Change of Address within the same City or Municipality may be done in GIS

For clarification to the SEC Memorandum No. 6 and 16, the change of address that would require Amendment of Articled of Incorporation does not apply when the company already has a complete address in its Article of Incorporation but had transferred to another office in the same City or Municipality.

The SEC Memorandum no 16 states:

"(1.) In the event that a corporation whose principal address as indicated in its articles is already specific and complete or fully compliant with he aforementioned circulars, has moved to another location within the same city or municipality, the corporation is not required to file an amended articles of incorporation. However, it must declare its new or current specific address in its General Information Sheet (GIS) within 15 days from transfer to its new location or effectivity of this Circular. "Metro Manila" shall not be considered a city to municipality for this purpose."

CGRLAW & Associates

5F First Global Building, 122 Gamboa Street
corner Salcedo Street, Legaspi Village, Makati City
Tel. No. (+63 2) 985 4322
email: claude.requino@cgrlaw.ph

            info@cgrlaw.ph

website: http://www.cgrlaw.ph

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

PAYMENT OF VAT ON SECURITY SERVICES AND JANITORIAL SERVICES

PAYMENT OF VAT ON SECURITY SERVICES AND JANITORIAL SERVICES

1.       Is the security agency required to pay VAT on its gross income?

Yes. However, the vat base would only be on the agency fee and not on the entire contract. It is because the income received by the agency would also be paid to the guards as salary. The real income, which will be subject to VAT, is only the agency fee. Nevertheless, there must be a breakdown of the agency fee and portions going to the guards to avoid liability (RMC 39-2007).

2.        Security guard is exempt from VAT, correct?

Yes, security guards are exempt from VAT. The services of security guards squarely fall under the exempt transaction. This is because, in substance, the Client has the principal obligation to bear the prescribed wage rates for the security guard, and the security agency will be jointly and severally liable therefore only in the event of the Client;s failure to pay.

3.       Is the same exemption under RMC 39-2007 applies to janitorial services?

No. There is nothing in the context on RMC 39-2007 that would manifest or suggest the intention to have the RMC apply to manpower agencies, i.e., janitorial and clerical services, other than security agencies. Thus, the RMC not being applicable to manpower agencies providing for janitorial services, the basis for VAT on the janitorial contracts should be the whole contract price and not merely the administrative fee and supplies charges thereof (BIR Ruling 213-2015, 19 June 2015).

CGRLAW & Associates
5F First Global Building, 122 Gamboa Street
corner Salcedo Street, Legaspi Village, Makati City
Tel. No. (+63 2) 985 4322/  (+63 2) 889 5210
Mobile: +63 918 948 6092
email:atty.claudio.g.requino@live.com.ph

         claude.requino@cgrlaw.ph 

         info@cgrlaw.ph

website: http://www.cgrlaw.ph/

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.