PDF FIle: RMC No 50-2013

source: http://www.bir.gov.ph

PDF File: RMO 20-2013

source: http://www.bir.gov.ph

PDF File: RR 12-2013

source: http://www.bir.gov.ph

source: http://www.picpa.com.ph

source: http://www.sec.gov.ph/notices/advisory/profit%20clicking.pdf

UMID stands for Unified Multi-Purpose ID. The Philippine government is adopting this ID in order to harmonize and streamline the identification systems to all government agencies and government-owned and controlled corporations (GOCCs). The first to implement the UMID card is the GSIS. This ID will soon be the only ID card that you need to transact with SSS, GSIS, PhilHealth and Pag-IBIG. Want to know how to apply for UMID (Unified Multi-Purpose ID) Card? Follow the steps below.

Step 1

Bring the needed requirements:
Bring any of the primary valid ID’s:
Passport
PRC Card
Seaman’s book
Driver’s License

If you have no ID’s mentioned above, present at least two of any of the following supporting documents:

valid NBI clearance
school/company ID
Postal ID
Senior Citizen card
Major credit card
voter’s id
Savings account passbook
Alien certificate of registration
GSIS member’s card
Certification from the Office of Southern/Northern Cultural Communities/Office of Muslim Affairs
TIN card
You don’t need to bring personal id pictures because the participating agency will do the picture taking on the spot.

Step 2

Go to any of the following Philippine Government agencies in order to apply or enroll for a UMID card:
Social Security System (SSS)
PhilHealth
Government Service Insurance System (GSIS)
PAG-IBIG
You can apply a UMID card to any of these agencies.

The steps provided here is applying for a UMID card in SSS.

Get an SSS Form E-6 in the nearest SSS office and fill-out the form. For those who already have their SSS card, submit the SSS Form E-6 including your SSS card.

Step 3

If you already secure SSS Form E-6 and the supporting documents, fall in line for the data capture such as:
Photo shot by means of a video camera
Fingerprint by means of a fingerprint scanner
Signature by means of a signature pad
Applying for an UMID Card is free of charge. So, apply to the nearest agency now!

In case your UMID card is lost, damaged or broken, you will pay a corresponding fee (P300 as of year 2013) for requesting a new card.

Claiming Your UMID Card

You can claim or receive your UMID card within 5 to 7 days after enrollment.

Accessing The Data of Your UMID Card

Data of your UMID card can be accessed in four (4) ways:

Visual inspection of printed data of the UMID card
access to magnetic strip through ATM PIN
identification using fingerprint reader
access to contactless chip through smart card reader

15 Common Data To Be Taken During Enrollment

Full name of enrollee/applicant
Sex/Gender
Date of birth
Place of birth
Names of parents
Home address
Marital status
Height
Weight
Picture of yourself
Two index fingers
Two thumbmarks
Signature
Any prominent distinguishing features
Taxpayer ID Number (TIN)

DOWNLOAD: SSS App Form

source: http://www.affordablecebu.com/load/philippine_government/how_to_apply_for_umid_unified_multi_purpose_id/5-1-0-15864#ixzz2ZwLCGeOq

MANILA, Philippines – The Bureau of Internal Revenue regional office has closed down a hardware shop in Bulacan for failure to pay value-added tax (VAT).

The BIR said Smiley Hardware, formerly Sun City Construction Supply, has failed to pay some P9 million to P10 million in VAT for the past two years.

According to BIR Regional Director Gerardo Florendo, this particular hardware store has been under surveillance for many months. The BIR has also sent letters but these were ignored by the owner.

Florendo said the hardware store even changed its name to Smiley Hardware to evade prosecution.

The estimated P9 million to P10 million tax deficiency is just for VAT. The hardware store may also be liable for income tax non-payment but the BIR will still assess the deficiency.

The store owner Binleng Lu Bonamy was present during the closure proceeding but refused to say a word when pressed for comment by journalists.

All personnel were asked to vacate the hardware shop before the BIR padlocked the establishment.

The operation is part of BIR’s Oplan Kandado program aimed at running after establishments that are not paying the correct taxes.

The tax bureau is hard-pressed to meet its 2013 goal of P1.254 trillion. So far, it has only raised P593.7 billion in the first 6 months of 2013, P72 billion higher than the collection for the same period last year.

source: http://www.abs-cbnnews.com/business/07/24/13/bir-shuts-hardware-store-failing-pay-vat

MANILA — The Securities and Exchange Commission has approved Ayala Corp.’s planned issuance of up to 100 million additional common shares to raise fresh capital.

In a disclosure, the conglomerate said the SEC approved its amendments to Article VII of its Articles of Incorporation that will allow the issuance of the additional shares.

Ayala said this will give way to “raising cash to acquire properties or assets needed for our business or in payment of a previously contracted debt.”

In May, the firm has raised P3.3 billion from an equity offering in which proceeds will be used for Ayala’s infrastructure and power projects. The move is part of the conglomerate’s plan to invest up to $1 billion over the next five years in said sectors.

source: http://www.abs-cbnnews.com/business/07/24/13/ayala-gets-sec-nod-issue-addtl-shares

MANILA, Philippines – The Securities and Exchange Commission (SEC) is proposing to double the minimum public ownership of listed companies to attract more foreign investments.

In a text message to ANC, SEC chairwoman Teresita Herbosa said the Commission wants to increase the minimum public float requirement to 20% from the current 10%.

Herbosa admitted the SEC may settle for a lower number if many listed companies have a hard time meeting the requirement.

The Philippine Star earlier reported the SEC may set a 15% minimum public ownership requirement for listed companies this year, and 20% for next year.

The Star said Finance Secretary wants to boost public ownership of listed firms to attract foreign funds that won’t bother to come in if they can’t invest in a relatively big way.

Even companies as large as San Miguel Brewery were delisted this year, while PAL Holdings was suspended until it met the requirement earlier this month. - ANC

source: http://www.abs-cbnnews.com/business/07/24/13/sec-seeks-double-minimum-public-ownership

Employers are against plans to raise member contributions to the Social Security System (SSS).

Edgardo Lacson, president of the Employers Confederation of the Philippines (ECOP) said small businesses may not be able to absorb any hike in SSS contributions.

In his State of the Nation Address (SONA), President Aquino said raising the SSS contribution shared by employer and employee from 11% to 10.4% will help cut down the SSS liabilities by more than a hundred billion pesos.

source: http://anc.yahoo.com/news/employes-oppose-hike-in-sss-contributions-013932989.html

Pdf File: RMO 21-2013

source: http://www.bir.gov.ph

PDF File : schedule of Tax Payments

By Carissa Ann M. Eñano (The Philippine Star)

The real estate industry is one of the fastest growing businesses in the country today. One only needs to take a quick stroll around the city to see the new buildings sprouting aplenty amidst several other commercial and residential developments. As a consequence of this growth, agricultural lands are converted into commercial and industrial lots. Indeed, the Philippines appears to be in the midst of a real estate boom. Thus, it is no wonder that the Bureau of Internal Revenue would like to have a slice of the pie, so to speak and collect the proper taxes that may result in the additional income which is a logical consequence of this boom. This is certainly underscored by issuance of the BIR of Revenue Regulations No. 10-2013 (RR 10-13).

Under the BIR regulation, starting June 1, 2013, real estate practitioners are now included as among those professionals falling under Section 2.57.2(A)(1) of RR 2-98, as amended by RR 30-2003. This means that Real Estate Service Practitioners (RESPs), consisting of consultants, appraisers, assessors, brokers and salespersons which are duly-registered and licensed pursuant to Republic Act No. 9646 or known as the “Real Estate Service Act of the Philippines” shall be subject to a creditable withholding tax of 15 percent, if the gross income for the current year exceeds P720,000; and 10 percent, if otherwise.  In order to determine the applicable tax rate, the real estate practitioner shall periodically disclose his gross income for the current year to the BIR by submitting a sworn declaration.

The issuance of the regulation does not mean that real estate practitioners were not subject to withholding tax on income payments before. Prior to RR 10-13, Section 2.57.2 (A) (1) of Revenue Regulation No. 2-98 already has a catch-all phrase – that “…and all professions requiring government licensure examinations and/or regulated by the Professional Regulations Commission (PRC), Supreme Court, etc.”.  Thus, when Republic Act No. 9646 took effect, all licensed real estate practitioners fell squarely on the mentioned provision.

An interesting point, however, lies in Section 3 of RR 10-2013. The said provision states that “Section 2.57.2(G) of RR 2-98, as last amended by RR 14-02, is hereby further amended to read as follows:

Section 2.57.2. – Income payments subject to creditable withholding tax and rates prescribed thereon. – xxx

(G) Income payments to certain brokers and agents. – On gross commissions or service fees of customs, insurance, stock, immigration and commercial brokers, fess of professional entertainers and Real Estate Service Practitioners (RESPS) (i.e. real estate consultants, real estate appraisers and real estate brokers) who failed or did not take up the licensure examination given by and not registered with the Real Estate Service under the Professional Regulations Commission. – 10 percent.”

It appears that the BIR may have sought to clarify what may appear to be an ambiguous provision of Section 2.57.2 (G) where the term “real estate” brokers and agents were not qualified, because Section 2.57.2 (A) (1) covers only  real estate practitioners that have been duly-licensed.

Based on the above, even if the real estate practitioner is not licensed or may have failed the licensure examination, the transaction would still be subject to withholding tax.  This is consistent with the principle that all income is taxable, unless subject to exemption under the law; even income derived from illegal means.

However, one can see what may appear to be an unintentional consequence of the regulations. Note that under these regulations an unlicensed real estate practitioner who earns gross income of more than seven hundred twenty thousand (P720,000) pesos for the current year shall be taxed at only 10 percent as  compared to a licensed real estate practitioner who shall be subject to a higher rate of fifteen percent. In effect, if this ambiguity is left unaddressed, it may discourage real estate practitioners from aspiring to be licensed real estate practitioners in a growing industry that calls for regulation.  The Declaration of Policy of RA 9646 (RESA Law) affirmed the State’s commitment “to develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate practitioners whose standards of practice and service shall be globally competitive…xxx.”  Real estate practitioners play an essential role in nation building.  Their part in the social, political, and economic development of our country is significant because of their sizeable contribution in government income resulting from their real estate transactions.

Nevertheless, the prime consideration of these regulations is essentially the proper collection of taxes.  The Bureau of Internal Revenue is aware of the common practice that any person, even if not duly-licensed under the law could still engage in real estate service.  Thus, to avoid any traces of doubt or uncertainty, the Bureau of Internal Revenue issued these regulations.

Carissa Ann M. Eñano is a supervisor from the tax group of Manabat Sanagutin & Co. (MS&Co.), the Philippine member firm of KPMG International.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity.

The view and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International or MS&Co. For comments or inquiries, please email manila@kpmg.com or rgmanabat@kpmg.com

source: http://www.philstar.com/business/2013/07/30/1028481/pursuit-taxes-bir-sights-real-estate-practitioners

MANILA — Bank of the Philippine Islands (BPI) saw its net income rise 27% to P12 billion in the first half from P9.4 billion in the same period last year.

In a disclosure, the bank said total revenues went up 14%, while operating expenses climbed 6%.

The increase in revenues was driven by a 6% hike in net interest income and a 23% jump in non-interest income.

“BPI’s financial results for the first half of the year are strong. The growth in our loan book is well balanced and funded by a deposit base that is low cost and growing,” Cezar consing, BPI president and chief executive officer, said.

“We shortened the duration of our securities portfolio to reflect the changing market conditions, and our over-all business is well poised to take advantage of a rising interest rate environment.”

The bank’s loan portfolio expanded by 17% from a year ago, as BPI noted an 18% increase in corporate loans and a 15% growth in consumer loans.

source: http://www.abs-cbnnews.com/business/07/31/13/bpi-earnings-27-first-half

 
source: http://www.bir.gov.ph

By Michelle V. Remo

Self-employed professionals will soon be required to submit income tax returns (ITRs) when they renew their licenses.

This was announced by the Bureau of Internal Revenue (BIR), which sought the assistance of the Professional Regulation Commission (PRC) in solving the long-standing issue of rampant tax evasion among self-employed lawyers, doctors, accountants and other professionals.

Under the measure, Internal Revenue Commissioner Kim Henares said the PRC would decline applications for a renewal of licenses submitted by professionals if they fail to submit ITRs. She said the move could significantly increase the number of registered taxpayer among the self-employed professionals and, in the process, curb tax evasion.

“We are closely coordinating with the PRC and this [requirement of ITR for renewal of licenses] will take place soon,” Henares told the Inquirer.

She added that PRC was one of the government agencies that the tax bureau was in discussion with in its drive to plug tax leakages.

Based on BIR records, Henares said that there were only about 500,000 self-employed professionals who were registered taxpayers. However, she noted that there were about 1.8 million self-employed professionals in the country based on records of the PRC and other sources.

Tax officials said many of the BIR-registered professionals even resorted to under-declaration of income to pay lower amounts of taxes.

Henares said that by making ITRs one of the requirements for a renewal of licenses, the self-employed professionals who were not yet registered with the BIR could finally come out and contribute to state coffers. Those who resort to under-declaration of income are also expected to rectify their tax payments.

Based on estimates from the Bureau of the Treasury, the government was losing an amount equivalent to 4 percent of the economy’s gross domestic product every year due to tax evasion and income under-declaration.

source: http://business.inquirer.net/133985/bir-taps-regulator-in-tax-evasion-drive

There were around 1.7 million self-employed professionals in the country who paid a total of P9.8 billion in taxes in 2010, or an average of only P5,764, according to Revenue Commissioner Kim Jacinto-Henares.

Henares said in 2011 that professionals, based on their income levels, should each be paying P100,000 in taxes on the average, indicating a 90-percent tax evasion rate among doctors, lawyers, accountants, engineers, architects and entertainers, among others.

Ideally, the Bureau of Internal Revenue (BIR) should be collecting P100 billion in taxes annually from these professionals, she said.

The discrepancies prompted Henares to issue in February 2011 Revenue Memorandum Order No. 3-2011 ordering lawyers, doctors, engineers and other taxpayers rendering professional services to be the first to be subjected to an audit to determine whether they paid the correct taxes in 2010.

Perennially undertaxed

She said the BIR would embark on a “name and shame” drive to get the country’s highest-paying and perennially “undertaxed” professionals to pay the correct taxes.

President Aquino cited the BIR figures in his 2011 State of the Nation Address and said that, “(I)f this is true, then they each must have earned only P8,500 a month, which is below the minimum wage. I find this hard to believe.”

“Today we can see that our taxes are going where they should, and therefore there is no reason not to pay the proper taxes. I say to you: ‘It’s not just the government, but our fellow citizens, who are cheated out of the benefits that these taxes would have provided,’” he added.

In March, Aquino made the same admonition before a group of businessman at the annual meeting of the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. in Pasay City as he expressed shock that only 105 of the FFCCCII’s 207 member firms and organizations had tax identification numbers (TINs).

Pay up

“I wonder what happened to the others,” the President said. “Of these 105 firms, only 54 filed tax returns. To make matters worse, 38 firms and organizations actually filed returns with zero tax due. That means that only 16 of the 207—or only around eight percent—of your member organizations paid taxes. The 6.6 [percent economic] growth rate did not seem to affect your members.”

As a response, FFCCCII president Tan Chin said in a message to the Inquirer, “In light of the good governance program led by our President, the federation will ask the entire Chinese community to be very diligent in paying their tax obligations.”—Inquirer Research

source: http://newsinfo.inquirer.net/456347/bir-chief-90-of-ph-professionals-tax-evaders

source: http://www.bir.gov.ph

That is a scammer trying to take control your email address to spam all your contacts and then use the account to spam hundreds/thousands of others.

Yahoo and all email companies, all banks and all companies in the entire world will NEVER ask for your password, pin or date of birth. No Exceptions Ever.

PDF File: Revenue Memorandum Circular No. 53-2013

source: http://www.bir.gov.ph