Driven to Exceed Your Expectations

The SGV Advantage
Download PDF

As today’s business environment becomes increasingly complex with a host of tax rules and regulations, it is imperative that businesses equip themselves with the best advice on these matters to compete effectively and efficiently.

NOW, more than ever, enterprises need to find new ways to align their tax strategies with their overall business needs, while meeting their compliance obligations wherever they arise. Our Tax Services can help you make these things happen by assisting you in identifying and implementing the best possible approach to all tax and business concerns.

List of Tax services

Business Tax Compliance

Our tax professionals can provide assistance in determining a company’s tax liabilities and preparing/reviewing the related returns and attachments (e.g., BIR Form No. 1709-Information Return on Related Party Transactions). As an alternative, our Staff Loan services can provide specialized tax expertise to extend real-time and responsive services to meet various tax needs.

Tax Accounting and Risk Advisory Services

We can assist in the calculation and analysis of a client’s current and deferred income taxes in accordance with applicable tax and accounting standards for the client to consider and approve for the purposes of financial reporting. We can also assist clients in evaluating, implementing and/or maintaining the impact in the accounting for income taxes resulting to current and/or new accounting standards.

Tax Health Check

Our tax professionals provide a diagnostic evaluation of a company’s tax position, practices and procedures to determine whether they comply with Philippine tax laws and regulations. The objective of the undertaking is to identify potential tax exposures and recommend corrective actions.

Payroll Accounting and Operate (POS)
Our services provide end-to-end payroll delivery using our technology platforms. We provide accurate, on-time pay for employees, a consistent and manageable process, and dependable compliance with statutory requirements.
Accounting Compliance and Reporting (ACR)

We assist companies in various aspects of their accounting operations with our ACR services. Our Statutory Reporting Services help companies in the preparation of statutory financial statements or other financial information. Among others, we assist entities in closing accounting records, producing a trial balance, reconciling the account balances to the underlying records and identifying adjusting entries, and reconciling statutory financial statements to group reporting through our Financial Statement Close Process. Meanwhile, Bookkeeping Services aim to assist in maintaining accounting records for the entity using manual books, our computerized accounting system (CAS) or the entity’s own CAS.

Tax Finance and Operate (TFO)

TFO is a technology-driven tax service delivery model that helps organizations reimagine their tax and finance functions resulting in a sustainable corporate tax function that meets each company’s specific needs. It utilizes highly skilled global resources to help companies define a tax operating model that may further their strategic efforts and bring new 
innovation and transformation to their tax function. Our approach can increase the agility of an organization in responding to changes while providing access to leading edge technologies and innovation. Services may range from more traditional tax outsourcing focused on compliance preparation in non-core territories to broader TFO agreements that may include HQ country and other major countries. TFO agreements are typically more extensive in their scope, with options to operate end-to-end processes (including data extraction and cleansing), strategic planning and value-add activities.

Independent Certified Public Accountant (CPA) Verification Services

We assist taxpayers who have claims for refund or who have tax assessments by providing a detailed review of the documents supporting their claims for refund or position against the assessments and presenting these to the Court of Tax Appeals. This helps facilitate the presentation of evidence in Court.

Tax Assessment Assistance
We assist taxpayers in the preparation of the tax schedules/reconciliations in connection with the examination of the taxpayer’s books of accounts and other accounting records related to all internal revenue tax liabilities in a specific period.
Tax Seminars
We organize seminars to equip your people with a “Back to Basics” understanding of the Philippine tax system. The seminars focus on the principles and fundamentals of how various types of taxes operate with details on their implementation and administration. Included in the seminars are discussions on current issues to update participants with the latest pronouncements of various tax agencies. Other seminars also cover tax issues on local government taxation, how to handle claims for refunds and assessments.
Tax Performance Advisory Services / Tax Technology and Transformation

We assist our clients with the strategic and operational challenges facing their tax functions. We also help our clients improve the effectiveness of their tax function and in the implementation and/or optimization of tax processes and software tools. Tax Performance Advisory services include tax function process improvement reviews, process design, software implementation and enhancement, and tax data enablement.

International Corporate Tax Advisory

We provide globally consistent and cost-effective corporate income tax advice on all aspects of cross-border transactions such as financing, investments and reorganizations including acquisitions, spin-offs and joint ventures. More specifically, we assist our clients in developing tax structures which can mitigate the tax consequences of international transactions (such as the use of tax treaties), as a result of the interplay of taxing rules and involvement of various jurisdictions, and optimize the overall structure by providing advice on tax-efficient repatriation of dividends, interest and other forms of income; funding, utilization and reinvestment of profits and exit mechanisms. In all cases, we also identify and consider the local and offshore tax regulatory risks, anti-abuse measures and other base erosion and profit-shifting policies to ensure compliance of any transaction or investment structure with said policies or regulations.

Tax Planning Engagement

We help companies identify opportunities or areas where they can effectively generate tax savings within the parameters allowed by law. Tax planning can be done in the areas of regular and minimum corporate income taxation, withholding tax on compensation, fringe benefits taxation, and 5% gross income tax (GIT) study, among others.

Tax Due Diligence Review

We provide a wide range of sell-side and buy-side Tax Due Diligence Services. Initially, we can perform a sell-side review of a company’s tax position in order to give the Seller an advance indication of potential tax exposures and afford them time to rectify significant issues before the company is formally put up for sale. After the Sell-Side Tax Due Diligence Report has been completed, the Seller may require the preparation of a Tax Fact Book or a Vendor Due Diligence (VDD Report). A Tax Fact Book outlines key facts, attributes, and potential issues in relation to the tax position of the company but does not opine or give a risk rating for such issues. A VDD Report is posted in the dataroom and made available to potential Purchasers. It is intended to give an advance and independent assessment of the company’s tax position. The ultimate Purchaser may rely on the VDD Report, subject to sufficient reliance procedures and sign-offs. Sell-side Services may include: (1) a review of the tax assumptions in the Seller’s financial model; (2) the provision of inputs to the tax-related sections of the transaction documentation; and (3) a discussion of alternative structures to sell the shares of the company or just the unwanted assets, or to exit the business. Sell-side Services can include due diligence services for the sale of assets or in the case of banks and financing companies, the sale of non-performing assets.

Buy-side Tax Due Diligence Services aim to review and analyze the potential tax liabilities, exposures, receivables, and tax attributes of a target company or business to be acquired, or of the borrowing/issuing company (in the case of a buy-side tax due diligence commissioned by finance providers). Buy-side Services can include: (1) a review of the tax assumptions in the Buyer’s financial model; (2) the provision of inputs to the tax-related sections of the transaction documentation; and (3) a discussion of alternative structures to acquire the share of the Target or just the assets, or to enter into a joint-venture with the Seller to operate the Target business.

Tax Refinancing Services

We provide tax advice related to the extraction of cash from corporate or private equity investments through debt or equity exchanges, buy back of debt or equity, the raising of debt or equity financing, or other refinancing exercises. This includes advice on cross-border financial products and transactions, including derivatives, foreign currency, redeemable preferred shares, and other hybrid instruments.

Non-Bankruptcy Restructuring Services

We provide restructuring services to creditors and debtors. We advise banks and financial institutions to assess the tax exposures impacting the financial viability of distressed debt and the availability of tax attributes to offset future tax liabilities. We provide structuring alternatives to help debtors prepare unwanted assets for disposition or to exit from one or more lines of business to improve cash flows, reduce operating costs, and to better manage risks.

Real Estate Investment Trust (REIT) Advisory

We provide REIT Advice to both potential REIT Sponsors and to investors in REIT Securities. We look into the REIT-able assets of a REIT Sponsor and advice on the mode of transfer to a REIT that will yield the most reasonable tax results. We guide the Sponsors and the REIT in the initial public offering, looking into the growth model that takes into account the tax-free reorganizations under the Tax Code. We also provide advice to a REIT Investor in its entry to a REIT Structure either as a holder of Investor Securities or itself as a potential Sponsor. We also provide structuring alternatives that allow a potential Sponsor to comply with the reinvestment requirement under the REIT Law.

Tax Free Reorganizations and Legal Entity Restructuring

We provide advice to a group of companies who may want to break up lines of business, wind-up legal entities, or enter into a merger, using the tax-free structures under Section 40(c)(2) of the Tax Code. We provide a detailed step plan that allows the client to monitor the myriad of documentary requirements, issues and possible tax challenges, so that the timely responses or submissions can be formulated to ensure the ease of implementation of the plan.

Investment Advisory Services

Our tax experts help prospective investors determine the most cost- and tax-effective vehicle/structure for Philippine inbound and outbound investments. We also assist in the related registration requirements. Likewise, we help plan and implement strategies to reduce tax liabilities for taxpayers doing business in multiple taxing jurisdictions. We can also help develop or review existing financial models for companies to ascertain the tax implications of different alternatives being considered in the acquisition of investment portfolios.

Transfer Pricing Services

We provide organizations with a professional assessment of whether their existing intercompany pricing policies comply with tax laws and regulations by reviewing existing transfer pricing methods and recommending the adoption of the optimal model.  Likewise, we help formulate planning ideas to ensure that pricing policies comply with regulations in different taxing jurisdictions to reduce risk of double taxation and arrive at an optimal supply chain structure. We also provide an integrated, multi-country approach to meet substantiation requirements to efficiently document transfer pricing policies.  We also assist clients in handling transfer pricing audits of tax authorities by evaluating the validity and merits of their tax findings and helping in the resolution of transfer pricing issues. We offer the following transfer pricing services:

  • Transfer Pricing Documentation (TPD) covers our assistance in the preparation of a TPD, which shall have the following sections, as may be applicable and required by the Philippine TP regulations: (1) Organizational Structure; (2) Nature of the business/industry and market conditions; (3) Controlled transactions; (4) Assumptions, strategies and policies; (5) Cost Contribution Arrangements; (6) Comparability, functional and risk analyses; (7) Selection of the transfer pricing method; (8) Application of the transfer pricing method; (9) Background documents; and (10) Index to documents. In case the company is part of a group, which has a global/regional TP documentation, we can customize it to come up with a TPD for the local company in compliance with local documentation requirements.
  • Benchmarking Study, which is a segment of a full transfer pricing study, involves a search for comparable transactions or companies and benchmarking to establish an arm’s length range of prices/profitability.
  • TP Policy Implementation Assistance involves assistance in implementing the TP policy established in the TP documentation.
  • TP Advisory Services involve the advice/opinion on specific TP issues, review of intercompany agreements from a TP perspective, and high-level review of TP studies/documentations prepared by the company or other parties.
  • TP Audit Assistance involves assessing the validity of BIR TP findings, preparation of a reply to such findings, and representing clients before the BIR on transfer pricing assessments issued against clients.
  • TP Planning involves helping clients design and implement changes in operating models to deliver performance within a tax-efficient structure through the identification and quantification of potential benefits of the change in operating 
    model from a TP perspective; the development of a TP methodology for the new operating model consistent with the value drivers of the business; the design of mechanics for the implementation of the TP methodology; and the development of a TPD platform and preparation of TPD.
Entity Compliance and Governance Services

Our team of experienced lawyers can assist in complying with SEC reportorial requirements pursuant to the Revised Corporation Code and related issuances. We can conduct corporate health checks and help registered entities ensure that their corporate books are in order, including assistance in the drafting of minutes, resolutions, appointments, resignations, notices, proxies, waivers, certificates and other related corporate documents. We also offer services in relation to incorporation of subsidiaries and establishment of branches of foreign corporations, including post-registration applications. We provide advisory services on any amendment of the Articles of Incorporation and By-Laws to include increase and decrease of the authorized capital stock, mergers and reorganizations, and dissolution through shortening of the corporate term.

Private Client Services

We equip clients to make better business decisions by bringing insights to the forefront. We recognize the unique needs of private businesses and their owners.

We support our clients’ ambitions with tailored tax services to unlock potential and enable them to create, preserve and transition value across generations. We provide distinctive services across all tax disciplines to clients, whether business-owning family, the leader of a private business or the owner of substantial private wealth and capital, to address private and business matters amidst the complex range of tax matters impacting business operations and private wealth.We support the client’s drive to define their own success as they create sustainable financial, societal and human value through our tax services that create, preserve and transition value across generations while developing a philanthropy strategy that fits in with the wishes of the family. We understand their resoluteness to protect wealth that has been built up over many years.

We offer a wide variety of services that are associated with supporting the ownership, management and preservation of privately-owned businesses and wealth. These include:

  • Personal and family tax advisory
  • Business tax advisory
  • Structuring
  • Compliance and reporting
  • Family and business governance
  • Crafting of Family Constitution
  • Wealth transfer and succession planning/estate planning
  • Asset protection
  •  Family office advisory and support services
  • Process improvement
  • Capital raising
  • International expansion and acquisitions
  • Sensitive wealth transfers and philanthropic planning
  • Personal, compliance and business tax planning services to owners, families, family businesses, private equity and asset management stakeholders as well as high net worth individuals
Estate/Family Wealth Planning
We offer advice on how to effectively reduce gift and estate taxes. We provide tax planning for wealth transfer, succession planning for family-owned businesses, tax advice on creation of trusts, and preparation of estate and donor’s tax returns.
Center for Tax Policy
The Center for Tax Policy is a one-stop resource for tax reform, policy and legislation. Our leaders provide forward-looking views on the drivers and business implications of today’s most important tax policy and fiscal issues. We can help organizations track and assess tax policy and reform issues affecting their businesses, providing services that range from monitoring legislation and strategic planning to representation and economic modeling.
Tax Advocacy/Controversy Work

We assist clients in liaising with the tax authorities for requests for rulings or opinions from the Bureau of Internal Revenue and the Department of Finance and in handling controversies and disputes arising from tax assessments.  We can also represent enterprises in filing administrative claims for refund from the national and local governments as well as provide assistance in obtaining tax credit certificates from the authorities.

We also provide assistance in the sale and/or purchase of tax credit certificates by handling and verifying the related documentary requirements as well as liaising with the tax authorities.

General Advisory Services

We offer sound and expert advice on a wide range of tax matters such as those relating to corporate organizations and reorganizations, build-operate-transfer projects, joint venture agreements; various contracts and financial products; revenue legislation and rules. We also provide advice and assistance with the registration and reporting requirements of government agencies relating to tax and/or investment incentives granted under various investment laws and regulations as administered by the Securities and Exchange Commission, Department of Trade and Industry, Board of Investments, Bangko Sentral ng Pilipinas, Philippine Economic Zone Authority, Clark Development Corporation, Subic Bay Metropolitan Authority, and the Local Government Units, among others.

Quantitative Services (QS)
Incentives Grant and Tax Reforms

The opportunities in the Asia Pacific region are boundless as the region continues to be a major driver of the global economy. For companies seeking to invest and expand their operations in the Philippines, the availability of incentives continues to be a key consideration.

Our tax professionals aim to support investors in identifying and leveraging opportunities from available tax incentives in the Philippines. Among others, we assist investors in the evaluation and review of the design and structure of proposed projects to determine eligibility for current incentive grants. Our QS Team helps in the preparation and presentation of the incentives grant application with the appropriate Investment Promotions Agencies (IPAs). Once approved, our QS Team assists in the periodic preparation of compliance reports required to be filed with the IPAs. We also help review and monitor compliance of the investors’ projects against the terms and conditions of the grant, and other related regulations of the IPAs to ensure continuous enjoyment of the incentives.

Lastly, on account of current stimulus packages and proposed reforms on tax incentives, our QS Team helps companies assess and prepare for the impact of these developments to the investors’ registered projects and planned expansion.

Cost Segregation Study

In collaboration with our EY Cost Segregation Group, our tax professionals assist companies in identifying the different types of fixed assets and categorizing the fixed assets cost to the respective pre-agreed accounting categories in order to maximize fixed assets depreciation tax benefits. Our Team could also assist in the analysis, review and construction of fixed assets.

Individual Tax and Immigration Services

Our tax and immigration people work together to provide highly integrated mobility services to address and support mobility needs locally and globally. Our up-to-date knowledge on individual taxation, immigration, labor policies, laws and regulations, and access to recent developments ensure both corporate and individual regulatory and risk compliance. We provide comprehensive employment, tax and immigration services to help clients proactively manage organizational changes. This includes assistance with individual income tax compliance through tax residency assessment, preparation of individual Philippine income tax returns, individual tax advisory, employment tax and benchmarking studies, US income taxation requirements for individuals (including US Form 1040s), and employee/employer Philippines reportorial requirements.

We offer assistance in securing visas or work permits, registrations with the Philippine tax authority, transactions with immigration and labor bureaus and other government agencies and provide advice on the company’s immigration process. SGV provides a globally consistent, cost effective immigration service with limited reliance on third party vendors, leveraging our international tax, social security, and assignment management professionals in ways that are unique in the global market.

HR Regulatory Compliance

We can assist clients in complying with the requirements of various government regulatory agencies dealing with employer-employee matters.

This would include assistance with preparing periodic reports required by the Philippine Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (HDMF) and Department of Labor and Employment (DOLE), as well as routine updates.

We can also provide employee compensation benchmarking as well as a review of corporate employee handbook and policies.

HR Regulatory Healthcheck

Our professionals can do an assessment of the company’s compliance with regulatory requirements of SSS, PhilHealth and HDMF as well as perform tests of reasonableness of amounts of contributions remitted to the agencies. Our work will entail, among others:

  • Post-review of all filings made by the company to the abovementioned agencies to check the completeness thereof and the timeliness of report submissions
  • Review of information disclosed in the reports to ascertain quality of data provided as well as completeness thereof
  • Perform diagnostics to assess whether amounts remitted as contributions to the SSS, PhilHealth and HDMF are reasonable and to check whether the basis used for determining both employer and employee contributions are correct
Global Trade & Customs Services

Our Global Trade & Customs Team assists clients in various matters related to dealings with the Bureau of Customs (BOC). We assist our clients in handling Post Clearance Audits, controversies and other disputes with the BOC (such as filing protests/refund and responses against demand letters). This includes assisting clients in availing the BOC’s Prior Disclosure Program (PDP) to avoid the steep penalties that may be imposed during the audit. We also conduct Customs Compliance Review which can help companies prepare for a customs audit or a voluntary disclosure, potentially minimizing deficiency customs duties assessment and/or penalties. We can likewise assist importers/exporters in securing the necessary permits, accreditation (e.g., importer 
accreditation, Super Green Lane, and Authorized Economic Operator), clearances, and licenses related to import/export requirements. We also provide general customs advisory services to assist clients in addressing routine or special customs issues encountered by relevant stakeholders including those raised by the BOC.

Through our Pre-Importation Planning and Review Services, we can help businesses proactively plan future importations to potentially minimize customs duties. We can assist in determining appropriate valuation and classification of importations, as well as other compliance requirements to ensure timely release of the imported goods from the BOC. In order to avoid further controversy during the importation process, we also assist clients in securing advance rulings pertaining to valuation, classification, and origin (for purposes of availing preferential tariff rates under relevant Free Trade Agreements).

We provide various customs data analytics services to help clients detect compliance risks or identify savings opportunities in the clients’ import supply chain. Global Trade Analytics provides importers with visibility over their imports and related duties and taxes over multiple jurisdictions. Importation Data Analytics covers cleansing, reconciliation and/or review of importation data as well as importer profiling. This may be paired with a customs compliance review or executed as a stand-alone project.

Indirect Tax Compliance (GVRT & VAT Analytics)

We assist our clients in determining or reviewing their VAT (indirect tax) liabilities and/or payments, and in preparing/reviewing the related returns. Our Global VAT Reporting Tool (GVRT) software provides a digital link between VAT source data and the VAT returns, allowing complex testing and analysis of the VAT data, analytics and visualization through dashboards, and automation of the VAT return preparation process itself. We also perform VAT data analytics to help our clients identify and address VAT compliance issues, including data quality and consistency issues.

Indirect Tax Advocacy Services

We assist our clients in handling VAT audit as well as VAT refund claims. Our team also provides assistance relating to excise tax compliance such as securing Authority to Release Importation, special permits and other compliance documents.

Our services

Fields of Play

Strategy & Transformation

We help clients execute their company growth strategies by utilizing our Transformation Realized approach. This encompasses a set of capabilities to drive new growth and enables companies to achieve transformative performance.

Service lines:

We enable fast-track value creation for inclusive growth. This facilitates strategic growth and portfolio management through better integrated and operationalized acquisitions, joint ventures, alliances and divestments. We help clients make the most of the transactions they enter by providing guidance throughout the entire process, from decision-making to post-closing. We also help them reimagine their tax and finance functions to achieve a sustainable corporate tax function that meets their specific needs.

Service lines:
Customer & Growth

We help clients map their customer journey, identify the touchpoints that matter, and design and implement a unique customer experience that delivers on the client’s brand identity and promise. 

Service lines:
Supply Chain & Operations

We help clients reinvent and transform their supply chain functions and outcomes across the business through the use of EY-developed solution assets and emerging technologies. This Field of Play links solutions across our key capabilities and competencies, including Global Trade, Tax, Technology and Digital.

Service lines:

We help companies understand the risks and opportunities arising from climate change and sustainability issues. We help them respond to these issues by understanding and evaluating the broader value impacts and outcomes, identifying the opportunities, and supporting the reporting of nonfinancial performance risks.

Service lines:

We help clients transform the IT risk, cybersecurity and data privacy functions and outcomes in the business, including cyber risk, compliance and resilience; data protection and privacy; identity and access management; and technology risk, technology resilience and technology controls.

Service lines:

We help clients understand and manage their tax compliance and reporting obligations responsibly and proactively by assessing, improving and monitoring their tax function’s processes, controls and risk management while helping them maintain effective relationships with tax authorities. 

Service lines:

We help clients transform the finance functions and financial outcomes of the business, including reporting, profitability, cost management, credit risk, liquidity risk and actuarial. We utilize highly skilled global resources to help our clients define a tax operating model that may further their strategic efforts and bring innovation and transformation to their tax function. 

Service lines:

We guide clients towards embracing disruption, embedding a risk optimization mindset and differentiating themselves through trust – helping them transform the risk and controls functions and outcomes of their businesses. We provide services that assist them in protecting their businesses, customers and shareholders by deploying innovative technology, advanced analytics and effective reporting mechanisms. We also help them manage third-party risk with the use of extensive strategic solutions that can be tailored to suit their needs. 

Service lines:

We help clients transform their IT function and IT-related outcomes. We also assist in their digitalization strategies. 

Service lines:
Audit & Governance

We help clients build stakeholder confidence and trust, managing regulatory responsibilities and driving long-term, sustainable growth. 

Service lines:
Legal* & Investigations

We provide holistic guidance around strategic business decisions, investigative support and capabilities, reducing the gap between business advisors and legal counsel and offering support services that increase efficiency and reduce costs of routine legal activities. We optimize our clients’ legal function to align it with their broader digital business transformation goals. 

*Legal services are provided only in markets where permitted.

Service lines:
Organization & People

We help clients transform their HR and people functions to achieve business outcomes, enabling a better workforce experience and new ways of working.

Service lines:
Financial services organization

Financial Services Organization

FSO works with clients in the banking, capital markets, insurance, wealth and asset management sectors. As today’s financial services market is global, constantly changing and highly regulated, we offer a dynamic approach to help manage uncertainties and the opportunities these present. The SGV / EY-Philippines office is one of the key FSO locations in the Asia-Pacific. The Asia-Pacific FSO operates across four markets: ASEAN, Greater China, Korea, and Oceania and four Service Lines: Consulting, Assurance, Tax, and Strategy and Transactions. Our strong global teams, local capabilities and seamless collaboration bring innovative problem-solving, breakthrough performance gains and sustainable value creation to our clients and stakeholders.

Get in touch

Contact Us

6760 Ayala Avenue, Makati City, Metro Manila, 1226

Tel: (632) 8891-0307

Fax: (632) 8819-0872 / (632) 8818-1377