Philippines

DTA between Philippines and Bahrain approves

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The Council of Ministers of Bahrain approved the amending protocol of Double Taxation Agreement (DTA) with Philippines on 22 May 2017.

Philippines: BIR issues tax provision for micro-finance NGOs

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The Bureau of Internal Revenue (BIR) has issued revenue regulations No. 3-2017 regarding executions of tax provisions for micro-finance NGOs on 24 February 2017. Regulation No 3-2017 shall take effect 15 days after its publication in the official journal or in a general newspaper.

Under the revenue regulation No. 3-2017, the micro-finance NGOs need to pay 2% tax based on their gross income from micro-finance operations rather than regular national taxes. The gross revenue should be based on income from lending business and insurance commissions. All other revenue generated by NGOs are subject to the applicable tax rates. Revenue Regulation No. 3-2017 shall take effect 15 days after its publication in the Official Gazette or in a general newspaper.

Japan- Philippines: Social security agreement ratified

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Social Security Agreement of 2015 between Japan and Philippines has been ratified by the Philippines’ Senate on 7 February 2017.

Philippines presents revised tax reform package

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The Chairman of the House Committee has proposed revised tax reform package on 17 January 2017. This tax reform package was submitted to Parliament on 29 September 2016. According to the revised tax reform package individual income tax exemption from individual earnings below PHP 250,000 and widening of existing tax brackets, but a 35% tax rate imposes on earnings more than PHP 5 million a year.

Italy-the protocol to treaty with Philippines approved

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The protocol to the Income Tax Treaty between Italy and Philippines of 1980 was approved by the Italian government on 12 January 2017. The protocol was signed on 9 December 2013.

According to the protocol, article 2 of the treaty would be modified to include Regional tax on productive activities in the list of taxes covered in the case of Italy. The Competent Authority of Italy will now be the Ministry of Economy and Finance. The approved protocol completely replaces article 25 of the treaty, providing for the exchange of information provision to be in line with article 26 of the UN Model (2011).

Philippines: New tax reform packages presented

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The Department of Finance submitted tax reform packages to the Congress on 29th of September 2016.

Under the tax reform packages the personal income tax rate decreased from 32% to 25% for taxpayers earning between PHP 500,001 to PHP 800,00; Excise tax on gasoline Increased from PHP 4.35 to PHP 10.00 per litre and tax rate increased for diesel at Zero to PHP 6.00 per litre.

 

Philippines passed national budget for 2017

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The House of Representatives and the Senate has approved the National Budget for 2017 on 13 and 14 December 2016.