Tax

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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

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.

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.

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.