Legal Updates

CMEPA at a Glance Area Before CMEPA After CMEPA Stock Transaction Tax (STT) 0.6% on sale of listed shares 0.1% flat rate on sale of listed shares Capital Gains Tax 15% on unlisted domestic shares only; foreign shares taxed up to 35% 15% flat rate on both unlisted domestic and foreign shares Interest Income Subject … Understanding the Capital Markets Efficiency Promotion Act (CMEPA): An Overview of Investment Tax Reforms and Vetoed Items Read More »

This case serves as a valuable lesson in property law and contracts, particularly in distinguishing a Contract of Sale from a Contract to Sell—a crucial distinction in real estate transactions. The Supreme Court clarified how courts must determine the nature of a property agreement not by labels used by the parties, but by analyzing the intent, obligations, and documentary … No Sale Yet: SC Draws the Line in Chavez Jr. v. Gopez Real Estate Dispute Read More »

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 … Supreme Court Clarifies Standards of Proof in Salary Payment via Auto-Credit: A Cautionary Tale for Employers Read More »

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 »