AISL hosts tax briefing on treatment of cross-border services

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AISL hosts tax briefing seminar on treatment of cross-border services
  • The Association of International Shipping Lines recently hosted a tax briefing seminar on Bureau of Internal Revenue Revenue Memorandum Circular (RMC) No. 05-2024
  • The circular further clarifies the proper tax treatment of cross-border services in light of a Supreme Court ruling on the Aces Philippines case
  • AISL tax adviser/consultant Atty. Edgar Mendoza led the briefing

The Association of International Shipping Lines (AISL) recently hosted a tax briefing as part of its mission to provide continuing education to its member carriers on local issues affecting the operation of international shipping lines calling Philippine ports.

The briefing on March 19 at the World Trade Center tackled Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 05-2024, which further clarifies the proper tax treatment of cross-border services in light of the Supreme Court En Banc Decision in Aces Philippines Cellular Satellite Corp. v. Commissioner of Internal Revenue, GR. No. 226680, dated August 30, 2022.

The SC has ruled that the airtime fees Aces Philippines paid to its related party, Aces Bermuda, under an airtime purchase agreement are considered sourced from the Philippines and are therefore subject to withholding tax.

Atty. Edgar Mendoza, AISL tax adviser/consultant, along with his legal team, gave valuable insights on the potential tax implications of RMC No. 05-2024, which drew the interest and participation of international shipping lines.

AISL represents more than 30 container liners calling Philippine ports.

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