Business companies registered in and operating from the Special Economic Zone in Naga,— are entities exempt, albeit zero-rated, from all internal revenue taxes and the implementing rules relevant thereto, including the value-added taxes or VAT. Although export sales are not deemed exempt transactions, they are nonetheless zero-rated.
The Tax Code not only requires that the services be other than "processing, manufacturing or repacking of goods" and that payment for such services be in acceptable foreign currency accounted for in accordance with BSP rules. Another essential condition for qualification to zero-rating under Section 102(b)(2) is that the recipient of such services is doing business outside the Philippines.
Instrumentality refers to any agency of the national Government, not integrated within the department framework, vested with special functions or jurisdiction by law, endowed with some if not all corporate powers, administering special funds, and enjoying operational autonomy, usually through a charter.
To establish a representative office in the Philippines, the following requirements must be met: Must secure from the Securities and Exchange Commission (SEC) approval of the License to do business in the Philippines as a representative office of a foreign corporation with the following:SEC Application Form to Establish a Representative Office in the Philippines.Name verification... Continue Reading →
The distinctions between ROHQ and RHQ are: As to purpose, R.A. No. 8756 defines Regional Operating Headquarters (ROHQ) as any foreign business entity formed, organized, and existing under any laws other than those of the Philippines whose purpose is to service its affiliates, subsidiaries or branches in the Philippines, Asia-Pacific Region, and other foreign markets.... Continue Reading →
The differences in setting up a local subsidiary office and a branch office of a foreign corporation are the following: As to its creation, a local subsidiary involves incorporation under Philippine laws. On the other hand, doing business through a branch office involves the securing by the foreign corporation of a license to do business... Continue Reading →
(Board of Assessment Appeals of Laguna v. CTA 8 scra 224) Yes. In the absence of constitutional provision, “the power to tax may still be delegated to local government units in accordance with the well-settled doctrine that the power to create local government units by implication confers upon it the power to tax.” So even... Continue Reading →
(Abakada Guro Party List v. Ermita [469 SCRA 1,122,123-124]) The Supreme Court sustained the constitutionality of R.A. 9337 authorizing the President to increase the VAT rate from 10% to 12% effective January 1, 2006 upon recommendation of the Secretary of Finance on the existence of either of the two conditions. RATIO:AS TO DELEGATION OF POWER:... Continue Reading →
According to the Destination Principle, goods and services are taxed only in the country where these are consumed.
The Supreme Court held the levy of 30% tax under P.D. 1987 as for a public purpose, and therefore a valid imposition. Exercise of Regulatory power: The law, according to the Court, was imposed primarily for answering the need for regulating the video industry, particularly because of the rampant film piracy, the flagrant violation of... Continue Reading →
TAXATION 1 CASES DOCTRINES GOMEZ VS PALOMAR (1968) FACTS: Petitioner questions the constitutionality of R.A. 1635 (AN ACT TO REQUIRE THE PRINTING AND ISSUE OF SEMI-POSTAL STAMPS IN ORDER TO RAISE FUNDS FOR THE PHILIPPINE TUBERCULOSIS SOCIETY) mandating the bearing of Anti-TB stamps on envelopes, as well as its implementing administrative orders, contending that it... Continue Reading →
G.R. No. 175410 November 12, 2014 SMI-ED PHILIPPINES TECHNOLOGY, INC., Petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, Respondent. D E C I S I O N LEONEN, J.: In an action for the refund of taxes allegedly erroneously paid, the Court of Tax Appeals may determine whether there are... Continue Reading →