SyCipLaw recently participated in a stakeholder dialogue on the taxation of cross-border services, bringing together representatives from government, the business sector, professional services firms, and academe to discuss the implementation of Revenue Memorandum Circular (RMC) No. 5-2024 and emerging tax compliance challenges.
The event, titled “Clarifying Policy to Practice: A Stakeholder Dialogue on RMC No. 5-2024 and Emerging Tax Compliance Challenges,” was held at the Asian Institute of Management in Makati City in August.
The forum was convened by Arangkada Philippines, with SyCipLaw and R.G. Manabat & Co. serving as co-presenters. Participants examined the implications of RMC No. 5-2024 for businesses engaged in cross-border transactions, including issues relating to tax treatment, documentation, reporting requirements, contractual arrangements, and internal compliance systems.
Representing SyCipLaw were Senior Partner and Head of the Tax Department Carina C. Laforteza, with Partners Joanna Marie O. Joson and Maria Christina C. Ortua-Ang, who shared insights on the practical impact of recent tax issuances and developments affecting cross-border services. The discussions highlighted the importance of providing taxpayers with greater certainty and clarity in the implementation of tax rules governing cross-border transactions.
Christina shared the Firm’s experience in advising clients on RMC No. 5-2024 and related issuances. She underscored the value of continued stakeholder dialogue in identifying areas of uncertainty, exchanging implementation experiences, and addressing practical challenges.
Carina discussed the practical impact of RMC No. 5-2024 on businesses, including considerations relating to compliance, documentation requirements, and the implementation of tax obligations for cross-border transactions.
Representatives from the Bureau of Internal Revenue (BIR), Department of Finance (DOF), Presidential Legislative Liaison Office, Asian Institute of Management, and various business organizations also participated in the dialogue.
As a panelist, Joanna participated in discussions on ensuring the consistent interpretation and implementation of tax rules and on strengthening tax certainty and compliance. The dialogue explored the importance of the uniform application of tax regulations across revenue offices, stronger coordination among regulators, taxpayers, and tax professionals, and the value of stakeholder consultations in addressing implementation concerns. Participants also discussed practical measures that could improve communication between taxpayers and the BIR, including the issuance of additional guidance, advisories, frequently asked questions, and public consultations.
SyCipLaw remains committed to supporting constructive dialogue between the public and private sectors and to helping clients navigate the evolving tax landscape, particularly in areas involving cross-border transactions and international business operations.