A final withholding tax of 15% is imposed on cash dividends received by a non-resident foreign corporation (NRFC) from domestic corporation, subject to the condition that the country in which the NRFC allows credit against the tax due from NRFC taxes deemed to have been paid in the Philippines equivalent to 15% (Tax Sparing Rule). Further, exemption from taxes by the country of domicile of the non-resident corporate stockholder on the dividends received is sufficient basis for the applicability of 15%. Thus, dividends paid by a domestic corporation to a non-resident foreign corporation based in the Island of Nevis, West Indies, are subject to 15% since Nevis Island does not impose any income tax on the NRFC. (BIR Ruling No. OT-027-2021, February 18, 2021)
Sale of land in favor of National Housing Authority for purposes of socialized housing project is not subject to capital gains tax/income tax/creditable withholding tax, VAT, and documentary stamp tax. Certificate Authorizing Registration is still required. (Certificate of Tax Exemption No. NSH-028-21, February 26, 2021; NSH-029-21, February 26, 2021; NSH-030-21, February 26, 2021; NSH-033-21, February 26, 2021; NSH-034-21, February 26, 2021; NSH-035-21, February 26, 2021; NSH-036-21, February 26, 2021)
Non-stock savings and loan association (NSSLA) organized and operated exclusively for the mutual benefit of its members is not subject to gross receipts tax (GRT). NSSLA is a non-stock non-profit corporation engaged in the business of accumulating the savings of its members and using such accumulations for loans to members to service the needs of households by providing long term financing for home building and development and for personal finance. NSSLA shall confine its membership to a well-defined group of persons and shall not transact business with the general public. Thus, it is exempt from GRT as long as its transactions do not fall under the contemplated activities of a non-bank financial intermediaries engaged in lending of funds or purchasing of receivables or other obligations with funds obtained from the public. (BIR Ruling No. OT-037-21, February 26, 2021)
