Dear Valued Clients,

 
Please see the recent issuances of the following government agencies:
 
A. TAXATION 
 
1. Bureau of Internal Revenue – Revenue Regulation No. 17-2020 – Implements the Tax Neutrality
Provision of R.A. No. 11439 otherwise known as “An Act Providing for the Regulation and Organization
of Islamic Banks”

RR No. 17-2020 provides the basic principles to be observed and the tax treatment of enumerated
Islamic Banking Arrangements to ensure that Islamic Banking Transactions are taxed no more heavily or
lightly than conventional banking transactions.
 
3. Bureau of Internal Revenue – Revenue Memorandum Circular No. 79-2020 – Provides the procedure
for filing of various returns and payment of taxes due thereon for Taxpayers under the jurisdiction of the
NCR, Bulacan, Cavite, Laguna and Rizal, particularly RDO Nos. 24 to 34, and 38 to 54B.
 
 4. Bureau of Internal Revenue – Revenue Memorandum Circular No. 80-2020 – Amend BIR RMC No. 79-
2020 to change the coverage of the RDOs to from “RDO Nos. 24 to 34, and 38 to 54B” to “RDO Nos. 24
to 34, and 38 to 57”
 
5. Bureau of Internal Revenue – Revenue Memorandum Circular No. 82-2020 – Prescribes the guidelines
on the use of the electronic Audited Financial Statements (eAFS) System for the submission of
attachments to the Income Tax Returns of Taxpayers with Fiscal Year Accounting Period and in the
submission of attachments to the quarterly Income Tax Returns.
 
 
B. CORPORATE
 
1. Securities and Exchange Commission - Notice dated August 4, 2020 on Capital Market Operations and
Use of RapidPass Under MECQ – In line with the directive of the Inter-Agency Task Force – Technical
Working Group, the SEC is no longer issuing IATF Accreditation IDs for capital market participants that
are allowed to travel to and from work which expired last June 30, 2020. Capital market participants
who will opt to apply for a QR Code may do the following:

a. Capital market participants with expired IATF IDs – submit requirements in compliance with the
Guidelines on the issuance of RapidPass QR Code dated 30 April 2020; or

b. Capital market participants with no IATF IDs - submit requirements for an IATF ID posted under
the Guidelines dated 22 March 2020 and the requirements under the foregoing Guidelines on
the Issuance of the QR Code.
 
2. Securities and Exchange Commission Notice dated August 4, 2020 on Operations of Financing and
Lending Companies in Areas Under Community Quarantine – Effective August 4, 2020, the operating
capacity of Financing Companies (FC) and Lending Companies (LC) for the following areas are as follows

Community Qarantine FCs and LCs

 ECQ 0%
MECQ & GCQ 50%
MGCQ 100%

 
3. Securities and Exchange Commission - Notice Dated August 4, 2020 on SEC Rules on Independent
Director and Sectoral Representatives of Exchanges and Other Organized Mar– The period to comment
on the proposed SEC Rules is further extended to August 10, 2020. The draft SEC Rule proposes that the
independent directors of exchanges and other organized markets shall constitute at least majority of the
members of the Board of Directors.

The notice provides the amendments made on the Draft SEC Rule taking into consideration the
comments submitted by interested parties.
 
4. Securities and Exchange Commission - Notice dated July 9, 2020 requesting interested parties to
comment on the Draft Rules on Signatories and Penalty for Non-Compliance with the Requirement of
Manual on Corporate Governance – The draft SEC Memorandum Circular attached to the Notice
proposes to extend the submission of the Manual on Corporate Governance (MCG) until August 28,
2020. The draft also propose the required signatory to the MCG and the imposable penalties for
non/late submission thereof.
 
5. Securities and Exchange Commission - Notice Dated August 10, 2020 on SEC Contact Center–
Provides the list of email addresses and interim hotline numbers through which the public may reach
the SEC during office hours.
 
6. Securities and Exchange Commission - Notice dated August 11, 2020 on Extension of Deadlines for
Printed of Hard Copies of Annual Reports– In view of the reimposition of MECQ in the NCR, and other
parts of Luzon from 4 to 18 August 2020 and in support of nationwide efforts to contain the further
spread of COVID-19, the SEC extends the deadlines for the submission of PRINTED/ HARD COPIES of
Annual Financial Statements (AFS) and the General Information Sheet (GIS) and reiterates the interim
filing procedures which can be done through courier or registered mail, or e-mail submissions.
  
C. LABOR
 
1. National Labor Relations Commission – NLRC En Banc Resolution No. 03-20 Series of 2020 – Effective
August 18, 2020 the interim amendments to the 2011 NLRC Rules of Procedure shall take effect as
follows:

(i) The conduct of Mandatory Conciliation and Mediation Conference shall be suspended unless the
Labor Arbiter sets the case for mandatory conciliation and mediation conference in which case, the
conference shall be done through videoconferencing or other electronic means.

If any of the parties has no access to technology for e-hearings, the NLRC may provide a hearing room
and laptop/table for their use, subject to availability of funds.

The Labor Arbiter shall still exert all efforts towards the amicable settlement of the case.

(ii) The simultaneous filing of Position Papers shall likewise be suspended.

Within 2 days from receipt of the complaint/amended complaint, the LA shall issue Summons upon the
Respondent and within 5 days from receipt of the return of summons, the LA shall issue an Order
directing both parties to submit their respective position papers within 15 calendar days from receipt
thereof, through registered mail or private courier.

The Respondent may file a motion to set the case for Mandatory Conciliation and Mediation Conference
for possible settlement in the following instances: (i) within the 5 day period from receipt of summons;
or (ii) within 5 days from receipt of Order from LA to file Position Paper.

The said motion should set forth the terms and conditions of the settlement proposal including the
amount offered. Within 3 days, the other party shall file his/her response and counter proposal.

Thereafter, the LA shall determine the necessity of setting the case for Mandatory Conciliation and
Mediation Conference and correspondingly issue the Notice of Conference. If no notice is received by
the parties, they shall proceed to file their respective Position Paper within the period set in the Order
issued by the LA

In case the parties agreed to settle the case amicably, they shall submit the Notarized Compromise
Agreement or a Quitclaim/Waiver/Release through personal service registered mail, or private courier.
 
2. Department of Labor and Employment – DOLE Labor Advisory No. 26 – Provides the procedure for
payment of wages and other monetary benefits by employers in the private sector through transaction
accounts such as (i) bank deposit account; (ii) electronic money (e-money); or (iii) PESONet.
 
For your information and guidance.