Friday, January 12, 2018

Public Authorities of the Philippines 3

The Executive Branch

1. Office of the President (OP)

President has a great power such as control over all executive branches, ordinance, etc. The following agencies are under OP.
  • Commission on Higher Education (CHED) - Tertiary Education 
  • Authority of the Freeport Area of Bataan (AFAB) - Sepcial Economic Zone (SEZ) 
  • Bases Conversion and Development Authority (BCDA) - transform former US military bases into civil use. It's subsidiaries are Clark Development Corporation (CDC), John Hay Management Corp., Poro Point Management Corp., Bataan Technology Park, and  North Luzon Railways Corporation.
  • Cagayan Special Economic Zone (CSEZ): SEZ 
  • Commission on Human Rights (CHR) 
  • Cultural Center of the Philippines (CCP) 
  • National Economic and Development Authority (NEDA) 
  • Housing and Urban Development Coordinating Council (HUDCC) 
  • Metropolitan Manila Development Authority (MMDA) 

ECP, Sy, Fitch

1. EasyCall Communications Philippines, Inc. (ECP)
It is expanding data connectivity service far rural area through VSAT.

Notes: It was a "pager" company in 1990s. It's now focusing  Very Small Aperture Terminal (VSAT), a  two-way satellite communications system that can transmit and receive data via remote terminals or hubs. The concept looks good considering the islands Philippine have...but is it feasible or profitable?

2. Herny Sy Jr. invested in Big Boss Cement Inc. personally, which has a patent in cement manufacturing process (Green Cement). Green cement is more resistant to moisture and corrosion.
It has a plant which can produce 1.5 million bags of cement per month. It wanna increase the market share from 3.5% to 13% till 2020.

Notes: Henry Sy JR chairs also SMPH, NRCP. SMPH may buy cement from them..right?

3. Fitch raised Philippine bank ratings on more optimistic outlook. (Tax Reform, Infra spending). Two government-owne Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP) were also raised to BBB from BBB-. Private banks included are Bank of the Philippine Islands (BPI), BDO Unibank, Inc., Metropolitan Bank & Trust Company (Metrobank),China Banking Corporation (China Bank), Rizal Commercial Banking Corp. (RCBC), and the Philippine National Bank (PNB).


Notes: Asset based rankings in 2017 are: BDO, MBT, BPI, LBP, SECB, PNB, CHIB, DBP, UBP, RCB.

Why Security Bank and Union Bank are excluded? They have less exposure to Infra funding? hmmm.

Thursday, January 11, 2018

Public Authorities of the Philippines 2

The Legislative Branch (Congress of the Philippines)

1. Senate

- 24 senators elected at large by voters

2. House of Representatives

- not more than 250, 20% of whom must be Party-list representatives.


Resolutions convey principles and sentiments of the Senate or the House of Representatives.

a) joint resolutions — require the approval of both chambers of Congress and the signature of the President, and have the force and effect of a law if approved.

b) concurrent resolutions — used for matters affecting the operations of both chambers of Congress and must be approved in the same form by both houses, but are not transmitted to the President for his signature and therefore have no force and effect of a law.

c) simple resolutions — deal with matters entirely within the prerogative of one chamber of Congress, are not referred to the President for his signature, and therefore have no force and effect of a law.


Bills are laws in the making. They pass into law when they are approved by both houses and the President of the Philippines. A bill may be vetoed by the President, but the House of Representatives may overturn a presidential veto by garnering a 2/3rds vote. If the President does not act on a proposed law submitted by Congress, it will lapse into law after 30 days of receipt.


The Judicial Branch

1. Supreme Court (SC)

It is the highest court in the Philippines. The chief justice and associate justices are appointed by the President of the Philippines, chosen from a shortlist submitted by the Judicial and Bar Council. The president must fill up a vacancy within 90 days of occurrence.


2. Court of Appeals

It is is the second highest tribunal in the country.


3. Trial Courts

There are Regional, Metropolitan, Municipal, Municipal Circuit Trial Courts.


There are two types of special courts.

1. Court of Tax Appeals

It, which is of the same level as the Court of Appeals, mostly engaged in Tax related appeals including tax related criminal offences.


2. Sandiganbayan

It is a special graft court created to attain the highest norms of official conduct among officials and employees in the government.



PIZZA, CHP, JGS, AGF, MER

1. Shakey's Pizza Asia Ventures Inc. (PIZZA) will open 20 new stores in 2018. If finished, it's network will reach to 228.
Notes: Can it still maintain the leading market share in chained full-service restaurant? What other companies belong to this category? Maybe MAX.

2. Cemex Holdings Philippines Inc. (CHP) got approval from DENR for the expansion (1.5 million tons per year) of its production line (Solid Cement) in Antipolo, Rizal.
Notes: Cement prices is low. Imports a lot. It's infra boom but why this company can't benefit. Will it be really better?

3. Robinsons Bank, a banking unit of JGS, ties with Pru Life UK to offer life insurance.
Notes: Why the group didn't make it big? only 123 branches...

4. AG Finance, Inc. (AGF)
New parent company, ISOC Holdings Inc. (67%) changed board members. Michael C. Cosiquien elected as a new chairman. He is a major stockholder of MWIDE.
Notes: They will transform AFG to a real estate, energy or logistics firm but nothing is final.  ISOC is currently building a 2,412 square-meter cold storage facility. 

5. Meralco Powergen Corp (MGen), a wholly owned subsidiary of MER, plans to consider investment in two (2) wind-power projects amounting to P40 billion. (total 300 MW)
Notes: Maybe they are thinking of energy mix. Relying on a lot natural gas power....constructing a lot of coal power.





Staying and Working

You need to know several more things when stay, work or return back to your country. They use the term "Aliens" for foreign nationals. Is it correct?

1. ACR I-Card (Alien Certificate of Registration Identity Card)

All foreigners (immigrant and non-immigrant visa holders) including 9A Visa holders who stays more than 59 days should register to immigration. It's a credit size microchip card which can be used as an ID. In most cases, you can just bring this card instead of the original passport. For 9A Visa, you will be asked to apply this card when you try to extend over 59 days. For other long term Visas, you should apply this once your Visa application is approve. Some Visa holders like PEZA (47A2) are exempted from ACR I-Card.

It serves as Re-entry Permit (RP) and Special Return Certificate (SRC) of the holder upon payment of the required fees. ACR I-Card is a valid ID which can be presented for any purpose such as opening bank account, car registration, etc. You may requested to present two valid ID when opening a bank account. Usually banks don't allow 9A Visa holders opening a account.


2. Annual Report (AR)

All registered foreigners (ACR I-Card holders) should report in person within the first 60 days of every calendar year. Not all immigration branches accept AR, so you should check where is the nearest branch which accept AR in the immigration web site. (www.immigration.gov.ph)

a) Main office in Intramuros or ICTS and ACR I-Card AR connectivity - accept all

b) ICTS AR connectivity without ACR I-Card AR connectivity - update only w/o arrears

c) Other BI (Bureau of Immigration) offices : not accept AR

Notes: It's PhP310 and there will be monthly fine of P200.00 for delayed Annual Report (reckoned from March 2 of the current year)

3. ECC (Emigration Clearance Certificate)

There are two types of ECC, ECC-A (also referred to as regular ECC) and ECC-B.
The following foreign nationals must secure an ECC-A prior to their departure:

a) Holders of Temporary Visitor Visa (also referred to as tourist visa) who have stayed in the Philippines for six (6) months or more;

b) Holders of expired or downgraded Immigrant or Non-Immigrant Visas;

c) Holders of valid Immigrant or Non-Immigrant Visas but are leaving for good;

d) Philippine-born foreign nationals who will depart from the Philippines for the first time;

e) Holders of Temporary Visitor Visa with Orders to Leave;

f) Bona fide seafarers who have stayed in the Philippines for 30 days or more and has a duly approved discharge from BI.

ECC-B is issued to departing holders of Immigrant and Non-Immigrant visas with valid ACR I-Cards and are leaving the country temporarily.

A foreign national may apply for an ECC at least 72 hours prior to his/her departure from the Philippines. The ECC is valid for one (1) month from the date of issue, however, you may only use this once regardless of its validity.

Holders of valid immigrant or non-immigrant visas (multiple entry Visas) who intend to return to the Philippines may secure the ECC at the airport. SRRV and SVEG Visa holders are exempted.

Notes: You are not allowed to leave without ECC even though you have flight ticket already. Make sure to secure this in advance.

Notes: 9A Visa holder cannot secure the ECC at the airport. If you stayed more than 6 months, make sure to secure it in advance.

Notes: If you decided to just pay at the airport, bring at least P3,000. (It varies but almost 3k.)

Notes: 47A2 Visa holders were exempted automatically but looks like rules are changing from time to time. There was an announcement from immigration in early 2015 saying "Only visa holders whose visa clearly contains the text “Exempted from ECC/SRC” and whose Endorsement Letter contains the text “free from payment of visa and immigration fees” continue to be exempt from paying immigration fees upon each departure from the country." The decision of exactly who will be exempt from paying these immigration fees lies solely with the Department of Justice on a discretionary basis and will often be dependent on the employee’s sponsoring company. Therefore, if you have or apply this Visa, please check Endorsement Letter or Visa Order to verify.

4. Airport Tax

In accordance with Presidential Decree (PD) 1183, travelers shall pay travel tax on departure. You can find a Tourism Infrastructure and Enterprise Zone Authority (TIEZA) office in the airport.

a) Filipino citizens.

b) Foreigners who are permanently residing or immigrants in the Philippines.

c) Foreigners (non-immigrant visa holders) who have stayed in the Philippines for more than one year.

Sometimes, it’s included in the ticket, so check if it's included or not. There are some exempted personnel but most of you may not belong to this category. If you want, check the list and how to apply in TIEZA website. The full travel tax is P1,620 for passengers on economy class plane tickets and P2,700 when flying first class.

You should pay Terminal Fee also. It might be also included in the ticket price, so check first. Nobody is exempted. It's around P550 to P700.

Notes: Moving out? Stayed more than 1 year with 9A Visa? Make sure to bring some Pesos to the airport for ECC, Airport Tax and Terminal fee.

5. Working Permit

If you are not an immigrant, you should secure Working Visa (9G) or Special Economic Zone Visas (47A2). AEP is one of the requirement to obtain Working Visa.

In general:

a) securing working permit is the prerequisite securing a working Visa;

b) holders of immigrant Visas are exempted from working permit. They can work without this;

c) Foreign nationals who are non-immigrant permanent residents are required to obtain an Alien Employment Permit from the Department of Labor and Employment (DOLE);

d) You cannot work with Tourist Visa (9A);

e) The work's characteristic wise, it should require a foreigner to perform the task. You cannot just handle simple manual work any Filipino can handle. However managerial positions are widely accepted in applying work permit.

f) Some positions are not allowed to foreigners like Corporate Secretary.

Special Work Permit (SWP)

The SWP is only a permit to work in the Philippines and does not include the authority to stay.

The holder is responsible for keeping his temporary visitor’s visa valid during his or her stay in the country. SWP is also issued to musical artists, performers, professional athletes, and other foreigners who will render temporary services in the country. The Bureau of Immigration issues an initial validity of three (3) months, which can be extended only for another three (3) months.

Provisional Work Permit (PWP)

Foreign nationals who are on temporary visitor visas, wishes to commence work and whose employment visa application, either the 9g or 9d, is in progress. The validity period of a provisional permit is normally three months from the date of issuance or until the 9g visa is issued, whichever comes first. Foreign nationals who intends to commence employment while his or her Alien Employment Permit is pending with the Department of Labor and Employment must also secure the provisional permit to work. the provisional permit to work is extendable until a working visa has been approved.

Alien Employment Permit (AEP)

This permit authorizes a foreign national to engage in gainful activities provided that there is no available domestic manpower for the particular designation. Holders of other functional visas such as Special Investors Resident Visa (SIRV), Special Resident Retiree’s Visa (SRRV), Treaty Traders (9D) Visa, or Special Non-Immigrant Visa (47A2) are also subject to an AEP. An AEP is initially valid for one (1) to five (5) years depending on the duration of the contract and renewable for a maximum period of (5) years. Apply to DOLE Regional Office having jurisdiction over the principal place of business of the petitioner.

The following categories of foreign nationals are exempt from securing AEP:

a) Members of the diplomatic services and foreign government officials accredited by the Philippine government;

b) Officers and staff of international organizations of which the Philippine government is a cooperating member, and their legitimate spouses desiring to work in the Philippines;

c) Foreign nationals elected as members of the Governing Board who do not occupy any other position, but have only voting rights in the corporation;

d) All foreign nationals granted exemption by special laws and all other laws that may be promulgated by the Congress;

e) Owners and representatives of foreign principals, whose companies are accredited by the Philippine Overseas Employment Administration (POEA), who come to the Philippines for a limited period solely for the purpose of interviewing Filipino applicants for employment abroad;

f) Foreign nationals who come to the Philippines to teach, present and/or conduct research studies in universities and colleges as visiting, exchange or adjunct professors under formal agreements between the universities or colleges in the Philippines and foreign universities or colleges; or between the Philippine government and foreign government; provided that the exemption is on a reciprocal basis;

g) Resident foreign nationals and temporary or probationary resident visa holders under 13 series employed or seeking employment in the Philippines.

6. Waiver of Exclusion Ground (WEG)

Minor children below 15 years old who are traveling to the Philippines unaccompanied by or not joining his/her parent/s to the Philippines need to apply WEG. The WEG Order will be issued by the Bureau of Immigration (BI) at the port of entry.

a) Fee is around P3,120 per child.

b) Affidavit of consent by either parent or legally appointed guardian of the child.

c) Photocopy of the data page of the child and guardian’s passport.


Wednesday, January 10, 2018

Philippine VISA Types 3 - Immigrant Visa (13 Series)

Basically, there are two (2) kinds of Visas, immigrant and non-immigrant. Visas under "Section 9" and "Section 9" and "Section 47(A)(2) of the Philippine Immigration Acts of 1940 are non-immigrant Visas and "Section 13" defines immigrant Visas.

1. TRV (Temporary Resident Visa) - 13A Probationary

Holders of this visa are allowed to stay in the Philippines for up to five years as long as certain conditions are maintained. Necessary conditions include continuity of the marriage and continuous physical presence in the Philippines. TRV holders are exempted from securing an alien employment permit should they wish to be employed in the Philippines. However, a special work permit is required if they wish to commence work while the TRV is being processed. Temporary Resident Visas can be extended every two years after a probationary period of one year is satisfied or they can apply permanent residence Visa (13A).

2. MCL-07-021

It's a memorandum order no. or Visa status in immigration. It's a 13 quota visa, which allows legal
spouse & unmarried children below 21 years old of Chinese lawful permanent resident in the
Philippines.

3. MCL-08-003

It's a memorandum order no. or Visa status in immigration. It's a 13 quota visa, which allows legal
spouse & unmarried children below 21 years old of South Korean lawful permanent resident in the Philippines.

4. 13 Quota (RA 7919)

Quota Immigrant Visa is a permanent residence visa available to fifty (50) immigrants of each nationality each year. It is issued to foreign nationals whose country has diplomatic relations and reciprocal agreements with the Philippines to grant immigrant privileges to Filipinos as well. Applicants must not belong to any class of excludable or deportable foreign nationals enumerated under Sections 29 and 37 of the Philippine Immigration Act. Preference is given to applicants who possess qualifications beneficial to national interest or those who possess sufficient capital for viable and sustainable investment in the Philippines. Allocation of slots to non-preferred immigrants is only awarded after giving due course to preferred immigrants and is on a first-come first-serve basis.

5. 13A (EO 324)

It's for the wife or the husband or the unmarried child under twenty-one years of age of a Philippine
citizen, if accompanying or following to join such citizen. This visa is only available to citizens of
a country which grants permanent residence and immigration privileges to Philippine citizens.
It's a non-quota immigrant visa. Holders of 13A Non-Quota Immigrant Visa by Marriage are exempted from AEP requirements of DOLE. However, renewal of ACR I-card is required every five years.

6. 13B (PD 730)

A child of alien parents born during the temporary visit abroad of the mother, the mother having been
previously lawfully admitted into the Philippines for permanent residence, if the child is accompanying or coming to join a parent and applies for admission within five years from the date of its birth.

7. 13C

A child born subsequent to the issuance of the immigration visa of the accompanying parent, the visa not having expired.

8. 13D

A woman who was a citizen of the Philippines and who lost her citizenship because of her marriage to an alien or by reason of the loss of Philippine citizenship by her husband, and her unmarried child under twenty one years of age, if accompanying or following to join her.

9. 13E

A person previously lawfully admitted into the Philippines for permanent residence, who is returning from a temporary visit abroad to an unrelinquished residence in the Philippines.

10. 13F

A natural-born citizen of the Philippines, who has been naturalized in a foreign country, and is returning to the Philippines for permanent residence, including his spouse and minor unmarried children, shall be considered a non-quota immigrant for purposes of entering the Philippines.

11. 13G

Returning former natural born filipino citizen.

Philippine VISA Types 2 - Non-immigrant Visa (Special Visas)

Basically, there are two (2) kinds of Visas, immigrant and non-immigrant. Visas under "Section 9" and "Section 9" and "Section 47(A)(2) of the Philippine Immigration Acts of 1940 are non-immigrant Visas and "Section 13" defines immigrant Visas.

All the following Visas are based on the 47(A)(2) of the Immigration law but for the convenience sake, I will use the separate name.

1. 47(A)(2) - PEZA Visa

This Visa requires the employer’s sponsorship and is valid for the duration of the contract or term
of office or one (1) year whichever is shorter. It is a company-specific visa that limits the
percentage of foreign national employees to less than 5% of the total work force. Holders of this
visa are exempted from ACR I-card requirement. Renewal should be filed at least 30 days before the
expiration. Board of Investment (BOI) registered companies may also apply this Visa.

2. 47B

It's for humanitarian reasons, and when not opposed to the public interest, to admit aliens who are
refugees for religious, political, or racial reasons, in such classes of cases and under such conditions as he may prescribe.

3. SVEG (Executive Order No. 758) - Special Visa for Employment Generation

The foreign national must have control over an entity, firm, partnership, or corporation in the
Philippines, which employs at least 10 full-time, regular Filipino workers on a long-term basis.
Multiple-entry privileges and exempts him or her from payment of exit clearance certificate (ECC) and special return certificate. It's valid as long as the 10 full-time employment condition is met. He should secure AEP also.

4. SIRV (Special Investor's Resident Visa) 

It is issued by the Bureau of Immigration (BI) upon endorsement of the Board of Investments (BOI), and entitles the holder to reside indefinitely in the Philippines. He should have the capacity to remit at least US$75,000 into the Philippines and invest such capital in viable economic activities. An initial six-month probationary SIRV is given to the foreign national to undertake such investments. Only upon submission of documents to prove that actual investments have been made may the application for indefinite multiple entry SIRV be considered. It's valid as long as the investment remains.

5. SRRV (Special Resident Retiree's Visa)

It's for foreign nationals or former Filipinos at least thirty-five (35) years of age under the
retirement program of the Philippine Retirement Authority (PRA). Specific amount of deposit and
age limit (at least 35 years old) is the basic requirements. 

Some benefits are:
a) Multiple-entry privileges with the right to stay in the Philippines during his lifetime;
b) Exemption from the ECC;

c) Exemption from Travel Tax, provided the SRRV holder has not stayed in the Philippines for more than a year from date of last entry;

d) Tax-free importation of household goods/personal effects worth US$7,000.00;

e) Privilege to study in the Philippines;

f) Privilege to work in the Philippines upon issuance of the Alien Employment Permit.

It's valid as long as the visa holder remains a member of good standing of the Program and his time deposit and/or investment exists in the Philippines.

6. Multiple Entry Special Visa under RA 8756

It granted to executives of Regional Headquarters (RHQ) and Regional Operating Headquarters
(ROHQ). The applicant must be an executive working exclusively for the petitioner RHQ or ROHQ and the salary must also be at least US$ 12,000. The ROHQ Visa is valid for three (3) years and can be renewed thereafter. The applicant’s legal spouse and unmarried children below 21 years of age can be under this Visa.

7. Multiple Entry Special Visa under PD 1034

It's for foreign personnel of offshore banking units of foreign banks duly licensed by the Central Bank of the Philippines to operate as such.

8. Other Sepcial Economic Zone Visas

a) CDC – Clark Working or Investor’s Visa
b) SBMA – Subic Working or Investor’s Visa
c) CEZA – Cagayan Economic Zone Authority, Working or Investor’s Visa
d) AFAB -Authority of the Freeport Area of Bataan, Working or Investor's Visa

Appendix A. Balikbayan program
It's for Filipino citizens who have been continuously out of the Philippines for more than 1 year or
a former Filipino citizen and his family who had been naturalized in a foreign country.

a) Immediate family members when travel together with Filipino

b) Return from non-visa required countries

c) Initial 1 year on arrival and can extend till 36 months.

TRAIN Package 1A - Vetoed provisions

5 provisions from the bill were vetoed by the President, so they are not enacted into a law.
The constitution of the Philippines provides that "the President shall have the power to veto any particular item or items in an appropriation, revenue, or tariff bill".

1. Reduced income tax rate of employees of Regional Headquarters, Regional Operating Headquarters, Offshore Banking Units, and Petroleum Service Contractors and Subcontractors.

I means, they cannot enjoy preferred tax rate. Normal personal income tax will be applied.

2. Zero-rating of sales of goods and services to separate customs territory and tourism enterprise zones.

Only sales and delivery of goods and services rendered to provisions are vetoed. It means, you have to charge VAT even when you sells goods/services to ECOZONE companies. Previous law recognized separate customs territory like Special Economic Zone (SEZ or ECOZONE).

3.  Exemption from percentage of gross sales/receipts not exceeding five hundred thousand pesos (P500,000).

They still need to pay 3% percentage tax instead of 12% VAT.

4. Exemption of various petroleum products from excise tax when used as input, feedstock, or as raw material in the manufacturing and petrochemical products, or in the refining of petroleum products, or as replacement fuel for natural gas fired combined cycle power plants.

Input VAT is not recognized for petroleum products. It means, you have to pay VAT for any purchase of petroleum products.

5. Earmarking of incremental tobacco taxes.
To guarantee the original health care sector share from this tax.


Notes: VETO Message
Messages of the President of the Philippines expressing veto on legislative bills. An exercise of veto power stops the enactment of a bill and returns it to the congress it originated. As of January 12, BIR didn't issue the clarification on the vetoed provision above #2. How to translate the status. Apply the former provision (recognizing separate custom territories) or regard as this provision is removed? 


Consunji, SM, MARC, TEL

1. President ordered DENR secretary to close  Sodaco Agricultural Co. and suspend Sirawai Plywood and Lumber Corporation, the Consunji family's logging companies, after massive landslide.
Notes: They are family owned, so it won't affect DMC or SCC, I think. 

2. SM Retails, Inc., a subsidiary of SM, acquired majority stakes of Goldilocks Bakeshop Inc. 
Notes: Goldilocks has 579 food retailing stores in the Philippines and abroad. 12 in US/2 in Canada/6 in Thailand. Two-thirds of the store network are franchised. 2015 net sales were P7.86 billion.

3. Marcventures Holdings Inc. (MARC) will merge
    a)  Asia Pilot Mining Phils. Corp. (APMPC) which owns Alumina Mining Philippines Inc. (AMPI, 6,694 ha) and             Bauxite Resources Inc. (BARI, 5,435 ha). They are bauxite mines.
    b)  BrightGreen Resources Holdings Inc. (BHI) which owns BrightGreen Resources Corp. (BRC, 4860 ha). It's             a nickel mine. 
Notes: It will release total 1.125 billion shares to those companies..almost 70% increase of # of shares. They might set up nickel processing facilities. Govt raised the issue "ban on exporting raw mineral"...if it happens, yes..they need the facility.

4. PLDT ClarkTel starts construction of 1,300 seat Clark data center. It has data centers in Clark, Subic, Pasig, Cebu, Sucat in Paranaque, Fort Bonifacio and Makati.

Notes: It has a data center there....why build another? I think data center is an important IT infra investment.



Monday, January 8, 2018

TRAIN Package 1A - Other Taxes

To make up for the loss due to reduced income tax, it imposes higher excise taxes.

Excise Tax For Fuel

FUEL TYPE Current 2018 2019 2020
Diesel No Tax P2.50 P4.50 P6
LPG No Tax P1 P2 P3
GAS P4.35 P7 P9 P10

Excise Tax On Other Petroleum Products
Aviation Gas - P4 per liter
Asphalts - P8 per Kg
Kerosene - P3
Naptha - P7
Bunker Fuel - P2.5
Lubricating Oil - P8
Paraffin Wax - P8
Petcoke - P2.5

Excise Tax on Vehicle

Current New
2% 4%
12K+20% in excess of 600k 600k to 1.0M : 10%
112K+ 40% inexcess of 1.1M 1.0M to 4.0M : 20%
512K+ 60% in excess of 2.1M over 4.0M : 50%
All pick-up trucks and electric vehicles will be exempted.
Hybrid cars will be imposed half the taxes as non-hybrid cars.

Excise Tax on Tobacco
Period Tax
Jan 1, 2018 ~ Jun 30, 2018 P32.5
Jul 1, 2018 ~ Dec 31, 2018 P35
2020 ~ 2021 P37.5
2022 ~ 2023 P40
2023 onward annual 4% increase

Excise Tax on Sugar
P6 pesos per liter for drinks using sugar and P12 per liter for using high fructose corn syrup. (HFCS)
Milk, instant coffee, natural fruite & vegetable juice, meal replacement and medically indicated beverages and beverages sweetened with coco sap sugar or stevia are exempted.

Excise Tax on Coal (Currently P10 per MT)
Coal will be taxed P50/MT in 2018, P100/MT in 2019 and P150/MT in 2020.

Excise Tax on Mineral
It will also impose 5% on cosmetic surgery purely for aesthetic purpose. Mining will be increase
from 2% to 4% excise tax on metallic minerals like copper, gold, and chromite.

VAT Base Expansion to encourage and job generation
The following lists are exempted from VAT:
a. business with total annual sales of P3 million and below (VAT threshold increased to P3 million)
b. Raw food
c. Agricultural products
d. Health and education
e. Senior citizens
f. PWDs
g. Cooperatives
h. Renewable energy
i. Tourism enterprises
j. BPOs in special economic zone
k. Socialized housing (P450,000 and below)
l. Low cost housing (amounting to P2 million, starting 2021)
m. Leases below P15,000 per month
n. Condominium association dues

Notes: Small business might benefit from the P3 million threshold increase.

Estate Tax
Flat 6% will be imposed over 5 million. (less than 5 million will be exempted)
Family homes up to P10 million will be exempted.

Donor's Tax
Flat 6% exceeding P250K will be imposed regardless of the relationship.

Other Taxes
Stock transaction tax : from 0.5% to 0.6%
Stocks not traded in stock exchange : from 5~10% to 15%
Final tax on foreign currency deposit units: from 7.5% to 15%
Documentary stamp tax on loans : from 0.5% to 0.75%
Documentary stamp tax on bills of exchange : from 0.15% to 0.30%
Residential lot sales VAT exempt threshold: from 1.9 million to 1.5 million
House and lot sales VAT exempt threshold: from 3.2 million to 2.5 million until 2020, 2 million starting 2021.
Sales of goods/services to PEZA : from 0% VAT to 12% VAT



TRAIN Package 1A- Personal Income Tax (PIT)

The Tax Reform for Acceleration and Inclusion (TRAIN, RA No. 10963) is the first package of the comprehensive tax reform program (CTRP), which seeks to to correct a number of deficiencies in the tax system to make it simpler, fairer, and more efficient. The Package 1 is divided into 1A and 1B because the Senate couldn't pass the whole package. Package 1B might be passed in 1Q of 2018 and Package 2 will also be filed to Congress by DOF soon.

It is signed into a law effective January 1, 2018.
[SCHEDULE]


















Husbands and wives who are both working can benefit from a total of up to P500,000 in exemptions. 

The first P90,000 of the 13th month pay and other bonuses will be exempt from income tax. Other bonuses include productivity incentive, Christmas bonus.

Mandatory contributions such as SSS, HDMF and PhilHealth are excluded from taxable income, same as before.

Fringe benefits tax rate is increased to 35% of a final tax. (except rank and file employees)

De-Minimis benefits are also retained, excluded from taxable income.


Self-employed and professionals (SEPs) with gross sales below the VAT threshold now have the option to pay a simpler 8% flat tax in lieu of income and percentage tax, while those above the VAT threshold will follow the PIT schedule.


Annual Earnings Tax
P250,000 and below 0%
P500,000 and below exempt from 3% percentage tax
Below P3 million VAT threshold can choose 8% flat tax on gross sales or PIT
Over P3 million subject to PIT

In accordance with the new law, BIR released new tax table.



Sunday, January 7, 2018

Philippine VISA Types 1 - Non-immigrant Visa (9 Series)


Basically, there are two (2) kinds of Visas, immigrant and non-immigrant.
Visas under "Section 9" and "Section 47(A)(2) of the Philippine Immigration Acts of 1940 are non-immigrant Visas and "Section 13" defines immigrant Visas.

Non-immigrant Visa

It can be categorized further 9 series and special visa (47A2).
1. 9A (Tourist Visa)
It's for temporary visitors coming for business or for pleasure or for reasons of health.
The nationals of restricted (entry visa required) countries need to secure entry visa first but people from unrestricted (Visa free) countries can get initial 30 days 9A Visa at the immigration of the arrival airport.

a) restricted
- They can extend the Visa period till 24 months after entry. Extension can be applied 1, 2, 6 months period at a time.
- Some immigration branches doesn't accept the Visa extension, so you need to check first.

b) unrestricted
- Maximum 36 months stay.
- Initial period of stay may various based on the origin country. (7 days ~ 30 days)

Types of power plant

Philippines is roughly aiming baseload (70%), mid-merig (20%) and peak (10%) power mix. However DOE said that it will be flexible.

1. Baseload
Baseload generators meet some of country's continuous electricity demand, and produce at a constant rate, usually at a low cost. hey shut down or reduce power only to perform maintenance or repair. These plants produce electricity at the lowest cost of any type of power plant, and so are most economically used at maximum capacity. Most of them run on coal, natural gas and geothermal power on a 24-hour basis.

2. Mid-merit generators, mostly run on either gas, typically come on line when daily electricity demand picks up in the morning and they shut down when the demand drops off in the evening. A load-following power plant, also known as mid-merit, is a power plant that adjusts its power output as demand for electricity fluctuates throughout the day. Load-following plants are typically in-between base load and peaking power plants in efficiency, speed of startup and shutdown, construction cost, cost of electricity and capacity factor.

3. Peaking power plants, mainly oil-based facilities and renewable energy resources wind and solar, operate only during times of peak demand.

Public Authorities of the Philippines 1

I will just list all the authorities existing in the Philippines. Philippines is unitary state but there are some movements that push for federalization.
The government has three interdependent branches: legislative branch, executive branch and the judicial branch.


1. The Legislative Branch
   a) Senate - national government
   b) House of Representatives- national government

There are local government units such as Regional Legislative Assembly, Sanggunian Bayan, etc.


2. The Executive Branch
  a) President
  b) Vice-President
  c) Cabinet
      1) Executive department
      2) Administrative divisions (Local Government Units - LGUs)
          - Regions, Province, Municipality, City, Barangay
          - President has general supervision authorities over LGUs
Notes: LGU is not directly supervised by the national governments.

3. The Judicial Branch
  a) Supreme Court
  b) Lower Courts
     1) Regular Courts : Regional Trial Courts, Municipal Circuit Trial Courts
     2) Collegiate Courts: Court of Appeals, Court of Tax Appeals, Sandiganbayan
     3) Muslim Courts : Sharia District Courts, Sharia Circuit Courts Yessy

4. Constitutional Commissions
There are 3 constitutional commissions: the Civil Service Commission, the Commission on Elections, and the Commission on Audit.

  a) Civil Service Commission
It is engaged in all civil service related tasks such as maintenance of transparency, civil service exam, position classification, compensation, standard implementation, maintain personal record of civil servant, etc.

  b) Commission on Elections supervise all elections.

  c) Commission on Audit examine, audit and settle all accounts and expenditures of the funds and properties of the Philippine government.

5. Office of the Ombudsman
The government and all three of its branches are independently monitored by the Office of the Ombudsman. The Ombudsman is given the mandate to investigate and prosecute any government official allegedly guilty of crimes, especially Graft and Corruption. The Ombudsman is assisted by six deputies: the Overall Deputy, the Deputy for Luzon, the Deputy for Visayas, the Deputy for Mindanao, the Deputy for the Armed Forces, and the Special Prosecutor.


PERC, MWIDE, CLC, TEL, SMC, AP, AC

1. PetroEnergy (PERC) sets rights offer price at P4.80
The company is offering 157.975 million shares to qualified stockholders from Jan. 22 to 26. Each investor can buy one share for every 2.6 shares held as of Jan. 12. Proceeds from the offering, amounting to P758.26 million, will be used to fund renewable energy projects which are estimated to cost P6.7 billion. 

Notes: current price is 5.72, will be diluted a lot, still need big money to fund the projects.

2. Megawide (MWIDE)
Megawide Construction Corp bagged a P2 billion contract to design and build Maynilad Water Services Inc.’s Las Pinas water reclamation facility.

Notes: Expanding a lot...airport...water...what's next? renewal energy?

3. Chelsea Logistics Holdings Corp. (CLC) is looking to raise its equity investment in shipping and logistics firm 2Go Group Inc. to 40 percent from minority stock holders.

Notes: 2GO Free Float level: 11.66%...will it reduce it further?

4. Smart’s FINTQ sees rosy growth for its financial services in 2018. Total loans disbursed via the Lendr app reached over P12 billion in 2017, up by a third from the previous year.

Notes: Fintech will prosper? 

5. San Miguel unit SMC Global Power Holdings acquired the equity stake held by AES Philippines and Thailand’s EGCO group in Masin-AES. The deal involves the 630-megawatt Masinloc coal-fired power plant, a 355-megawatt coal-fired unit still under construction and a 10-megawatt battery storage plant.

Notes: Will they push for IPO of the power unit?

6. GNPower Dinginin Ltd. Co.,a joint venture between AC Energy Holdings (a AC unit) and Therma Power Inc. (a AP unit) and Power Partners Ltd.  secured a long-term debt financing package for the second unit of its 668 megawatt super-critical coal fired power facility in Dinginin, Bataan. 



+++++++++++++++++++++++++++++++++++++++++

MARKET ISSUES

[last partial update : 02/28/2018] Macro and Overseas (a) US interest rate : 1.25 ~ 1.5%, May increase 3 times in 2018 (b) US 10 yr bond...