NEWS SNIPPETS & MORE

 By: David Finnerty, Bloomberg
Published: June 22, 2020, 7:41 AM GMT+8
Full Article: Every Southeast Asian Currency Gained in June — But They Can’t Catch Philippine Peso
Snippet: June is shaping up to be a good month for Southeast Asia’s currencies, with every one gaining.

The rebound is narrowing coronavirus-induced losses sustained by just about every foreign exchange in the region this year. While the Indonesian rupiah, Thai baht and Malaysian ringgit all showed improvement, the Philippine peso is by far the best-performing currency in 2020 with its 1% gain.

King Peso 

Philippine peso has outperformed peers so far this year.

The peso’s outperformance is partially due to an improving current account, with imports in April down by the most since 2009 as the nation was under lockdown.

However, it is facing growing headwinds from declining oversees remittances. Bangko Sentral ng Pilipinas has also signaled concern over the appreciation by intervening to stop further gains. Investors will be awaiting guidance on the currency from BSP’s policy meeting on Thursday. The central bank is expected to keep rates unchanged after slashing rates by 125 basis points this year.

By: Peter Irish R. De Leon, Let’s Talk Tax - BusinessWorld
Published: June 22, 2020 | 8:03 pm
Full Article: Reconciling the Condominium Act and the NIRC for tax exemption
Snippet: Well settled is the rule that tax exemptions are construed strictissimi juris against the taxpayer and liberally in favor of the government. As a result, exemptions must be shown to exist clearly and categorically, and supported by clear legal provisions. In other words, one who seeks an exemption must justify it by words “too plain to be mistaken and categorical to be misinterpreted.” Thus, the burden of proving that one is tax-exempt rests on the taxpayer.

This rigid standard for claiming tax exemption seems to imply that any doubt respecting a taxpayer’s claim for exemption should always result in a denial.

However, this is not always the case. The principles above will apply only when the taxpayer is clearly subject to the tax being levied against him. The reason is obvious: it is illogical and impractical to determine who are exempted without first determining who are covered by the provision. Thus, unless a statute imposes a tax clearly, expressly and unambiguously, what applies is the equally well-settled rule that the imposition of tax cannot be presumed. In fact, in case of doubt tax laws must be construed strictly against the government and in favor of the taxpayer.

By: Lamudi
Published: July 5, 2019
Full Article: Now is the Time to Invest in Metro Cebu’s Property Market

Cebu’s property sector is on a roll and shows no signs of slowing down.

Thanks to vigorous economic fundamentals, investments continue to pour in on the province’s real estate industry as more and more property developers, both major ones and boutique firms, continue to cash in on the growing demand for real estate properties across Cebu, particularly in metropolitan areas such as Cebu City, Mandaue, and Lapu-Lapu .

Also known as Metro Cebu, it is almost twice the size of Metro Manila and comprises Cebu City, six surrounding cities (Carcar, Danao, Mandaue, Lapu-Lapu, Naga, and Talisay) and six municipalities (Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando).

A leading investment destination

The continuing property boom in Metro Cebu solidifies its position as the leading investment destination in the real estate sector in the Philippines outside Metro Manila. Metro Cebu’s strong economy, large talent pool, and progressive infrastructure development are expected to turn the metropolis into a globally competitive metro area in the future.

Last year’s opening of the Terminal 2 Mactan – Cebu International Airport is expected to usher in an even greater influx of tourists and investors to Metro Cebu and other tourist hotspots such as Bantayan Island, Malapascua, and Oslob. The continued improvement of major infrastructure facilities in Metro Cebu will further facilitate the inflow of capital to the area and spur its growth momentum in the foreseeable future.
Double-digit growth rates

A number of international property consultants are projecting double-digit growth rates over the next couple of years for office spaces in Cebu, with the business process outsourcing industry driving the healthy demand for these. This also reflects the long–term positive outlook of property consultants and property developers on Metro Cebu’s real estate sector, particularly on the office space market and the residential sector.

The asking lease rates continue to grow in Cebu’s office space sector, averaging between php600 and php650 per square meter per month. Prime office spaces located in some of Cebu’s major business districts are valued between php150,000 and php200,000 per square meter. Cebu’s business districts are expected to have close to one million square meters of office spaces by next year serving the business process outsourcing industry, the information technology sector, and other business enterprises eager to set up their operations in Metro Cebu.

Robust demand for residential properties, too

The expected boom in the office space market would most likely result in a robust demand for residential areas, whether they are condominium units, house and lots, or townhouses. Metro Cebu has also been experiencing an influx of migration composed of residents from other parts of the Visayas—such as those coming from various towns and cities in Negros Occidental, Negros Oriental, and Bohol—due to economic opportunities available in the island. In fact, a number of residents in Metro Manila and in other parts of Mindanao such as Davao City and Cagayan de Oro City are making Metro Cebu their new home. This wave of migration has been driving demand for residential properties in Metro Cebu.

The continued growth of Metro Cebu’s real estate market has also opened up economic opportunities in other parts of the province, such as those in the fringes of the metropolitan areas, and in nearby provinces in the Visayan region. Cebu’s economic boom helps facilitate the economic growth of those areas outside Metro Cebu. Iloilo and Bacolod, for instance, continue to experience a surge in commercial and development activities.

By: Lourdes O. Pilar, Researcher - BusinessWorld
Published: June 19, 2020 | 4:55 pm
Full Article: Tourism contribution to national output in 2019 biggest since at least 2000
Snippet: THE TOURISM industry’s contribution to the economy grew in 2019, Philippine Statistics Authority (PSA) data released on Friday showed.

Preliminary data from the PSA showed tourism’s direct gross value added (TDGVA) accounting for 12.7% of gross domestic product (GDP) in 2019, bigger than the revised 12.3% in 2018.

TDGVA measures the tourism-related value created by various industries. It is based on the results of the Philippine Tourism Satellite Accounts report, in which the PSA compiles from the Department of Tourism.

Last year, the combined economic contribution of tourism activities amounted to P2.48 trillion, up 10.8% from the previous year’s P2.24 trillion.

Last year’s TDGVA was the highest since 2000, based on available PSA data.

By: Sunstar Business
Published: June 12, 2020
Full Article: Debt watcher upgrades PH’s rating to A-
Snippet: THE Japan Credit Rating Agency (JCR) has upgraded the Philippines’ credit rating by a notch from BBB+ to A- , citing the country’s resilience amid a pandemic that has slowed down growth, impaired fiscal positions and hurt credit ratings of economies across the globe.

JCR assigned a “stable” outlook on the new rating, which indicates that the “A-” will be maintained over the near term.

Strong fundamentals

In a report released Thursday, June 11, 2020, the JCR said its decision to raise the Philippines’ credit rating came on the back of its assessment that the impact of the Covid-19 crisis on the domestic economy and the government’s fiscal standing will be temporary, given the country’s strong fundamentals going into the crisis, the massive relief measures, as well as the pursuit of important legislation, such as the Corporate Recovery and Tax Incentives for Enterprises Act under the Comprehensive Tax Reform Program.

“JCR holds that a downturn will be limited given the country’s strengthened economic base, resilient external position, and the government’s economic stimulus package totaling more than nine percent of the gross domestic product. JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,” the JCR said.

“The A- rating upgrade from JCR, which comes at a time when economies across the world are reeling from what could likely become the worst global downturn in nearly a century, is a solid recognition of the Philippines’ capability to stage a quick and strong recovery from this health crisis,” said Finance Secretary Carlos Dominguez III.