Withholding Tax of Government on Job Order Personnel under EO No. 782

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By: Garry S. Pagaspas Under Executive Order No. 782 series of 2009 (EO No. 782) entitled “Instituting Measures to Assist Workers Affected by Global Financial Crisis and Temporary Filling Up of Vacant Positions in the Government”, all departments and agencies of the government are authorized to set-aside 1.5% of their Maintenance and Other Operating Expenses (MOOE) for temporary hiring of qualified Department of Labor and Employment (DOLE) registered displaced workers and their dependents on a job order basis. As I browse the internet, tax compliance of job order basis personnel had been a common topic for discussion both by the personnel involved and the government agency employee in charge for withholding. Accordingly, this article is an attempt to reach them out and guide them on their tax compliance, though; this is neither equivalent to an expert opinion, nor, a formal ruling on the matter. The author strongly suggest that the

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List of 2015 Philippines Holidays Under Proclamation No. 831

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By: Tax and Accounting Center Philippines The President of the Philippines issued Proclamation No. 831 dated July 17, 2014 declaring the regular holidays, special (non-working) days, and special holidays for calendar year 2015. Luckily, there are at least twelve (12) long weekends that each of us could maximize such as going for a land travel, tour overseas, make family vacations, and more. Below are the list of 2015 holidays in the Philippines: 2015 Regular Holidays Philippines    January 1, 2014 (Thursday) – New Year’s Day April 2, 2015 (Thursday) – Maundy Thursday April 3, 2015 (Friday) – Good friday April 9, 2015 (Thursday) – Araw ng Kagitingan May 1, 2015 (Friday) – Labor Day June 12, 2015 (Thursday) – Philippine Independence Day August 31, 2015 (Last Monday of August) – National Heroes Day November 30, 2015 (Monday) – Bonifacio Day December 25, 2015 (Friday) – Christmas Day December 30, 2015 (Wednesday) – Rizal

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Knowing Basic Business Accounting for Non-Accountants Philippines

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By: Tax and Accounting Center Philippines In the present day business, basic business accounting for non-accountants in the Philippines is a must learn topic as a root for compliance. Non-accountants in the Philippines maintain the belief that learning basic business accounting would take much time and effort, if not resources, and would just leave it all to their retainer paid accountants or bookkeepers in the Philippines.  Unfortunately, while this may have worked in the past decade, the current circumstances of accounting and tax compliance would disfavor such mindset of small and medium entrepreneurs in the Philippines. In most worst instances, the entrepreneur would end up headaches on missed compliance blaming none other than themselves for entrusting everything to their retainer paid accountants or bookkeepers in the Philippines. By this present, let us give a simple overview of what basic business accounting is all about. Going through this before attending any

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First Vigan-Laoag-Pagudpup Ilocos Philippines Outing

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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

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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

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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?

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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

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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?

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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?

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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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