Tax
From The Report: Philippines 2021
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This chapter examines the tax system of the Philippines, focusing primarily on the tax implications of Bayanihan 1 and 2, introduced during 2020 in an effort to mitigate the impact of the Covid-19 pandemic, as well as transfer pricing, the arm’s length principle and audit guidelines. The chapter also includes an analysis of tax compliance efforts in light of the pandemic, and commentary on the imminent Corporate Recovery and Tax Incentives for Enterprises Act. This chapter contains an interview with Protacio T Tacandong, COO, Reyes Tacandong & Co.

Articles from this Chapter

Overview

Extended support: Stimulus packages and related reforms aim to provide relief during the pandemic while enhancing compliance
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The Covid-19 pandemic impacted countries and businesses around the world. In the Philippines lockdown measures in the form of community quarantines were imposed and many workers became unemployed. The Bayanihan to Heal as One Act (Bayanihan 1) was enacted on March 25, 2020 in response to the crisis. Included in the law’s measures were tax deferments, the non-payment of documentary stamp tax on certain loans, tax incentives for donors, and value-added tax (VAT) and duty exemptions on the…

Analysis

Paying it back: Increased levels of tax compliance to support efforts to alleviate the economic impact of the pandemic
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The government implemented various programmes to help alleviate the economic impact of the Covid-19 pandemic. To sustain these measures, the Department of Finance issued Revenue Regulation (RR) No. 21-2020 in September 2020, which outlines the guidelines for the implementation of the Voluntary Assessment and Payment Programme (VAPP) for the 2018 taxable year. Compliance To limit contact with taxpayers in light of social-distancing measures, the Bureau of Internal Revenue (BIR) aims to reduce…

Interview

Encouraging signs: Protacio T Tacandong, COO, Reyes Tacandong & Co, on incentives and online platforms to facilitate economic recovery
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Interview:Protacio T Tacandong To what extent will the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill facilitate economic recovery from the Covid-19 pandemic? PROTACIO T TACANDONG: It originally intended to provide incentives to qualified investors who contribute to job generation; however, subsequent amendments provided businesses relief. Notably, the bill will help micro-, small and medium-sized enterprises, which comprise a substantial portion of the economy. Under…