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
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.
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
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,
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
Implementing the Provision on Improperly Accumulated Earnings Tax Under Section 29 of the Tax Code of 1997 Section 1. Scope. – Pursuant to Section 244 of the Tax Code of 1997, in relation to Section 29 of the same Code, these Regulations are being issued to prescribe the rules governing the imposition of Improperly Accumulated Earnings Tax. SEC. 2. Concept of Improperly Accumulated Earnings Tax (IAET) – Pursuant to Section 29 of the Code, there is imposed for each taxable year, in addition to other taxes imposed under Title II of the Tax Code of 1997, a tax equal to 10% of the improperly accumulated taxable income of corporations formed or availed of for the purpose of avoiding the income tax with respect to its shareholders or the shareholders of any other corporation, by permitting the earnings and profits of the corporation to accumulate instead of diving them among or
By: Tax and Accounting Center Philippines Philippines tax system is anchored on “voluntary compliance” where taxes are under “pay-as-you-file” where the taxpayers determines for himself what taxes to pay, when to pay taxes, where to pay taxes, how much to pay, and how to pay taxes in the Philippines. At the end of the day, if the taxpayer fails to pay the tax due, the tax authorities is not powerless to collect the rightful amount of tax. Every failure to pay the tax carries a penalty – criminal liability and/or civil liability. Of course, you would not like it to go prison for violations of the tax rules and regulations in the Philippines. Meantime, let us take some civil penalties for failure to pay the tax in the Philippines. 1. Surcharge of 25% or 50% of basic tax Under Section 248 of the Tax Code, there shall be imposed, in
By: Tax and Accounting Center Philippines Few months prior to the last day of filing calendar year annual income tax return for taxable year 2013, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 2-2014 dated 24 January 2014 entitled “New Income Tax Forms”. New Annual Income Tax Returns Philippines Starting the taxable year 2013, the following new income tax returns in the Philippines shall be used by those taxpayers who are mandatorily required to file annual income tax returns, and those not required to file but opted to file the same: 1. Individual Income Tax Returns Philippines BIR Form No. 1700 version June 2013 – Annual income tax return for individuals earning purely compensation income; and, BIR Form No. 1701 version June 2013 – Annual income tax returns for Self-employed individuals, estates, and trusts. 2. Corporate Income Tax Returns Philippines BIR Form No. 1702-RT version June 2013 –
By: Tax and Accounting Center Philippines For corporations and companies in the Philippines, filing of the audited financial statements with the Securities and Exchange Commission (SEC) for calendar year ending December 31, 2013 is past approaching. As such, we would wish to share some matters related to the filing of the audited financial statements with the SEC for reference and guidance as follows: When to file audited financial statements with SEC? Under SEC Circular number 16 series of 2013 dated 13 September 2013, the SEC prescribed the 2014 filing of the 2013 audited financial statements. All corporations, including Philippines branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations that file their audited financial statements at the SEC Head office or at SEC Extension Offices in Davao, Cebu, Ilo-ilo and Baguio shall file their 2013 audited financial statements based on the last digit of its SEC registration
By: Pagaspas Mini Transport Summer time is upcoming and timely for company outing, group outing, family outing or reunion, and barkada tripping. Going through public transportation is less costly but may not be convenient as to time and space. Cars or vans for rent in the Philippines is a good choice for the luxury of time and convenience of space. Plan your target venue for summer fun or out-of-town trip, get your head count, and choose the appropriate unit for your trip! The more the merrier and the cheaper for more pockets will share! Hereunder are our available units under car or van for hire Philippines for routes with chauffeur or driver within Metro Manila, Baguio, La-Union, Isabela, Ilocos, Laguna, Batangas, Bicol, and other parts of the Philippines! 1. Toyota Hi-Ace Commuter 2014 Model – Diesel Philippines Capacity: 14 seater plus driver Color: White Track record: Tacloban City after Yolanda,
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