KPMG in the Philippines [kpmgcorner]

KPMG Corner

	Tax & Corporate

		Beyond the current tax environment (Conclusion), 07/20/2010 What is also very important is an engagement beyond the tax administrations - to Finance Ministers and standard setters such as the Accounting Bodies. Let’s listen in again on their discussions as we listen to a speech by Michael Read more...
		Beyond the current tax environment (First of two parts), 07/13/2010 Loughlin Hickey, current KPMG Global Head of Tax, was previously named by Tax Business magazine as one of the most influential people in the tax world. He is particularly interested in putting tax into a commercial context, bringing tax into the boardroom and ... Read more...
		US – Foreign Account Tax Compliance Act 2009, 06/15/2010 On 18 March 2010, the Hiring Incentive to Restore Employment Act (the Act), which includes provisions similar to those in the proposed Foreign Account Tax Compliance Act (FATCA) – introduced in the US House and Senate in November 2009 – was signed by President Obama. Read more...
		Implementing the Exchange of Tax Information Act, 06/01/2010 In March 2010 the President signed Republic Act No. 10021, “The Exchange of Information on Tax Matters Act”. This law is important primarily for two reasons: from a domestic standpoint, it reinforces the Bureau of Internal Revenue’s (BIR) arsenal against tax evasion by expanding the Read more...
		Dividend Tax Planning, 05/04/2010 With stock markets emerging from the doldrums of the 2009 Economic Downturn, investors have been paying greater attention to equities. As Wall Street wakes up on “better-than-expected” economic news and favorable earnings reports, stockholders are looking forward to dividends. Read more...
		The Basis of Local Business Taxes, 02/02/2010 The 20th day of January marks an important day in Philippine history. On this day in the year 2001 our current and, in a few months, soon to be ex-president, was sworn in as the 14th President of the Republic of the Philippines following the fall of former President Estrada Read more...
		Cooperatives Rising (Second of three parts), 07/07/2009 After the BIR effects the compromise settlement of the cooperatives unpaid assessments, how will the BIR proceed with future audit investigations? Read more...
		Cooperatives Rising (First of three parts), 06/30/2009 Which Philippine law, enacted in 2009, effectively orders the Bureau of Internal Revenue (BIR) to subject to compromise settlement, all unpaid (deficiency tax) assessments issued to a certain type of taxpayer, on terms favorable to that particular type of taxpayer? Read more...
		The Laffer Curve, 05/26/2009 In 1974, Arthur Laffer, then a professor at the University of Chicago, famously sketched in a cocktail napkin how he believed the theory of diminishing returns applied to tax policy. To a small dinner party that included Republican stalwarts Donald Rumsfeld (then President Ford’s White House Chief of Staff) and Dick Cheney (then Rumsfeld’s deputy), Laffer explained that the relationship between tax rates and tax revenues is not completely linear – tax revenue will not necessarily increase (or decrease) with every increase (or decrease) of the tax rate. Instead, he argued that when tax rates reach a prohibitive range, the state will, in fact, be able to collect more taxes if the tax rates are decreased. Read more...
		The art of importing into the Philippines, 01/27/2009 Prior to shipping goods into the Philippines, a prospective business must initially ask four basic questions: what is the nature of the product intended for import, what rate of duty would apply to the product, what value would be declared for Customs purposes, and would the product intended for import qualify for preferential tariff rates under any free trade agreement? Read more...
		Closing shop, 12/30/2008 During these challenging times, foreign and local investors in the Philippines are looking into ways to cushion the effects of the global financial crisis on their businesses. For some, merger or consolidation of corporations is seen as a viable solution. But to the not so fortunate, closure or dissolution of a corporation is inevitable. Read more...
		Capital gains tax exemption on the sale of the family home, 12/02/2008 Buying and/or selling one’s home is probably one of the most important decisions that one will have to make in his life. This is especially true for us Filipinos as the family home is considered the culmination of one’s lifetime efforts and accomplishments. More than that, a home is the place where we nurture and build relationships, hence, efforts to make it comfortable and suitable for the family will necessarily entail costs. Read more...
		Customs valuation in times of crisis, 11/18/2008 This global financial crisis is also a crisis of “valuation.” The growing sophistication of transactions and intangibles has spurred debates on how values should be recognized and treated. Whether it be the value of an entity, a collateralized debt obligation, equipment or other assets, the latest financial crisis has brought the appreciation and scrutiny of these concepts under a new light. Read more...
		Comparability in transfer pricing, 11/04/2008 A comparability analysis is an essential part of a transfer pricing analysis. In a transfer pricing analysis, a taxpayer seeks to determine for tax purposes the transfer pricing (i.e., price charged in the transactions between related parties) in accordance with the arm’s length principle based upon information reasonably available upon determination. Read more...
		A multi-sectoral approach to trade, 10/28/2008 In any policy making or policy implementation effort, close consultation and coordination between the government, the private sector, and the academe is paramount. Such is because the diversity of interests and the complexity of interweaving functions in the process require as broad a forum of deliberation as possible with all groups in order to arrive at effectual policies that would serve the common good. Read more...
		Digging into the mining business, 9/9/2008 In my former work, I paid very little attention to the tax concerns of those in the mining business. After all, I thought that taking care of the International Tax Affairs Division absolved me from concerning myself about their tax issues unless it relates to the implementation of a tax treaty. However, after several interactions with clients engaged in mining, I was prompted to take a closer look into their tax exposures and the interplay of incentives accorded them that may modify such exposure. For those who dare mine, explore with me! Read more...
		PERA in your pocket, 9/2/2008 I’m not often given to hyperbole and avoid using adjectives such as “landmark” to describe a decision or a law, but I’ll make an exception in the case of Republic Act No. 9505. Signed by the President on Aug. 22, 2008, RA 9505, whose title is “The Personal Equity and Retirement Account Act of 2008” —PERA, for short, is “landmark”. Read more...
		Tax relief in times of crisis, 8/26/2008 For most of us Filipinos battered by skyrocketing prices of fuel and basic commodities, any grant of financial assistance in whatever form, subsidy or tax savings, is a welcome change. It is no wonder that when President Gloria Macapagal-Arroyo signed Republic Act (RA) No. 9504 on June 17, 2008, the news was all over the newspapers and news programs. Read more...
		Knowing the Foreign Corrupt Practices Act, 7/29/2008 The rapid growth in international transactions and the expansion of foreign businesses in other countries has made the present regulatory environment more complex. Read more...
		Some issues regarding the transfer pricing regulations, 6/10/2008 On March 24, 2008, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 26-2008, entitled “Interim Transfer Pricing Guidelines”. Read more...
		Awaiting the Japan-Philippines Economic Partnership Agreement, 5/27/2008 The Senate has recently deferred voting for the Japan-Philippines Partnership Agreement (JPEPA), pending another exchange of notes between the Philippine and Japanese governments. Read more...
		Hope for the Pale Blue Dot?, 5/6/2008 You see that pale, blue dot? That’s us. Everything that has ever happened in all of human history has happened on that pixel. Read more...
		Deductibility of business expenses, 4/29/2008 “A life without love is like a year without summer”, so says a Swedish proverb. Read more...
		Philippine Customs and the Revised Kyoto Convention, 4/8/2008 Tariff reduction is often times lauded as a positive signal of an open economy that is attractive to foreign investments. Read more...
		Understanding tax investigations, 3/25/2008 As it was told, Joseph and Mary journeyed back to their hometown, Bethlehem, because the Roman Emperor wanted his soldiers to count the number of people in the tribes of Israel. Read more...
		Related parties, transfer prices and revenues, 3/18/2008 One topic expected to gain prominence in the coming months from the purview of the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) is that of transfer pricing. Read more...
		Taxation of expatriates, 3/4/2008 With the April 15 tax filing deadline in the horizon, every income earner in the Philippines, Filipino or otherwise, should start thinking taxes. Read more...
		Attention: New tariff classifications out now, 2/26/2008 For any company importing or exporting goods, tariff classifications play a vital part in the cost management of its supply chain. Our classification system is arranged in a systematic numerical fashion, with unprocessed agricultural products grouped together in one end, moving towards more sophisticated and processed goods on the other end. Read more...
		How customs heps business, 2/5/2008 It is anticipated that the domestic economy will fare relatively well in the foreseeable future in spite of a predicted slowdown in the US economy. Read more...
		Lower tariffs for Chinese goods, 12/25/2007 One simple fact that readers should know is this: a good number of our tariffs on Chinese imports have been reduced by way of the ASEAN-China Free Trade Agreement (ACFTA). Read more...
		Classification: Shopping for the best tariff rate?, 10/23/2007 If the nature of the product you import can be deemed complex, multi-functional and/or sophisticated, then, chances are, its tariff classification (and hence its applied rate of customs duties) could be ambiguous and subject to change. Read more...
		Customs Gives Importers a Helping Hand, 10/16/2007 On 06 July 2007, Commissioner Napoleon Morales of the Bureau of Customs (BoC) issued Customs Memorandum Order (CMO) No. 18-2007. Read more...
		Correct customs valuation equals savings, 10/9/2007 If you are into the importation of goods, what is the basis of the customs duties you pay? If your answer is the invoice price – then I would encourage you to read on, since engaging in such a practice may lead to very interesting implications on the future of your business. Read more...
		Making Trade and Customs Rules Work for Your Company, 10/2/2007 First, there was the General Agreements on Tariffs and Trade and the World Trade Organization. Read more...
		Here comes the SALN, 8/28/2007 “Here comes the Sun. Here comes the Sun. and I say, ‘It’s All Right” I am almost certain that not a few of us are familiar with this song which was composed and performed by guitarist George Harrison of the Beatles. Read more...
		Zeroing in on zero percent VAT rate, 7/10/2007 Prior to the effectivity of Republic Act No. (RA) 9337, known as the VAT Reform Law, services performed in the Philippines by VAT-registered persons which are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP) were considered subject to zero percent VAT. Read more...
		Forgiveness and Redemption, 4/24/2007 These are the main themes of the Lenten season, which ended last Sunday. As our parish priest discoursed on the virtue of compassion, my mind wandered to the general tax amnesty bill (House Bill No. 2933, as amended by the Senate) that awaits the president’s signature. Read more...