GLIMPSE OF A CPA'S MIND

Suspension of the requirement for proprietary educational institutions to be non-profit to be entitled to 1% income tax under RR No. 5-2021 (Revenue Regulations No. 14-2021 issued on July 28, 2021)                                                         (this photo may be subject to a copy right claim) This Tax Alert is issued to inform all concerned on the suspension of certain provisions of Revenue Regulations (RR) No. 5-2021 on the income taxation of proprietary educational institutions.  To ease the burden of taxation among proprietary educational institutions, especially during the time of COVID-19 pandemic, the implementation of the following provisions of RR 5-2021 are suspended pending passage of appropriate legislation:  Section 2 (C) - definition of proprietary educational institutions, insofar as it includes therein the phrase, “which are non-profit”;  Section 2 (E) - definition of non-profit, insofar as it applies to “Proprietary Educational Institutions”; and  Section 3 (

  Deferring the Implementation of RR No. 9-2021  The Secretary of Finance has issued RR No. 15-2021 deferring the implementation of RR No. 9-2021 dated 9 June 2021 imposing value-added tax (VAT) on certain transactions that were previously considered VAT zero-rated. The same is deferred until the issuance of amendatory revenue regulations. In view of the continuing COVID 19-pandemic and its impact to the export industry, the implementation of RR No. 09-2021 is deferred until issuance of amendatory revenue regulation. RR No. 09-2021 imposed 12% VAT on transactions which used to be zero-rated under Section 106 (A) (2) (a) (3), (4), and (5) and Section 108 (B) (1) and (5) of the Tax Code, as amended. The following transactions will revert to VAT zero-rating: Sale of goods or properties: The sale of raw materials or packaging materials to a non-resident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing, packing or repacking in the Ph