|
|
The House of Representatives has approved on third and final reading House Bill 6579 entitled "An Act Establishing A National Policy On Ease Of Doing Business, Creating For The Purpose The Ease Of Doing Business Commission". The Bill seeks to simplify permit and licensing procedures and streamline the requirements for the application of permits and licenses at the national and local levels. The bill intends to promote greater transparency in the government as well as attract foreign investments in the country.
The Bill proposes the creation of the Ease of Doing Business Commission ("Commission"), which shall be the policy-making body on business registration and regulatory management and shall set the overall direction for the implementation of the National Policy on Ease of Doing Business. As the lead agency, the Commission has the power to, among others, receive complaints and institute investigations for violations of the law, assist complainants in filing the necessary cases, and compel or petition any national government agency or local government unit to issue the permit, license or clearance for businesses.
The Bill mandates that the prescribed processing time shall in no case be longer that one working day for applications with barangay governments. For simple applications with national government agencies and local government units, the processing time shall be three working days from the time of receipt of the applications. The prescribed processing time for complex applications shall be 10 working days.
For special types of businesses that require clearances, accreditation, or licenses issued by government agencies, including regulatory agencies where technical evaluation or other conditions are required prior to the issuance of licenses or permits, the prescribed processing time shall in no case be longer than 30 working days or as determined by the relevant government agency, whichever is shorter. Where the prescribed processing time is fixed by special laws, the time prescribed by these laws shall apply. A system for automatic approval (in the event an application is not acted upon within the prescribed period) is being developed, along with a single or unified application form to be used for all new and renewed permit applications, as well as an electronic Business One Stop Shop which will be set up to receive and process manual or electronic submissions of applications.
The House of Representatives is set to amend Republic Act 4200 ("RA 4200") or the Anti-Wiretapping Act to exclude drug trafficking and money laundering from the law in order to further enhance its effectiveness.
RA 4200 was enacted on 19 June 1965 to safeguard the constitutional right to privacy of communication. It prohibits and penalises wiretapping and other related violations of the privacy of communication, subject to certain exemptions. Currently, the law exempts cases involving, among others, the crimes of treason, espionage, provoking war and disloyalty in case of war, piracy, mutiny in the high seas, rebellion, conspiracy and proposal to commit rebellion, inciting to rebellion, sedition, conspiracy to commit sedition, inciting to sedition, kidnapping.
The inclusion of drug trafficking and money laundering in the exempted acts is being proposed to make RA 4200 "more helpful in the apprehension and prosecution of people involved in drug trafficking".
The Senate and the House of Representatives, on 13 December 2017, ratified the bicameral conference committee report on the proposed Tax Reform for Acceleration and Inclusion ("TRAIN"), the first instalment in the series of tax reforms being pushed by the current administration. The TRAIN was ratified despite allegations from the House that there were barely 10 people present when voting was taken. As for the Senate, there were no quorum issues as it was overwhelmingly ratified with a vote of 16-4.
The TRAIN, following the ratification made by Congress, was signed by the President into law on 19 December 2017 and took effect on 1 January 2018. The President vetoed five (5) items of the TRAIN which included provisions relating to the: (i) preferential income tax rates enjoyed by employees of Regional Headquarters, Regional Operating Headquarters, Offshore Banking Units, and Petroleum Service Contractors and Subcontractors; (ii) zero-rating of sales of goods and services to a separate customs territory and tourism enterprise zones; (iii) exemption from percentage tax of gross sales / receipts not exceeding five hundred thousand (P500,000.00); (iv) earmarking of incremental tobacco taxes; and (v) exemption of various petroleum products from excise taxes when used as input or as raw material in the manufacture of petrochemical products, or in the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined cycle power plants.
The TRAIN is set to increase the take-home income of many Filipinos as lawmakers have agreed to exempt the first P250,000 of annual income from income taxes. Further, the exemption of 13th month pay and other benefits from income taxes will rise to P90,000. On the other hand, the TRAIN adjusted the excise taxes on fuel, automobiles, imported coal, sin products, and cosmetic products. The value-added tax base has also been expanded with the new revenue measure.
The Department of Finance ("DOF") is set to submit the proposed second instalment of the tax reform program within the month of January. This second package aims to reduce corporate income taxes, to 25 percent from the present 30 percent, and to rationalise fiscal incentives granted by current laws.
The second instalment of the tax reform program also seeks to include amnesty for taxpayers with deficiencies in the payment of property taxes, estate taxes, regular taxes such as income taxes and value-added taxes, as well as amnesty for pending tax cases. The DOF is currently considering the payment of a minimum of 40-percent basic tax as amnesty tax. The amnesty, however, will exclude criminal cases. In addition, amendments to the bank secrecy law and automatic exchange of information are also being considered.
Lawmakers have vowed to pass the second package of the tax reform program in the middle of 2018.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
|
|
Gatmaytan Yap Patacsil Gutierrez
& Protacio (C&G Law)
30/F 88 Corporate Center
Sedeño cor. Valero Streets
Salcedo Village, Makati City 1227
Philippines
http://www.cagatlaw.com
Contacts: Jaime Renato B GatmaytanPartnerD +632 8894 0377F +632 8552 1978jrbgatmaytan@cagatlaw.comBen Dominic R YapManaging PartnerD +632 8894 0377F +632 8552 1978bdryap@cagatlaw.comNorma Margarita B PatacsilPartnerD +632 8894 0377F +632 8552 1978nmbpatacsil@cagatlaw.comAnthony Mark A GutierrezPartnerD +632 8894 0377F +632 8552 1978amgutierrez@cagatlaw.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client. |
This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
|
|
