Legal Updates

CMEPA 2025: Cutting Taxes, Empowering Capital Market

By: Abimelech H. Rigodon




Deep capital markets broaden access to financing by offering alternatives to conventional lending channels such as banks, financing, and lending companies. Active trading in capital markets makes it easier for investors to enter or exit investment positions, thereby boosting their financial liquidity. Yet, in the Philippines, there has been limited participation from investors and relatively modest capitalization of the local stock market. Based on the 2021 Financial Inclusion Survey Report, only 1 out of 10 (or 10%) of Filipino Adults have investment products. While high trading volumes are generally attractive to potential investors, their appeal diminishes when friction costs are high. The existing tax structure in the Philippines poses a considerable obstacle to the development of its capital markets. For instance, the stock transaction tax (STT) is imposed at 0.6% of the gross selling price — significantly higher than the 0.1% levied in Indonesia and Malaysia, and the nil rate in Singapore and Vietnam.

VAT on Digital Services: The Key Features of R.A. No. 12023

by: Atty. Raegan L. Capuno




Are you a binge-watcher of movies and videos on popular digital platforms like Netflix, Disney+, Prime Video, and HBO, or an online shopper using digital applications like Alibaba, Temu, Zalora, Amazon, or eBay? If so, Republic Act (R.A.) No. 12023, popularly known as the VAT on Digital Services which was signed into law on October 2, 2024, will significantly impact these daily routines and shopping activities, at least on the cost of availing these services, because the Philippines has taken a major step by extending the imposition of twelve percent (12%) value-added tax (VAT) to non-resident digital service providers (DSP). The Philippine VAT system adopts the place of consumption as the situs of VAT, meaning, that when goods or services are consumed or destined to be consumed in the Philippines, VAT is imposed. Thus, all services, including digital services, consumed in the Philippines should be imposed of VAT. Hence, R.A. No. 12023 is technically not a new tax law because it merely emphasizes the rule on situs of VAT, specifically those rendered by non-resident DSP. R.A. No. 12023 is also a welcome development because prior to this law, local DSPs were subjected to 12% VAT while non-resident DSPs operating remotely or outside the Philippines were not taxed with the same. This law will level the playing field between local and non-resident DSPs in terms of VAT imposition and collection. While the vision of this law is laudable, it is unfortunate that like any other tax or imposition, the burden is borne by the final consumer. It is thus expected that subscription prices or fees to avail of these digital services will rise due to R.A. No. 12023.

Understanding Republic Act No. 12001 or the Real Property Valuation and Assessment Reform Act of 2024 (RPVARA)

By: Atty. Raegan L. Capuno and Atty. Maria Luisa J. Sebastian




On June 13, 2024, President Ferdinand Marcos, Jr. signed into law Republic Act No. 12001, otherwise known as the Real Property Valuation and Assessment Reform Act (RPVARA). This law aims to standardize the real property valuation in the Philippines and adopt the Schedule of Market Values (SMVs) as the single real property valuation base for the assessment of real property-related taxes in the country, and for the valuation of real property for various transactions by all government agencies. RPVARA has three (3) important components, namely, (i) the reorganization of the Bureau of Local Government Finance (BLGF), (ii) valuation and assessment of real properties, and (iii) tax amnesty on real property taxes and special levies on real property.

Philippine Transfer Pricing Guide

By: Ferdinand Hidalgo and Frances Grace Allyana Orbeta-Nolasco


Our Ferdinand Hidalgo and Frances Grace Allyana Orbeta-Nolasco are contributors to the Chambers Global Practice Guide on Transfer Pricing 2024. The guide provides expert insights on the regulatory authorities and application of Philippine transfer pricing rules to domestic and cross-border transactions between associated enterprises.

View the guide here: https://practiceguides.chambers.com/practice-guides/transfer-pricing-2024/philippines

Salient Features of the Republic Act No. 11976 or the Ease of Paying Taxes Act

By: Ma. Corazon D. Eleazar



On 5 January 2024, President Ferdinand R. Marcos Jr. signed Republic Act No. 11976, also known as the Ease of Paying Taxes Act (EOPT Act). The EOPT Act was published in the Official Gazette on 07 January 2024 and took effect on 22 January 2024.

The EOPT Act introduced amendments to the National Internal Revenue Code (NIRC) of 1997, with the aim to protect and safeguard the taxpayer rights and welfare, encourage proper and easy compliance, and modernize tax administration.

Highlights of the Public-Private Partnership Code of the Philippines

By: Elita Joy P. Quicho and Laine Marie J. Bringuelo


The groundbreaking Republic Act No. 11966, also known as the Public-Private Partnership (PPP) Code of the Philippines (the “PPP Code”), was signed into law on December 5, 2023 and took effect on December 23, 2023. It codifies all prior statutes related to PPP under a comprehensive law and clarifies the ambiguities in the previous legislations. The overarching goal of the PPP Code is to create an environment for the private sector to mobilize resources for financing, designing, constructing, operating and maintaining infrastructure or development projects and services.

Salient Provisions of the Internet Transactions Act of 2023

By: Elita Joy P. Quicho and Laine Marie J. Bringuelo



As Filipinos increasingly rely on technology for their daily transactions, the associated risks also grow. From shopping and financial dealings to communication and entertainment, the internet has undoubtedly become an indispensable tool for the modern society. Hence, there is an undeniable need for regulatory guidelines in order to protect the interests of consumers and businesses engaged in online transactions. This article is only for informational and educational purposes. It is not intended as a legal advice or opinion.


Construction Arbitration in the Philippines

By: Atty. Michael Felipe A. Mercado



Republic Act 9285, otherwise known as the Alternative Dispute Resolution Act of 2004, or ADR Law, provides the legal framework for alternative dispute resolution in the Philippines, including arbitration.

While construction contracts are considered as commercial in nature, the ADR Law recognizes that arbitration of construction disputes shall be governed by Executive Order No. 1008, otherwise known as the Constitution Industry Arbitration Law.


Taxation in the Philippines

By: Atty. Raegan L. Capuno



Income tax is generally regarded as an excise tax or privilege tax, levied upon the right of a person or entity to receive income or profits. Income taxation in the Philippines is primarily governed by the 1987 Constitution and the National Internal Revenue Code of 1997 (NIRC), as amended by Tax Reform for Acceleration and Inclusion (TRAIN) Law and Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Law).

Corporation law in the Philippines

By Atty. Elita Joy G. Pinga-Quicho



The law primarily governing private corporations in the Philippines is the Revised Corporation Code, which took effect on 20 February 2019 under Republic Act No. 11232. This current iteration of the law substantially amended the Corporation Code under Batas Pambansa Blg. 68, which was the law in effect since 1980. From 1980 up to 2019, the Corporation Code did not undergo any amendment or revision. As a result, during a long period of 39 years, private corporations in the Philippines were subject to numerous stringent incorporation and regulatory requirements. Antiquated regulations and the hesitance to rely on technological tools contributed to the Philippines’ inefficient “doing business” regime and processes.

Visit Us

4th & 6th Floors, BDO Towers Paseo (Formerly Citibank Center) 8741 Paseo de Roxas Makati City 1226, Philippines

Give Us A Call


+63 (2) 8810 0282-90

Copyright 2022-2023 SRMO