Subject: WEEKLY TAX UPDATES [JUNE 10] Wage hike bill not LEDAC’s priority — Escudero

WEEKLY TAX UPDATES

JUNE 10

  1. TAX & BUSINESS-RELATED NEWS [UNE 4-10]

  2. SEC ISSUES GUIDELINES ON THE OPERATIONS OF CRYPTO-ASSET SERVICE PROVIDER

  3. CTA CASES

1. TAX & BUSINESS-RELATED NEWS [JUNE 4-10]

1. Auto firms 'in full panic' over rare-earths bottleneck

2. Pag-IBIG to venture into housing development

3. Government to tighten oversight on sea cargo forwarding

4. Wage hike bill not LEDAC’s priority — Escudero

5. MAP joins opposition to P200 legislated wage hike

6. Matteo Guidicelli completes another short course at Harvard—here’s how much it costs plus his tips for

7. Makati court affirms Calata execs’ conviction in market manipulation case

8. Visa, Maya launch cross-border transfers for Philippine wallets

9. PEZA focusing on greater China to hit FDI goals

10. 22 gencos flagged for ‘poor performance

11. After Netflix, other digital services seen hiking fees due to VAT

12. SC: Only the country's law granting foreign divorce must be proven for recognition in PH

13. Poro Point ecozone intact as court junks land claim

14. Phinma on expansion mode for property hotel ventures

15. Subic wants water deal terminated

16. Lawyer fights DOJ's evidence standard in criminal cases

17. The first heritage hotel of Malolos, Bulacan, is opening this June

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.

Auto firms 'in full panic' over rare-earths bottleneck [The Manila Times, June 10, 2025]

BERLIN/LONDON/DETROIT — Frank Eckard, CEO of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs.

 

Pag-IBIG to venture into housing development [The Philippine Star, June 10, 2025]

The Home Development Mutual Fund, commonly known as Pag-IBIG, will soon go beyond financing as it enters into production of homes via partnerships amid a downtrend in the supply of socialized housing.

 

Government to tighten oversight on sea cargo forwarding [The Philippine Star, June 10, 2025]

The government is setting up a system to regulate the sea cargo forwarding industry, in response to widespread complaints from overseas Filipino workers (OFWs) about delayed delivery or lost balikbayan boxes.

 

Wage hike bill not LEDAC’s priority — Escudero [GMA News Online, June 9, 2025]

The House and the Senate have until June 13 or the last session day of the 19th Congress to reconcile their differing versions of the wage hike measure and ratify the reconciled version for the bill to be ready for the President’s signature. Otherwise, the bill has to be refiled next Congress.


MAP joins opposition to P200 legislated wage hike [Philippine Daily Inquirer, June 9, 2025]

While the influential group said it supports initiatives to improve the lives of minimum-wage workers, it said that it believes the proposed increase warrants further review before implementation.

 

Matteo Guidicelli completes another short course at Harvard—here’s how much it costs plus his tips for [The Philippine Star, June 9, 2025]

In an interview with PhilSTAR L!fe, the actor—who has a bachelor's degree in BSBA-Marketing Management from the University of San Jose-Recoletos—said he just finished an HBS marketing course on Creating Brand Value, where he learned about personal branding, celebrity branding, as well as how companies build and sustain brand value in competitive markets.

 

Makati court affirms Calata execs’ conviction in market manipulation case [Rappler, June 9, 2025]

In 2024, former Calata Corporation chair Joseph Calata and corporate secretary Jose Marie Fabella were found guilty of making “misleading and exaggerated” claims over the company’s partnership with Sino-America Gaming and Macau Resources Group to develop a $1.4 billion resort and casino called Mactan Leisure City.


Visa, Maya launch cross-border transfers for Philippine wallets [The Philippine Star, June 9, 2025]

Global payment services firm Visa Inc. and Maya, one of the Philippines’ largest digital banks and fintech players, have rolled out a service that lets users directly fund their local wallets from foreign-issued Visa cards.

 

PEZA focusing on greater China to hit FDI goals [BusinessWorld, June 9, 2025]

“With the Philippines as the new ‘plus one’ destination for China-based manufacturers wanting to export to the US and EU, our partners will play a major role in our quest to actively engage Chinese enterprises and to promote the Philippines’ competitive edge as the emerging investment hub in the region,” he added.

 

22 gencos flagged for ‘poor performance [Philippine Daily Inquirer, June 6, 2025]

Twenty-two power generation companies (gencos), including those owned by big players, are under scrutiny by the Energy Regulatory Commission (ERC) for their “continued or frequent derating” operations.

 

After Netflix, other digital services seen hiking fees due to VAT [ABS-CBN News, June 6, 2025]

A new digital tax took effect just this Monday, June 2, imposing a 12-percent VAT on foreign digital service providers (DSPs). This covers streaming platforms (both video and audio), marketplaces, cloud and storage services, gaming, online learning and advertising, subscription-based content platforms, ride-hailing apps, and social media influencer services.

 

SC: Only the country's law granting foreign divorce must be proven for recognition in PH [The Philippine Star, June 6, 2025]

The Supreme Court ruled that a Filipino seeking recognition of their divorce in the Philippines only needs to prove the divorce law of the country where it was granted—and not the nationality of their ex-spouse.

 

Poro Point ecozone intact as court junks land claim [Philippine Daily Inquirer, June 6, 2025]

Along with its predecessors, Shipside claimed that it has owned the land for several decades.

 

Phinma on expansion mode for property hotel ventures [The Philippine Star, June 6, 2025]

Phinma Corp. president and COO Chito Salazar said that various developments are being undertaken by the group’s real estate and hospitality units to beef up their portfolio.

 

Subic wants water deal terminated [The Manila Times, June 6, 2025]

The municipal council here has passed a resolution urging its local water district to terminate its joint venture agreement (JVA) with Primewater Infrastructure Corp. (PrimeWater) for alleged breach of agreement.

 

Lawyer fights DOJ's evidence standard in criminal cases [The Philippine Star, June 4, 2025]

On June 4, lawyer Hazel Meking filed a petition with the Supreme Court to annul Department Circular 15, which raises the requirement from “probable cause” to “prima facie evidence with reasonable certainty of conviction.” make it harder for victims to pursue justice.

 

The first heritage hotel of Malolos, Bulacan, is opening this June [GMA Lifestyle, June 4, 2025]

It features the beauty of ancestral houses seen in the streets of Malolos near Immaculate Conception Parish Cathedral and Minor Basilica (Malolos Cathedral) and Our Lady of Mount Carmel Parish (Barásoain Church).

2. SEC ISSUES GUIDELINES ON THE OPERATIONS OF CRYPTO-ASSET SERVICE PROVIDERS

SEC Memorandum Circular (MC) No. 5, Series of 2025, issued on May 30, 2025, provides guidelines on the operations of Crypto-Assets Service Providers (CASP). Specifically, it covers the following areas of concern: CASP registration and exemption from registration, admission to trading of Crypto-Assets, operational requirements, segregation and safeguarding of customer assets, client suitability, adherence to Anti-Money Laundering and Countering Terrorism Financing and cybersecurity, prohibition on outsourcing, grounds for suspension or revocation, prohibited acts, reportorial requirements and record-keeping, and fees and penalties.

3. CTA CASES

[CONDOMINIUM CORPORATIONS ARE GENERALLY EXEMPT FROM LOCAL BUSINESS TAXATION UNDER THE LOCAL GOVERNMENT CODE] [CONDOMINIUM CORPORATIONS MANAGING COMMON AREAS SOLELY FOR UNIT OWNERS’ BENEFIT CANNOT BE CONSIDERED AS ENGAGING IN TRADE OR BUSINESS] [ASSESSMENT COLLECTIONS BY CONDOMINIUM CORPORATIONS ARE NOT SUBJECT TO LOCAL BUSINESS TAX]

The Petitioners, Taguig City Treasurer and the City Government of Taguig, filed a Petition for Review challenging the Regional Trial Court's Decision partially granting the Respondent, Forbeswood Heights Condominium Association, Inc.'s claim and ordering a refund of the illegally collected Local Business Tax (LBT) for the year 2022. The Petitioners argue that there is no law exempting condominium corporations from LBT and that Municipal Ordinance No. 24, Series of 1993 or the Revenue Code of Taguig specifically renders the Respondent Condominium Corporation liable for LBT on contractors.  On the other hand, the Respondent argues that it is not subject to LBT by virtue of being a condominium corporation not engaged in profit-making activities. In ruling, the Court held that to be liable for LBT, a person must be engaged in trade or business, which means being engaged in activities with a view to profit. In this case, the collection of assessments by a condominium corporation to cover the necessary expenses for maintaining and managing the condominium project and its common areas lacks a profit-oriented motive. This activity does not constitute a business under the Local Government Code, rendering the imposition of LBT on a condominium corporation unwarranted. Having been declared as a condominium corporation not engaged in business, the Court held that the order of refund for erroneously collected LBT is proper. Thus, the Petition for Review is DENIED. [TAGUIG CITY TREASURER & THE CITY GOVERNMENT OF TAGUIG VS. FORBESWOOD HEIGHTS CONDOMINIUM ASSOCIATION, INC., CTA EN BANC CASE NO. 2888, MAY 15, 2025]


[IMPORTANCE OF PROVING INWARD REMITTANCE OF FOREIGN CURRENCY PROCEEDS AS A KEY ELEMENT TO QUALIFY SALES AS ZERO-RATED] [FOREIGN CURRENCY REMITTANCE MUST NOT ONLY BE DULY ACCOUNTED FOR UNDER THE RULES & REGULATIONS OF THE BSP BUT SHOULD ALSO BE SUPPORTED BY VAT ZERO-RATED OFFICIAL RECEIPTS IN ACCORDANCE WITH THE PERTINENT INVOICING REQUIREMENTS] [THE INVOICING & SUBSTANTIATION REQUIREMENTS SHOULD BE FOLLOWED BECAUSE IT IS THE ONLY WAY TO DETERMINE THE VERACITY OF THE TAXPAYER'S CLAIMS FOR VAT REFUND]

Petitioner CITCO International Support Services Limited filed a Petition for Review seeking a judgment declaring its entitlement to a refund or the issuance of a Tax Credit Certificate (TCC) of its unutilized input Value-Added Tax (VAT) attributable to zero-rated sales for the third (3rd) and fourth (4th) quarters of calendar year (CY) 2018. Petitioner argued its entitlement to a refund amounting to ₱13,493,509.53, representing duly substantiated unutilized and excess input VAT attributable to export zero-rated sales for the said quarters of CY. Contrarily, Respondent Commissioner of Internal Revenue (CIR) contended that the claim should be denied due to the Petitioner's failure to substantiate its refund request at the administrative level, emphasizing that the burden of proof lies with the Petitioner, tax refunds are not automatically granted upon filing, and are subject to administrative investigation. In ruling, a taxpayer claiming a VAT refund or credit must strictly comply with the substantiation and invoicing requirements under the Tax Code of 1997, as VAT’s credit mechanism relies on proper documentation to ensure accurate tax collection and audit trail. In litigated VAT refund claims, failure to meet any requisite is a valid ground for denial. In the case at bar, the Petitioner satisfied the deadlines for both administrative and judicial claims and proved VAT registration. It also established zero-rated sales to two non-resident foreign corporation (NRFC) clients, Citco Fund Administration Limited and Citco Bank and Trust Company Limited, by submitting Service Agreements and proving services were rendered in the Philippines. However, for other clients, the Petitioner failed to prove the nature of services to be performed. Additionally, the Petitioner failed to sufficiently prove inward remittance of foreign currency proceeds through the Philippine banking system in accordance with BSP regulations. While VAT zero-rated official receipts were presented, the amounts inwardly remitted to the Petitioner’s Philippine bank account were only for operational needs and not clearly linked to specific service transactions. Further, the Petitioner's reliance on Revenue Memorandum Circular (RMC) No. 57-97 is without merit, as Supreme Court rulings, most notably in the case of San Roque Power Corp. vs. CIR, still require proof of inward remittance. Without the proof of actual inward remittance, the Petitioner failed to satisfy the fourth essential element. As a result, assessing compliance with the remaining requisites was no longer necessary. Consequently, the Petition for Review was DENIED for lack of merit. [CITCO INTERNATIONAL SUPPORT SERVICES LIMITED VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10462, MAY 6, 2025]


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