Domestic Workers Act

Many people living in the Philippines hire domestic workers or helpers. 

Notes: It's quite complicated especially you are not familiar with Labor Code or Government mandatory benefits. I think, you'd better use PEA service.

Republic Act No. 10361 is an Act Instituting Policies for the Protection and Welfare of Domestic Workers, otherwise known as ‘Domestic Workers Act’ or ‘Batas Kasambahay'.

Coverage

It shall apply to all parties to an employment contract for the services of the helpers, whether on live-in or live-out arrangement.

1. General househelp;

2. Yaya (babysitter);

3. Cook;

4. Gardener;

5. Laundry person;

6. Any person who regularly performs domestic work in one household on an occupational basis.

Anti-Dummy Law and Foreign Investment Act (FIA) - New Proposal

The proposed latest version (11th FINL) is expected to be released soon.
Most foreigners are asking ownership not only in a corporation but also land but looks like it might that easy. It requires not only the amendment of constitution of the Philippines but also consensus of Filipino people.

Some proposed lists are: (as of Jan 18, 2018)

Removal of restrictions
1. foreign-owned investments houses and financial activities
2. practice of professions
3. foreign infrastructure contractors

Lowering the piad-up capital requirement
1. from $2.5 million to $ 200,000 for foreign retailer trade

Anti-Dummy Law and Foreign Investment Act (FIA) - Part 3

The Anti-Dummy Law, otherwise known as Commonwealth Act No. 108, is a law created to penalize those who violate foreign equity restrictions and evade nationalization laws. The Anti-Dummy Las also prohibits foreigners from intervening in the management, operation, administration, or control of any nationalized activity. Filipinos who violate this law commits a criminal act punishable with 5 to 15 year imprisonment.

Dummy Status
The Department of Justice Opinion No. 165, Series of 1984, laid down the following “significant indicators” or badges of “dummy status”.

1. That the foreign investor provides practically all the funds for the joint investment undertaken by Filipino businessmen and their foreign partner.

2. That the foreign investors undertake to provide practically all the technological support for the joint venture.
3. That the foreign investors, while being minority stockholders, manage the company and prepare all economic viability studies.

Anti-Dummy Law and Foreign Investment Act (FIA) - Part 2

Nationalized Industries

A foreign investments negative list or negative list refers to a list of areas of economic activity whose foreign ownership is limited to a maximum of 40 percent of the equity capital of the enterprises engaged in said activities. In essence, foreign ownership shall be prohibited or limited to industries that are wholly or partially nationalized.

Notes: Wholly nationalized industries are allowed only to Filipino. Some examples are Retail Trade, Education and Mass Media. Simply, foreign ownership should be 0%.

Notes: Partially nationalized industries mean where Filipino should hold at least 60% of stake.

Foreign Employment in nationalized industries
The anti-dummy law prohibits the employment by any person, corporation, or association of an alien, who shall intervene in the management, operation, administration or control thereof, whether as officer, employee, or laborer, when the exercise or enjoyment of the property or of the franchise, privilege, or business engaged in by such person, corporation or association is expressly reserved by the Constitution or the law to the citizens of the Philippines or corporations or associations at least 60 percent of the capital of which is owned by such citizens.

Anti-Dummy Law and Foreign Investment Act (FIA) - Part 1

The Foreign Investment Act (R.A. 7042, 1991, amended by R.A. 8179, 1996) liberalized the entry of foreign investment into the Philippines. Under the Act, foreign investors are generally treated like their domestic counterparts and must register with the Securities and Exchange Commission (SEC) (in the case of a corporation or partnership) or with the Department of Trade and Industry’s Bureau of Trade Regulation and Consumer Protection (in the case of a sole proprietorship).

Notes: In general, foreigners can own a corporation up to 100% provided thtat:
a) these enterprises are not on the Negative List;
b) the country or state of the foreign investor also allows Filipinos and their corporations to do business therein;
c) if the foreign investor is investing in a domestic enterprise, the domestic enterprise must have a paid-in capital equivalent to USD 200,000.

Taxes Under Special Law - Charges on Forest Products

Forest charges are imposed for the privilege of exploiting the country’s forest resources as well as an instrument of environmental protection for sustainable development. These are applied to naturally
growing timber and forest products gathered within public forestlands, alienable and disposable lands and private lands. However, the cutting and manifestation of all mangrove species are prohibited. Forest charges collected shall be in lieu of the administrative charge on environment and other fees and charges imposed thereon.

Forest charges are collected per cubic meter on the following forest products:

1. Timber cut in forestland
a. First, second, third and fourth groups - 25% of actual Freight on Board (FOB) market price based on species and grading.
b. Pulpwood and matchwood - 10% of actual FOB market price.

ALI, LTG, MPI,VVT

1. Alveo (an ALI's unit) and Eton (a LTG's unit) will develop 35-hectare ParkLink, a mixed-use complex along Marikina river.

Notes: It's located near the EastWood.

2. MPI is in talk with Air21 of businessman Alberto Lina for acquition. Air21 is engaged in door-to-door courier delivery, cargo transportation, warehousing, crating, bulk shipments and mailing. It also operates the premium airport bus service UBE Express.

Notes: It acquired Basic Logistics in 2016. It subsequently established Metro Pacific Movers Inc. to provide logistics, shipping, freight forwarding and e-commerce services.

Taxes Under Special Law - Head Tax

The Head Tax is imposed under Commonwealth Act (CA) No. 613, as amended, and implemented pursuant to Sec. 54, Chapter 12, Book IV of the Revised Administrative Code of 1987 and Unnumbered Bureau of Immigration Memorandum dated May 12, 2000.

Every alien over 16 years of age admitted into the Philippines for a stay exceeding fifty-nine days; aliens with permanent residence status in the Philippines upon return from travel abroad and retrieval of their Alien Certificate of Registration (ACR)/Immigration Certificate of Residence (ICR); and aliens applying for Re-entry Permit (RP) and the issuance/renewal/re-issuance of Special Return Certificate (SRC) have to pay, among others, a tax of PhP250. The head tax shall be paid to the Immigration Officer or to his/her duly authorized representative at the time of entry of
the alien.

Notes: You can find this item is included in your 2nd extension fees. (59 days)

ALI, TEL, PPMI

1. Ayala Land, Inc. (ALI) will start construction of integrated terminal exchange inside FTI compound. It will accommodate 4,000 buses and 160,000 passengers daily. It will be connected to PNR FTI station and proposed subway system. It will cater all provincial buses plying the south of Luzon, Visayas and Mindandao destinations.

Notes: This area already have heavy traffic. Will they remove bus terminal all along the EDSA? 

2. The DOLE resolution ordered PLDT to regularize 7,416 employees and pay P66.3 million worth of claims. 

Notes: All the bad news for TEL nowadays. will they bring it to the court? It will be another burden if they regularize them. 

3. The Bangko Sentral ng Pilipinas (BSP) has entered into a memorandum of agreement (MOA) with the Philippine Payments Management, Inc. (PPMI) The PPMI will be self-governing, with banks, e-money issuers, and financial technology firms policing their ranks in facilitating digital fund transfers. BSP will provide continuing guidance to PPMI for alignment of its policies, standards and rules with the NRPS (National Retail Payment System) framework and the PPMI undertakes to ensure proper implementation of the NRPS principles through its policies, strategies and rules.

Notes: a clearing house for e-payment? what does it mean? is it a payment gateway?

Taxes Under Special Law - Travel Tax

The travel tax is a levy imposed by the Philippine government on the individuals who are leaving the country irrespective of the place where the air ticket is issued and the form or place of payment:

Target Group
1. Citizens of the Philippines;
2. Permanent resident aliens; and
3. Non-resident aliens who have stayed in the Philippines for more than one (1) year.

Tax Rate

Classification	Fifrst Class Passenger	Economy Class
Full Rate	PhP2,700	PhP1,620
Standard Reduced Rate	PhP1,350	PhP810
Privileged Reduced Rate for Dependents of Overseas Contract Workers	PhP400	PhP300

Taxes Under Special Law - MOTOR VEHICLE USER’S CHARGE (MVUC)

Each application for registration of motor vehicles shall be accompanied by an annual Motor Vehicle User’s Charge (MVUC) pursuant to Republic Act (RA) No. 8794. For private passenger cars registered as of July 16, 2000 has a different rate. (it will be excluded in this article.)

Private Vehicle and Government Vehicles

Passenger Cars	Amount (PHP)
Light (GVW up to 1,600 kg)	1,600
Medium (GVW > 1,601-2,300 kg)	3,600
Heavy (GVW > 2,300 kg)	8,000
Utility Vehicles
GVW up to 2,700 kg	2,000
GVW > 2,700 to 4,500 kg	2,000 + 0.40 x GVW in excess of 2,700 kg
Sports Utility Vehicles (SUV)
GVW up to 2,700 kg	2,300
GVW > 2,700 to 4,500 kg	2,300 + 0.46 x GVW in excess of 2,700 kg
Motorcycles
Without sidecars	240
With sidecars	300
Buses and Trucks
GVW > 4,500 kg	1,800 + 0.24 x GVW in excess of 2,700 kg
Trailers
GVW > 4,500 kg	0.24 x GVW

Taxes Under Special Law - Energy Consumption Tax and Charges

In general, Philippine has one of the most expensive power retail rate. The government is trying to lower the rate but it looks like there a too many factors that affect the rate.

Batas Pambansa (BP) Blg. 36 (September 7, 1979) imposes an electric energy consumption tax on the monthly electric power consumption of every residential customer of electric power utilities. The tax shall be paid to and withheld by electric utilities from their respective residential customers along with their monthly electric billings.

It simply divide customers into two, inside and outside Metro Manila.

Within Metro Manila

Monthly Consumption	Rate
Not over 650 KWH	Exempt
Over 650 KWH but not over 1,000 KWH	Php 0.10/KWH in excess of 650 KWH
Over 1,000 KWH but not over 1,500 KWH	PhP35.00 plus PhP0.20/ KWH in excess of 1,000 KWH
Over 1,500 KWH	PhP135.00 plus PhP0.35/ KWH in excess of 1,500 KWH

Pre-employment Requirements for Domestic Corporation

It varies from company to company but the followings are the general documents they ask once you get hired.

Birth Certificate
Companies often ask for a photocopy of your PSA (formerly NSO) Birth Certificate.

Transcript of Records/ Diploma
This is the proof that you have finished the course written in your CV.

NBI Clearance or Police Clearance

PNX, SMPH

1. Phoenix Petroleum Philippines Inc. has entered into a joint venture, PhilAsphalt, with TIPCO Asphalt Public Co. Ltd. of Thailand and Asphalt Dev’t Corp. to distribute all kinds of Bitumen in the Philippines.

Notes: Phoenix (40%), TIPCO (40%), 20% Carlito B. Castrillo for PhilAsphalt (Dev't.) Corporation (20%)

Types of Positions

Individuals in one corporation can be categorized into several tiers. In the Philppines, labor code is focused on the Rank & File employees since they are ranked at the bottom of the structure. Many of the labor related rules/standards such as work hour, OT, Holidays, SIL, 13^th month pay, etc are not applied to only Rank & File employees. Managerial employees including supervisory employees and managerial staffs are not under these regulation even though many companies apply almost similar rules.

1. Board of Directors

A board of directors is a group of individuals, elected to represent stockholders. A Board's mandate is to establish policies for corporate management and make decisions on major company issues. It usually includes chairman, major stock stockholders or representatives, some top management officers and independent directors.

Marriage Certificate

It is maintained by PSA (formerly NSO).

A Marriage Certificate is a document that shows social union or a legal contract between people that creates kinship. Such a union, often formalized via a wedding ceremony, may also be called matrimony. A general definition of marriage is that it is a social contract between two individuals that unites their lives legally, economically and emotionally.

Birth Certificate

Civil Registration Records are maintained by Philippine Statistics Authority (PSA)

It can be applied both through walk-in and website.

Note: It the request is done through conventional postal service system or through e-mail, the certification shall be sent to the requesting party through conventional postal service system.

Certificate of No Marriage Record (CENOMAR)

It is a certification issued by the Philippine Statistics Authority (PSA) stating that a person has not contracted any marriage. Also called a certificate of No Record of Marriage or Certificate of Singleness.

Type of Employeement

In this thread, I wanna tackle some topics about employment related regulations of the Philippines. Main framework is defined in the Labor Code of the Philippines but there are some other laws involved. Running a business involves a lot of difficult or time consuming tasks. Employee relationship is surely one of the most important things for every businessman.

The type of employment shall not be dictated by the employment contract but rather by the definition of law. It shall be determined by the nature of the activities to be performed, and in some cases, the duration of the engagement and the continued existence of such activities. Moreover, any terms and conditions of the employment contract that are constructed to circumvent employees’ security of tenure shall be disregarded as contrary to public policy.

PROBATIONARY EMPLOYMENT

According to the Labor Code of the Philippines, an employee shall not be placed on probation for more than 6 months. The standards to qualify as a regular employee should made known to the employee at the time of engagement. In normal circumstances, an employee who is allowed to work after the probation period shall be considered a regular employee. This probation period may be mutually agreed to be less than 6 months.

Local Tax 1 - Community Tax

Cities or municipalities may levy a community tax in accordance with RA7160.
A community tax certificate (CTC), also known as sedula, is issued to every individual or corporation upon payment of the community tax.

Individuals liable to community tax

• Every inhabitant of the Philippines eighteen (18) years of age or over who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year;
• who is engaged in business or occupation;
• who owns real property with an aggregate assessed value of One thousand pesos (P1,000.00) or more;
• who is required by law to file an income tax return

Rappler, OFW bank, GOCC, MER

1. SEC will revoke Rappler's, a online news paper, permit based on the violation of foreign ownership limit (0%) in mass media. Rappler issued PDRs to foreign entity. While PDRs does not grant ownership, SEC tackled a provision saying "Rappler Holdings need to seek approval of 2/3 of PDR holders on corporate matters".

Notes: Other companies like ABS and GMA7 also use PDRs. I don't know but maybe they don't have this kind of provisions...."seek approval"? looks like same effect with the ownership but...what will be the conclusion in court?

Notes: It reminds me the TEL's ownership dispute. at that time, it was about classes of security. TEL win the dispute but...useless now since the government is trying to exclude teleco from 40% limit basket.

2. Overseas Filipino Bank, formerly Postal Savings Bank, will open in Jan 2018.

GOCC - Government Owned and Controlled Corporation

2017 remittance to national Treasury from GOCCs.

More than P200 million
1. Civil Aviation Authority of the Philippines (CAAP) : P5.39 billion 

    responsible for implementing policies on civil aviation

2. Philippine Deposit Insurance Corp. (PDIC) : P7.46 billion

    guarantees deposits up to P500,000
3. Development Bank of the Philippines (DBP) : P2.51 billion

4. Manila International Airport Authority (MIAA) : P2.22 billion
5. Philippine Ports Authority (PPA): P1.95 billion

    handled all public ports except the port of Cebu, which is under CPA

Financial institutions of the Philippines

Supervision under BSP

1. Banks or banking institutions refers to those entities as defined under Section 3 of RA 8791, otherwise known as the General Banking Law of 2000, or more specifically, to entities engaged in the lending of funds obtained in the form of deposits.

a) Universal and commercial banks represent the largest single group, resource-wise, of financial institutions in the country. They offer the widest variety of banking services among financial institutions. In addition to the function of an ordinary commercial bank, universal banks are also authorized to engage in underwriting and other functions of investment houses, and to invest in equities of non-allied undertakings.

Types of Taxes of the Philippines

Tax is a big burden to all individual and corporation not only in the Philippines but also every elsewhere in the world. I think the tax system of the Philippines is quite complicated especially in terms of compliance.
There would be several ways categorizing taxes but in this article, I simply use National and Local Tax.

National Tax
1. Income Tax
It is directly imposed on income, of course. There are several factors which affect taxation.
 a) Personal Income Tax (PIT, 0 ~ 35%)

• Target Individual: Resident Citizen, Non-Resident Citizen, Resident Alien, Non-Resident Alien.
• Income from : within or without Philippines
• Income Source : Compensation, Business/Professional, Passive and other taxable income
• Others (Amount of Income, Business Field, etc) 

GLO, PTT, Banks, ACR

1. Ayala led Globe Telecome (GLO) brought back the unlimited broadband plans with a little higher rate.

Notes: Yeah..it should be. why they put cap even for the fixed line internet. Seeing the news recently, GLO is still trying hard to attract customers using various products. Why I cannot see TEL's marketing news..they still looks like focused in investment for better quality thinking customers will eventually choose them.

2. Philippne Telegraph & Telephone Corp. (PTT)
It is in advance stage of negotiation with Korean telco LG Uplus.

Notes: It looks like the 3rd telco player will come whoever it is. NILK's Zamora led PTT wants expand its broadband service and launch cellphone operation. still let side door open for China Telecom...eventhgouh China Tel choose another company...PTT may push for it..

Notes: Will it be really a big threat to TEL and GLO. there will be more broadband service providers...TEL, GLO, PTT, NOW, TBGI, ECP, PTT and Sky of ABS. Besides, there might be more small regional providers especially in fixed like service. cellphone is not that easy for small companies, i think. the new player will fight for Manila share...at the beginning. Where is their backbone? NPC's backbone for power grid would be the only solution...maybe.
They will dig all the Manila land again to install their own backbone? Hmmm.

Notes: Will it be a chicken game? It will be a difficult game especially for the 3rd player in terms of profit...how long will it take..3rd player will encounter the same problem...permit and right of way (ROW) for cell sites.

3. Pawnshops and mobile money outlets have wider coverage areas in the Philippines, according to the Bangko Sentral ng Pilipinas (BSP). There are over 61,000 outlets of non-bank companies providing financial services in the Philippines, eclipsing the 11,343 branches and offices run by banks.

Notes: mobile money means e-money agents which converts remittance to cash...with those, 10% of cities and towns are unbanked area..without those, it 34.9%. looks like banks has more potential in terms of retail...once people start having excess money...they will look for a bank but for now...it might take time. Big banks may need aggressive merge of rural, thrift bank...to grow more.

4. Alsons Power Holdings Corp. will further expand its presence in Indonesia.

Notes: Alsons Development and Investment Corp, the ultimate parent, holds 100% of Alsons Power Holding Corp., 10.08% of ACR, 27.9% of Alsons Corp. which again holds 68.63% of ACR.

Alsons Power Holding Corp also hold 10.06% of ACR.

Notes: ACR has no share in Alsons Power Holdings Corp. which already owns 60 MW diesel peaking plant in Indonesia.

Notes: MPI acquired 50% of Alsons Thermal Energy Corp. (ATEC), ACR's baseload coal-fired power plant holding company. ATEC owns 75% of 210 MW Sarangani plant.

Republic Act (RA) vs. Order

For the normal people like me, they are all the same considering that we have to follow or abide by. In this article, I tried to distinguish the terms using "Administrative Code 1987". Each government authorities also release memorandums, orders but I believe it has the same characteristics.

1. Bill
Bill is a proposed legislation under consideration by a legislature. It's not a law yet.

2. Republic Act (RA)
A Republic Act is a piece of legislation used to create policy in order to carry out the principles of the Constitution. It is crafted and passed by the Congress of the Philippines and approved by the President of Philippines. It can only be repealed by a similar act of Congress.

3. EXECUTIVE ORDERS (EO)
Acts of the President providing for rules of a general or permanent character in implementation or execution of constitutional or statutory powers shall be promulgated in executive orders.

SMC, ALHI, RLC

1. 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: It operates 2x500 MW coal-fired Sual power plant (owned by Team Energy, BOT till 2024) and SMC has IPPA status since 2009. Check the site for IPPA. It operates 345 MW San Roque hydro power plant, a peaking power plant. (multi purpose : power, irrigation, flood control) Check the site for Peaking Power. 1,200 MW Ilijan gas power plant, BOT till 2022. It can also run on diesel.

Notes: Now, it has more than 3,000 MW...and constructing more than 1,000 MW...gonna be bigger than AP in terms of generation?

2. Anchor Land Holdings, Inc. (ALHI) will build 16 story, 3,000 bed spaces for young salarymem.
It's planning to build 10,000 beds in next 3 years.

Notes: Hmm...is the dormitory business promising? everybody wanna into into it...looks like rental fee gonna be around P3,000~P5,000 monthly.

3. Robinsons Land Corp. will increase capital through stock rights offering. The Gokongwei property firm is offering up to 1.1 billion billion shares at a price ranging from P18 to P21 each.Stockholders can buy one share for every 3.7 to 4.3 common shares held as Jan. 31. The mother company, JGS, will purchase any unsubscribed rights. Proceed will be used for acquiring properties across the country.

Notes: will be diluted a lot. is it a proper price? I cannot understand.