Category Archives: Corporate & Investments

Online Sellers / Businesses Required to Register with the Bureau of Internal Revenue (BIR)

The Bureau of Internal Revenue (BIR) gave notice, through Revenue Memorandum Circular No. 60-2020, to all persons engaged in online selling, or conducting business transactions through any forms of electronic media, to register their respective businesses and pay the appropriate taxes — not later than 31 July 2020. Online sellers are also given notice to declare past sales and pay the appropriate taxes, without penalties, if done not later than 31 July 2020. The registration guidelines and requirements, for both individual and juridical online sellers, are discussed below.

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Revised Detailed List of Category I to IV Business Establishments Allowed During GCQ, MGCQ, ECQ, MGCQ

The revised list of businesses or activities under Category I to IV is contained in Memorandum Circular No. 20-33 issued by the Department of Trade and Industry (DTI) on 8 June 2020. As used in the list below: NO means not allowed to operate; SKT means skeleton workforce; 50% means partial operating capacity; 100% means full operating capacity. The complete list, as provided in the Annex of MC 20-33, is reproduced below.

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Revised Category I to IV Business Establishments (DTI Memorandum Circular No. 20-33)

[The full text of Memorandum Circular No. 20-33 (“Revised Category I-IV Business Establishments or Activities Pursuant to the Revised Omnibus Guidelines on Community Quarantine dated 22 May 2020 Amending for the Purpose Memorandum Circular 20-22 S. 2020”), issued by the Department of Trade and Industry (DTI), is reproduced below. The Annex containing the list of business is provided in a separate post.]

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New Public Service Act in the Philippines: Primer on House Bill No. 78

On 7 January 2020, House Bill No. 78 was filed at the lower house of Congress, proposing amendments to the Public Service Act (Commonwealth Act No. 46), which shall be known as the New Public Service Act. The proposed law seeks to limit the term “public utility” to electricity distribution and transmission sector and the water pipeline and sewerage pipeline system. The New Public Service Act, which also prescribes a mechanism for rate fixing that allows a reasonable rate of return to attract investments into public utilities, was approved on third and final reading on 20 February 2020 and was transmitted to the Senate on 11 March 2020. 

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30-Day Grace Period No Longer Available for Loans with Due Dates Falling on 1 June 2020 and Thereafter (BSP FAQ)

[The Department of Finance (DOF) and the Bangko Sentral ng Pilipinas (BSP) did not issue any new guidelines, which means that the original Implementing Rules and Regulations covering the 30-day grace period for loans remain the same. The rule is different for rents. Loans with due dates falling before 1 June 2020 still enjoy the 30-day grace period, but loans with due dates falling on 1 June 2020 and thereafter do not enjoy such benefit. This is clear in the latest Frequent Asked Questions (FAQ) of the BSP, reproduced below for the purpose of disseminating the information.]

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Doing Business in the Philippines: Registration Regulatory Framework for Foreign Companies

Foreign corporations can secure a license to transact business in the Philippines. As defined under the Revised Corporation Code, a foreign corporation is one formed, organized or existing under laws other than those of the Philippines. Based on the principle of reciprocity, a foreign corporation cannot secure a license if its country/state of registration does not allow Filipino citizens/corporations to do business in said country/state. 

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Introduction to Insolvency in the Philippines: Suspension of Payments, Financial Rehabilitation and Liquidation

Insolvency is defined as the financial incapacity of debtors to pay their liabilities as they fall due in the ordinary course of business, or whenever their liabilities are greater than their assets. A debtor may refer to an individual debtor (natural persons) or juridical persons. The Philippines has specific rules for different proceedings affecting insolvent debtors and their creditors. 

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Guidelines for Dine-in Restaurants and Fastfood Establishments: DTI-Mandated Minimum Health Protocol

[No more buffet or self-service when you visit your favorite restaurant or fastfood chain. And you are required to fill up a medical checklist. On 31 May 2020, the Department of Trade and Industry (DTI) released the Guidelines on Minimum Health Protocol for Dine-in Restaurants and Fastfood Establishments. Dine-in is allowed at 50% capacity during the Modified General Community Quarantine (MGCQ) period. The full text of the guidelines is reproduced below.]

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Cross-Border Rehabilitation and Insolvency: Actions of Foreign Creditors and Enforcement Framework of Foreign Proceedings in the Philippines

The Financial Rehabilitation Rules of Procedure (2013), referred to as the “FR Rules,” covers cross-border insolvency proceedings pursuant to the Financial Rehabilitation and Insolvency Act (FRIA) of 2010. These provisions are likewise made applicable in proceedings under the Financial Liquidation and Suspension of Payments Rules of Procedure for Insolvent Debtors (2015), referred to as the “FLSP Rules”.

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DTI Guidelines to Follow on Minimum Health Protocols for Barbershops and Salons

[On 29 May 2020, the Department of Trade and Industry (DTI) issued the Guidelines to Follow on Minimum Health Protocols for Barbershops and Salons. This has been approved under IATF Resolution No. 41, series of 2020, for areas under General Community Quarantine (GCQ) starting 7 June 2020 at 30% operating capacity, and Modified General Community Quarantine (MGCQ) at 50% capacity. Refer to Section 4(6)(c) of the revised Omnibus Guidelines and the Revised Category I-IV Business Establishments. The full text of the guidelines is reproduced below.]

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