Subject: WEEKLY TAX UPDATES [MAY 6] 14,000 Move It riders to lose jobs

WEEKLY TAX UPDATES

MAY 6

  1. TAX & BUSINESS-RELATED NEWS [APRIL 29-MAY 6]

  2. BIR REVISES THE GUIDELINES ON PRIVATE RETIREMENT BENEFIT PLAN ORGANIZATIONS

  3. BIR EXTENDS THE REGISTRATION PERIOD FOR NON-RESIDENT DIGITAL SERVICE PROVIDERS

  4. FIRB PRESCRIBES THE GUIDELINES ON NEW FIRMS ENHANCEMENTS & COMPLIANCE REMINDERS FOR TY 2024 & 2025

  5. CTA CASES

1. TAX & BUSINESS-RELATED NEWS [APRIL 29-MAY 6]

1. Gov’t to push for shorter working hours for moms

2. Who will be the next SEC chairperson?

3. Dennis Uy’s casino site now for sale

4. US hikes funding for Subic-Clark-Manila-Batangas railway study

5. Phinma investing P400 million for first 2 community housing projects

6. Netflix raises subscription prices in the Philippines due to new VAT law

7. Fake documents void even when notarized

8. Tanco-backed iACADEMY eyeing 3rd PH campus

9. Ateneo keeps line open amid CA labor case ruling

10. Katinko maker to invest P2B in PH expansion

11. Security Bank acquires MUFG’s 25 percent stake in Home Credit Philippines

12. 14,000 Move It riders to lose jobs

13. Belle seeks gaming license for 2nd casino resort

14. Makati subway project no longer feasible: proponent

15. SM Prime to start project on reclamation site by end-2025

16. Marcos wants review of rules on continuing professional development

17. Marcos bares lower interest rates on SSS salary, calamity loans starting July

18. PEZA eyes second pharma ecozone

19. Regional wage boards to begin wage review – DOLE

20. Pag-IBIG offers new loan for home renovations

21. Makati City among the world’s top healthcare cities in 2025 global index

22. BIR sues vape firms for nonpayment of P8.68B in taxes

23. Pag-IBIG Fund raises multi-purpose loan limit

24. Supreme Court Holds Private School Accountable in Bullying Case

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.

Gov’t to push for shorter working hours for moms [Philippine Daily Inquirer, May 6, 2025]

The potential amendment to the Maternity Leave Law is one of several proposed legislations under the “Trabaho Para Sa Bayan Plan” or TPB. The 10-year master plan of the government will tackle job creation, labor market transformation and inclusive workforce development.

 

Who will be the next SEC chairperson? [The Philippine Star, May 5, 2025]

Five of the country’s top lawyers are in the running to become the next chairperson of the Securities and Exchange Commission (SEC), as the seven-year term of incumbent Duterte appointee Emilio Aquino ends on June 6, 2025.

 

Dennis Uy’s casino site now for sale [Philippine Daily Inquirer, May 5, 2025]

China Banking Corp. (Chinabank) will sell a 12.4-hectare beachfront property in Cebu province, where the casino of Dennis A. Uy-led PH Resorts Group Holdings Inc. (PHR) was supposed to rise, until the company faced difficulties paying its obligations.

 

US hikes funding for Subic-Clark-Manila-Batangas railway study [The Philippine Star, May 5, 2025]

The United States (US) has increased its funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Railway, a flagship project of the Luzon Economic Corridor (LEC), raising the amount to $3.8 million from $2.5 million.

 

Phinma investing P400 million for first 2 community housing projects [The Philippine Star, May 5, 2025]

Phinma Community Housing Corp. president Luis Oquinena told The STAR that the company would start construction and development of its community housing project in Davao by October, while a similar project in Bacolod is eyed for launch by the first or second quarter of 2026.

 

Netflix raises subscription prices in the Philippines due to new VAT law [Technobaboy, May 4, 2025]

The price hike comes in response to Republic Act (RA) 12023, which imposes a 12% value-added tax (VAT) on foreign digital service providers (DSPs), including streaming platforms, online advertising, and e-commerce.

 

Fake documents void even when notarized [The Philippine Star, May 4, 2025]

In a ruling penned by Associate Justice Amy Lazaro-Javier, the SC’s Second Division said notarization “does not cure a forged or fabricated document.”

 

Tanco-backed iACADEMY eyeing 3rd PH campus [Philippine Daily Inquirer, May 3, 2025]

Founded in 2002, iACADEMY specializes in programs geared toward computing, business, and design. The focus is on preparing students for careers in emerging and creative industries.


Ateneo keeps line open amid CA labor case ruling [The Manila Times, May 3, 2025]

This issue started as early as last year when the faculty union claimed "illegal deductions" stemming from Ateneo's recovery of salary advances made to the employees who were placed on Flexible Work Arrangement during the Covid-19 pandemic.

 

Katinko maker to invest P2B in PH expansion [Philippine Daily Inquirer, May 3, 2025]

Greenstone is the developer for the 30-hectare industrial hub, touted as the country’s first pharmaceutical industrial hub accredited by the Philippine Economic Zone Authority (PEZA).

 

Security Bank acquires MUFG’s 25 percent stake in Home Credit Philippines [The Philippine Star, May 3, 2025]

In a disclosure, the listed bank said it acquired the minority stake in HC Consumer Finance Philippines Inc. (HCPH), widely known as Home Credit Philippines, from Japan-based MUFG Bank Ltd. for a base price of P10.365 billion.


14,000 Move It riders to lose jobs [The Philippine Star, May 2, 2025]

Up to 14,000 motorcycle taxi riders belonging to Move It are at risk of losing their jobs following an order from the Land Transportation Franchising and Regulatory Board (LTFRB) reducing the company’s fleet by more than half.


Belle seeks gaming license for 2nd casino resort [The Philippine Star, May 2, 2025]

Belle Corp., one of the portfolio investments of SM Investments Corp., hopes to secure a gaming license from the Philippine Amusement and Gaming Corp. this year to develop its second integrated resort and casino in the country.

 

Makati subway project no longer feasible: proponent [ABS-CBN News, May 2, 2025]

In a regulatory filing, the project's private sector proponent, Philippine Infradev Holdings, said the project is no longer economically and operationally feasible because of a Supreme Court ruling that some areas previously within Makati City are now considered part of Taguig.

 

SM Prime to start project on reclamation site by end-2025 [Philippine Daily Inquirer, May 2, 2025]

Roughly the size of around five Mall of Asia (MOA) complexes, the project will feature an integrated property development with offices, residences and a five-star hotel, among others. It will also be connected to the MOA complex, which also sits on reclaimed land.

 

Marcos wants review of rules on continuing professional development [GMA News Online, May 1, 2025]

President Ferdinand ''Bongbong'' Marcos Jr. urged Thursday the Professional Regulation Commission and the Continuing Professional Development (CPD) Council to study its regulations to help ease the burden of professionals and practitioners.


Marcos bares lower interest rates on SSS salary, calamity loans starting July [GMA News Online, May 1, 2025]

In a statement, SSS said the reduced interest rates are applicable to “members who have no availment of penalty condonation in the past five years – in other words, for members who have good credit quality – and will increase cash proceeds from loan applications.”


PEZA eyes second pharma ecozone [BusinessWorld, May 1, 2025]

“This move is in response to the marching orders of President Ferdinand R. Marcos, Jr. to make medicine more accessible and affordable, to empower Filipino manufacturers, to be self-sufficient, and to be the hub in ASEAN for the pharmaceutical industry, thus strengthening our own local supply chain,” Mr. Panga said.

 

Regional wage boards to begin wage review – DOLE [ABS-CBN News, May 1, 2025]

In his speech at the 123rd Labor Day Celebration in Pasay City, the President said the regional wage boards have been continuously studying wage hikes, noting that 16 regions have implemented wage increase since June last year.

 

Pag-IBIG offers new loan for home renovations [ABS-CBN News, April 30, 2025]

In a statement, Pag-IBIG said its Home Equity Appreciation Loan or Pag-IBIG HEAL will allow users to borrow up to P6 million to improve their houses.

 

Makati City among the world’s top healthcare cities in 2025 global index [Inquirer.Net, April 30, 2025]

Makati City Mayor Abby Binay proudly announced that the city has secured its position as a global healthcare leader, ranking fourth in the world according to the latest Numbeo Health Care Index for Q1 2025.

 

BIR sues vape firms for nonpayment of P8.68B in taxes [Philippine Daily Inquirer, April 30, 2025]

Charged with violating the National Internal Revenue Code of 1997, as amended, were companies operating under the brand names Flava, Denkat and Flare, specifically Section 263 (unlawful possession of vape products without payment of excise), Section 254 (tax evasion) and Section 255 (failure to file excise tax returns).

 

Pag-IBIG Fund raises multi-purpose loan limit [Cebu Daily News, April 30, 2025]

The government-run Pag-IBIG Fund has enhanced its popular Multi-Purpose Loan (MPL), now allowing members to borrow up to 90 percent of their savings and become eligible more quickly.

 

Supreme Court Holds Private School Accountable in Bullying Case [Smart Parenting, April 29, 2025]

In a press release dated April 28, the Supreme Court stated: “In a Decision written by Associate Justice Mario V. Lopez, the SC’s Second Division found that the school failed to address a punching incident involving three grade school students inside one of its classrooms.”

2. BIR REVISES THE GUIDELINES ON PRIVATE RETIREMENT BENEFIT PLAN ORGANIZATIONS

Revenue Regulations (RR) No. 15-2025, issued on April 29, 2025, revises the guidelines governing Private Retirement Benefit Plans pursuant to the Republic Act (R.A.) 4917, otherwise known as An Act Exempting Retirement Benefits of Employees of Private Firms from Attachment, Levy, and Execution.

 

Highlights include the following:

 

a. Definition of Private Retirement Benefit Plan

b. Tax incentives or privileges if considered as Tax Qualified Plan

c. Requisites of a Reasonable Retirement Benefit Plan

d. Application process as well as documentary requirements for a Certificate of Tax Qualification, whether trusteed, non-trusted/insured, or multi-employer

e. Guidelines to follow in case of amendment to the Tax Qualified Plan

f.  Certain limitations imposed on the investment by the trustees of an employee’s trust

g. Fees to be paid by the employer in the application process for Tax Qualified Plan and related amendments

h. Filing of returns of trustees of all trusteed Retirement Plans

3. BIR EXTENDS THE REGISTRATION PERIOD FOR NON-RESIDENT DIGITAL SERVICE PROVIDERS

Revenue Regulations (RR) No. 14-2025, issued on April 25, 2025, amends the registration period for Non-Resident Digital Service Providers (NRDSPs) under the earlier RR No. 3-2005.


It may be recalled that RR No. 3-2025 initially set the deadline for registration or updating with the BIR at 60 days from its effectivity. However, RR No. 14-2025 has extended this period to 120 days from the same effectivity date. Consequently, NRDSPs now have until June 1, 2025, to complete their registration with the BIR and will become subject to VAT beginning June 2, 2025.

4. FIRB PRESCRIBES THE GUIDELINES ON NEW FIRMS ENHANCEMENTS & COMPLIANCE REMINDERS FOR TY 2024 & 2025

FIRB Advisory No. 004-2025, issued on April 4, 2025, provides guidelines, clarifications, and reminders on the updated features of the Fiscal Incentives Registration and Monitoring System (FIRMS) to aid Investment Promotion Agencies (IPAs) and Registered Business Enterprises (RBEs) in the submission of Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR) for the Taxable Years 2024 and 2025.

 

The enhancements aim to improve the efficiency and accuracy of reporting while addressing common challenges encountered by users.

5. CTA CASES

[A PERSON DEALING WITH AN AGENT ASSUMES THE RISK OF A LACK OF AUTHORITY IN THE AGENT. HE OR SHE CANNOT CHARGE THE PRINCIPAL BY RELYING UPON THE AGENT'S ASSUMPTION OF AUTHORITY THAT PROVES TO BE UNFOUNDED] [FAILURE TO OBSERVE DUE PROCESS IN THE SERVICE OF TAX ASSESSMENT NOTICES RENDERS BOTH THE CRIMINAL & CIVIL CHARGES AGAINST THE TAXPAYER UNSUSTAINABLE] [THE BIR’S FAILURE TO VERIFY THE RECIPIENT’S AUTHORITY & THE INCORRECT DELIVERY OF ASSESSMENT NOTICES TO A DIFFERENT OFFICE LED TO THE VOIDING OF THE TAX ASSESSMENT & THE ACQUITTAL OF THE ACCUSED]

Plaintiff People of the Philippines filed a criminal case against the Accused Ronald Punay Robin for an alleged violation of Section 255 of the Tax Code of 1997, as amended. Accused Robin, a businessman and proprietor of R.E.N.Z.R. Enterprises, was charged with willful failure to pay deficiency income tax amounting to Php 1,965,471.40 for the Taxable Year 2016. The Bureau of Internal Revenue (BIR) conducted an audit of his business pursuant to Letters of Authority and issued a Preliminary Assessment Notice (PAN) and Final Assessment Notice (FAN) with a Formal Letter of Demand (FLD). The Prosecution claimed these notices were served to the Accused at his registered business address through Donald Reyes, allegedly his authorized representative. Accused, however, denied receiving any of the BIR notices and stated that Donald Reyes was neither his employee nor authorized to receive documents on his behalf. He explained that the notices were likely served at Room 402-A, the adjacent office of Lynjenken Freight Services, where Reyes worked. The Defense maintained that due process was violated because the Accused was never properly notified of the tax assessment. The Accused also testified that although he made a partial payment amounting to Php 196,547.14, this was done under legal advice for distressed businesses and did not signify admission of liability. The issues before the Court were whether the Accused was criminally liable for willful failure to pay tax under Section 255 of the Tax Code of 1997, and whether he was civilly liable for the assessed deficiency. In ruling, the Court held that the Prosecution failed to prove beyond a reasonable doubt that the Accused had a legal obligation to pay the assessed tax, as there was no valid service of the PAN and FLD/FAN. The BIR failed to comply with procedural requirements for substituted service and did not present evidence showing that Reyes was authorized to receive the assessment notices. As a result, the assessment was declared VOID. Consequently, the Court ACQUITTED the Accused of the criminal charge and held that no civil liability could arise from a void tax assessment. The Court emphasized that proper service of assessment notices is a constitutional due process requirement and that failure to comply invalidates the assessment and any resulting liability. [PEOPLE OF THE PHILIPPINES VS. RONALD PUNAY ROBIN, CTA CRIMINAL CASE NO. 0-1020, APRIL 23, 2025]


NEA-REGISTERED ELECTRIC COOPERATIVES ENJOY PERMANENT INCOME TAX EXEMPTION

Petitioner Pampanga I Electric Cooperative, Inc. (PELCO I), a non-stock, non-profit electric cooperative organized under Presidential Decree (P.D.) No. 269 and registered with the National Electrification Administration (NEA), filed a Petition for Review to challenge the validity of the deficiency income tax assessment issued by the Respondent Commissioner of Internal Revenue (CIR) for Taxable Year 2018. The Petitioner argued that the audit was void because it was conducted by a Revenue Officer (RO) who was not properly authorized under a valid Letter of Authority (LOA), violating Section 13 of the Tax Code of 1997, as amended, and their right to due process was violated. Further, it asserted that it enjoys permanent exemption from income tax under P.D. No. 269, and that the Respondent’s reliance on Revenue Memorandum Circular (RMC) No. 74-2013 and the MARELCO Ruling was misplaced. Even assuming liability, it should not be subject to penalties and interest. On the other hand, the Respondent maintained that the Petitioner was not exempt from paying income taxes and that the assessment was valid. In ruling, the Court held that the audit was void because Group Supervisor Raul T. Pamintuan, who actively participated in the audit, was not authorized by a valid LOA, as required by law. The mere issuance of a Reassignment Letter did not suffice to confer authority. In addition, the Court emphasized that, even assuming the audit was valid, the Petitioner is permanently exempt from income tax as an electric cooperative registered with the NEA. Citing the rulings in Samar-I Electric Cooperative and Misamis Oriental II Rural Electric Service Cooperative cases, the Court reaffirmed that NEA-registered electric cooperatives enjoy permanent income tax exemption under Section 39(a) of P.D. No. 269, and that Executive Order No. 93 and FIRB Resolution No. 24-87 did not validly withdraw such exemptions because they were effectively repealed by the Republic Act (R.A.) No. 6938 or the Cooperative Code of the Philippines.  Consequently, the assessment is considered NULL and VOID. [PAMPANGA I ELECTRIC COOPERATIVE, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10961, APRIL 23, 2025]


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