In a significant ruling that refines the evidentiary standards in automated payroll systems, the Philippine Supreme Court addressed when salaries are deemed paid under bank auto-credit arrangements. While the Court did not create new law, it applied existing doctrines to a modern payroll context and emphasized the necessity of concrete, corroborative proof when salary payments …
In a landmark ruling with significant implications for labor classification, the Supreme Court held in Escauriaga v. Fitness First Philippines, Inc. (2024) that workers classified by their employer as “freelance personal trainers” were, in truth, regular employees under the Labor Code. The Court emphasized that the substance of the work relationship—not the contractual label—determines employee status. The petitioners—fitness trainers …
SUPREME COURT CLARIFIES: “FREELANCERS” MAY BE CONSIDERED AS REGULAR EMPLOYEES Read More »
On 10 January 2024, the Bureau of Internal Revenue (“BIR”) issued Revenue Memorandum Circular (“RMC”) No. 5-2024 which clarifies the tax treatment of cross-border services based on the case of Aces Philippines Cellular Satellite Corp. v. Commissioner of Internal Revenue, G.R. No. 22668, 30 August 2022. Aces Philippines Cellular Satellite Corporation (“Aces Philippines”) and Aces International …
Philippines Taxes Offshore Services: What your Business Needs to Know! Read More »
The SEC is taking additional steps toward going paperless. Under new SEC Memorandum Circular No. 3, 2005, all domestic stock corporations—excluding lending and financing companies—are now mandated to register through the SEC’s new fully online, paperless company registration systems. ZERO stands for Zuper Easy Registration Online, a digital platform that lets users register their companies …
SEC Rolls Out ZERO: A Fully Digital, Paperless Registration System Read More »
Tax exemptions, being in derogation of the State’s inherent power to tax, are strictly construed against the taxpayer. Thus, when one is upheld, it is not merely a legal triumph — it is a cause for celebration. In G.R. No. 262092 (October 9, 2024), the Supreme Court ruled that a foreign currency deposit — specifically an HSBC …
Supreme Court Affirms: Foreign Currency Deposits Exempt from Estate Tax Read More »
Revenue Regulations No. 3-2025 (RR No. 3-2025), issued by the Bureau of Internal Revenue (BIR) on January 16, 2025, provides the implementing rules and guidelines for Republic Act No. 12023, also known as the “VAT on Digital Services Act.” This regulation operationalizes the imposition of a 12% Value-Added Tax (VAT) on digital services in the …
Philippines- An Overview of VAT on Digital Services Read More »
31 March 2022 It seems the Philippine legislative and executive branches are on a roll in their mission to further attract foreign investments into the country to accelerate recovery of the economy which was drastically affected by the COVID19 pandemic. After the approval in December 2021 of Republic Act No. (“RA”) 11595 which simplified the …
01 February 2022 Republic Act No. 11595 (“RA 11595”), entitled “An Act Amending Republic Act No. 8762, otherwise known as the Retail Trade Liberalization Act of 2000 (RTLA), by lowering the paid-up capital requirement for foreign retail enterprises and other purposes” was signed into law by Philippine President Rodrigo Duterte on 10 December 2021. It …
RA 11595: FURTHER EASING THE WAY FOR FOREIGN RETAIL ENTERPRISES IN THE PHILIPPINES Read More »
