Subject: WEEKLY TAX UPDATES [APR 29] Metro Manila workers to get wage hike soon – DOLE

WEEKLY TAX UPDATES

APRIL 29

  1. TAX & BUSINESS-RELATED NEWS [APRIL 24-28]

  2. BIR CLARIFIES THE SUBMISSION OF PROOF OF SETTLEMENT OF ESTATE TO AVAIL OF ESTATE TAX AMNESTY

  3. BIR FURTHER CLARIFIES TAXES DUE ON THE SALE OF REAL PROPERTY CONSIDERED ORDINARY ASSETS

  4. CTA CASES

1. TAX & BUSINESS-RELATED NEWS [APRIL 24-28]

1. Metro Manila workers to get wage hike soon – DOLE

2. Spouses of OFWs now considered solo parents

3. San Jose del Monte Water Board moves to pre-terminate PrimeWater

4. SEC readies guidelines on crypto asset services

5. SEC eyes declassification of listed firms’ common shares

6. Mitsui eyes MPIC stake in toll unit

7. BPOs to set up council to establish quality norms

8. CIMB says reversal of funds underway after 'unauthorized fund transfers'

9. ‘Rising scams from IMSI catchers may stall digital economy’

10. Foreign digital service providers reminded of VAT sign-up deadline

11. Cybercriminals turn to PDFs

12. New markets seen for value-added coconut products

13. OECD calls for review of Philippine GOCCs

14. Value of Northern Mindanao economy tops trillion-peso mark

15. Visa interviews require complete documents —US Embassy

16. Norwegian Cruise Line opens first PH medical clinic

17. SC requires electronic filing for annulment, nullity of marriage cases

18. BIR tax filings rise over 20% this year

19. Digital Banks Take the Lead in Forbes' 2025 Best Banks in the PH

20. Cebu shipowner Paul Rodriguez barred from Camiguin run over residency, debts

DISCLAIMER!

We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions.

Metro Manila workers to get wage hike soon – DOLE [The Philippine Star, April 28, 2025]

Around four million minimum wage earners and another eight million workers will benefit from pay adjustments granted by Regional Tripartite Wage and Productivity Boards (RTWPBs), Labor Secretary Bienvenido Laguesma announced yesterday.

 

Spouses of OFWs now considered solo parents [Technobaboy, April 28, 2025]

The Department of Social Welfare and Development (DSWD) announced that spouses of overseas Filipino workers (OFWs) can now be recognized as solo parents. This applies to those in the low or semi-skilled worker category who have worked abroad continuously for at least one year.

 

San Jose del Monte Water Board moves to pre-terminate PrimeWater [Philippine News Agency, April 28, 2025]

The San Jose del Monte City Water District Board of Directors has formally moved to pre-terminate its joint venture agreement with Villar-owned PrimeWater Infrastructure Corporation (PWIC) amid the water crisis affecting thousands of city residents.

 

SEC readies guidelines on crypto asset services [The Philippine Star, April 28, 2025]

Aquino said the SEC’s goal is to make the Philippines a safe hub for financial technology (fintech) development by securing the country’s financial system.

 

SEC eyes declassification of listed firms’ common shares [BusinessWorld, April 28, 2025]

“To ensure efficiency in executing and settling equity trades, the classification of common shares into Class A and Class B of all the listed companies shall be discontinued,” it said in an April 25 draft memorandum circular posted on its website.

 

Mitsui eyes MPIC stake in toll unit [BusinessWorld, April 28, 2025]

MITSUI & CO. LTD. has expressed interest to buy Metro Pacific Investment Corp.’s (MPIC) 20% stake in Metro Pacific Tollways Corp. (MPTC) before the latter resumes merger negotiations with San Miguel Corp., MPIC Chairman and Chief Executive Officer Manuel V. Pangilinan said.

 

BPOs to set up council to establish quality norms [BusinessWorld, April 28, 2025]

THE IT & Business Process Association of the Philippines (IBPAP) said it will organize a quality council next month to set performance standards for the industry.

 

CIMB says reversal of funds underway after 'unauthorized fund transfers' [ABS-CBN News, April 27, 2025]

CIMB Bank Philippines is part of Malaysia’s CIMB Group, the fifth largest bank in ASEAN by assets.

 

‘Rising scams from IMSI catchers may stall digital economy’ [The Philippine Star, April 27, 2025]

Tim Abejo, co-convenor of CitizenWatch Philippines, called on government authorities to crack down on the malicious use of International Mobile Subscriber Identity (IMSI) catchers, also known as “cell site simulators” or “fake base stations.” These devices mimic legitimate cell towers to intercept mobile communications and used by scammers to impersonate legitimate telecom signals to lure unsuspecting users into revealing sensitive personal and financial data.

 

Foreign digital service providers reminded of VAT sign-up deadline [BusinessWorld, April 27, 2025]

THE Bureau of Internal Revenue (BIR) said non-resident foreign digital service providers (DSPs) have until June 1 to register for value-added tax (VAT) in compliance with the digital services law.

According to Revenue Regulations No. 014-2025, non-resident DSP will be subject to VAT starting June 2.

 

Cybercriminals turn to PDFs [The Manila Times, April 27, 2025]

PDFs, long trusted as a standard format for business communication, are now being increasingly used by cybercriminals to deliver malicious attacks, according to a new report from Check Point Research.

 

New markets seen for value-added coconut products [The Philippine Star, April 27, 2025]

The rise in vegetable oil prices in the world market is opening new doors to one of the country’s prized agricultural products: coconut.

 

OECD calls for review of Philippine GOCCs [BusinessWorld, April 26, 2025]

The Organisation for Economic Co-operation and Development (OECD) called for a review of state-run firms’ operations amid an overlap of their regulatory and commercial functions.

 

Value of Northern Mindanao economy tops trillion-peso mark [Inquirer Plus, April 26, 2025]

CAGAYAN DE ORO CITY—The value of Northern Mindanao’s economy breached the trillion-peso mark in 2024, making the region among the key contributors to the country’s national production, the Philippine Statistics Authority (PSA) said.

 

Visa interviews require complete documents —US Embassy [GMA News Online, April 25, 2025]

“Starting May 19, immigrant visa applicants who arrive at the US Embassy for their appointment without all of the required, original documents will not be interviewed and will need to schedule a new appointment. Be aware that the next available appointment may be months from now,” the advisory stated.

 

Norwegian Cruise Line opens first PH medical clinic [GMA News Online, April 25, 2025]

Norwegian Cruise Line Holdings Ltd. (NCLH), a leading global cruise operator, has opened its first medical clinic in the Philippines to serve its Filipino seafarers.

 

SC requires electronic filing for annulment, nullity of marriage cases [GMA News Online, April 25. 2025]

“Before this change, Rule 13-A did not cover special proceedings like annulment and nullity of marriage cases. The Office of the Court Administrator recommended their inclusion, noting that these cases follow similar procedures to civil actions,” the SC said.

 

BIR tax filings rise over 20% this year [The Philippine Star, April 25, 2025]

The Bureau of Internal Revenue (BIR) recorded a more than 20-percent increase in electronic tax filings this year due to ramped up campaign and digitalization efforts. In an interview with PTV yesterday, BIR Commissioner Romeo Lumagui  Jr. said there has been a good turnout in the filing and payment of the annual income tax return (AITR) this year.

 

Digital Banks Take the Lead in Forbes' 2025 Best Banks in the PH [Spot.PH, April 24, 2025]

It wasn’t too long ago that digital banks were seen as the newcomers—convenient, yes, but more of an alternative than a serious rival to traditional financial institutions. That’s no longer the case. In Forbes’ 2025 list of the World’s Best Banks, Maya and GoTyme have claimed the top two spots, overtaking the most established names in Philippine banking.

 

Cebu shipowner Paul Rodriguez barred from Camiguin run over residency, debts [Cebu Daily News, April 24, 2025]

The Commission on Elections (Comelec) en banc has disqualified a Cebu-based shipping operator running for public office in Mindanao, despite being pursued by two government banks over soured loans that his company obtained over a decade ago.

2. BIR CLARIFIES THE SUBMISSION OF PROOF OF SETTLEMENT OF ESTATE TO AVAIL OF ESTATE TAX AMNESTY

Revenue Memorandum Circular (RMC) No. 40-2025, issued on April 24, 2025, clarifies the provisions of Section 2 of Revenue Regulations (RR) No. 10-2023 regarding the submission of proof of settlement of the estate, whether judicial or extra-judicial, as a requisite for the availment of Estate Tax Amnesty. As clarified, proof of settlement of the estate (e.g., Extra Judicial Settlement, Court Order) is not required to accompany the Estate Tax Amnesty Return upon filing and payment if it is not yet available, and its non-submission by June 14, 2025, will not invalidate the application for the availment of Estate Tax Amnesty. However, it will be required during the processing and issuance of the Electronic Certificate Authorizing Registration.

3. BIR FURTHER CLARIFIES TAXES DUE ON THE SALE OF REAL PROPERTY CONSIDERED ORDINARY ASSETS

Revenue Memorandum Circular (RMC) No. 31-2025, issued on April 7, 2025, clarifies the provisions on applicable taxes due on the sale of real property considered as ordinary assets by taxpayers habitually engaged in real estate business.

 

Highlights include: 

 

1. Requisite tax returns to be filed.

 

2. Combining multiple real estate sales into one return is not allowed and cannot be used as proof of withholding tax payment when processing the electronic Certificate Authorizing Registration (eCAR).

 

3. Only BIR Form No. 1606 with proof of payment can be used to claim the income tax credit for the sale of real property classified as an Ordinary Asset. Issuance of BIR Form No. 2307 as proof of income tax credit in lieu of BIR Form 1606 with proof of payment shall be discontinued.

 

4. Manner of presentation of income tax credits arising from BIR Form No. 1606 in the Annual Income Tax Returns (ITR).

 

5. Documents to be issued for the sale of real property financed by financing institutions (i.e., banks, Pag-Ibig/HDMF).

 

6. Taxability of other fees collected

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4. CTA CASES

THE ENTITLEMENT TO VAT ZERO-RATING ON SALES TO FREEPORT-REGISTERED ENTITIES IS DETERMINED BY WHETHER THE GOODS SOLD ARE INTENDED FOR USE IN CONNECTION WITH THE ENTITIES’ REGISTERED ACTIVITIES

Petitioner Ford Group Philippines, Inc. filed a Petition for Review seeking to nullify the deficiency Value-Added Tax (VAT) assessment issued by the Commissioner of Internal Revenue (CIR), asserting that they are not liable for the deficiency VAT. The Petitioner asserted that the executed waiver of prescription is not valid and should not extend the period for the respondent to assess. It also argued that the Final Decision on Disputed Assessment (FDDA) did not constitute a proper demand for payment. In addition, it argued that its sales to Ford Subic and Ford Clark qualify for VAT zero-rating. On the other hand, the Respondent counters that the waiver is valid pursuant to Revenue Memorandum Order (RMO) No. 14-2016, which extends his authority to assess, and that the FDDA and the assessment are valid. In ruling, the Court upheld the validity of the Waiver, stating that under RMO No. 14-2016, only two dates are material and should be present on the Waiver: the date of execution and the expiry date of the period which the taxpayer waives. The date of acceptance of the Waiver is not a material requirement that can affect its validity. Since the Waiver complied with the requirements, it effectively extends the Respondent’s authority to assess. The Court also held that the FDDA constitutes a valid demand for payment, stating that the term “request” does not loosen the effect of a demand for payment. It clarifies that the primary purpose of an FDDA is to demand payment and signifies the time when penalties and interest shall begin to accrue, and its issuance shows that the deficiency VAT indicated must be paid immediately upon receipt. Finally, the Court held that the Petitioner’s sales to Ford Subic and Ford Clark, as Freeport Zone-registered entities, qualify for VAT zero-rating. The operative characteristic that entitles sales to ecozone-registered entities with VAT zero percent is that the merchandise or goods sold thereto are “to be used in connection with the registered activity”. In this case, both Ford Subic and Ford Clark are engaged in automotive dealership, therefore, their purchases of automobiles and spare parts from the Petitioner qualify for VAT zero-rating as they are to be used in connection with their registered activities. Consequently, the Petition was GRANTED. [FORD GROUP PHILIPPINES, INC. VS COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10805, APRIL 4, 2025]


[TAXPAYER SHALL BE INFORMED IN WRITING OF THE LAW & THE FACTS ON WHICH THE ASSESSMENT IS BASED; OTHERWISE, ASSESSMENTS SHALL BE VOID] [NON-SERVICE OF THE NOTICE FOR INFORMAL CONFERENCE & IMPROPER SERVICE OF THE PRELIMINARY ASSESSMENT NOTICE VIOLATE RIGHT TO DUE PROCESS, RENDERING DEFICIENCY TAX ASSESSMENTS VOID] [SUBSTITUTED SERVICE CAN BE RESORTED TO WHEN THE PARTY IS NOT PRESENT AT THE REGISTERED OR KNOWN ADDRESS]

Petitioner Rex Jayson Miraflor Tuozo filed a Petition for Review seeking cancellation and withdrawal of the 2018 assessment issued by the Respondent Commissioner of Internal Revenue (CIR). Petitioner claimed the assessments violated his due process rights because he never received the Notice of Informal Conference (NIC) and the Preliminary Assessment Notice (PAN), which are mandatory requirements.  Further, assessments still lack a factual and legal basis, even if due process was observed. On the other hand, the Respondent contended that the Petition should be dismissed for being filed out of time. Also, there was no violation of due process, and the Petitioner failed to substantiate its claim that the assessment lacked factual and legal bases. In ruling, the Court held that the assessments are void due to violations of the taxpayer's right to due process. Specifically, the Respondent failed to serve the NIC, as even their witness could not confirm its issuance, and did not properly serve the PAN as required under Section 228 of the Tax Code. Meanwhile, the PAN must be properly served through personal, substituted, or registered mail, with sufficient proof of mailing and receipt. While substituted service is allowed, it must involve a barangay official and disinterested witnesses, with the notice handed to them. In this case, the BIR did not present the revenue officer to confirm compliance, relying instead on a witness without personal knowledge. Additionally, the claim of service by registered mail was unsupported, as the registry receipt lacked key details and was not backed by a postmaster's certification. Furthermore, the persuasiveness of the right to due process reaches both substantial and procedural rights.  It violates this right if the BIR fails to follow legal and procedural requirements strictly. As a result, any tax assessment made without due process is null and void. Consequently, the Petition is GRANTED, and the assessments are cancelled. [REX JAYSON MIRAFLOR TUOZO VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10638, MARCH 24, 2025]


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