Tariffs and Taxes

[hakz2007]

News and discussions about taxation in the Philippines

Keep posting dudes

[hakz2007]

On-line Documentary Stamp Tax deferred till June 30 -- BIR

MANILA, March 24 (PNA) – The Bureau of Internal Revenue (BIR) said on Wednesday it has deferred the full implementation of the Electronic Documentary Stamp Tax (eDST) System to June 30, 2010.

In Revenue Memorandum Circular (RMC) No. 24-2010, the BIR said such deferment was done “in light of the numerous requests and issues raised by the concerned taxpayers who were affected by the eDST system.”

eDST is a web-based system in the payment/remittance of DST liabilities and affixture of the prescribed documentary stamp tax on taxable documents, except those expressly exempted by the Commissioner of Internal Revenue on meritorious grounds as stated in Revenue Regulations (RR) No. 7-2009.

BIR Commissioner Joel Tan-Torres, however, emphasized that after June 30, 2010, no further request for the deferment of the mandatory use of the said system shall be entertained.

Meanwhile, during the period of deferment, taxpayers who are technically capable of using the system may voluntarily avail of the same, the BIR said. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266102

[jpdm]

Taxation in the Philippines rely more on indirect taxes than direct taxes in my opinion...this make our taxation system regressive rather than progressive which is the ideal.

[hakz2007]

BIR issues guidelines on CAR

MANILA, March 25 (PNA) -– The Bureau of Internal Revenue (BIR) said Thursday it has issued Revenue Memorandum Circular (RMC) No. 23-2010 last March 15, 2010 to address issues concerning the issuance, replacement or revalidation of Certificate Authorizing Registration or CAR (BIR Form No. 1954) under Section 4 of Revenue Regulations (RR) No. 24-2002.

The CAR “upon issuance” has to be presented to the concerned Register of Deeds (RD) within a maximum period of not more than two (2) years; otherwise, it shall be considered as an expired CAR.

“Upon issuance,” according to the RMC, refers to the original date of issuance as indicated in the CAR.

To replace an expired CAR, the taxpayer is required to submit four (4) documents to the concerned Revenue District Office (RDO) or BIR Office.

Said documents are: 1) written request for the issuance of a new CAR; 2) original and duplicate of the expired CAR; 3) original copy of the document of sales, exchange or transfer (e.g. Deed of Sale, Deed of Assignment, Deed of Donation, Deed of Extrajudicial Settlement of Estate, etc.); and 4) photocopies of proof of tax payment (s) previously made or a Certification issued by the BIR National Office- Revenue Accounting Division (RAD) indicating the type of tax(es) paid, the date the payment and the amount paid.

Upon presentation by the taxpayer of the expired CAR and the required documents, the concerned RDO or BIR office shall cancel the CAR previously issued and replace it with a new CAR, indicating the serial no. of the expired CAR and its original date of issuance with a statement that it is a replacement CAR.

A replacement CAR is valid for one (1) year from its date of issuance as indicated in the CAR.

All applicable information pertaining to the replacement CAR must be properly annotated on the reverse side of all copies of the corresponding document of transfer and reference to the replacement CAR shall be indicated in the expired CAR. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266338

[hakz2007]

BIR reminds eFPS taxpayers of staggered filing due dates

MANILA, March 25 (PNA) – The Bureau of Internal Revenue (BIR) said Thursday it is again reminding taxpayers enrolled in its Electronic Filing and Payment System (eFPS) to strictly follow the assigned date of staggered filing of returns implemented in Revenue Regulations No. 26-1002.

BIR Commissioner Joel L. Tan-Torres said that taxpayers following these deadlines will be able to avoid sanctions prescribed in the regulations and the Tax Code.

Classified according to industry type, eFPS taxpayers are required to file their Monthly Withholding Tax Returns, except Withholding Tax on VAT, as scheduled.

eFPS taxpayers classified in Groups A, B, C, D & E are mandated to file their tax returns 15, 14, 13, 12, and 11 days following the end of the month, respectively.

For the filing of the Monthly VAT Declaration and Monthly Percentage Tax Returns, those taxpayers under Groups A, B, C, D & E must file 25, 24, 23, 22, and 21 days following the end of the month, respectively.

To ensure receipt by the BIR of the returns filed electronically, the return shall be filed on or before 10:00 p.m. of the above prescribed due dates.

Tan-Torres further reminded eFPS filers, “All taxpayers should fill up all the fields in the electronic tax return using the correct and current version of the BIR Form/Return. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266457

[hakz2007]

BIR reminds schools of doc stamps on diplomas, transcripts

MANILA, March 27 (PNA) - March is graduation month and the Bureau of Internal Revenue (BIR) is reminding all public and private schools nationwide to pay the corresponding P 15 documentary stamp tax (DST) for each diploma and official transcript of records given to their students.

BIR also said all documentation issued by these schools, including certifications, transcripts and other records, are subject to the DST pursuant to Section 188 of the Tax Code.

In line with its tax information campaign under "Making the Public Know" initiative, BIR Commissioner Joel Tan-Torres appealed to all primary, secondary and tertiary schools to comply with this tax obligation. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266724

[hakz2007]

pati pala diploma at transcript of records may taxes rin

[ralfy]

Cross-post:

http://www.doingbusiness.org

Check the rankings for the Philippines.

[hakz2007]

Teves urges incoming Congress to pass new tax measures

CLARK FREEPORT, Philippines—Finance Secretary Margarito Teves urged incoming members of Congress to pass laws to recover the losses that the government incurred due to new tax measures passed by the present Congress.

"The present Congress passed measures that eroded our tax collection. The new Congress should take those back," Teves said during an economic briefing here on Friday.

In 2009, Teves said the implementation of Republic Act 9504, which granted tax exemptions to minimum wage earners, RA 9367 (Biofuels Act) and the franchise tax on electricity decreased tax collections by P49 billion.

He said RA 9505 (the Personal Equity and Retirement Account (Pera) Act), RA 9367 and the implementation of the Asean (Association of Southeast Asian Nation) Trade in Goods Agreement and incentives in the tourism industry took away P22.4 billion from the government.

The value added tax exemption for senior citizens alone threatens to take away P1.6 billion while tax incentives given to the insurance industry will take away P1.4 billion from the government's tax collection, he said.

"While these measures could [help] the people, there are consequences," Teves said.

He said other pending tax-related measures would bring an expected P15.8 billion in losses to the government.

"The permanent solution here is to increase revenues," he said.

Members of the incoming Congress, he said, should approve measures like restructuring the excise tax on cigarettes and alcohol and the rationalization of fiscal incentives to improve the government's financial standing.

As a medium-term solution, Teves said economists are studying the increase in the VAT to 15 percent to generate additional funds for the government.

"Taxpayers will not get angry if they see that their taxes are properly allocated despite the increase," he said.

http://business.inquirer.net/money/b...w-tax-measures

[hakz2007]

US asks WTO's help on RP's alcohol tax

WASHINGTON (AFP) - – The United States asked the World Trade Organization Friday to intervene in a longstanding dispute with the Philippines over taxes on whiskey and gin, following an impasse in bilateral talks.

The office of the US Trade Representative (USTR) said in a statement that the Philippines had imposed "discriminatory taxes" on imported distilled spirits that were significantly higher than those for domestic distilled spirits.

The USTR wants the WTO to set up a dispute settlement panel to resolve the dispute.

"To ensure that Americans' rights in the global trading system are respected, it is important to move forward with the next step in the WTO dispute settlement process and request the establishment of a panel, which USTR is doing today," USTR spokeswoman Carol Guthrie said.

"It is critical that American exports are treated fairly in the Philippine market in accordance with WTO rules," she added.

But Guthrie said the United States remained open to working with the Philippines "to find a mutually agreeable solution to our concerns."

WTO rules generally bar members from discriminating between imported and domestic products in their tax regimes.

The US government has raised concerns over the issue with the Philippines in the past several years, both bilaterally and in WTO forums.

In addition, the European Union had requested WTO consultations on these taxes in July 2009, and the United States joined these consultations and participated in meetings between the EU and the Philippines in October.

The first step in a WTO dispute is for both parties to consult formally.

If consultations fail, a request has to be made for a WTO panel to be established to resolve the dispute.

The United States exports about one billion dollars worth of distilled spirits worldwide annually.

http://ph.news.yahoo.com/afp/2010032...e-059e858.html

[bukid]

Originally Posted by ralfy

Cross-post:

http://www.doingbusiness.org

Check the rankings for the Philippines.

totoo sobrang hirap magnegosyo sa pinas lalo na may quota daw ang BIR kaya yung mga heads nila dun sa mga negosyante nangungurakot. hihingi ng 4M pero ang ilalagay lang nila 2.5M kasi paghahatian daw nila sa head nila ang 1.5M, kaya tatawad ka naman tapos bababaan nila pero ganun pa rin, kapag naging 2M nalang sya. idedeclare naman nila na 1M lang tapos yung kalahati paghahatian nila. nakarating na nga yan sa kinauukulan pero kung pati yung mga nasa mas mataas na posisyon ay kurakot din, la na talaga tayong magagawa nyan kundi ang mag-wish na balang araw tayo na ang maging presidente ng maisaayos na ang systema ng pamahalaan natin.

[hakz2007]

VAT on toll fees to take effect next week

MOTORISTS PLANNING Holy Week getaways and looking to trim costs -- even if by just a fraction of the entire vacation tally -- should probably do so before Holy Thursday. Starting that day, April 1, the 12% value-added tax (VAT) is set to be slapped on tollway operators, who are expected to pass on the cost to consumers.

Bureau of Internal Revenue Commissioner Joel L. Tan-Torres said in a press briefing on Friday that he had just signed Revenue Memorandum Circular 30-2010, which states that VAT is applicable to toll fees collected from private motor vehicles.

The order states that tollway operators will be subject to VAT based on Section 108 of the National Internal Revenue Code.

"We are now re-imposing the long overdue VAT on tollway operators. This was supposed to be due way way back in 2005," Mr. Tan-Torres said.

The BIR that year issued RMC 52 which imposed a 10% VAT on tolls, which were supposed to be increased in November 1 of that year. The Toll Regulatory Board (TRB), however, deferred implementation pending a ruling on whether toll operators could charge the tax.

The BIR later released RMC 72-2009 which reiterated the validity of RMC 52, and in January, the Cabinet deferred the imposition of VAT, noting that tollway operators would only be passing the costs to motorists.

Mr. Tan-Torres said a date for the imposition of the VAT on tolls paid by public vehicles was still being determined. It will, however, be done this year, he said.

"We still have to evaluate when the VAT will be imposed on public vehicles because of the adverse impact on prices," he said.

He said the agency expects to collect P1.3 billion annually from the VAT on tolls. Private vehicles, he added, account for about 70% of total tollway fees.

We have notified the TRB about this this week. We notified them of our plans early this year," the BIR chief said.

TRB spokesman Julius G. Corpuz, however, said the agency had yet to receive the BIR order.

"We are not aware of the revival of the imposition of VAT on tollways. The matter has not been finally resolved," he said.

Mr. Corpuz also said it would be difficult to implement the VAT on tolls starting April 1 as it would take time to recompute fees and then inform the public.

"We need reasonable time for this. About one to two weeks or even more than that for the necessary information and approvals," he said.

"It is Holy Week next week and it may be a hard time to inform the public of [the] adjustment of fees. People usually go home during the holidays," he said.

Ma. Theresa T. Defensor, president of Philippine National Construction Corp. (PNCC) which currently operates the South Luzon Expressway (SLEx), said the VAT necessitated the adjustment of fees.

"There has to be an adjustment in toll rates and it may affect the computation on returns of the investor," she said.

"On the operations side, the difficulty with change (mainly coins) has to be taken into consideration as well as there will be a round up or down on the fees. Round ups would be difficult to explain to motorists...," Ms. Lee added.

http://www.bworld.com.ph/main/content.php?id=8443

[hakz2007]

Philippine alcohol tax bad for Jack Daniel's- US

WASHINGTON - Philippine alcohol taxes discriminate against Jack Daniel's, Jim Beam and other American brands and should be struck down, U.S. officials urged the World Trade Organization on Friday.

"Despite U.S. efforts to resolve this issue through consultations, the Philippines continues to maintain its discriminatory tax regime on distilled spirits," said Carol Guthrie, a spokeswoman for the U.S. Trade Representative.

"To ensure that Americans' rights in the global trading system are respected, it is important to move forward with the next step in the WTO dispute settlement process and request the establishment of a panel," Guthrie said in a statement.

The United States is one of the largest exporters of distilled spirits, with worldwide exports averaging more than $1 billion per year from 2006 through 2008.

U.S. trade officials asked the Philippines in January for talks on an excise tax system that they said taxes imported whiskey, gin and other alcoholic products 10 to 40 times higher than those made in the Southeast Asian country.

Washington contends the excise tax system is the main reason imports have not exceeded 5 percent of total spirits sales in the Philippines since 2003.

The case could help U.S. producers like Brown-Forman Corp <BFb.N> and Fortune Brands Inc <FO.N> break into the $3 billion Philippine spirits market.

Brown-Forman, based in Louisville, Kentucky, owns the Jack Daniel's brand, and Fortune Brands, headquartered in Deerfield, Illinois, produces Jim Beam whiskey.

Manila taxes alcoholic products such as whiskey, brandy, gin, vodka and tequila made from domestic materials, such as sugar or palm, at much lower rates than imported spirits made from different materials, USTR said.

That violates a general WTO principle that countries should not discriminate between imported and domestic products in their tax regimes, USTR said.

http://ph.news.yahoo.com/rtrs/201003...l-8bedc88.html

[hakz2007]

BIR goes after central bank's P2.2-B back taxes

MANILA, March 28 (PNA) -- Revenue officials stand pat on collecting P2.2 billion from the Bangko Sentral ng Pilipinas (BSP) in accrued interest and surcharges from a three-year old excise tax dispute arising from the BSP’s gold purchases from small-scale miners.

Bureau of Internal Revenue chief Joel Tan-Torres, whose three-month goal is to collect at least P200.74 billion in the first quarter, said this was on top of a P2.36 billion excise tax deficiency the BSP claimed exemption from under existing laws.

Torres insisted the BSP was not exempt from paying excise tax on its gold purchases based on latest Court of Tax Appeals (CTA) decisions and that its continued refusal to pay could only fatten the penalty component further.

“We’re saying it will be best if we settle this rather than allowing it to move to the courts. The penalties could accrue and the courts may decide us (the BIR) not to settle this as the hearing progresses. It is best we settle this at the early stage,” Torres said.

Deputy BSP governor Armando L. Suratos, a lawyer by training, said the BSP had asked the CTA to reconsider its decision, making the BSP pay for excise tax worth P2.3 billion and confirmed by text message that he met with Torres more than a week ago to try to find a mutually agreeable solution.

Torres similarly petitioned the CTA for a reconsideration of its decision, denying the agency P2.2 billion worth in accrued interest and surcharges.

“We feel there should be penalties and so the final amount could top P3 billion,” Torres said.

According to court documents, the BSP failed to pay excise tax on its gold purchases from small-scale gold miners from 2001 up to 2006 when such purchases totaled as low as US$ 2.21 billion but as high as US$ 3.40 billion at one point.

In that period, the country’s gross international reserves, of which gold is a key component, expanded from US$ 15.69 billion to US$ 22.97 billion, or 54 percent more that at the start.

This was enough foreign exchange reserves to cover more than four months worth of imports at that time.

Suratos said the BSP was exempt from excise tax on its gold buying activities based on Administrative Order No. 34 issued by the Department of Environment and Natural Resources, a point the BIR disputed considering that the National Internal Revenue Code provides for an excise tax rate of two percent on all gold extracts anywhere in the country and so recognized under the People’s Small Scale Mining Act of 1991.

But according to the CTA in its more recent decision, the BSP should pay excise tax of two percent on such gold purchases even as it also restrained the BIR from collecting accrued interest charges and penalties while the case dragged. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266866

[jpdm]

Toll operators should not pass on the consuming public their obligation (VAT)to the government.

[jpdm]

Originally Posted by jpdm

Toll operators should not pass on the consuming public their obligation (VAT)to the government.

Tax bureau asked to defer imposition of toll fee VAT

Businessworld Online
Posted on 11:43 PM, March 29, 2010

THE TOLL Regulatory Board (TRB) has asked the Bureau of Internal Revenue to delay the imposition of the 12% value-added tax (VAT) on toll fees set for this Thursday.

"We requested the deferment of the VAT on tolls until after the Holy Week. After the Holy Week, the TRB will meet again and determine an official position on the VAT on tolls," Manuel G. Imperial, TRB executive director, yesterday said following a meeting with transport groups.

The request will be reiterated in a Cabinet meeting today, he added.

Transport groups yesterday "expressed concerns like possible losses due to down traffic," Mr. Imperial said.

One issue that will also have to be resolved is that the "VAT is not part of the (government) contract with toll operators and is not part of the toll calculations," he added.

The BIR last Friday said the VAT on toll fees would be imposed starting April 1. That day is also Maundy Thursday in the this year’s Lenten calendar, meaning heavy motorist numbers as Filipinos troop out of the metropolis for a long weekend holiday.

Based on the tax bureau’s order, the VAT on tolls would first be imposed on private vehicles. It has estimated revenues of P2.5 billion annually.

BIR Chief Commissioner Joel L. Tan-Torres was not immediately available for comment.

The imposition of the VAT on tolls has been held in abeyance since 2005, when the BIR released Revenue Memorandum Circular 52 which was supposed to implement the tax, then at 10%. The agency issued RMC 72-2009 last year but the order but shelved by the Cabinet.

On Sunday, TRB spokesman Julius G. Corpuz said the imposition of the VAT needed further study, warning of heavy traffic over the holiday weekend if the BIR has its way.

Mr. Corpuz said it would be difficult to adjust collection systems by April 1, particularly since tollway operators will have to distinguish between public and private vehicles. The operator of the South Luzon Expressway also said the computation of VAT on toll fees would cause operational difficulties.

The TRB has said it needed up to two weeks to study how to implement the BIR order.
|

[hakz2007]

Gov’t defers 12% VAT on toll fees

MANILA, March 31 (PNA) -- The government has deferred the April 1 effectivity date of the collection of the 12 percent expanded value-added tax (EVAT) on toll fees to a later date.

Executive Secretary Leandro Mendoza released today in Malacanang a joint statement by the Department of Transportation and Communication (DOTC) and the Department of Finance (DOF), that postponed the EVAT implementation to not later than April 30 until such time that the Toll Regulatory Board (TRB) shall have finalized the mechanics of the tax collection in an implementing rules and regulations.

DOF Secretary Gary Teves and DOTC Secretary Anneli Lontoc both signed the following statement:

“In order to thresh out the technical and operational issues in the implementation of VAT on toll fees, the DOTC and DOF agreed to defer the implementation of VAT on toll fees on April 1, 2010. The Toll Regulatory Board (TRB) is expected to come up with implementing rules or mechanics on how to implement the VAT to be imposed by the Bureau of Internal Revenue (BIR) not later than April 30, 2010.” (PNA)

http://www.pna.gov.ph/index.php?idn=0&nid=1&rid=267468

[hakz2007]

BOC surpasses its P54-B collection target for Q1

MANILA, April 4 (PNA) -- The Bureau of Customs (BOC) has surpassed its collection goal by P4.8 billion or 8.8 percent for the first quarter of 2010.

Commissioner Napoleon Morales attributed the positive collection to the large shipments of petroleum products of various companies and higher volume of steel and other non-oil products.

The bureau collected P59.02 billion exceeding its programmed collection of P54.27 billion from January to March.

The BOC, the government’s second largest revenue earner, has posted a surplus of P16.56 billion or 39 percent as against last year's revenues during the same period.

For January and February, the bureau surpassed its target collection of P35.52 billion by P157 million but the surplus last March reached as high as P4.6 billion or 24.5 percent.

For January alone, there are some 788.74 million kilograms of crude oil imported compared with last year’s importation of just P43.38 million kilograms. The commodity item includes premium, regular, diesel, kerosene, aviation gas, fuel oil, liquefied petroleum gas and lubricating oil, among others.

As a result, the bureau earned about P192.3 million from duties and P1.14 billion in value added tax payments for that month alone from last year’s P51.3 million in duties and P213.8 million in VAT.

Some major collection districts such as Port of Manila, Ninoy Aquino International Airport, and Limay oil port were all able to achieve their daily target, together with San Fernando, Iloilo, Cebu, Tacloban, Davao and Subic Bay.

On the other hand, the ports that have yet to meet their daily collection goals are the Manila International Container Port, Batangas Port, Legaspi, Cagayan de Oro, Surigao, Zamboanga, and Clark Field.

The Bureau of Customs is tasked to collect P273 billion for 2010. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=267845

[hakz2007]

Pacquiao, Revillame top taxpayers

CHAMPION boxer Manny Pacquiao and television host Willie Revillame were the highest taxpayers in the country in 2008, according to the Bureau of Internal Revenue’s (BIR) list of top taxpayers for the year as the agency decided to publish the top taxpayers.

Third top taxpayer for 2008 was Jose Nonato Pascual, or more popularly known as Piolo Pascual, while Elaine Gadiola and Ronaldo Soliman came in at fourth and fifth, respectively.

For the corporate taxpayers, those who topped the list for 2008 were Smart Communications Inc., Chevron-Malampaya, Globe Telecom Inc., San Miguel Brewery and Manila Electric Co.

BIR Commissioner Joel Tan-Torres said that under the Tax Code the agency is allowed to publish the names of the top taxpayers so they can be role models of the public.

Tan-Torres, however, said that they do not intend to release the actual payments of these persons or entities for privacy concerns.

On Thursday, Tan-Torres signed Revenue Memorandum Order 38-2010, or the guidelines for the posting and publication of the list of taxpayers for 2009.

“The dissemination of the top taxpayers list is intended to recognize the contribution of taxpayers who have paid the highest income tax in taxable year 2009 and who can serve as role model for others to emulate and follow,” the order states.

In the coming months, the BIR’s revenue district office will publish the top 300 individual taxpayers and top 150 corporate taxpayers.

The BIR central office, on the other hand, will publish the country’s top 2,000 individual taxpayers and 1,000 corporate taxpayers.

The deadline for filing of income-tax returns for 2009 is on April 15 and only by then can the BIR determine the country’s top taxpayers.

The BIR, from where two-thirds of the national government revenues come, has promised to hit its higher collection targets of P830.5 billion this year, but has to create various initiatives in order to counter the various revenue-eroding measures that have been enacted during the previous years.

This year alone, the agency’s forgone revenues is expected to hit between P70 billion andP80 billion, after new tax-eroding measures, were enacted into law such as the Real Estate Investment Trust Act and the Personal Equity and Retirement Account law.

http://businessmirror.com.ph/index.p...news&Itemid=58

[Askal82]

I just wonder how come Sy, Go, Tan and the Ayala's are not in the top 10 taxpayers while they are in the billionaire's list. What's even odder is that Villar is not there too.