PHILIPPINES Looking Back: 2020 and Gazing Into: 2021 Looking Back: 2020
To optimise the efforts in responding against the health and economic costs posed by the COVID-19 pandemic, the Philippine government enacted laws and regulations to facilitate regulatory relief measures to the most affected sectors of the country. These measures included: (i) the liberalisation of the grant of incentives for the manufacture and importation of critical equipment, including exemption from import duties, taxes, and other fees; (ii) the adoption of measures to facilitate and minimise the disruption of national end-to-end supply chain to ensure the availability of medicines; (iii) various directives to government agencies to provide relief such as waiver of fees and extensions of deadlines; and (iv) movement and travel restrictions to minimise the transmission of COVID-19 in communities.
Majority of government offices also shifted to electronic and online platforms for processing permits and licenses, and allowed online or electronic payments of fees to ensure that government services continued while maintaining the safety of concerned stakeholders.
Significant amendments were also introduced by the Philippine Supreme Court (SC) in the conduct of court litigation and processes in the country.
Other key areas with important developments include:
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promulgation of the 2020 Revised Rules of Procedure for Intellectual Property (IP) Rights Cases;
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tax regulations on voluntary assessment and payment program (VAPP) and transfer price auditing; and
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introduction of sustainable financing framework.
Gazing Into: 2021
Towards the end of 2020, the Philippine Congress passed the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which aims to provide tax relief and incentives to corporations, and stimulate investments in the country. It is hoped that this will spur investments in the country in 2021.
The House of Representatives (HoR) have also passed bills on the liberalisation of foreign investments. These bills aim to amend the old Retail Trade Liberalization Act and Public Services Act to adapt to the changing landscape and encourage foreign investments in the Philippines.
In addition, the following key trends and/or developments are to be noted:
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issuance of regular contractors' licences to foreign-owned contractors;
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strengthening E-commerce in the country through the proposed Internet Transactions Act and the establishment of an Electronic Commerce Bureau;
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imposition of Value-Added Tax (VAT) on Digital Transactions;
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improving internet services through the proposed "Better Internet Act"; and
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implementation of the 2020 Investment Priorities Plan.
Full Report
Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:
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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.
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