This is a publication about developments in Philippine taxation. The contents usually include latest Republic Acts, Bureau of Internal Revenue issuances, Customs regulations, Court decisions, BSP circulars, SEC circulars, Department of Justice opinions and Executive Orders relevant to Tax practice.
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Taxes, compliance matters, assessments, and refunds
Ruling ruling not required
Upholding tax exemption despite the absence of a tax-free exchange ruling
Four individuals were majority shareholders in Company K and in Company P. These shareholders transferred all their Company K shares to Company P in exchange for more shares in Company P. As a result of the exchange, Company P became the majority owner of Company K and the four shareholders gained further control of Company P.
In light of their transfer of Company K shares, the four shareholders paid capital gains taxes (CGT). Subsequently, however, the CGT paid were claimed for refund with the BIR on the ground of erroneous payment considering that the transaction was a tax-free exchange under Section 40(C)(2) of the Tax Code, hence, exempt from CGT.
The claim was not acted upon and, when it reached the courts, the BIR argued that the transfer was not exempt because the shareholders failed to secure the requisite prior BIR certification or ruling confirming that the transaction qualifies as a tax-free exchange.
The Supreme Court granted the CGT refund claim, reasoning as follows:
If all the requirements for exemption under the law are complied with, the transaction is considered exempt, whether or not a prior BIR ruling was secured by the taxpayer. Tax rulings merely operate to “confirm” the existence of the conditions for exemption provided under the law.
In practice, a taxpayer often secures a BIR ruling, prior to entering into a transaction, to prepare for any tax liability. However, if the taxpayer already paid the tax and later on files a claim for refund on the basis of an exemption provided under the law, requiring a prior BIR ruling as a condition for the approval of the refund claim is clearly illogical. The underlying principle of prior application with the BIR becomes moot in refund cases where the very basis of the claim is erroneous or excessive payment.
There is nothing in Section 40(C)(2) of the Tax Code which requires the taxpayer to first secure a prior confirmatory ruling before the transaction may be considered as a tax-free exchange. The BIR should not impose additional requirements not provided by law, which would negate the availment of the tax exemption.
(G.R. No. 241424, promulgated 26 February 2020)
Means with end
Collecting taxes from offshore gaming licensees, operators and agents
The funding of subsidies and stimulus measures under the Bayanihan to Recover as One Act shall be sourced from, among others, the following:
5% franchise tax on the gross bets or turnovers or the agreed pre-determined minimum monthly revenues from gaming operations earned by offshore gaming licensees, including gaming operators, gaming agents, service providers and gaming support providers; and
Income tax, VAT and other applicable taxes on income from non-gaming operations earned by the same persons above.
In this light, the Commissioner of Internal Revenue issued the following implementing rules:
The above taxes shall be computed on the peso equivalent of the foreign currency used and based on the prevailing official exchange rate at the time of payment.
PAGCOR and/or the company awarded or chosen as its third-party intermediary/audit platform shall furnish the following information to the BIR:
Gross bets or turnovers earned;
Minimum Guarantee Fee or the minimum amount of regulatory fees paid; and
Other relevant data such as List of Licensees and accredited Service Providers and number of foreign nationals employed.
Non-payment, underpayment and/or payment of taxes computed not in accordance with the prevailing official exchange rate at the time of payment shall be considered as fraudulent acts which are subject to penalties under the Tax Code.
The BIR shall implement closure orders against those who fail to pay the above taxes and/or who commit any of the above fraudulent acts. Closure orders against operators, licensees or agents shall necessarily include the closure of all their accredited service providers.
After two years or upon a determination that the COVID-19 threat has been successfully contained or abated, whichever comes first, revenues derived from franchise taxes on gross bets or turnovers and income from non-gaming operations shall continue to-be collected and shall accrue to the General Fund of the Government.
(Revenue Regulations No. 30-2020, published 31 October 2020)
Cooperative sector
Clarifying tax matters and compliance requirements involving cooperatives
In light of the tax issues and concerns raised by cooperatives during Technical Working Group discussions and workshops, the Commissioner of Internal Revenue issued the following clarifications:
Cooperatives securing Certificates of Tax Exemption (CTEs) must submit the following:
New Applications |
Renewal |
|
Certified true copies (CTCs) of Articles of Cooperation and By-Laws, as certified by the Cooperative and Development Authority (CDA) |
CTCs of latest Articles of Cooperation and By-Laws, as certified by the CDA |
|
CTC of new Certificate of Registration issued by the CDA under the new Cooperative Code, as certified by the CDA |
||
CTC of the current Certificate of Good Standing issued by the CDA effective on the date of application |
||
CTC of the BIR Certificate of Registration of the cooperative |
N/A |
|
Original copy of Certification under oath of the List of Cooperative Members with respective TINs and capital contributions |
N/A |
|
N/A |
CTC of latest audited financial statements of the immediately preceding year |
|
All registered cooperatives with duly issued CTEs are required:
To immediately communicate and update their BIR registration regarding any amendment to the Articles of Cooperation or By-Laws; and
To annually submit the following to the concerned Revenue District Office (RDO) together with the Annual Income Tax Return:
CTC of the current and effective Certificate of Good Standing from the CDA;
Original copy of certificate under oath by the Chairperson/General Manger stating the type/category of the cooperative and principal activities; that the cooperative is transacting business with members only or with both members and non-members; amount of accumulated reserves; amount of net surplus; and that a least 25% of net surplus is returned to the members in the form of interest on share capital and/or patronage refund;
Original copy of yearly summary records of transactions; and
Original copy of certification under oath by the Chairperson/General Manager of the List of Active and Inactive Members, their TINs and share capital contributions.
If the TINs of members cannot be supplied yet, the CTE application will not be denied and the concerned office will process and issue/revalidate CTEs, provided, that the cooperative submits an original copy of a certification under oath of the list of cooperative members with their full names and capital contributions.
The TIN requirement of cooperative members is based on Section 236(I) of the Tax Code and Revenue Regulations No. 7-2012.
A cooperative may apply for TINs of its members if it is properly authorized by the latter and by collating the requirements and submitting the same to the concerned RDO.
The following are considered inactive members:
Members who are declared not in good standing;
Members whose whereabouts are not known for the last six months;
Members who did not have any transaction with or did not patronize the business of the cooperative for at least six months; and
Members who did not participate in the activities of the cooperative within six months.
The inactive status reverts into an active status as soon as the member transacts business with, patronizes and/or participates in the activities of the cooperative and his/her whereabouts are known.
Interest income earned from savings and time deposit accounts of members of a lending cooperative is tax-exempt.
Transactions between a cooperative and its members are not subject to documentary stamp tax.
The employer’s share of the cooperative in GSIS, SSS, Medicare and Pag-IBIG contributions are excluded from gross income and are considered allowable deductions.
A cooperative is exempt from withholding the 1% and 2% expanded withholding tax under Section 2.57.2(l) of Revenue Regulations No. 2-1998 only if it is not classified as a Top Withholding Agent.
Cooperatives which transact business with both members and non-members and whose accumulated reserves and undivided net savings exceed PHP10m shall be prioritized for audit by the BIR.
(Revenue Memorandum Circular No. 124-2020, issued 26 November 2020)
With a grain of salt
Clarification regarding the list of VAT-exempt drugs
In its letter dated 7 August 2020, the Food and Drugs Administration (FDA) clarified that the List of VAT-Exempt Diabetes, High-Cholesterol and Hypertension Drugs is based on the International Non-Proprietary Name (INN) or generic name which includes the salt form.
For example, the INN of Merformin is “Metformin” while its generic name and salt form is “Metformin hydrochloride.” As such, “Metformin” and “Metformin hydrochloride” is considered one and the same drug product.
To minimize confusion, the next List of VAT-Exempt Diabetes, High-Cholesterol and Hypertension Drugs will be including the corresponding salt forms, where applicable.
(Revenue Memorandum Circular No. 122-2020, issued 23 November 2020)
Online bidding clearance
Pilot implementation of the online application for tax clearance for bidding purposes
The Online Application for Tax Clearance for Bidding Purposes and Tax Compliance Verification Certificate (TCBP/TCVC) is already available for taxpayers registered with Revenue Region Nos. 4 – Pampanga,
7A – Quezon City and 7B – East NCR and the Large Taxpayers Service (except LTDO Cebu and Davao), and for non-resident foreign corporations and non-resident aliens not engaged in trade or business.
The policies provide the following:
All applications for TCBP are encouraged to electronically file and submit the requirements to etcbp@bir.gov.ph using the prescribed template.
The criteria in Revenue Regulations No. 8-2016 should be observed.
Documents submitted online are warranted by the taxpayer to be faithful and true copies of the original.
Documentary requirements and procedures for TCVC and TCBP applications
(Revenue Memorandum Circular No. 121-2020, issued 17 November 2020)
Retirement with benefits
Tax exemption of retirement benefits under the Bayanihan to Recover as One Act
The Commissioner of Internal Revenue further clarified the implementation of the tax exemption of retirement benefits received from 5 June 2020 to 31 December 2020 as follows:
Retirement benefits received by an employee who was not able to satisfy all the conditions under a retirement benefit plan (e.g., tenure) tenure requirement may be considered exempt.
If the employee retired in August 2020 but was re-hired in October 2021 by a subsidiary of the employer, the retirement benefits will remain exempt because the re-employment occurred after twelve months from the retirement date.
Retirement benefits received within the period
5 June 2020 to 31 December 2020 by an employee who retired before 5 June 2020 are subject to income tax.Retirement benefits received by a 45-year old employee with a 15-year tenure are subject to income tax if the employer has no BIR-registered retirement plan.
A retirement plan is considered duly registered with the BIR if it has been issued a Certificate of Qualification as Reasonable Employees’ Retirement Benefit Plan.
The portion of retirement benefits received in excess of what was provided in the BIR-registered retirement plan is subject to income tax.
Retirement benefits received by an employee pursuant to Republic Act No. 7641 are exempt from income tax. These benefits will remain exempt in case the employee is re-employed either by the same employer or its affiliate, or by an unrelated person.
Employees included in the required list of recipients of retirement benefits under Revenue Regulations No. 29-2020 shall also be included in the Annual Alphabetical List of Employees required to be submitted on or before 31 January 2021.
(Revenue Memorandum Circular No. 120-2020, issued 9 November 2020)
New edition
Availability of the Offline eBIRForms Package Version 7.7
The Offline eBIRForms Package Version 7.7 is already available for download from www.bir.gov.ph and www.knowyourtaxes.ph. This updated package now includes the January 2018 versions of the following tax returns:
BIR Form No. 1604-C;
BIR Form No. 1604-F; and
BIR Form No. 1604-E.
(Revenue Memorandum Circular No. 118-2020, issued 6 November 2020)
Split decision
Bank advisory regarding the division of Revenue Region Nos. 7 and 8
Authorized agent banks (AABs) are advised of the following:
Splitting of Revenue Region (RR) No. 7 – Quezon City into RR Nos. 7A – Quezon City and 7B – East NCR
RR No. 7A – Quezon City |
RR No. 7B – East NCR |
|
RDO No. 28 – Novaliches |
RDO No. 41 – Mandaluyong |
|
RDO No. 38 – North Quezon City |
RDO No. 42 – San Juan |
|
RDO No. 39 – South Quezon City |
RDO No. 43 – Pasig |
|
RDO No. 40 - Cubao |
RDO No. 45 – Marikina |
|
RDO No. 46 – Cainta/Taytay |
2. Splitting of RR No. 8 – Makati City into RR Nos. 7A – Makati City and 7B – South NCR
RR No. 8A – Makati City |
RR No. 8B – South NCR |
|
RDO No. 47 – East Makati |
RDO No. 44 – Taguig/Pateros |
|
RDO No. 48 – West Makati |
RDO No. 51 – Pasay City |
|
RDO No. 49 – North Makati |
RDO No. 52 – Paranaque |
|
RDO No. 50 – South Makati |
RDO No. 53A – Las Pinas City |
|
RDO No. 53B – Muntinlupa City |
The list of AABs affected by the splitting is attached to Bank Bulletin No. 16-2020. The following procedures should be undertaken:
Affected AABs shall update the new RDO number to be serviced in the Limited Bank Data Entry System/over-the-counter or online facility being used.
Outstanding reportorial obligations should be submitted to the former RDO.
AABs should coordinate with the new RDO regarding the transmittal of daily collection reports.
(Bank Bulletin No. 16-2020, dated 29 September 2020)
Latest on regulatory landscape
Critical path
Tax and import duty exemptions of imported critical or essential goods
The Commissioner of Customs issued rules and regulations to implement the tax-exempt and duty-free nature of imported critical or needed equipment or supplies or essential goods, and personal computers, laptops, tablets or similar equipment pursuant to Sections 4(cc) and 4(zzz) of the Bayanihan to Recover as One Act.
The rules and regulations seek to establish an informed compliance regime for concerned importers, to facilitate speedy customs clearance of importations and to provide a seamless refund mechanism for exempt importations retroactively covered. Here are some of the salient features thereof:
The rules provide a non-exclusive enumeration of covered products, equipment, supplies and goods subject to tax and import duty exemption.
All covered and qualified shipments that arrived and were cleared by the BOC starting from 25 June 2020 subject to refund shall be processed pursuant to Customs Administrative Order No. 4-2019. A Tax Exemption Indorsement should be secured from the Department of Finance.
The release of donated medical equipment and supplies deemed critical or necessary shall not be delayed and the clearance procedure shall be under informal entry process.
(Customs Administrative Order No. 12-2020, dated 18 September 2020)
Matter of choice
Basis of preparing the audited financial statements for BFSIs
In consideration of the government’s initiative to provide relief to industries impacted by the COVID-19 pandemic, the Securities and Exchange Commission has given BSP Supervised Financial Institutions (BSFIs) the option to prepare their financial statements (FS) using the SEC-adopted industry-specific framework or full PFRS for the duration and terms allowed by the BSP.
In this light, the following must be considered:
BSFIs which opt for the industry-specific framework should specify in the “Basis of Preparation of the Financial Statements” section of the FS the reliefs availed of and indicate that the availment covers only current-year transactions. The prescribed wording in SEC Memorandum Circular No. 32-2020 must be followed.
A qualitative disclosure of the impact of the reliefs availed of should be disclosed. Specific information required (in SEC Memorandum Circular No.
32-2020) for staggered booking of allowance for credit losses and for reclassification of debt securities measured at fair value to amortized cost category should be provided in tabular format in the Note to FS which contains the “Basis of Preparation of the Financial Statements.”BSFIs have to option to take either full retrospective or the modified retrospective approach in making the adjustments when it reverts to full PFRS after the period of relief.
The PFRS, as modified by the application of the financial reporting reliefs, shall form part of the applicable financial reporting framework for purposes of preparing and filing the general-purpose FS.
BSFIs availing of said reliefs with non-material impact on the FS may still disclose that the FS are presented in full compliance with PFRS.
The external auditor shall reflect in the opinion paragraph that the FS were prepared in accordance with the compliance framework described in the notes to the FS.
(SEC Memorandum Circular No. 32-2020, dated 17 November 2020)
Waiver of right
Non-filing, late filing and non-compliance with SEC reportorial requirements
To implement Section 4(www) of the Bayanihan to Recover as One Act which directs the SEC to desist for imposing fines and monetary penalties for non-filing, late filing and failure to comply with notification and reportorial requirements, the SEC has issued the following guidelines:
Covered violations are the non-filing and late filing of General Information Sheet (GIS) and Audited Financial Statement (AFS) including other reportorial requirements that the SEC may require, and non-compliance with compulsory notification.
No fines and other monetary penalties shall be imposed for violations incurred that will fall due from 14 September 2020 until 19 December 2020.
Corporations may still apply for monitoring from September 2020 until December 2020 to secure monitoring clearance.
All other violations incurred outside the covered period of 14 September 2020 until 19 December 2020 will be subject to fines and penalties.
The guidelines cover foreign corporations except on matters pertaining to Securities Deposits and Change of Resident Agent, in which cases, the guidelines under SEC Memorandum Circular No.
24-2020 apply.
(SEC Memorandum Circular No. 31-2020, dated 5 November 2020)
Forced disclosure
Revised General Information Sheet of foreign corporations
The SEC issued the following guidelines regarding the revision of the General Information Sheet (GIS) of foreign corporations to include beneficial ownership information:
The provisions of SEC Memorandum Circular (MC) No. 15-2019 shall also apply to foreign corporations insofar as they are not inconsistent with SEC MC No. 30-2020.
The resident agent, country or regional/area head of the foreign corporation shall exercise the due diligence required in obtaining, keeping, reporting and updating information on its beneficial ownership.
The SEC should be timely informed of all relevant changes in beneficial ownership as they arise. The change shall be indicated in the Notification Update Form (NUF) to be submitted within thirty days from the occurrence or effectivity of the change.
The forms of the Beneficial Ownership Declaration Page of the GIS and the NUF are in Annexes “A” and “B”, respectively, of SEC MC No. 30-2020.
The GIS shall be filled out in accordance with the instructions in the Beneficial Ownership Declaration Page.
Foreign corporations that, without lawful cause, fail to disclose their Beneficial Owners shall be penalized in accordance with Section 11(i) of SEC MC No. 15-2019.
Resident agent or country or regional heads who failed to exercise due diligence in ensuring compliance with the foregoing shall be penalized in accordance with Section 11(ii) of SEC MC No.
15-2019.
(SEC Memorandum Circular No. 30-2020, dated 13 October 2020)
Program guide
Money Laundering and Terrorist Financing Prevention Program (MTPP)
The SEC has promulgated the 2020 MTPP Submission and Monitoring Guidelines which applies to all Covered Institutions as defined in the 2018 Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Guidelines. The 2020 MTPP Submission and Monitoring Guidelines provide for the following:
All Covered Institutions registered after the effectivity of the 2018 AML/CFT Guidelines but before the effectivity of SEC Memorandum Circular No.
29-2020 who have not yet submitted their MTPPs/revised MTPPs are required to submit the hard and soft copies thereof within two months from the effectivity of SEC Memorandum Circular No.
29-2020.The MTPP supersedes the Anti-Money Laundering Operating Manual referred to in SEC Memorandum Circular No. 2-2010. It must conform to and embody the principles and policies in the 2018 AML/CFT Guidelines.
The MTPP shall no longer be included among the documents required to be submitted to the CRMD by Covered Institutions applying for registration and issuance of a secondary license. In lieu thereof, a sworn certification to the effect that the applicant’s MTPP has been prepared, noted and approved by the Board of Directors or country/regional/area head shall be submitted.
Financing Companies and Lending Companies whose minimum paid-up capital shall reach PHP10m or whose foreign equity shall reach more than 40% must submit hard and soft copies of their MTPPs within sixty (60) days.
(SEC Memorandum Circular No. 29-2020, dated 13 October 2020)
Contact center
Disseminating the contact details of various SEC offices
Given that the SEC continues to operate at a limited capacity and implement alternative work arrangements, the public may nevertheless reach the SEC through email addresses and interim hotline numbers for queries and other concerns. The contact list containing said email addresses, interim hotline numbers and corresponding matters of concern may be accessed at https://www.sec.gov.ph/notices/sec-contact-emails-to-send-their-queries-requests-for-clarification-and-other-concerns/.
(SEC Notice, dated 27 November 2020)
Soft and hard
Manner of submitting email accounts and phone numbers to the SEC
The online submission of forms/notices pursuant to SEC Memorandum Circular No. 28-2020 requiring the creation and/or designation of official email accounts and cellular phone numbers for SEC transactions shall be sent to MC28_S2020@sec.gov.ph.
On the other hand, hard copies of said forms/notices must be filed through the Electronic Records Management Division at the SEC Main Office, Secretariat Building, PICC, Pasay City. The filing procedures may be viewed at https://www.sec.gov.ph/notices-2020/opening-of-receiving-area-for-filing-of-auditedfinancial-statements-afs-and-general-informationsheet-gis-at-the-sec-ortigas-office-through-anappointment-system/.
(SEC Notice, dated 4 November 2020)
Set the date
Reception of audited financial statements and general information sheet
On 16 November 2020, the SEC will be opening a receiving area at the SEC Ortigas Office for the filing of audited financial statements (AFS) and general information sheet (GIS). The following should be noted:
All filers must first set an appointment online through the SEC Express Submission Appointment System (SESAS) before they can proceed to the SEC Ortigas Office for the submission of AFS and GIS.
Filers must present their appointment slip printed from the SESAS to the guard on duty before they can proceed to the ERMD Receiving Area.
Other types of reports and documents submissions may be filed at the SEC Head Office Secretariat Building, PICC Complex, also through SESAS. Reports for the Corporate Governance and Finance Department (CGFD) submitted via email shall remain per SEC Notice dated 29 July 2020.
(SEC Notice, dated 20 October 2020)
Returning to normal
Increasing the allowable operational capacity of more businesses or activities
The DTI issued guidelines to increase the operational capacity of business establishments or activities under Category III. In this regard, the following are allowed to operate at 75% capacity under the General Community Quarantine (GCQ) and 100% capacity under the Modified GCQ:
Testing, tutorial and review centers;
Gyms, fitness centers, and sports facilities (limited to individual and non-contact sports/activities);
Internet cafes;
Dermatological clinics offering aesthetic procedures;
Other personal care services including full body massage;
Pet grooming services;
Drive-in cinemas; and
Travel agencies, tour operators, reservation service and related activities.
The increase in the allowable operational capacity is conditioned on compliance by business establishments with the minimum public health and safety standards and protocols.
The DTI also issued a revised list of business establishments or activities allowed to operate under the applicable Community Quarantine.
(DTI Memorandum Circular No. 20-57, dated 31 October 2020)
Controlled risk
Shifting from total risk avoidance to risk management
Pursuant to the Government’s resolutions to shift from total risk avoidance to risk management and to further re-open of the economy, the following policy directions have been adopted:
Local government units are enjoined to ease curfew hours, e.g., from midnight up to 4.00 a.m.
Although work-from-home arrangements are still encouraged, business establishments are enjoined to adopt multiple and staggered work shifts to allow more workers to report to work, to spread out road congestion and to ease demand for public transportation.
(DTI-DOLE-DILG Joint Advisory No. 20-01, dated 22 October 2020)
Anti-discrimination
Guidelines to protect PWDs from discrimination in the insurance industry
Section 3 of the “Guidelines to Protect Persons with Disabilities From Any Form of Discrimination in the Insurance Industry” was amended as follows:
“SECTION 3. NO DISCRIMINATION. — There shall be no outright declination or refusal of any application to be covered by any insurance policy solely on the ground of disability except for insurance policies approved by this Commission offered under a Simplified Underwriting Offer. x x x”
(IC Circular Letter No. 2020-107, dated 8 November 2020)
Cancelled tours
Financial assistance for displaced workers in the tourism sector
The DOLE and DOT have issued guidelines in the Grant of financial assistance to displaced employees of DOT-accredited Primary and Secondary Tourism Enterprises, LGU-licensed primary enterprises, members of registered Community-Based Tourism Organizations (CBTOs), and displaced Tour Guides.
The guidelines provide for the following:
Displaced Tourism Workers are entitled to avail of the Financial Assistance or Cash for Work Program pursuant to the Bayanihan to Recover as One Act.
Priority shall be given to unserved beneficiaries under the Bayanihan to Heal as One Act.
The following are excluded:
Government employees;
Beneficiaries of the COVID-19 Adjustment Measures Program (CAMP), the Small Business Wage Subsidy (SBWS) Program, the Social Amelioration Program (SAP) and the SSS Unemployment Benefit;
Managerial employees and workers with monthly gross salary of at least PHP40,000; and
Foreign nationals except Persons of Concern.
Tourism Enterprises and CBTOs whose employees or members are entitled to Financial Assistance must be accredited and/or registered for the periods specified in Section 6 of DOLE-DOT Joint Memorandum Circular No. 2020-1.
General procedural guidelines detailing the eligibility and documentary requirements
Displaced Tour Guides may be entitled to avail of the Financial Assistance.
(DOLE-DOT Joint Memorandum Circular No. 2020-1, dated 7 December 2020)
Holiday reminder
Payment of deferred holiday pay by year-end
All private sector employers who deferred their payment of holiday pay due to the COVID-19 situation are required to pay the same on or before 31 December 2020. Here are earlier Labor Advisories providing for the deferment:
Labor Advisory Number |
Title |
|
13-A |
Deferment of Payment of Holiday Pay for April 2020 Holidays |
|
15 |
Payment of Wages for the Regular Holiday on 1 May 2020 |
|
20 |
Payment of Wages for the Regular Holiday on 25 May 2020 |
|
22 |
Payment of Wages for the Regular Holiday on 12 June 2020 |
|
25 |
Payment of Wages for the Regular Holiday on 31 July 2020 |
|
27 |
Payment of Wages for the Special Day on 21 August 2020 and Regular Holiday on 31 August 2020 |
|
29 |
Payment of Wages for the Special Days on 1 and 2 November 2020 and Regular Holiday on |
(Labor Advisory No. 31-2020, dated 25 November 2020)
CAMP II
Implementation of the COVID-19 Adjustment Measures Program
The DOLE has issued guidelines on the implementation of the COVID-19 Adjustment Measures Program (CAMP) under the Bayanihan to Recover as One Act. Said guidelines specify the following:
The CAMP provides one-time financial support to affected workers in the formal sector, regardless of status, in private establishments or to those who are employed by any person acting in the interest of an employer in relation to an employee.
The CAMP covers displaced workers or employees due to COVID-19. However, the following preference shall be followed:
Micro, small and medium establishments who applied for the CAMP on or before 15 April 2020 but did not receive any financial assistance under the Bayanihan to Heal as One Act;
Other private establishments not categorized as micro, small and medium establishments who applied for the CAMP on or before 15 April 2020 but did not receive any financial assistance under the Bayanihan to Heal as One Act;
Micro, small and medium establishments who will apply for the first time under the Bayanihan to Recover as One Act; and
Other private establishments not categorized as micro, small and medium establishments who will apply for the first time under the Bayanihan to Recover as One Act.
The following assistance will be given:
Private establishments, retrenched and temporarily laid-off workers |
One-time financial assistance of PHP5,000 |
|
Displaced workers in the education sector |
Cash assistance program in partnership with the DepEd, CHED and TESDA |
|
Displaced workers in the Tourism Sector |
One-time financial assistance of PHP5,000 |
Affected workers shall be provided continuous access to available job opportunities through job matching, referral and placement services, employment coaching and labor market information.
In order for a private establishment to be eligible,
it should have retrenched workers or implemented temporary or permanent closure due to the
COVID-19 pandemic. For displaced and temporarily laid-off workers to be eligible, they should submit the documentary requirements.The following are disqualified from the CAMP:
Government employees;
Beneficiaries of the Small Business Wage Subsidy (SBWS) Program; the SSS Unemployment Benefit; the DSWD Expanded and Enhanced Pantawid Pamilyang Pilipino Program and Assistance to Individuals in Crisis Situation; and DA Cash Assistance for Rice Farmers;
Owners, top management or workers with monthly gross salary of at least PHP40,000; and
Foreign nationals except Persons of Concern.
CAMP applications may be denied if the applicants are ineligible, if there was a misrepresentation of facts or if falsified or tampered documents were submitted.
The CAMP financial assistance shall be paid using digital technologies or e-wallet in addition to using money remittance service providers.
The DOLE shall enter into a data sharing agreement with the SSS to facilitate the cross-checking and verification of beneficiaries under the SBWS program and the SSS Unemployment Benefit. Therefore, the submission of SSS Certifications by individual applicants is hereby waived.
Affected workers of micro, small and medium establishments that implemented Flexible Work Arrangements or Alternative Work Schemes who applied for CAMP on or before 15 April 2020 but did not receive any financial assistance under the Bayanihan to Heal as One Act shall be covered by the CAMP under the Bayanihan to Recover as One Act.
(Labor Advisory No. 30-2020, dated 11 November 2020; and DOLE Department Order No. 218, dated 28 October 2020)
Top priority
New preferred activities under the 2020 Investment Priorities Plan
The President has approved the 2020 Investment Priorities Plan (IPP) which covers the following preferred activities:
Qualified activities relating to the fight against the COVID-19 pandemic such as the production or manufacture of essential goods such as medicines, medical equipment and devices, PPE, etc.
Provision of essential services such as crematoriums, health waste treatment and disposal, laboratories, test facilities, hospitals and quarantine facilities
Investments in activities supportive of the Balik Probinsya Program or similar Government programs that aim to generate employment opportunities outside of congested urban areas
The 2020 IPP also provides the Bangsamoro Autonomous Region in Muslim Mindanao Proposed List containing priority investment areas in export activities; agriculture, agribusiness, aquaculture and fishery; infrastructure and services; engineering industries;
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