Subject: WEEKLY TAX UPDATES [SEPT 9] LIST: 2026 regular holidays, special non-working days

WEEKLY TAX UPDATES

SEPTEMBER 9

  1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 2-8]

  2. BIR REITERATES THE CRITERIA & GUIDELINES ON THE DEDUCTIBILITY OF ORDINARY & NECESSARY EXPENSES

  3. FIRB PRESCRIBES THE REVISED CETI TEMPLATE FOR TRANSITORY, NEW & EXPANSION PROJECTS UNDER CREATE MORE

  4. SEC OPINION ON INCORPORATED JOINT VENTURE

  5. SEC NOTICE ON DECREATE IN AUTHORIZED CAPITAL STOCK

  6. CTA CASES

1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 2-8]

1. Gen Z workers embrace ‘polyworking’ amid low wages, rising costs

2. Court rules on subdivision open spaces, road lots

3. DTI moves to shield exporters from full brunt of US tariffs

4. Go files housing development bill

5. Aromate PH strengthens Taiwanese investment with planned $4.3-M manufacturing facility in Batangas

6. DOTr opens North-South railway project to int’l partners

7. SCTEX toll hike final tranche to take effect on Sept. 9

8. Central Luzon getting hotter as industrial hub

9. Manila Water off-loads P1.1-B stake in Thai utility

10. Villar Land files appeal vs SEC penalty

11. Marcos OKs law extending foreign investors’ land lease to 99 years

12. Cebu province is ‘P6 billion richer’ after turnover of Filinvest towers

13. Marcos signs into law new mining tax system

14. PUP investigating faculty misconduct

15. LIST: 2026 regular holidays, special non-working days

16. MPIC unit weighing PrimeWater acquisition, awaits further details

17. SEC joins push to boost transparency of beneficial ownership in extractive industries

18. House bill filed seeking return of VAT rate to 10%

19. BSP sacks supervisors over ghost employees

20. BIR collections miss target for first 8 months

21. Australia provides P172M in funding to female-led PHL small businesses

22. Review law, Sotto reminds CSC commissioner

23. Socialized housing remains unaffordable despite expanded 4PH program — study

24. SC clarifies rules on land ownership

25. Marcos opens Hyundai's shipyard in PH

26. DOJ subpoena: Lao family’s D&L faces tax evasion charges over subsidiary’s ‘ghost’ purchases

27. ERC amends net-metering program rules

28. PLDT brings to the Philippines Google’s ‘game-changing’ laser internet

29. SEC lauds DOJ indictment of Abra Mining execs

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.

Gen Z workers embrace ‘polyworking’ amid low wages, rising costs [BusinessWorld, September 8, 2025]

In the Philippines, there is still little data on polywork, though part-time work is legally recognized. “Generally, the contract of employment or work arrangement governs the rights and obligations of the employee and the employer,” Mr. Laguesma told BusinessWorld.

 

Court rules on subdivision open spaces, road lots [The Manila Times, September 7, 2025]

THE Supreme Court ruled that open spaces and road lots inside subdivisions don’t automatically become government property without a written deed of donation.


DTI moves to shield exporters from full brunt of US tariffs [The Philippine Star, September 7, 2025]

In preparation for the full effect of the reciprocal tariff, she said the DTI is helping exporters connect with buyers through business matching activities and providing hands-on assistance with export documents and customs procedures.

 

Go files housing development bill [The Manila Times, September 7, 2025]

The accompanying explanatory statement said the measure “allows local governments to levy a half-percent socialized housing tax on urban land values, with proceeds dedicated to socialized housing and public rental projects.”

 

Aromate PH strengthens Taiwanese investment with planned $4.3-M manufacturing facility in Batangas [GMA News Online, September 7, 2025]

Aromate PH Assets Corp., a local subsidiary of Taiwan-based Aromate Industries, is set to build a $4.3-million manufacturing facility in Batangas, which is set to serve as a regional hub for its air care products amid the growing market and global demand.


DOTr opens North-South railway project to int’l partners [The Manila Times, September 6, 2025]

The 35-station commuter line, which stretches across Central Luzon, Metro Manila and Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) is expected to create around 350,000 jobs during construction and operations.

 

SCTEX toll hike final tranche to take effect on Sept. 9 [GMA News Online, September 6, 2025]

Motorists using the Subic-Clark-Tarlac Expressway (SCTEX) should brace for higher toll rates next week as the Toll Regulatory Board (TRB) has authorized the implementation of the third and final tranche of toll rate adjustments, originally due in 2021 and 2023, for the toll road.

 

Central Luzon getting hotter as industrial hub [Philippine Daily Inquirer, September 6, 2025]

Real estate broker Colliers Philippines said in its first semester industrial report that 870 hectares (ha) of new industrial space may be available from 2025 to 2028.

 

Manila Water off-loads P1.1-B stake in Thai utility [Philippine Daily Inquirer, September 6, 2025]

In a disclosure on Friday, the Razon-led group said its unit, Manila Water (Thailand) Co. Ltd. sold all its 311.44 million ordinary shares in Eastern Water Resources Development and Management Public Co. Ltd. to investor Bhavin Kunaderekwong.

 

Villar Land files appeal vs SEC penalty [The Philippine Star, September 5, 2025]

Lim said Villar Land filed a motion for reconsideration of the penalty imposed for the company’s failure to submit its audited financial statements for 2024 and the first quarter of this year.

 

Marcos OKs law extending foreign investors’ land lease to 99 years [ABS-CBN News, September 5, 2025]

Republic Act No. 12252 amends RA 7652 or the Investors Lease Act, which seeks to boost foreign investments and provide a “stable environment for foreign investments.”

 

Cebu province is ‘P6 billion richer’ after turnover of Filinvest towers [Cebu Daily News, September 5, 2025]

The assets of Cebu, the country’s ‘wealthiest province’, just grew as one of its joint ventures with conglomerate Filinvest Land Inc. (FLI) finally came into fruition.

 

Marcos signs into law new mining tax system [The Philippine Star, September 5, 2025]

A priority measure of the administration, Republic Act 12253 or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act establishes a simplified and uniform fiscal framework for the mining sector and enhances environmental safeguards.

 

PUP investigating faculty misconduct [The Manila Times, September 4, 2025]

THE Polytechnic University of the Philippines (PUP) is addressing the “grave complaint” that has gone viral on social media concerning a faculty member accused of unauthorized publication of a research paper and exploitation of student theses.

 

LIST: 2026 regular holidays, special non-working days [Inquirer.Net, September 4, 2025]

Based on President Ferdinand Marcos Jr.’s Proclamation No. 1006, signed by Executive Secretary Lucas Bersamin on Sept. 3, the following holidays in 2026 shall be observed nationwide:

 

MPIC unit weighing PrimeWater acquisition, awaits further details [BusinessWorld, September 4, 2025]

METRO PACIFIC WATER (MPW), the water infrastructure investment arm of Metro Pacific Infrastructure Corp. (MPIC), is keen on acquiring Villar-owned PrimeWater Infrastructure Corp.

 

SEC joins push to boost transparency of beneficial ownership in extractive industries [BusinessWorld, September 4, 2025]

THE Securities and Exchange Commission (SEC) said it and the Philippine Extractive Industries Transparency Initiative (PH-EITI) signed a data-sharing agreement to improve access to beneficial ownership information in the extractive industries.


House bill filed seeking return of VAT rate to 10% [GMA News Online, September 3, 2025]

Batangas First District Representative Leandro Leviste made the submission through his House Bill 4302, or the proposed VAT Reduction Act of 2025.


BSP sacks supervisors over ghost employees [The Philippine Star, September 3, 2025]

The Bangko Sentral ng Pilipinas (BSP) has dismissed two supervisors implicated in the falsification of attendance records of ghost employees, imposing the maximum administrative penalties including forfeiture of benefits and a lifetime ban from public service.

 

BIR collections miss target for first 8 months [BusinessWorld, September 3, 2025]

THE Bureau of Internal Revenue (BIR) said it collected P2.06 trillion in the first eight months, falling short of its P2.18-trillion target.


Australia provides P172M in funding to female-led PHL small businesses [BusinessWorld, September 3, 2025]

In a statement on Wednesday, the Australian Embassy said the Australian Development Investments (ADI) project will provide the funding through ARQ SME Finance.

 

Review law, Sotto reminds CSC commissioner [Inquirer.Net, September 3, 2025]

Senate Minority Leader Vicente Sotto III on Wednesday denounced a statement made by a commissioner of the Civil Service Commission (CSC) on the absence of a law prohibiting government officials and employees from engaging in online or land-based gambling in casinos outside office hours.

 

Socialized housing remains unaffordable despite expanded 4PH program — study [BusinessWorld, September 3, 2025]

The study estimated that it would cost a total of P8,324.06 monthly to avail oneself of a housing unit under the expanded Pambansang Pabahay Para sa Pilipino (4PH) Program.

 

SC clarifies rules on land ownership [The Manila Times, September 3, 2025]

The high tribunal also reiterated the distinctions: ejection covers unlawful possession within a year; accion publiciana involves possession disputes beyond a year or without forceful entry; and accion reivindicatoria seeks both ownership and possession.

 

Marcos opens Hyundai's shipyard in PH [The Manila Times, September 3, 2025]

HD Hyundai’s restart of large-scale shipbuilding in the Philippines leases 200 hectares from Agila Subic, a Cerberus portfolio company, for operations beginning January 2026.

 

DOJ subpoena: Lao family’s D&L faces tax evasion charges over subsidiary’s ‘ghost’ purchases [Bilyonaryo.com, September 3, 2025]

D&L Industries of the Lao family is in hot water for tax evasion arising from alleged “ghost purchases” of its food ingredient subsidiary Oleo Fats, Inc. (OFI).

 

ERC amends net-metering program rules [GMA News Online, September 2, 2025]

Net-metering allows customers of distribution utilities to install an on-site renewable energy facility (such as solar panels) not exceeding 100 kilowatts (kW) in capacity so they can generate electricity for their own use.

 

PLDT brings to the Philippines Google’s ‘game-changing’ laser internet [Philippine Daily Inquirer, September 2, 2025]

On Monday, the telco giant said that Google Taara laser technology uses beams of light to transmit data across long distances, with each communication site powerful enough to deliver up to 20 gigabits per second of capacity.

 

SEC lauds DOJ indictment of Abra Mining execs [The Philippine Star, September 2, 2025]

The SEC said the DOJ, acting upon the complaint filed by the commission, has indicted Abra Mining, its directors, officers, transfer agent and certain stockholders for the unauthorized and fraudulent trading of shares from 2015 to 2019.

2. BIR REITERATES THE CRITERIA & GUIDELINES ON THE DEDUCTIBILITY OF ORDINARY & NECESSARY EXPENSES

Revenue Memorandum Circular (RMC) No. 081-2025, issued on September 3, 2025, reiterates the criteria and guidelines on the deductibility of ordinary and necessary expenses under Section 34(A)(1)(a) of the Tax Code.

 

Highlights include the following:

 

1. Persons entitled to deduction under Section 34(A)(1)(a) of the Tax Code

2. Criteria for deductibility

3. Tax treatment of expenses pertaining to tax-exempt income, income subject to final withholding tax, and income subject to preferential tax rate

3. FIRB PRESCRIBES THE REVISED CETI TEMPLATE FOR TRANSITORY, NEW & EXPANSION PROJECTS UNDER CREATE MORE

Fiscal Incentives Review Board (FIRB) Advisory No. 007-2025, issued on September 03, 2025, prescribes a revised format of Certificate of Entitlement to Tax Incentives (CETI) for transitory, new, and expansion projects under Republic Act (R.A.) No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

4. SEC OPINION ON INCORPORATED JOINT VENTURE

[INCORPORATED JOINT VENTURES IN THE PHILIPPINES ARE GOVERNED BY THE REVISED CORPORATION CODE & NOT PARTNERSHIP LAWS] [FOREIGN CORPORATIONS FORMING A JOINT VENTURE ARE RECOGNIZED ONLY AS STOCKHOLDERS, NOT JOINT VENTURE PARTNERS] [SHAREHOLDERS’ AGREEMENT’S VALIDITY SHOULD NOT OVERRIDE PHILIPPINE CORPORATE LAW]

J Co. is seeking an opinion on whether Philippine Partnership or Corporation Laws apply to “Entity X,” a domestic corporation to be jointly formed by two foreign corporations (i.e., Corporations A and B) to hold shares in power generation and electricity supply companies. The parties will execute a Shareholders’ Agreement (SHA) providing for equal ownership and board representation, a quorum requiring at least one director from each party, majority voting for stockholder actions, distribution of retained earnings, and restrictions on share transfers. They expressly disclaimed any intent to form a partnership and stipulated that Japanese law would govern the SHA. In reply, since Entity X will be incorporated in the Philippines, it will necessarily be governed by the Revised Corporation Code (RCCP), regardless of the choice-of-law clause. Corporation A and Corporation B will not be considered joint venture partners but stockholders, as an incorporated joint venture is treated as a corporation and not a partnership, consistent with jurisprudence such as Mabuhay Holdings v. Sembcorp Logistics and Valdes v. La Colina Development Corp. The SEC emphasized the doctrine of separate corporate personalities, noting that Entity X is distinct from its incorporators. While the SHA is valid as an expression of contractual autonomy, its provisions cannot override mandatory requirements of Philippine corporate law. Finally, if Entity X acts as a holding company, foreign ownership restrictions under the Foreign Investments Act may apply unless it qualifies for specific exemptions. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 25-12, JULY 14, 2025]

5. SEC NOTICE ON DECREASE IN AUTHORIZED CAPITAL STOCK

SEC AMENDS THE REQUIREMENTS FOR APPLICATIONS TO DECREASE CAPITAL STOCK

In a Notice dated August 28, 2025, the SEC had advised that effective immediately, the SEC shall no longer require the submission of the written consent of each creditor when applying for the decrease of authorized capital stock filed with the Financial Analysis and Audit Department (FAAD). However, the publication requirement on such applications shall be strictly enforced. Moreover, the requirement of submitting a List of Creditors, if the decrease involves a return of capital, shall be replaced with a Certification executed by the company Treasurer, under oath.

6. CTA CASES

LACK OF PROOF OF RECEIPT OF ASSESSMENT NOTICE RENDERS THE ASSESSMENT VOID

Petitioner Aegis Integrated Lighting and Ground Protection Inc. filed a Petition for Review seeking cancellation of the Final Assessment Notice/Formal Letter of Demand (FAN/FLD) and the Warrant of Garnishment (WOG) for its alleged tax deficiency assessment issued by the Respondent Commissioner of Internal Revenue (CIR). The Petitioner argued it is not liable to the assessment since the Respondent’s right to assess had already prescribed. Further, its right to due process was violated. On the other hand, the Respondent countered that the Petition should be dismissed for lack of jurisdiction since the Petitioner failed to file a protest against the FAN/FLD. In ruling, the Court held that the Respondent failed to prove valid service of the PAN and FAN/FLD, as evidence presented was incomplete, defective, and unsupported by proof of actual receipt, thereby violating the Petitioner’s right to due process. Consequently, the assessment is CANCELLED and SET ASIDE. [AEGIS INTEGRATED LIGHTING AND GROUND PROTECTION INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10716, AUGUST 13, 2025]


THE REGULATION OF A SPECIFIC ACTIVITY PERFORMED BY MEMBERS OF A PROFESSION DOES NOT, IN ITSELF, AMOUNT TO REGULATION OF THE PROFESSION AS A WHOLE

The Petitioner, Emelino T. Maestro, a Certified Public Accountant (CPA), is assailing the Decision of the Respondent, Commissioner of Internal Revenue (CIR), upholding the validity of Sections (3)(B)(a), 4(A)(1), 8 and 13 of Revenue Regulations (RR) No. 11-2006, as amended by RR No. 4-2010 in relation to the BIR accreditation requirement. The Petitioner argues that the BIR has encroached into the exclusive domain of the Professional Regulatory Board of Accountancy (PRBA) in regulating the practice of accountancy as a profession and the regulations which require CPAs to be accredited with the BIR as tax agents unlawfully restrict the practice of accountancy. On the other hand, the Respondent asserts that the Petitioner failed to exhaust administrative remedies when it failed to appeal first with the Secretary of Finance (SOF). In addition, the Respondent questions the Petitioner’s legal standing to file the case in view of his lapsed accreditation as a tax agent. In ruling, the Court held that the Doctrine of Exhaustion of Administrative Remedies does not apply in this case. The Court emphasized that the doctrine applies only where the act of the administrative agency concerned were performed pursuant to its quasi-judicial function, and not when the assailed act pertains to its rule-making or quasi-legislative power. The Court further noted that an appeal to the SOF was not appropriate, given that the SOF was the authority who issued the challenged regulations. On another issue, the Court recognized that the Petitioner had legal standing in filing the Petition, as a CPA directly affected by a regulation which allegedly limits the ability of CPAs to engage in tax practice, and poses an imminent threat to his right to exercise his profession. However, the Court upheld the validity of the assailed regulations, stating that there is no undue restriction on the practice of accountancy. The Court clarified that the regulation of a specific activity performed by members of a profession, which in this case is tax representation, does not ipso facto amount to regulation of the profession itself. The Court further held that the BIR’s accreditation of tax agents is a reasonable and necessary measure to ensure that practitioners maintain proficiency in the field of tax law and procedure. This requirement falls within the BIR’s legitimate power to administer and implement tax laws with efficiency and integrity. Thus, the Petition is DENIED. [EMELINO T. MAESTRO VS COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 11309, AUGUST 6, 2025]


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