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EXCISE TAX ON REMOVAL OF SWEETENED BEVERAGES PRODUCTS FOR EXPORT (Revenue Regulations No. 10-2021, June 17, 2021)

EXCISE TAX ON REMOVAL OF SWEETENED BEVERAGES PRODUCTS FOR EXPORT (Revenue Regulations No. 10-2021, June 17, 2021)

The BIR amends pertinent provisions of Section 10 under RR No. 20-2018 relative to the outright exemption granted to the exportation of Sweetened Beverages products.
Manufacturer shall pay the excise tax on every removal from the place of production.
After payment of tax, manufacturers at its option may file a claim for excise tax credit/refund; or avail of a claim for product replenishment scheme, subject to terms and conditions:
- Permit shall be per shipment secured from the BIR Office before the product is removed from the place of production;
- Removed products shall be directly transported, loaded aboard the international shipping vessel or carrier, and shipped directly to the foreign country of destination without returning to the Philippines;
- Proof of exportation shall be submitted within 30 days from the date of actual date of exportation, subject to one time maximum 30-day extension to submit documents for meritorious reasons;
- “Exported from the Philippines” is printed on each label that is attached/affixed on the primary container in a recognizable and readable manner.

Effect of failure to submit proof of exportation within the prescribed period

Non-exportation of the particular article subjected to applicable taxes, inclusive of penalties;
Subsequent issuance of export permits shall not be allowed, unless the assessed tax due on unliquidated export and penalties have been paid;
Proof of payment shall accompany subsequent application permit.

CLARIFICATIONS ON TAX TREATY RELIEF APPLICATION/REQUEST FOR CONFIRMATION (RMC No. 77-2021, June 15,2021)

The BIR clarifies certain provisions of Revenue Memorandum Order No. 14-2021 related to tax treaty relief application/request for confirmation.

Who may avail of treaty benefits	Natural or juridical persons Residents of one or both of the contracting states Non-resident income recipient should submit a Tax Residency Certificate (TRC) duly issued by the tax authority of the country of residence for purposes of establishing fact of residency in a contracting state
Failure to submit TRC	Non-resident’s claim shall be denied.
Where to apply	International Tax Affairs Division
When provisions of the applicable treaty shall be applied	When nonresident submitted to the income payor TRC; and Appropriate BIR Form 0901 Prior to the payment of income Provided that all conditions for the availment have been present
Mandatory requirement to file a Request for Confirmation (RFC)	To be filed by the withholding agent/income payor, domestic or foreign (for nonresident income payor-withholding agent, it is mandatory to appoint a authorized representative in the Philippines) To confirm that the tax treatment of such income is proper Income payor may authorize the nonresident or any other person to file such request for an on its behalf, provided that the latter is required with special power of attorney.
Deadlines	Capital Gains	At any time after the transaction But shall not be later than the last day of the 4^th month following the taxable year when the income is paid or when the transaction is consummated
	Other types of income	At any time after the close of the taxable year But not later than the last day of the 4^th month following the close of such taxable year when the income is paid or becomes payable, or when the expense/asset is accrued or recorded in the books, whichever comes first
Consolidated request for confirmation per nonresident income recipient	Case folder shall be pre-arranged per type of income following the sequence of documents in the list of requirements.
Number of TRC in case of multiple income for the year	1 original and authenticated TRC to be submitted to each income payor/withholding agent per year. Alternatively, a certified true copy of the original may be submitted to other payors if the original copy is no longer available, with a notation as to whom the original copy was previously submitted. Same rule applies to the following: Proof of establishment or incorporation Certificate of Non-registration or License to Do Business in PH by SEC Certificate of Business Registration/Presence by DTI
When regular rate was applied instead of treaty rate	Nonresident or authorized representative, should file a TTRA with complete documentary requirements and a claim for refund at any time after the payment of the withholding tax
When annual updating is/not mandatory	In case of long term contracts involving payment of interest and royalties and other types of income where condition for entitlement to treaty benefits is not dependent on time threshold		Not mandatory. BIR will issue a one-time Certificate of Entitlement to Treaty Benefit (COE) that is presumably valid for the whole duration of the contract as long as there is no relevant and significant change in the facts or circumstances on which the ruling is based; new request for confirmation to be filed in case of material changes in the facts or circumstances.
	In case of long term contracts where the existence of permanent establishment is dependent on the time threshold		Annual updating is mandatory; COE is limited to a particular period of engagement.
Proof that income is not effectively connected with permanent establishment of the nonresident foreign enterprise	AFS of the foreign enterprise; if not available, sworn certification signed by the principal officer of the PE, containing material facts that may lead the BIR to believe that the income is not effectively connected with the PE and that the PE is not material to the realization of such income. ITAD may also require AFS of the PE if the same is already available
Proof that interest on loan or debt-claims is arm’s length in case of related parties debtor and creditor	Transfer pricing documentation of the nonresident creditor; If unavailable, transfer pricing policy for intercompany loans or any equivalent transfer pricing study
Audited interim FS for capital gains transactions	Not mandatory; only preferred for purposes of computing the real property interest of the issuing domestic corporation at the time of the transaction. Alternative documents: Unaudited interim FS; and Lapsing schedule as of the date of transfer or alienation of the property
No automatic denial for failure to file the RFC within the prescribed period	Denials will purely be based on the merits of the case; only penalty for late filing shall be imposed
Extension of time within which to submit additional documents	Not exceeding 30 days
Pending TTRAs within Notice to Submit Additional Documents	Final Notice to Submit Additional Documents shall be issued within 3 months period to comply Archived applications: Final Notice will no longer be issued but taxpayer is given 4 months to comply
COE instead of usual BIR ruling	COE will still contain the material facts of the case and a ruling confirming entitlement to treaty benefit
No TTRA or CORTT Form filed for income payments in 2020 and prior years	Withholding agent has until the last working day of this year to file the RFC with complete requirements
AFS as requirement for dividends	AFS as of the taxable year immediately preceding the date of declaration, which was duly filed with the BIR and SEC

SALE OF HOUSE AND LOT AND OTHER RESIDENTIAL DWELLINGS IS EXEMPT FROM VAT FOR SELLING PRICE NOT EXCEEDING P3,199,200.00 DESPITE THE TRAIN LAW; AUTHORITY TO RELEASE IMPORTED GOODS SHALL NO LONGER BE ISSUED FOR COVID-19 EQUIPMENT.

The BIR amended certain provisions of RR No. 4-2021, which implemented the VAT and Percentage Tax provisions under RA No. 11534 (CREATE Act) (Revenue Regulations No. 8-2021, June 11, 2021)

Transaction	Amendments
Sale of house and lot and other residential dwellings	Exempt from VAT for selling price not exceeding P3,199,200.00
Release of the following imported items: Capital equipment, its spare parts and raw materials, necessary for the production of personal protective equipment components such as coveralls, gown, surgical cap, surgical mask, n-95 mask, scrub suits, goggles and face shield, double or surgical gloves, dedicated shoes and covers, for COVID-19 prevention All drugs, vaccines, and medical devices specifically prescribed and directly used for the treatment of COVID-19; and Drugs for the treatment of COVID-19 approved by the Food and Drug Administration (FDA) for use in clinical trials, including raw materials directly necessary for the production of such drugs.	The importation shall not be subject to the issuance of the Authority to Release Imported Goods (ATRIG) under Revenue Memorandum Order No. 35-2002
Overpayment of taxes as result of decrease of tax rate from 3% to 1%	Percentage taxpayers who have overpaid taxes as a result of the decrease of tax rate from 3% to 1% starting July 1, 2020 until the effectivity of RR No. 4-2021 are allowed for a tax refund in the event that: The taxpayer shifted from Non-VAT to VAT-registered status; or The taxpayer has opted to avail of the 8% income tax rate at the beginning of TY 2021

TRANSACTIONS NOW SUBJECT TO VAT: SALE OF RAW MATERIALS TO NONRESIDENT BUYER, RAW MATERIALS OR PACKAGING MATERIALS TO EXPORT ORIENTED ENTERPRISE AND SALES UNDER EXECUTIVE ORDER NO. 226, PROCESSING, MANUFACTURING OR REPACKAGING GOODS FOR PERSONS DOING BUSINESS OUTSIDE THE PHILIPPINES.

The BIR amends certain provisions of RR No. 16-2005, as amended by RR No. 13-2018 and as further amended by RR No. 26-2018, to implement the imposition of 12% VAT on transactions covered under Section 106 (A)(2)(a) subparagraphs (3), (4), and (5), and Section 108(B) subparagraphs (1) and (5) of the NIRC of 1997, as amended by RA No. 10963 (TRAIN Law) (RR No. 9-2021, June 11, 2021)

Transactions that are now subject to 12%

Transactions considered as export sales:

Sale of raw materials or packaging materials to a non-resident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing, packing or repacking in the Philippines of the said buyer’s goods and paid for in acceptable foreign currency, and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP)
Sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed seventy percent (70%) of total annual production
Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special law

The sale of sale of services and use or lease of properties

Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP)
Services performed by subcontractors and/or contractors in processing, converting or manufacturing goods for an enterprise whose export sales exceed 70% of the total annual production

BIR RULINGS

Sale executed by landowners in favor of the municipal government to be used for socialized housing project (449 housing units) under the National Housing Authority Yolanda Permanent Housing Program is not subject to creditable withholding tax/capital gains tax and VAT but subject to documentary stamp tax based on actual consideration of the property. Certificate Authorizing Registration is required to be issued. A lien on the titles of the land shall be annotated to the effect that the same are to be applied or are being applied to a socialized housing project. (Certificate of Tax Exemption No. PSH-006-21 January 18, 2021; see also Certificate of Tax Exemption No. PSH-007-21, January 18, 2021 and Certificate of Tax Exemption No. JV-009-21, January 27, 2021, Certificate of Tax Exemption No. NSH-011-21, February 2, 2021)

When assets are abandoned or discarded because the continued use is no longer beneficial to the business, the related loss may be claimed as deduction. The remaining book value of the property which had become obsolete and which will eventually be dismantled shall be allowed as deduction for income tax purposes when the facility is demolished. However, while obsolescence is, by nature, allowed as a deduction, the determination of the factual case leading to the determination of whether or not there is obsolescence is a factual issue beyond the jurisdiction of a ruling to confirm (BIR Ruling No. OT-008-21, January 21, 2021)

The BIR cannot issue a determinative ruling on a matter if the issue is still subject of an on-going audit/administrative protest, which is considered a “Non-Ruling Area” (BIR Ruling No. OT-010-21, February 1, 2021)

THE SEC EXTENDS THE DEADLINE TO SUBMIT MANDATORY DECLARATIONS UNDER BENEFICIAL OWNERSHIP GUIDELINES TO JULY 31, 2021 (SEC Notice, May 28, 2021)

SECURITIES AND EXCHANGE COMMISSION

THE SEC EXTENDS THE DEADLINE TO SUBMIT MANDATORY DECLARATIONS UNDER BENEFICIAL OWNERSHIP GUIDELINES TO JULY 31, 2021 (SEC Notice, May 28, 2021)

BUREAU OF INTERNAL REVENUE

QUARTERLY RETURNS TO BE USED TO REFLECT NEW RATES UNDER CREATE LAW

The BIR prescribes the guidelines in the filing of Quarterly Percentage Tax Return (BIR Form No. 2551Q) starting on the quarter ending July 31, 2020

BIR Form No. 1702Q January 2018

Available in EFPS
Reduced rate per CREATE Act is included.
EFPS files may also use 1702Q using Offline e-BIR Forms Package v.7.9.1, but shall proceed to payment using the eFPS facility. (RMC No. 68-2021, May 26, 2021)

BIR Form No. 1702Qv2008C

2008 version shall be used for eBIR Forms
2018 version is not yet available
Version is available in eBIR Forms Package v.9.1
Payment may be made either manually or online

Revenue Memorandum Circular 66-2021, May 24, 2021 and Revenue Memorandum Circular 68-2021, May 26, 2021

CLARIFICATIONS ON REDUCTION OF PERCENTAGE TAX FROM 3% TO 1%

The BIR clarifies the issues relative to the temporary reduction of Percentage Tax rate imposed under Section 116 of the NIRC of 1997, as amended by Section 13 of RA No. 11534 (CREATE Act)

Points for clarification	Treatment
Decrease of percentage tax rate from 3% to 1% (July 1, 2020 to June 30, 2023)	Applies to: Corporate taxpayers and Self-employed individuals and professionals; and Whose gross sales or receipts do not exceed P3 Million Exception: Cooperatives and self-employed individuals and professionals availing 8% income tax rate
Non-VAT registered taxpayers who used 3% for Q3 and Q4 of 2020 to effectivity of IRR (RR 40-2021 April 8, 2021) implementing percentage tax	They need to amend their percentage tax using the 1% rate to reflect the overpaid tax. Overpaid tax to be carried over the succeeding period will not be subject to penalty	In case 2551Q Form only provides refund: In case of manual filing – Don’t mark “to be refunded” or “to be issued TCC” but write “To be Carried Over” In case of eFPS and eBIR Forms: Option “to be Issued Tax Credit Certificate” shall be marked as a workaround procedure Presumption: taxpayer will carry over If refund is applicable, file BIR From 1914 (Application for tax credit/refund)
Refund for overpaid tax	Refund is not allowed because the intention is to carry-over the overpaid percentage tax. Exception: Taxpayer shifted from Non-VAT to VAT-registered status; or Taxpayer has opted to avail of 8% income tax rate at the beginning of 2021
Taxpayer inadvertently marked refund or issuance of TCC but intends carry over	Presumption: Overpaid amount will be carried over. Once carried-forward, the option is automatically superseded.
Carry-over without amendment of return to any quarter/s starting 2020	Carry-over will still be allowed.
Individual taxpayer under a job order or service agreement with the government under substituted filing	The government agency will avail of the refund. Individuals shall issue an authorization and surrender the BIR Form 2306 to the government agency. Government agencies shall amend the previously filed returns including the Alphalists but the reduction or resulting overpayment shall only be to the extent of the amount to be refunded.
Taxpayer claimed as deduction under taxes and licenses in 2020 ITR the overpaid percentage tax	Carry-over or refund shall no longer be allowed.
Adjustment in the audited financial statements	AFS need not be amended, but overpayment shall be reflected as a reconciling item in the amended ITR.

(Revenue Memorandum Circular 67-2021, May 24, 2021)

THE SEC EXTENDS THE DEADLINE TO SUBMIT FORMS/NOTICES ON CREATION/DESIGNATION OF E-MAIL ACCOUNT ADDRESSES AND MOBILE PHONE NUMBERS FOR TRANSACTIONS WITH THE COMMISSION UNTIL JUNE 30, 2021

THE SEC EXTENDS THE DEADLINE TO SUBMIT FORMS/NOTICES ON CREATION/DESIGNATION OF E-MAIL ACCOUNT ADDRESSES AND MOBILE PHONE NUMBERS FOR TRANSACTIONS WITH THE COMMISSION UNTIL JUNE 30, 2021

The forms/notices of the MC 28, s. 2020 online through email platform MC28_S2020@sec.gov.ph.
Filing of the forms/notices beyond June 30, 2021 shall be considered as non-compliant and will be subject to penalty in the amount of P10,000.00 (SEC Notice, May 7, 2021)

CLARIFICATIONS ON CORPORATE INCOME TAXATION

The BIR clarifies certain provisions of Revenue Regulations (RR) No. 5-2021 relative to Corporate Income Taxation (Revenue Memorandum Circular. 62-2021, May 27, 2021)

Items under RR 5-2021	Clarifications
“Total Asset” in case of 20% tax rate	Total Assets is net of: Depreciation and Allowance for bad debts Excluded: Land where the business entity’s office, plant and equipment are situated; amount to be excluded: Cost/fair market value, depending on what is reflected in the financial statements Included: Land held primarily for sale to customers or land held for investment purposes; Land being used as banana plantation Land being leased Portion is used in business; rest is on lease = prorate the amount of land based on the area.
Private Educational Institutions distributing dividends to stockholders	Rate is either 25% or 20% 1% is applicable to non-profit schools*
Section 5: Conditions for exemption from income tax of foreign-sourced dividends received by domestic corporation:	If the Certification shall state non-utilization of the dividends received, the unutilized dividends shall be declared as taxable income, and the corresponding tax due shall be subject to interest, surcharges and penalties
Dividends received by a domestic corporation from a resident foreign corporation (RFC)	Tax treatment depends on the source of income of the RFC Treated as derived from sources within PH (Exempt from income taxes) Exception: Less than fifty percent (50%) of the gross income of the foreign corporation for the three-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of the period as the corporation has been in existence) was derived from sources within the Philippines – (Considered sourced without and must comply with Section 5 to avail of income tax exemption)
4^th Year of Business Operation for purposes of MCIT	Means fourth taxable year immediately following the year in which such corporation commenced its business operation Thus, if the corporation commenced its business operations in 2017, MCIT may be imposed beginning the year 2021, if it exceeds the regular income tax. The taxable year in which business operations commenced shall be the year in which the corporation is registered with the BIR
Additional allowable deduction of 1/2 of actual training expenses	No distinction as to which type of industry can claim the deduction, subject to requirements: The labor training expenses shall not be more than ten percent (10%) of the Direct Labor Wage; The labor training expenses are incurred for skills development of enterprise-based trainees; The enterprise-based trainees are enrolled in public senior high school, public higher education institutions, or public technical and vocational institutions for the taxable year in which the labor training expenses are claimed; The training is covered by an apprenticeship agreement under Presidential Decree (PD) No. 442 or the Labor Code of the Philippines; and: The Company claiming the additional deduction is granted an authority to offer training programs for skills development as certified by the Department of Education (DepED), Technical Education and Skills Development Authority (TESDA) or Commission on Higher Education (CHED), as applicable. Training expenses which pertain to training/s of employees under supervisory, managerial, administrative and support functions should not be included in ‘the computation The resulting amount then shall be subject to a cap of not more than ten percent (10%) of the Direct Labor Wage. The “direct labor” is that portion of salaries and wages which can be identified with and charged directly to a product or to a project or service on a consistent basis.
*we do not agree.

CLARIFICATIONS ON TRANSFER PRICING REQUIREMENTS ON RELATED-PARTY TRANSACTIONS

CLARIFICATIONS ON TRANSFER PRICING REQUIREMENTS ON RELATED-PARTY TRANSACTIONS

Taxpayers required to file RPT Form

It is required to file an Annual ITR
It has transactions with related party (domestic or foreign) during the concerned period; AND
It falls under ANY of the following categories:
- (a) Large taxpayers*
- (b) Taxpayers enjoying incentives (i.e. Board of Investments-registered and ECOZONE*** enterprises, enjoying ITH or subject to preferential income tax rate**
- (c) taxpayers reporting net operating losses***** for the current taxable year and the immediately preceding two (2) consecutive taxable years
A related party that has transactions with (a) (b) (c) (it is imperative to check whether the related party with whom ordinary corporation transacts falls under this category)

Tax-exempt Corporations****

Not required to file RPT Form even if it has dealings with related party under (a) (b) or (c)

Materiality threshold for reportable related party transaction

A	Annual Gross Revenue (combined from related party or otherwise); and	>P150M
A	Total amount of related party transaction (involving all related parties)	>P90M
B	Sale of tangible goods (specific related party only)	>P60M
C	Service, interest, intangible goods, or other related party transactions	>P15M
D	If TPD is required to be prepared during immediately preceding taxable period for exceeding a) to c)

No threshold if taxpayer is required to file the RPT Form; disclosure of all related party transaction irrespective of the amount is a must;
Relevant only as to who is required to prepare a Transfer Pricing Documentation;
Taxpayer who meets the threshold but is not required to submit RPT Form = not required to submit TPD

RPT Form

Similar transactions with the same related party transactions must be segregated, if possible.
TPD and other supporting documents shall no longer be attached to the RPT Form but shall be made available during audit
Actual amount must declared. Reasonable estimate is not allowed. Declaration is subject to perjury clause.

*A large taxpayer is a taxpayer who has been classified and duly notified (via registered mail, publication, or any other mode of service) by the CIR as such. Taxpayer is not a large taxpayer even it meets the criteria to be a large taxpayer but was not notified by the CIR.

**Taxpayer subject to preferential income tax rate –

Corporate taxpayer subject to regular corporate income tax but has transactions subject to preferential income tax rate under tax treaty or Tax Code is not required to file an RPT Form

Examples of taxpayers subject to preferential income tax rate:

proprietary educational institutions and hospitals;
and regional operating headquarters
International carriers

Type of international carrier	Required?
Those subject to tax based on GPB or gross revenues	Not required
Those that are exempt from tax under the tax treaty or on the basis of reciprocity	Not required
Those subject to tax on profits from sources within the Philippines	Required

***Not required to file RPT Form if ECOZONE enterprise is subject to RCIT. Only those subject to ITH or 5% special tax are required to file RPT Form, unless it falls under (a) (c) or (d).

****Tax exempt –

Those exempt under Section 30 or similar provisions of the Tax Code or special laws;
Regional or area headquarters and representative offices of foreign corporations that are not allowed by law to derive income from the Philippines
Post-employment benefit plans (if their related party transactions consist only of the contributions from their sponsor employers)

*****Net operating loss for tax purposes and not the amount per AFS

Means excess of allowable deductions over the gross income of the business in a taxable year
Allowable deductions – ordinary and necessary expenses paid or incurred during the taxable year (directly attributable to the development, management, operation and/or conduct of trade, business or exercise of profession)
Registration fees, business permits, and licenses and taxes, (except Section 34 (c) (1) of Tax Code) are allowable deductions

Domestic corporation not required to report if the related party suffering loss is a NRFC.

Other matters:

Share in the net income of an associate is akin to dividend; not required to be reported in the RPT Form
If taxpayer is required to prepare a TPD for 2020 RPT transaction, it shall also be required to prepare TPD for 2021 transaction despite not meeting any materiality threshold.
Failure to supply material information – RPT Form is treated not filed and penalty for failure to file will be imposed
Currency – foreign currency and its equivalent, unless several currencies were used and it seems impractical to indicate all of them in RPT Form
Exchange rate – Rate of transaction

For your easy reference, a copy of the regulation may be accessed HERE. (Revenue Memorandum Circular. 54-2021, April 27, 2021)

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. If you have clarification or concern or no longer wish to receive updates, please feel free to reach out to us.

Best regards,
Ron Dumlao

SEC and BIR

Dear CLIENTS, COLLEAGUES and FRIENDS:

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In this Article:

SECURITIES AND EXCHANGE COMMISSION (“SEC”)

ALL APPLICATIONS FOR REGISTRATION OF DOMESTIC CORPORATIONS MUST BE FILED WITH AND PROCESSED BY THE SEC UNDER THE ELECTRONIC SIMPLIFIED PROCESSING OF APPLICATION FOR REGISTRATION OF THE COMPANY (“ESPARC”).
DEADLINE FOR SUBMISSION OF THE AUDITED FINANCIAL STATEMENTS IS MOVED TO MAY 17, 2021 FOR PUBLICLY-LISTED COMPANIES, ISSUER OF REGISTERED SECURITIES AND PUBLIC COMPANIES.

BUREAU OF INTERNAL REVENUE (“BIR”) DEADLINES AND ISSUANCES:

BIR DEADLINES FROM APRIL 26 TO MAY 2, 2021.
CREATE LAW (PART 2): GAIN OR LOSS ON EXCHANGE OF PROPERTY PURSUANT TO MERGER OR CONTROL WILL NOT BE RECOGNIZED; TRANSACTION IS NOT SUBJECT TO VAT AND BIR PRIOR RULING IS NOT REQUIRED.

SECURITIES AND EXCHANGE COMMISSION

ALL APPLICATIONS FOR REGISTRATION OF DOMESTIC CORPORATIONS MUST BE FILED WITH AND PROCESSED BY THE SEC UNDER THE ELECTRONIC SIMPLIFIED PROCESSING OF APPLICATION FOR REGISTRATION OF THE COMPANY (“ESPARC”).

eSPARC shall cover One Person Corporations, domestic corporations, both stock and nonstock, with at least 2 but not more than 15 incorporators who may either be natural persons, partnerships, associations, or corporations.
Applications for registration of partnerships and foreign corporations will continue to be accepted and processed under the Company Registration system (“CRS”)
Option to register a “Stock Corporation” or “Non-stock corporation” in the CRS will be disabled.
Applications for registration prior to April 19, 2021 will still be processed, unless the applicant is notified by the SEC Processing Officer to resubmit the application using eSPARC.
For your easy reference, the issuance may be accessed Here. (SEC Notice, April 16, 2021)

DEADLINE FOR SUBMISSION OF THE AUDITED FINANCIAL STATEMENTS IS MOVED TO MAY 17, 2021 FOR PUBLICLY-LISTED COMPANIES, ISSUER OF REGISTERED SECURITIES AND PUBLIC COMPANIES.

The SEC extends the deadline for the submission of 2020 Reports for the Calendar Year Ended December 31, 2020 to May 17, 2021.
The extended deadline is without prejudice to the schedule on the filing of AFS as may be required by the BIR.
The SEC shall automatically conform with the BIR should the latter move its own deadline to a date later than May 17, 2021.
For your easy reference, the Circular may be accessed (SEC MC, No. 5, April 11, 2021)

BUREAU OF INTERNAL REVENUE

BIR DEADLINES FROM APRIL 26 to May 2, 2021. A gentle reminder on the following deadlines, as may be applicable:

DATE	FILING/SUBMISSION
April 29, 2021	e-Filing/Filing & e-Payment/Payment – 1702Q (Quarterly Income Tax Return For Corporations, Partnerships and Other Non-Individual Taxpayers) and Summary Alphalist of Withholding Taxes (SAWT) – Fiscal Quarter ending February 28, 2021
April 30, 2021	Registration – Computerized Books of Accounts & Other Accounting Records in Electronic Format – Fiscal Year ending March 31, 2021 Submission – Copy of the Annual Report duly received by the Office of the Insurance Commission by an Insurance Company – Calendar Year 2020 Submission – eFiled 1702 – RT/EX/MX with Audited Financial Statement (AFS), 1709 (if applicable), and Other Attachments through Electronic Submission of Audited Financial Statements (eAFS) or Manually – Calendar Year 2020 Submission – Other Attachments to e-Filed 1700, 1701 and 1701A – Calendar Year 2020 Submission – Inventory List – Fiscal Year ending March 31, 2021 e-Filing/Filing & e-Payment/Payment – 1601-EQ & 1601-FQ and Quarterly Alphalist of Payees (QAP) – eFPS & Non-eFPS Filers – For the Quarter ending March 31, 2021 e-Filing/Filing & e-Payment/Payment – 1602Q (Quarterly Remittance Return of Final Taxes Withheld on Interest Paid on Deposit and Yield on Deposit Substitutes/Trusts/Etc.) – For the Quarter ending March 31, 2021 e-Filing/Filing & e-Payment/Payment – 1603Q (Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other Than Rank and File) – For the Quarter ending March 31, 2021 e-Filing/Filing & e-Payment/Payment – 1621 (Quarterly Remittance Return of Tax Withheld on the Amount Withdrawn from Decedent’s Deposit Account) – eFPS & Non-eFPS Filers – For the Quarter ending March 31, 2021 e-Submission – Quarterly Summary List of Sales/Purchases/Importations by a VAT Taxpayer – eFPS Filers – For the Quarter ending March 31, 2021
May 1, 2021	Submission – Consolidated Return of All Transactions based on the Reconciled Data of the Stockbrokers – April 16–30, 2021 Submission – Engagement Letters & Renewals or Subsequent Agreements for Financial Audit by Independent CPAs – Fiscal Year beginning July 1, 2021

CREATE LAW (PART 2): GAIN OR LOSS ON EXCHANGE OF PROPERTY PURSUANT TO MERGER OR CONTROL WILL NOT BE RECOGNIZED; TRANSACTION IS NOT SUBJECT TO VAT AND BIR PRIOR RULING IS NOT REQUIRED.

Taxpayer	Transaction	Conditions
Corporation	Transfer of property for stock or securities in another corporation	· Corporation is a party to reorganization and exchanges property in pursuance to a plan of reorganization solely for stock or securities in another corporation that is a party to the reorganization
Person	Transfer of property to a corporation in exchange for stock or unit of participation in such corporation	Person, alone or together with others, not exceeding 4 persons The transferor/s gain/s or maintain/s control of the said corporation Services not included
Note: The transaction is not subject to VAT. Prior BIR confirmation/ruling shall not be required for purposes of availing tax exemption Parties may implement the transaction (i.e CAR) subject to post-transaction audit by the BIR

For your easy reference, a copy of the regulation may be accessed Here. (Revenue Regulations No. 5-2021, April 8, 2021)

Best regards,
Ron Dumlao

Competence. Integrity. Commitment.

SECURITIES AND EXCHANGE COMMISSION (“SEC”)

BUREAU OF INTERNAL REVENUE (“BIR”) DEADLINES AND ISSUANCES:

ALL APPLICATIONS FOR REGISTRATION OF DOMESTIC CORPORATIONS MUST BE FILED WITH AND PROCESSED BY THE SEC UNDER THE ELECTRONIC SIMPLIFIED PROCESSING OF APPLICATION FOR REGISTRATION OF THE COMPANY (“ESPARC”).

DEADLINE FOR SUBMISSION OF THE AUDITED FINANCIAL STATEMENTS IS MOVED TO MAY 17, 2021 FOR PUBLICLY-LISTED COMPANIES, ISSUER OF REGISTERED SECURITIES AND PUBLIC COMPANIES.

CREATE LAW (PART 2): GAIN OR LOSS ON EXCHANGE OF PROPERTY PURSUANT TO MERGER OR CONTROL WILL NOT BE RECOGNIZED; TRANSACTION IS NOT SUBJECT TO VAT AND BIR PRIOR RULING IS NOT REQUIRED.

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