Subject: WEEKLY TAX UPDATES [SEPT 22] BIR removes VAT on system loss charge

WEEKLY TAX UPDATES

SEPTEMBER 22

  1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 14-21]

  2. BIR CIRCULARIZES ERC RESOLUTION ON THE REMOVAL OF VAT ON SYSTEMS LOSS

  3. CTA CASE ON LOCAL BUSINESS TAX ASSESSMENT OF A CONDOMINIUM CORPORATION

1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 14-21]

1. BCDA eyes Q1 2027 for bidding on remaining Market! Market! land

2. ADB to raise $6B for Asean Blue Economy tack

3. Aznar allocates P503.8m for new ships

4. Potential US import ban could hit iPhones, Galaxy, Pixel over patent dispute

5. Mastercard launches Wallet Pay to expand digital wallet reach

6. SEC clears Arthaland’s rental pool, ACE Pateros’ direct public offering

7. Under 24-hour hospital stay covered – PhilHealth

8. DOF seeks to triple sugary drinks tax

9. Filinvest Land set to close 3 units

10. North-south Commuter Railway full operation timeline revised to 2033

11. Headwinds force ABS-CBN to retrench 200 workers

12. ‘Wala na bang makupitan?’: Proposed taxes on 3-in-1 coffee, ice cream spark dismay

13. BIR on high alert vs illicit vapes, tobacco sa ‘Ber’ months begin

14. SC: No admin sanctions for LGU employee assigned to lower court without approval

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.

BCDA eyes Q1 2027 for bidding on remaining Market! Market! Land [GMA News Online, September 21, 2026]

According to BCDA president and chief executive officer Joshua Bingcang, the property will be bidded out as a transit-oriented development (TOD), as it will serve as a substation for the planned Metro Manila Subway.

 

ADB to raise $6B for Asean Blue Economy tack [BusinessMirror, September 21, 2026]

THE Asian Development Bank (ADB) said it will mobilize up to $6 billion in financing through 2030 for projects aimed at protecting Southeast Asia’s seas and supporting industries that depend on them.

 

Aznar allocates P503.8m for new ships [Manila Standard, September 20, 2026]

Aznar Shipping Corp. is allotting P503.8 million from its planned initial public offering to acquire two brand-new RoRoPax vessels as it expands its fleet and service routes in the Visayas.

 

Potential US import ban could hit iPhones, Galaxy, Pixel over patent dispute [Technobaboy, September 19, 2026]

Potential US import ban could hit iPhones, Galaxy, and Pixel devices after the US International Trade Commission opened an investigation into Apple, Samsung, and Google. The case comes from BoomCloud 360, a small California audio company, claiming infringement of spatial audio patents.

 

Mastercard launches Wallet Pay to expand digital wallet reach [The Philippine Star, September 19, 2026]

Mastercard has launched a new suite of payment services to help digital wallets expand across borders and connect to more merchants, with GCash among the participating providers through its partnership with Alipay+.

 

SEC clears Arthaland’s rental pool, ACE Pateros’ direct public offering [The Philippine Star, September 18, 2026]

Under the program, Arthaland serves as the exclusive leasing agent for multiple unit owners by consolidating certain commercial units on designated floors in the Cebu and Taguig projects that belong to the lease pool floors.

 

Under 24-hour hospital stay covered – PhilHealth [Philippine Daily Inquirer, September 17, 2026]

The policy change came after a viral social media post in June involving Maria Sulit, whose husband, a PhilHealth member, died less than 24 hours after hospital confinement. According to the post, the family was denied PhilHealth benefits because the husband did not meet the state insurer’s 24-hour confinement requirement.

 

DOF seeks to triple sugary drinks tax [The Philippine Star, September 17, 2026]

The government currently imposes a P6 to P12 per liter excise tax on pre-packed sweetened drinks under Republic Act No. 10963, or the Philippine TRAIN Law.

 

Filinvest Land set to close 3 units [BusinessMirror, September 17, 2026]

In its disclosure, the company identified the subsidiaries as Proleads Philippines Inc., Realpros Philippines Inc. and Filinvest Lifemalls Mimosa Inc.

 

North-south Commuter Railway full operation timeline revised to 2033 [GMA News Online, September 17, 2026]

The timeline of completion for the North-south Commuter Railway (NSCR) has been revised, with complete operations being eyed by 2033, according to Malacañang.

 

Headwinds force ABS-CBN to retrench 200 workers [The Manila Times, September 16, 2026]

ABS-CBN Corp. is set to retrench about 200 employees, or 7 percent of its workforce, as the media and entertainment company faces weaker advertising and consumer spending amid a difficult year for the content industry.

 

‘Wala na bang makupitan?’: Proposed taxes on 3-in-1 coffee, ice cream spark dismay [interaksyon, September 16, 2026]

Reports said Rep. Antonino Roman III (Bataan, First District) and Rep. Krisel Lagman (Albay, First District) proposed a flat excise tax on these products, citing concerns over their high sugar content.

 

The lawmakers are suggesting a P6 excise tax on 3-in-1 coffees and flavored milk.

 

BIR on high alert vs illicit vapes, tobacco sa ‘Ber’ months begin [Inquirer.Net, September 16, 2026]

Mendoza has directed regional and enforcement offices to intensify monitoring of suspected production sites, warehouses, distribution channels, and retail outlets, and to coordinate operations where necessary.

 

SC: No admin sanctions for LGU employee assigned to lower court without approval [GMA News Online, September 14, 2026]

The Supreme Court (SC) has said it cannot impose administrative sanctions on a locally funded employee, or an individual employed and paid by a local government unit (LGU), if it did not approve the employee’s assignment to a lower court.

2. BIR CIRCULARIZES ERC RESOLUTION ON THE REMOVAL OF VAT ON SYSTEMS LOSS

Revenue Memorandum Circular (RMC) No. 097-2026, issued on September 14, 2026, circularizes Energy Regulatory Commission (ERC) Resolution No. 26, Series of 2026, which declares the allowable System Loss Charge, within the cap approved by the ERC, as a government-mandated pass-through cost that does not form part of the gross sales of Generation Companies (GenCos), the National Grid Corporation of the Philippines (NGCP), and Distribution Utilities (DUs) for Value-Added Tax (VAT) purposes. As clarified, the allowable System Loss Charge is not subject to Output VAT and Creditable Withholding on VAT, provided that it is separately identified in the billing statement, invoice, or similar document. The exclusion does not extend to income tax and the corresponding creditable withholding tax. The Circular further amends Q&A No. 3 of RMC No. 116-2024, as previously amended by RMC No. 60-2026, and applies prospectively from its effectivity and that of ERC Resolution No. 26, Series of 2026.

3. CTA CASE

[A BILLING STATEMENT ISSUED FOR BUSINESS PERMIT RENEWAL IS NOT A NOTICE OF ASSESSMENT UNDER SECTION 195 OF THE LGC UNLESS IT STATES THE DEFICIENCY TAX, SURCHARGES, INTERESTS & PENALTIES] [WHERE NO ASSESSMENT EXISTS & THE TAXPAYER ALLEGES ERRONEOUS OR ILLEGAL PAYMENT OF LOCAL TAXES, THE REFUND CLAIM IS GOVERNED BY SECTION 196 OF THE LGC] [A CONDOMINIUM CORPORATION'S COLLECTION OF ASSOCIATION DUES, MEMBERSHIP FEES & SPECIAL ASSESSMENTS FOR MAINTENANCE & ADMINISTRATION DOES NOT CONSTITUTE BUSINESS SUBJECT TO LOCAL BUSINESS TAX]

Petitioners The City Treasurer and the City Government of Taguig City filed a Petition for Review seeking the reversal of the Regional Trial Court (RTC) Decision affirming the Metropolitan Trial Court's (MeTC) ruling ordering the refund or issuance of a tax credit in favor of Respondent Royal Palm Residences Condominium Corporation representing Local Business Tax (LBT) allegedly collected erroneously for Taxable Year 2021. Petitioners argued that the Respondent's claim had already prescribed because it was governed by Section 195 of the Local Government Code (LGC) on protest of assessment, contending that the Billing Statement issued in connection with the renewal of Respondent's business permit constituted a Notice of Assessment. Likewise, the Respondent was engaged in business through the collection of association dues, membership fees, and special assessments, thereby making it liable for LBT as a contractor under the Taguig Revenue Code. Further, the Respondent was effectively claiming a tax exemption which should be strictly construed against the taxpayer. On the other hand, the Respondent argued that the Billing Statement was not a Notice of Assessment under Section 195 because it merely reflected taxes and fees payable for permit renewal and did not indicate any deficiency tax, surcharge, interest, or penalty. Further, as a condominium corporation organized solely to administer and maintain common areas, it is not engaged in business and therefore not subject to LBT. In ruling, the Billing Statement did not constitute a Notice of Assessment contemplated under Section 195 of the LGC and the Respondent's refund claim was properly governed by Section 196 of the LGC. The Respondent timely filed both its administrative and judicial claims within the two-year prescriptive period. Also, the collection of association dues, membership fees, and special assessments by a condominium corporation to defray maintenance and administrative expenses does not constitute trade, business, or the sale of services for a fee, and therefore does not give rise to liability for LBT. Lastly, the Respondent's claim was based on non-taxability, not tax exemption, because the LBT did not attach in the first place. Thus, the Petition is DENIED, and the RTC’s ruling is AFFIRMED. [CITY TREASURER OF TAGUIG & CITY GOVERNMENT OF TAGUIG CITY VS. ROYAL PALM RESIDENCES CONDOMINIUM CORPORATION, CTA EN BANC CASE NO. 3147, SEPTEMBER 2, 2026]


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