It’s very important for all business leaders to stay up-to-date on recent trends or developments that can potentially impact their business or operations. Staying updated on recently enacted laws, however, is just one part of the process. Gaining an in-depth understanding of the implications of new laws and creating a well-designed strategy that will integrate these into the future plans of the company is key to success.
If you’re setting up a business in the Philippines, here’s information on several recently enacted laws:
Although offering a work-from-home option is still voluntary for employers, the adoption of telecommuting as an alternative setup is very ideal these days, especially due to the ongoing global pandemic. It offers plenty of benefits moving forward as well, such as eliminating the long hours employees spend travelling to and from work.
Employers who decide to offer telecommuting as a work option, however, need to keep in mind that they are still required to pay full benefits, and in some cases, subsidize or shoulder telecommunication-related costs for their employees.
In addition, companies also need to provide workers with access to company information, as well as opportunities for them to meet regularly.
Complete details and guidelines on the Telecommuting Act can be found on the Department of Labor and Employment’s website.
Republic Act No. 11211 amends the Bangko Sentral ng Pilipinas’ (BSP) charter and increases its capitalization, effectively expanding industry coverage in order to include credit-granting businesses, money service companies, and payment system operators.
In addition, the law grants the BSP the authority to give administrative and criminal penalties, along with increased fines on financial services institutions that commit violations. These fines range from a maximum limit of PHP 30,000 a day for each violation to PHP 1 million for every transactional violation.
The Social Security Act of 2018 amends Republic Act No. 8282, introducing significant changes to the state-operated social security program.
Major innovations include increased minimum and maximum salary credits and contribution rates from 2019 to 2025 with varying annual rates, and compulsory coverage for land and sea-based Overseas Foreign Workers (OFW).
You can view an official copy of Republic Act No. 11199 here.
The implementation of Republic Act No. 11285 effectively makes energy efficiency and conservation a requirement for businesses, instead of a simple “best practice” guideline. This new law is a welcome addition especially for companies providing services and products designed to offer better energy efficiency for end-users.
The law makes it possible for businesses to employ certified energy managers, certified energy conservation managers, and energy service companies.
To enhance the government’s efforts to ease business establishment processes in the Philippines, the country’s Corporate Code now permits the formation of one-person companies and corporations with a single stockholder instead of the previous minimum requirement of five.
The revision makes it easier for entrepreneurs planning to set up their own businesses. A perpetual corporate term for existing and planned corporations is now permitted as well, unless the company’s articles of incorporation say otherwise.
Additionally, the revised code also encourages the use of technology for different aspects such as board and stockholder meetings and corporate filing, making it easier for companies to comply with requirements established by the Securities and Exchange Commission (SEC).
Through the Tax Amnesty Act, businesses with long-overdue tax liabilities are effectively granted a clean slate. The tax amnesty allows businesses with delinquencies to pay for only at least 40% of their assessed tax.
The National Payment Systems Act establishes a legal and regulatory framework designed to minimize systemic risk and create an environment that’s conducive to the growth of the economy. Under this law, payment system providers such as banks, online payment companies, and credit card companies are now required to seek authorization from the BSP.
Following its implementation, the adoption of digital signatures, electronic receipts and invoices, and wider use of digital payments in both the private sector and the government is expected.
We’re here to provide first-class assistance for anyone opening a business in the Philippines. Get in touch with our team today to talk about your plans and goals. Call us at +1.806.553.6552 or send us a message here.