Tax perks of favored companies cost gov’t P482B foregone revenues in 2019

FISCAL incentives enjoyed by favored enterprises have cost the government P481.7 billion in foregone revenues in 2019 alone, or a year before the landmark congressional approval of the law that finally introduced bold reforms in the corporate income tax system. This substantial amount already represents a decrease from the P518.7 billion in tax perks given […]

Tax Notes: Corporate Recovery and Tax Incentives for Enterprises Act (Part 2)

On March 31, 2021, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 42-2021 in relation to Republic Act 11534, or the Corporate Recovery and Tax Incentives for Enterprises (Create) Act signed by President Rodrigo Duterte on March 26, 2021 with line-item vetoes. The following are the salient provisions of the Create Law, […]

Espina: The Resilience of the Pinoy

In crucial moments, the resilience of some Pinoys shines. Despite Covid and the nation’s economic fluctuation, life went on, business was as usual for a few, and notable celebrations occurred. The Suroy-Suroy Sugbo of the Cebu Provincial Government, the quincentennial commemoration of Christianity in the Philippines, the celebration of the 400 years of Recoletos’ presence […]

Revisiting the Tax Sparing rule

In 1974, legislators recognized the importance of attracting foreign investment and provided a reduced tax rate for dividends received by non-resident foreign corporations (NRFCs) from domestic corporations. Instead of the regular corporate income tax rate of 30%, a 15% rate was imposed on dividends received. This was subject to the condition that the country in […]