PEZA-registered enterprise tax exemptions

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.

Distinctions between Regional Operating Headquarters (ROHQ) and Regional Headquarters (RHQ)

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 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 →

Limitations on the taxing power doctrines

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 →

Income Tax case digest 2

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 →

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