BSP calls for more strategic actions towards sustainable financing to help boost and secure a robust post-pandemic economy in the Philippines for According to BSP, the improving economic conditions make entrepreneurs and consumers in the Philippines more upbeat. BIR has released an order imposing a measure of increasing taxes on offshore gaming operators here in the Philippines.
The Bangko Sentral ng Pilipinas BSP urges financial institutions to merge with other local banks for extensive and more substantial growth to refrain from unexpected events that cause a widespread impact on the economy. The Bangko Sentral ng Pilipinas BSP once again stated that the price hike is not a monetary policy and the price surge will most probably be on the supply side.
On 22 December , the EU Commission issued two major draft directives that are expected to have a significant impact on EU corporate taxpayers:. The EU list of non-cooperative jurisdictions for tax purposes commonly referred to as EU "blacklist" is part of the EU's external taxation strategy, and it intends to assist with ongoing efforts On 22 December , the European Commission published a Directive proposal setting out rules aimed at tackling the abusive use of so-called shell companies the "Proposal" On 21 December , an amendment to the Income Tax Law was published in the Cyprus Government Gazette "Law amendment" whereby an additional corporate tax residency test Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email.
Register For News Alerts. Article Tags. Tax Treaties Withholding Tax. More Tags. International Edition Vol. JAN More Webinars. Labour and Employment. Merger Control. Mondaq Advice Centres. The BIR denied the request, emphasizing that it should not act merely out of compassion or charity, but should consider the pecuniary interest of the government, justice and equity, and public policy. The BIR explained that the intention of the law is to hasten the payment of taxes because the maintenance of the government as well as its activities depend on tax collections.
It added that the surcharge and interest imposed are not penal but compensatory in nature as they are compensation for the delay in payment and for the concomitant use by the taxpayer of the funds that rightfully should be in the government's hands. Additionally, under Section B of the Tax Code, the Commissioner may abate or cancel tax liability only in two cases: a the tax or any portion thereof appears to be unjustly or excessively assessed; or b the administration and collection costs involved do not justify the collection of the amount due.
Good faith alone is not sufficient to avoid the surcharge which is designated to ensure timely compliance with the law. Are non-stock non-profit organizations automatically exempted from income taxation?
A non-stock non-profit organization NSNP must comply with certain requirements before it can avail itself of income tax exemption. These include nonstock corporations or associations organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, business league chambers of commerce, civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, and non-stock and non-profit educational institutions, among others.
The first one is the Organizational Test which requires the NSNP to show that its primary purpose of incorporation is among those specified in Section 30 of the Tax Code. The second one is the Operational Test which requires the NSNP to show that its regular activities are devoted exclusively to the accomplishment of the purposes specified in Section 30 of the Tax Code.
As a general rule, non-stock non-profit organizations are subject to income tax. Section 30 of the Tax Code provides for an exemption. However, before availing themselves of such exemption, NSNPs must ensure that they are compliant with all the requirements by laws and regulations. A taxpayer must always remember that exemptions from taxation are construed in strictissimi juris against the taxpayer and liberally in favor of the taxing authority.
Third, the income of the NSNP that is sought to be exempted from income taxation must not come from properties or activities that are conducted for profit, regardless of the disposition of such income. Thus, interest income from bank deposits, gains from investments, and rental income from real or personal properties are subject to income taxation.
Lastly, the NSNP must ensure that its earnings or assets do not inure to the benefit of any of its trustees, organizers, officers, members, or any specific person.
More popularly known as the Non-Inurement Rule, the rule was crafted to ensure that NSNPs are not used as tax shelters because of tax exemptions they may be entitled to.
Some examples of what is considered as inurements are: compensation or honorarium to its trustees or organizers, exorbitant or unreasonable compensation to its employees, welfare aid and financial assistance to its members, and other similar disbursements. Foreign embassies and their diplomatic personnel may avail themselves of VAT exemption on their purchase of local goods or services based on reciprocity.
May diplomatic personnel claim exemption from VAT on their local purchases of goods and services? Yes, but only if the sending State also accords VAT exemption privileges on local purchases of goods and services to Philippine diplomatic personnel in that sending State. While the Vienna Convention on Diplomatic Relations exempts diplomatic missions and diplomatic agents from dues and taxes, they are generally subject to indirect taxes which are normally incorporated in the price of goods or services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. All Rights Reserved. Password Passwords are Case Sensitive.
Forgot your password? Free, unlimited access to more than half a million articles one-article limit removed from the diverse perspectives of 5, leading law, accountancy and advisory firms. We need this to enable us to match you with other users from the same organisation.
It is also part of the information that we share to our content providers "Contributors" who contribute Content for free for your use. Learn More Accept. To print this article, all you need is to be registered or login on Mondaq. SyCipLaw TIP 1: SyCipLaw Tip: Once an assessment for national internal revenue tax is issued, the proper remedy would be to timely protest or appeal the assessment in accordance with the revenue regulations, not to file a petition for declaratory relief even if there is a constitutional argument against the legal basis of the assessment.
SyCipLaw TIP 2: A taxpayer must always be mindful to check if the revenue officers conducting an audit of its books are the ones duly authorized to do so pursuant to an LOA. SyCipLaw TIP 3: In a claim for tax refund, the taxpayer must determine whether the refund is premised on a tax exemption under a statute or on an erroneous payment i.
SyCipLaw TIP 4: The taxpayer should make sure that its suppliers furnish it with CWTs in a timely manner and which are in form and substance compliant with law and regulations. SyCipLaw TIP 8: Foreign embassies and their diplomatic personnel may avail themselves of VAT exemption on their purchase of local goods or services based on reciprocity.
On 22 December , the EU Commission issued two major draft directives that are expected to have a significant impact on EU corporate taxpayers:.
0コメント