Client Advisory Letter (July-December 2022)

At a glance

Updates, reiterations, and clarifications on selected topics

Taxes, compliance matters, assessments, and refunds

Premature issuance FAN dated within 15-day period to reply to PAN violates due process
Premature remedy Collection cannot be enforced pending appeal
Prejudicial treatment Revocations of BIR rulings cannot be given retroactive effect
Export oriented Export sales that need not be paid in foreign currency to be VAT zero-rated
Car trouble Misdeclaration results in undervaluation and underpaid taxes and duties
Timing difference Late tax payment subject to surcharge despite timely filing of return
Conditions apply When reimbursements for expenses advanced are considered non-taxable
Dispensable requisite DOE Certificate of Endorsement not required for RE developers
Flexible interest FAN that provides for adjustment of interest in case of delayed payment is valid
Double claim Excess input VAT carry-over should be disallowed in a deficiency VAT assessment
Agent Appointment of agent does not automatically constitute doing business
Counting the days 30-day appeal period counted from denial due to inaction, not from FDDA issuance
Import requirement SSDTs are considered sufficient evidence to prove input VAT from importations
Foreign exchange Guidelines for the exchange of rulings with foreign tax administrations
Dispute resolution Guidelines for requesting Mutual Agreement Procedure assistance
Mission ready Lifting the suspension on the Tax Compliance Verification Drive
Back to office Authority to implement 70:30 work-from-home arrangement for the IT-BPM sector
Prescribed template Sworn Declaration as a requirement for the VAT zero rating of purchases
Terms of service Removing the 30-day period to serve Letters of Authority
Delegated task Authority to sign Assessment Notices and Reports of Investigation under the LTS
On location Penalties for IT-BPM RBEs exceeding the 30% threshold for WFH employees
Foreign affairs Processing of the online registration of nonresident foreign corporations
Taking stock Income tax implications of equity-based compensation of employees
Legal aid Implementing the tax incentives under the Free Legal Assistance Act of 2010
Employee discrimination Only HMO costs for employees directly involved in operations are VAT zero-rated
Jumping ship IT-BPM companies are allowed transfer to BOI to adopt 100% WFH arrangements
eBIRForms facility Availability of the updated version of eBIRForms package
Mission orders Lifting the suspension of BIR enforcement activities and operations
Posting notice Replacing the “Ask for Receipt” notice with the “Notice to Issue Receipt/Invoice”
Under surveillance BIR operations against unlicensed, illicit and unauthorized articles subject to excise tax
Not in business Halting the issuance of Tax Verification Notices for certain estate tax cases
Carrier compliance Amending the guidelines for International Carriers Special Certificate applicants
MERALCO refunds Amending the withholding tax regulations in relation to MERALCO obligations
Vaping tax Implementing the law on vaporized nicotine and non-nicotine, and novel tobacco products
Amended alphalist Revising the format of the alphabetical list of employees
Effect of non-cooperation Non-submission of TINs of cooperative members subject to penalties
DST return Availing the eDST System Balance Adjustment facility to recover DST erroneously paid
ORUS implementation Rolling out the features of BIR Online Registration and Update System
Zero-rated transactions Clarifications on transitory provisions for VAT zero-rating of REEs’ local purchases
Resumption of operations Lifting the suspension of field audit and operations of the BIR
Enhanced REVIE Availability of the enhanced chatbot for TIN verification, RDO finder and eComplaint
Fuel testing Guidelines and procedures for random field and confirmatory fuel testing
Tracking device Policies, guidelines and procedures in the processing and monitoring of ONETT

Latest on regulatory landscape

Zoning regulations Implementing the Electronic Zone Transfer System for inter-zone transfer of goods
Accredited importers Consolidated guidelines for the accreditation of importers
Waste management Enactment of the Extended Producer Responsibility Act of 2022
Taxing goodwill Assignment of goodwill is subject to VAT if main subject of sale is not a capital asset
Profit share Distribution of profits to construction JV partners not subject to withholding taxes
Reaping dividends Mutual benefit associations declaring dividends to members may be tax-exempt
Material Locally purchased vehicle for technical cooperation project not VAT-exempt
Client Advisory Letter 2022 | 24
Transfer request How existing IT-BPM registered business enterprises may register with the BOI
Internal disputes Rules and guidelines on arbitration of intra-corporate disputes for corporations
Trust issue Nullification of APIC and conversion into subscribed capital violates the Trust Fund doctrine
Digital version Issuance of the prudential requirements applicable to digital banks
SBLAF templates Guidelines on the adoption of the Standard Business Loan Application Form
BOT implementation Revision of the IRR of the Build-Operate-and-Transfer (BOT) Law
Running on battery Issuing the IRR of the Electric Vehicle Industry Development Act
Foreign business Non-Philippine nationals engaged in MSEs, required to secure DOLE Certification
Work from home Issuance of the revised IRR of the Telecommuting Act
AFS/GIS deadlines 2023 filing of annual financial statements and general information sheet
Security deposit Amendment to IC Circular Letter regarding deposit of securities by insurance companies

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