippines?


A Philippine representative office is form of a resident foreign corporation in the Philippines where the legal entity of a foreign corporation is being issued a License to Do Business in the Philippines to engage in specific administrative activities allowed by law. It is required US$30,000 capitalization, exempted from income and business taxes as it is not allowed operational income, allowed local and expatriate employment, and accordingly enter into legal contracts for its operations in Philippines.

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How to Create Wedding Decorations on Budget?


By: Joel Calderon Padoga of JCP Events Stylist When it comes to your decorating budget it really depends on where the ceremony and reception will be on what decorations need to be present as well as what if any; themes that you are choosing. For example, if you are planning an indoor dinner, you have to include centerpieces, etc. The most common decorating choice for weddings and reception are flowers, and streamers. While the streamers and various other decorations are generally inexpensive, the flowers can kill you. It is best when choosing your flowers for a wedding service and reception to use false flowers or paper machete flowers as they are cheap and reusable. For those who would much prefer to use real flowers, it can be much cheaper to go with wild flowers and/or hand picked flowers. It is also a good idea to use them sparingly. For example, rather

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How to Register a Non-stock Non-profit in the Philippines?


By: Tax and Accounting Center Philippines You may have a charitable mind and a big heart having in mind the general welfare of the less privileged and the needy, or you may simply want to operate a non-stock, non-profit entity for a reason or another, this article could be of help. Non-stock and non-profit corporation in the Philippines is one who operates for a not-for-profit undertaking such as charitable institutions, associations, foundations, health organizations, environmental activities, and others in line. It does not issue shares of stocks to stockholders but rather admit members based on established rules in its By-laws. Its operational funds could come from donations, members contributions, and some proceeds from fund raising activities. For tax purposes, it could be exempted from income tax and value added tax on sales  based on BIR Ruling issued. It is however subject to withholding taxes on its income payments and compensation,

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Revenue Regulations No. 16-2008


Implementing the provisions of Section 34(L) of the Tax Code of 1997, as amended by Section 3 of Republic Act No. 9504, Dealing on the Optional Standard Deduction (OSD) Allowed to Individuals and Corporations in Computing their Taxable Income Sec. 1. – Scope Pursuant to Sec .244, in relation to Sec. 3. of Republic Act No. 9504 (RA 9504) amending Sec. 34(L) of the Tax Code of 1997 (Code), as amended, these Regulations are hereby promulgated in order to implement the provisions on Optional Standard Deduction (OSD) fir individuals and corporations. Sec. 2. Persons Covered – The following may be allowed to claim OSD in lieu of the itemized deductions (i.e. items of ordinary and necessary expenses allowed under Sections 34 (A) to (J) and (M), Section 37, other special laws, if applicable): Sec.3. Determination of the amount of Optional Standard Deduction for Individuals. – The OSD allowed to individual

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