Aug 312015
The Court of Tax Appeals (CTA) has decided and Philippine Economic Zone Authority (PEZA) companies have accepted that they will be paying regular corporate income tax on the sale of scrap material.
This change in interpretation came about after the CTA in division issued its decision in the case of Nidec Copal Philippines Corp. (Nidec), a PEZA-registered enterprise, and which was affirmed by the CTA en banc in 2008. Prior to this case, the BIR has been ruling that income from sale of scrap arising from the registered activity is subject to the same tax regime as the registered activity.