In-House Community Online Update/Client Alert: Update on Data Privacy Law Compliance in the Philippines

Automated Decision-Making Operations, Institutions Likely to Pose Threats to Data Subjects and Phase 1 and Phase 2 of Registration with the NPC By Franchette M. Acosta, Senior Partner, Villaraza & Angangco Email: fm.acosta@thefirmva.com On 31 July 2017 the National Privacy Commission NPC issued a Circular to further clarify the implementing rules and regulations of the Data Privacy Act. The Circular will take effect upon full compliance with publication requirements. Under the Data Privacy Act and its rules, all Personal Information C...

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The Japanese Overseas Investment Report

SECTION 1: Market outlook 1.1 How would you summarise your jurisdiction’s attitude towards the influence of Japanese corporate culture in its industries? Over the years, the Philippines has proven to Japan its ability to be an effective platform for opportunities in trade and investments for Japanese companies. Japan has been the Philippines’ most generous donor of official development assistance for the past 23 years. Because of this symbiotic relationship, Japanese corporate culture is not only seen as desirable but is also perceived as vital to ...

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No Withholding Taxes on Income Payments Made to LGUs

In the recently decided Court of Tax Appeals CTA case of Conal Holdings Corporation vs. Commissioner of Internal Revenue CTA Case No. 9099, 17 July 2017 , Conal Holdings Corporation Conal filed a Petition for Review praying for the cancellation and withdrawal of the Bureau of Internal Revenue’s BIR deficiency assessment in the aggregate amount of Php291,875,839.72, which arose from Conal’s alleged failure to withhold taxes on the purchase of two 2 diesel power plants and machineries from the City Government of Iligan. The BIR based its assessment on Sect...

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Department of Labor and Employment Department Circular No. 01-2017: Clarifying the Applicability of Department Order No. 174-2017

On 13 June 2017, the Department of Labor and Employment DOLE issued Department Circular DC No. 01 to clarify the applicability of Department Order DO No. 174, series of 2017 which regulates contracting and subcontracting agreements. The DOLE clarified that DO No. 174 only applies to trilateral relationships between the principal, subcontractor, and the employee which characterize contracting or subcontracting arrangements. DO No. 174 does not cover information technology-enabled services involving an entire or specific business process such as Business Process Outsourci...

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THE V&A GUIDE TO PHILIPPINE COMPETITION ACT

FRAMEWORK OF PHILIPPINE COMPETITION POLICY Prior to the passage of the Philippine Competition Act, regulation of monopolistic or anti-competitive acts was not centralized. With the recent passage of the Philippine Competition Act, a more level playing field for business can be expected from a more comprehensive, centralized, and consistent approach against anti-competitive behavior. To achieve this, the Philippine Competition Act regulates or prohibits anti-competitive agreements, abuse of dominant position, and mergers and acquisitions that prevent or restrict com...

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Asean Plus Group Newsletter Q2 2017

CLick Here for the Newsletter - Issue 3, Q2 2017 ...

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ENDO The Line: The New DOLE Department Order No. 174 And The Rules On Contractualization

The Department of Labor and Employment “DOLE” issued on 16 March 2017 the new Department Order “D.O.” No. 174, Series of 2017 which revisited the existing rules and regulations implementing Articles 106 to 109 of the Labor Code on contracting and subcontracting. D.O. No. 174 effectively supersedes D.O. No. 18-A which was issued in 2011. The regime under D.O. No. 174 provides stricter guidelines for contractors. Among the notable changes is the increase in the requirement of substantial capital of contractors from Three Million Pesos PhP 3,000,000...

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SEC MC No. 4, Series of 2017: Term Limit of Independent Directors

The Securities and Exchange Commission “SEC” has issued SEC MC No. 4, Series of 2017 to provide the guidelines for the term limit of independent directors. The term limit of independent directors of registered issuers, public and mutual fund companies shall be as follows: A company’s independent directors shall serve for a maximum cumulative term of nine 9 years ; After which, the independent director shall be perpetually barred from re-election as such in the same company, but may continue to qualify as a non-independent director ; ...

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5th Asia Pacific Real Estate Investment Summit Philippines

The 5th Asia Pacific Real Estate Investment Summit Philippines was conducted at the Dusit Thani Hotel last 31 March 2017. With a theme “Unraveling the New Philippines: Heightened Optimism. Surging Investment”, the Summit featured speakers from several government agencies, including the SEC, DPWH and NEDA, as well as from several private business real estate groups. The speakers pointed out that that the current Philippine environment is ripe for the investment into Real Estate Investment Trusts “REIT” with numerous catalysts supporting the same. Howe...

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Bangko Sentral ng Pilipinas ("BSP") CIRCULAR NO. 944, Series of 2017 Guidelines for Virtual Currency ("VC") Exchanges"

The Bangko Sentral ng Pilipinas “BSP” issued Circular No. 944, Series of 2017 or the “Guidelines for Virtual Currency Exchanges” the “Circular” . Virtual currency “VC” refers to any type of digital unit that is used as a medium of exchange or a form of digitally stored value created by agreement within the community of VC users. The Circular reiterates that VCs are not issued nor guaranteed by any jurisdiction and do not have a legal tender status. The Circular covers exchanges in the Philippines, offering services or enga...

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2017 Investment Priorities Plan

On 28 February 2017, President Rodrigo R. Duterte and Executive Secretary Salvador C. Medialdea signed Memorandum Order No. 12 approving the 2017 Investment Priorities Plan “IPP” . Under the 2017 IPP, preferred activities for investment are listed with particular focus on micro-, small-, and medium-scale enterprises “MSMEs” , manufacturing, agriculture and fisheries, and drug rehabilitation. Innovation-drive, health, and environment-conscious activities are also given priority. The 2017 IPP will consider as preferred activities the following investme...

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Jose M. Roy III vs. Securities and Exchange Commission, et al. G.R. No. 207246, 22 November 2016

The Supreme Court, in a recent case entitled “Jose M. Roy III vs. Securities and Exchange Commission, et al.” , docketed as G.R. No. 207246 and promulgated on 22 November 2016, upheld the validity of SEC Memorandum Circular No. 8 Series of 2013 “SEC MC No. 8-2013” , which prescribes the guidelines in determining compliance with the foreign equity restriction in nationalized activities. Under SEC MC No. 8-2013, the required percentage of Filipino ownership mandated by the 1987 Constitution shall be applied to both a the total number of the outstanding shares of ...

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PCC Memorandum Circular No. 16-003

The Philippine Competition Commission “PCC” issued Memorandum Circular No. 16-003, dated 22 December 2016, prescribing the filing fees to be paid by the acquiring entity for notification and review of mergers or acquisition meeting the notification threshold under the Philippine Competition Act. For the first phase of the review, the filing fee of Two Hundred Fifty Thousand Pesos PhP250,000.00 shall be paid upon submission of the Notification Review. Upon the announcement by the PCC of its decision to proceed to a second phase review, the filing fee ...

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Philippine Credit Card Industry Regulation Law

On 27 July 2015, the Philippine Congress passed into law Republic Act No. 10870 or the “Philippine Credit Card Industry Regulation Law” which seeks to regulate the country’s credit card industry by placing credit card issuers and acquirers under the supervision of the Bangko Sentral ng Pilipnas “BSP” . The BSP is granted authority to issue rules of conduct and standards of operation of the credit card industry and to impose penalties in case of non-compliance therewith. The BSP is likewise granted the authority to determine the reasonableness of fees and cha...

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PPP Listing and Disclosure Rules

On 8 December 2016 the Philippine Stock Exchange, Inc. issued the Supplemental Listing and Disclosure Riles Applicable to a PPP Company “PPP Listing and Disclosure Rules” as approved by the Securities and Exchange Commission. The PPP Listing and Disclosure rules allows for and provides the process for the application for listing under the Philippine Stock Exchange. This option is granted to corporations which were awarded a PPP contract or a special purpose company incorporated by the awarded corporation or awarded joint venture or consortium which shall assume and accede to ...

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SECURITIES AND EXCHANGE COMMISSION AND BUREAU OF INTERNAL REVENUE ISSUANCES (JULY-AUGUST 2016)

SEC Memorandum Circular No. 8, 28 June 2016 SEC Memorandum Circular No. 8 amended further ICA Rule 35-1 d 4 , as amended by SEC Memorandum Circular No. 12, series of 2013, providing exemption from the 5% liquidity requirement of mutual fund index trackers: “ ICA Rule 35-1 d 4 For liquidity purposes, unless otherwise prescribed by the Commission, at least five percent 5% of an open-end company fund shall be invested in liquid/semi-liquid assets such as: A Treasury notes or bills, Certificates of Indebtedness issued by the Bangko Sentral ng P...

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