Recent News
Significant Changes in the Consolidated Value Added Tax Regulations
The Bureau of Internal Revenue has recently issued Revenue Regulation No. 10-2011 which effectively amends certain provisions of Revenue Regulation No. 16-2005, as amended, otherwise known as the Consolidated Value Added Tax Regulations of 2005.
The new Revenue Regulation has introduced significant changes on the applicability of Value Added Tax. While VAT shall not apply to goods or properties which were originally intended for sale or use in the course of business existing as of the occurrence of a change of corporate control by acquisition of the controlling interest of such corporation by another stockholder/s, this is not the case from the end of the transferor or the acquiring stockholder. The exchange of goods or properties including the real estate properties used in business or held for sale or for lease by the transferor, for shares of stocks, whether resulting in corporate control or not, is subject to VAT. This amendment applies to transactions and/or transfers made by either individual or corporation.
