Tax Updates April 2023 (SyCipLaw Tax Issues and Practical Solutions (T.I.P.S.) Vol. 24)

May 18, 2023

SyCipLaw's Tax Department has prepared Tax Issues and Practical Solutions (T.I.P.S.) for April.

Please read the full text here or via this link.

The SyCipLaw (T.I.P.S.) for April covers the following tax issues:

1. May a revenue officer ("RO") conduct an examination of a taxpayer's accounts based on a Letter of Authority ("LOA") that contains the name of another RO and a Memorandum Referral signed by the Revenue District Officer?

2. May an isolated transaction of a corporation be subject to value-added tax ("VAT")?

3. In assailing a tax assessment, can a taxpayer who receives a Warrant of Distraint and/or Levy, instead of a Final Decision on Disputed Assessment, already elevate the case to the CTA?

4. Is a PEZA-registered entity enjoying a preferential tax rate of 5% on gross income in lieu of national and local taxes liable for documentary stamp tax ("DST")?

5. Is a consularized Letters Patent of Amalgamation sufficient to prove that a foreign corporation is not doing business in the Philippines, for purposes of qualifying for value-added tax zero-rating under Section 108(B)(2) of the NIRC?

6. What is the process for filing the annual income tax return for calendar year 2022 and the payment of the corresponding taxes?

7. What is the scope of the current guidelines and procedures under Revenue Memorandum Order ("RMO") No. 10-2013, as amended by RMO No. 8-2014 governing the BIR's issuance and enforcement of Subpoena Duces Tecum ("SDT")?

8. Is there data sharing between the SEC and the BIR?

9. What are the amendments to RMO No. 6-2023 in relation to the policies, guidelines, and procedures for the BIR's audit program?

10. When is the deadline for the bond-free period for registered business enterprises ("RBEs") in the Information Technology-Business Process Management ("IT-BPM") sector that transferred their registration to the Board of Investments ("BOI") to move equipment and other assets outside the economic zone or freeport zone?

11. In a tax-free exchange pursuant to a merger, are the unrestricted retained earnings of the absorbed corporation subject to final withholding tax on dividends?