BDB Law’s core competence is in the area of TAX. We offer a wide array of tax services divided into eight (8) major categories. In each of these fields of tax practice, BDB Law has developed an expertise that creates a differentiating advantage in the handling of cases and in the delivery of its services.

• Handling Assessments, Disputes and Tax Claims
• Tax Litigation
• Tax Advisory and Tax Planning
• Incentives Availment Assistance
• Transfer Pricing
• International Tax
• Tax Compliance
• Tax Advocacy

How can we help?

1. Handling assessments, disputes and tax claims (both National and Local taxes and custom duties)

Through proper handling and effective representation, tax controversies can be resolved advantageously and quickly without the necessity of going to trial. With that in mind, we provide advice, representation and assistance to clients at every stage of the assessment process - from assistance during tax audit, representing clients during meetings with tax authorities, developing strategies and identifying arguments based on factual and legal grounds, filing of protests and administrative appeals.

With our knowledge of the audit procedures, as well as our familiarity with the processes, people and culture in the Tax Bureau, we help safeguard the substantive and procedural rights of taxpayers and work for the speedy resolution of tax cases.

1.1 Handling Tax Assessments

We represent you before the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC) and the local government units (LGUs) at any stage during the examination. The extent of our role at the examination stage depends on the circumstances of each case. You may require us to interface with examiners throughout the examination, or for some reasons, require that we provide advice while remaining in the background. We advise you in responding to requests for information and documents, establish procedures to identify and protect privileged documents, and establish appropriate document retention procedures in order to preserve evidence. We evaluate the validity of assessments, determine the appropriate documents and analyses to be submitted, prepare protests and memoranda, and represent you in meetings and discussions with the examiners.

1.2 Handling Claims for Refunds

In case you have erroneously or excessively paid taxes or have unutilized VAT input taxes related to zero-rated sales, we can help you recover by applying for the issuance of refund or tax credit certificates (TCCs) with the Tax Bureau and with the Courts.

1.3 Handling Collection Cases

When assessments become collection cases, we assist you in evaluating the validity of the collection notices and proceedings to ensure that your rights are properly protected. Likewise, we help you identify the options that may be available in resolving your tax debts in an efficient manner.

2. Court Litigation

When tax disputes are not resolved at the administrative level, elevating them to court may be a necessity to protect your rights. When claims for tax refunds remain unacted by the Tax Bureau despite sufficiency of evidence, court intervention becomes necessary. When taxpayers’ rights are transgressed, going to Court may be the only solution.

Thus, where judicial adjudication is unavoidable in assessment and collection cases, or where court intervention is necessary to protect a tax refund claim or a taxpayer’s right, you may need the services of a competent lawyer to represent you before the Courts.

2.1 Assessment and Collection Cases

In case administrative remedies to settle assessment or collection disputes do not work, you may appeal your case to the Courts. Going to court to resolve administrative disputes is part of due process afforded to taxpayers to protect their rights from the power of taxation. We can represent you before the courts throughout the litigation process.

2.2 Claims for Refund

Excess input vat, excess creditable withholding tax, overpayment of tax or erroneously collected tax may be refunded. Going to court may be necessary when a claim for refund is not acted upon or is unreasonably denied, in whole or in part, by the tax authorities.

2.3 Questioning the Validity or Constitutionality of Administrative Issuances

Where the validity or Constitutionality of an administrative issuance is questionable, or where an action by a tax official is unlawful resulting to unfair imposition of taxes, you may request the Courts to declare the issuance or the action invalid. We can assist you throughout the court proceedings.

3. Tax Advisory and Tax Planning

Every transaction has its own tax implications. And because of the high cost of non-compliance with tax laws, taxpayers should be prudent by taking the necessary guidance or advice before proceeding with a new venture, product or transaction.
New transactions may likewise offer new opportunities for tax savings. Understanding its implications, identifying alternative options, restructuring the transaction to achieve the most efficient tax results can be best achieved through the guidance of tax practitioners.

3.1 Tax Opinions

We provide you advice on the tax implications of the transactions (including review of contracts) that you propose to undertake or that you have already undertaken, based on applicable laws, regulations, court decisions, rulings and other issuances.

3.2 Tax Planning

We help you maximize your tax position by identifying improvements for tax efficiency relative to the way you structure and conduct your business operations and transactions, taking into consideration your overall objectives.

3.3 Requests for Rulings

Requests for rulings are generally optional but are mandatory in certain transactions. We research, prepare and file, for and on your behalf, requests for clarificatory or confirmatory rulings as guidance for the proper tax treatment of your transactions.

3.4 Retainership Arrangement

We are available to render consultation and advise you on tax issues that need quick response and do not require the conduct of extensive research and studies.

3.5 Other Tax Assistance

We can assist you in:

• securing Certificate Authorizing Registration (CAR) from the BIR for property transfers
• transfer of tax credit certificates
• other required compliance with applicable tax laws or regulations

4. Incentives Availment Assistance

Certain tax incentives or preferential tax rates are available to entities doing business in the Philippines. These incentives vary depending on the industry in which the entity belongs, the nature of the business or transactions conducted, the geographic location of the business and the form of business organization. Examples of entities entitled to tax incentives include those qualified and registered with the Board of Investments (BOI), the Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Clark Development Authority (CDA) and other economic zones. Examples of entities enjoying preferential tax rates are branches of foreign corporations registered as Regional Operating Headquarters (ROHQs) and representative offices. Other legislations provide tax concessions to certain industries.

4.1 Tax Incentives Study

We help you understand the incentives available to you under existing laws. We can assist you identify the opportunities and investment structure, as well as in determining your eligibility and the requirements for availing of investment incentives granted under Philippine laws.

4.2 Assisstance for Application for incentives

If you are qualified, we can assist you in the preparation and the filing of the application for incentives with the concerned government agencies. To ensure your continued entitlement to incentives, we also advise you on the compliance requirement and other processes.

5. Transfer Pricing

Transactions of local affiliates, subsidiaries and branches of multinational enterprises with their head offices, parent or other members of the group may attract transfer pricing issues. The same is true for local business conglomerates where a member of the group enjoys tax incentives or preferential tax treatment under existing laws.

The Philippines generally adheres to the OECD rules on transfer pricing. Revenue Regulations No. 2-2013, issued on January of 2013, embodies the transfer pricing guidelines in the Philippines. It requires contemporaneous transfer pricing documentation for related party transactions.

5.1 Transfer Pricing Studies and Advisory

Managing related party transactions is increasingly critical. We provide comprehensive transfer pricing solutions, based on OECD guidelines and under Philippine rules. Our transfer pricing team can assist you through transfer pricing risk assessment, planning and benchmark analysis and selecting the appropriate transfer pricing systems and method. In case of mergers and acquisitions, we can help you integrate the different transfer pricing systems to optimize allocation of resources.

5.2 Transfer Pricing Documentation

The tax authorities require transfer pricing documentation to be contemporaneous and be available for their inspection upon notice. We can help you in the preparation of transfer pricing documentation in accordance with the requirement of the tax authorities, or documentation for internal transfer pricing policies. We can likewise assist in the preparation and documentation of intercompany agreements, contractsor arrangements.

5.3 Transfer Pricing Defense

We can assist in defending transfer pricing policies on your behalf. We can negotiate Advance Pricing Agreements (APAs) with the tax authorities as well as represent you in mutual agreement and arbitration procedures.

6. International Tax

The taxation of cross-border transactions is complicated requiring an in-depth study of its tax implications. In international tax planning, these studies are normally undertaken in close coordination with tax advisers in other jurisdictions especially when it requires restructuring of transactions or in deciding for a tax efficient location.

The Philippines has a wide network of bilateral tax treaties with other countries. Foreign entities transacting with Philippine residents may be able to benefit from the provisions of existing tax treaties. For the application of the provisions of the tax treaty, the Philippine Tax Bureau requires that a confirmatory ruling be secured from them.

6.1 Application for Ruling Involving Availment of Tax Treaty Provisions

Application of preferential rates on withholding taxes on income payments to non-resident aliens and foreign corporations pursuant to tax treaties, or the application of any tax treaty provision may require an application for a ruling from the tax bureau. We can assist you in securing the required ruling.

6.2 Expatriate Services

Employers are normally faced with tax, social security, immigration and labor concerns with the laws of the host country when sending employees cross-border. We can advise companies of the domestic rules that apply to both the employee and the employer, develop and review secondment arrangements, identify issues on taxation, social security, labour and immigration that may apply to the expatriate. We can also prepare and file income tax returns, calculate the tax advantage under tax equalization programs. We can do other allied services related to the stay of the expatriate in the host country.

6.3 International Tax Advisory

On transactions involving foreign entities, or on cross-border transactions, we can help you study the tax implications or determine the most efficient tax structure, and whether these can avail of tax treaty benefits or tax exemptions under Philippine laws. We can coordinate with our counterparts in other countries should the study require understanding the taxation of other countries.

7. Tax Compliance

Taxpayers commit mistakes in preparing and filing their tax returns and in preserving the required documentations. These mistakes often lead to deficiency assessments, interests and surcharges, even for unintentional mistakes or erroneous interpretation or understanding of the law. These unnecessary costs can be avoided through the assistance of tax professional.

7.1 Tax Audit Review

We conduct tax audit review to evaluate your level of compliance with the applicable laws and regulations, advise you on procedures and practices that may not be proper for tax purposes and provide recommendations on possible improvements of tax practices.

7.2 Tax Returns Preparation and Filing

We can assist you in the preparation and/or review of tax returns that may include, among others, quarterly and annual income taxes, value-added tax and other percentage taxes, fringe benefits tax, withholding taxes and documentary stamp tax, based on information that you provide to us.

8. Advocacy

As tax practitioners, we are actively involved as resource persons in the crafting of new laws and in clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance and protecting taxpayer’s rights. We aggressively participate in consultation and public hearings conducted by the government such as with the BIR, DOF, Congress and Senate, on proposed tax laws, rules and regulations and serve as a bridge between you and the Government.