Suspension of BIR field operations from Dec 17 to Jan 4
All field audit and other field operations of the Bureau of Internal Revenue (BIR) relative to examinations and verifications of taxpayers’ books of accounts, records and other transactions shall be suspended from December 17, 2012 to January 4, 2013, except in the following cases:
Minimum public ownership rule for stock transaction tax
All publicly-listed companies must have at least 10% public float or the minimum public ownership (MPO) as required by the Securities and Exchange Commission or Philippine Stock Exchange, whichever is higher, to enjoy the preferential tax rate of one half of one percent tax on gross selling price on sale of stocks listed and traded through the local stock exchange under Section 127(A) of the Tax Code.
New 20% CWT on other interest income
A 20% creditable withholding tax (CWT) shall apply on interest income from all other debt instruments which do not fall within the coverage of “deposit substitutes” or the enumeration below paid or payable to persons residing in the Philippines . This has been added as a new subsection (Y) under Sec. 2.57.2 of RR 2-98. Pursuant to Sec. 2.57.4, the withholding tax is due when the interest is paid or payable or is accrued or recorded as an expense in the books of the payor.
Clarifications on the tax treatment of financial instruments
The Bureau of Internal Revenue (BIR) has clarified the following provisions of Revenue Regulations No. 14-2012 on the tax treatment of interest income on certain financial instruments
New rules on remittance of VAT on power generation
Distribution companies and electric cooperatives shall now include the 12% VAT when making payments, including advance payments, to generation companies and other suppliers of electricity for purchase of electricity. Hence, all collections by generation companies shall be deemed to include VAT.
Condominium corporations subject to income tax and VAT on membership dues
Condominium corporations are subject to income tax and VAT on association dues, membership fees and other assessments and charges collected from tenants and members.
Tax rules on transactions with media suppliers
The following procedures should be observed in the invoicing and recording of income payments and gross receipts from media advertising placement involving the advertising agencies, media suppliers and advertisers.
VAT on sale of adjacent residential properties and parking lots
Sale, transfer or disposal within a 12-month period of two or more adjacent residential lots, house and lots or other residential dwellings to one buyer, whether from the same or from different sellers shall be considered one single transaction
Claiming of depreciation allowance, maintenance expense and input VAT
Depreciation allowance, maintenance expenses and input VAT on motor vehicles can only be claimed by a taxpayer subject to the following conditions
Extended deadline for filing of application for VAT TCC monetization
The deadline for filing of application for monetization of VAT Tax Credit Certificates (TCCs) in case of revalidated and unexpired TCCs originally issued in 2002 and 2003 has been extended from September 1, 2012 to September 15, 2012 or the expiration of the TCC, whichever comes first