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MFBR lawyers and associates care!

In light of the constantly changing social and economic landscape in the world due to COVID-19, everyone at Mallari Fiel Brillante Ronquillo has taken steps to make good our steadfast commitment to serve our clients and our communities.

To this end, we designed a new business model incorporating the traditional “brick and mortar” and “virtual” law offices. This new model is to achieve the continuity of rendering our legal and business consultancy services to clients and friends, and the immediate implementation of our crisis management and business transformation activities.

Thus, we’re glad to announce that for every fortnight, half of our team will be physically present at our offices from Monday thru Friday, 8:00am to 3:00pm. Clients and our friends can reach us through our office phones and online platforms (website, emails, Facebook, LinkedIn, Zoom, etc.). And to ensure the health and safety of our staff, they have the option to be housed in the Firm’s private residence or shuttled back and forth using the company’s private vehicle. Safety protocols are also observed at our offices.

Finally, our team has prepared a series of materials around the impact of COVID-19 and related considerations. Please take time to view our sample articles and research published in our website. A complete listing and discussion of these articles are available in our newsletter to be distributed to our esteemed clients.

Should you have questions, please reach out to our Office Manager, Argie Macawile, at +632 86953395, +63977 8502357; or email our Managing Partner, Atty. Rob Mallari, at and


Archive for August, 2018

Tax Implications of Cryptocurrencies in the Philippines

Photo by Worldspectrum from Pexels  

Tax Implications of Cryptocurrencies in the Philippines (August 16 2018)


May a transaction involving virtual currencies be subject to tax?

As discussed in the previous article, while the Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission (SEC) have issued guidelines on cryptocurrencies, the Bureau of Internal Revenue has remained silent on the matter.

Yet, despite the lack of BIR guidelines specifically pertaining to cryptocurrencies, persons dealing with digital currencies like Bitcoin are not exactly exempt from taxes.

To explain this, let’s take a look at the nature of taxation.

In the case of Film Development Council of the Philippines vs. Colon Heritage Realty Corporation, G.R. 203754, 16 June 2015, the Supreme Court held that the power of taxation, being an essential and inherent attribute of sovereignty, belongs, as a matter of right, to every independent government, and needs no express conferment by the people before it can be exercised. It has even been described as the “power to destroy”. Such is the power of taxation that nobody can escape it, even after death!

Thus, it’s safe to say that spending or investing in Bitcoin may be subject to taxes. However, the tax treatment of a virtual currency transaction will depend on its usage.

Some scenarios:

Buying a dozen cheeseburgers using Bitcoin would entail income on the part of the burger chain, which may be subject to income tax (and if you eat all twelve yourself you might end up paying your doctor with Bitcoin, in which case a similar situation would arise!) Value Added Tax (VAT) may also be charged, as there was an exchange of goods.

Now, if the burger chain’s cook receives his or her wages in Bitcoin, their income may also be taxable (should their wages go beyond the compensation threshold under the TRAIN law).

Backtracking for a second, it’s also pertinent to ask how you, the purchaser, obtained the Bitcoins in the first place. Should you be a ‘miner’ then you’ll have earned them by solving a mathematical puzzle then adding a block to a blockchain.* If you subsequently sell or use the bitcoins you mined, the value received after deducting expenses may be treated as income.

On the other hand, if the Bitcoins you have were purchased from someone, this may be treated as an investment or property subject to capital gains tax.

As a final note, in the advisories issued in January and April 2018, the SEC advised that violators to the registration and disclosure requirements—where the virtual currencies offered are in the nature of a security—would be reported to the BIR so that the appropriate penalties and/or taxes can be assessed. This further solidifies the BIR’s authority on the taxation of cryptocurrencies.  We’ll just have to wait for specific memoranda from the BIR.

We’ll keep you posted!

Attorney Stephanie Tible.

*If you’re feeling a little lost here, you might want to take a look at my previous article on Blockchain:

Retiring to the Philippines – An Affordable Dream!



Living in a country comprised of over seven thousand beautiful, sun-kissed islands, it is not surprising that many foreign nationals who retire to the Philippines feel as if they are on permanent vacation. Good quality of living at an affordable price make it an ideal retirement haven, with housing, food and labor costs all substantially lower than in many other countries. But these are not all the country has to offer.

Filipinos are renowned throughout the world for their hospitality, and retirees will find a warm welcome waiting for them. They will also find communication very easy, since almost every Filipino can understand and speak some English, and the language is widely used on signs and official forms. In fact, in terms of population, the Philippines is one of the largest English-speaking nations in the world.

The country is also rightly proud of its world-class medical and health services, and in recent years has become a popular destination for medical tourism. Our highly trained medical personnel and caregivers are esteemed throughout the world, not only for their competence and expertise but most especially for the care and compassion they show to their wards.

To make it easier for expat retirees to settle here in the Philippines, the government, through the Philippine Retirement Authority (PRA), has taken the initiative and produced the Special Resident Retirees Visa (SRRV), which has various packages available to foreign retirees.


The Special Resident Retiree’s Visa (SRRV) is a special non-immigrant visa separate and distinct from the existing visa categories defined by the Philippine Immigration Act of 1940, as amended, and allied laws. (Sec. 1, Rule II of LOI 1470).

It has the following benefits:

  • Option to Reside Permanently – foreign nationals may live, retire and invest in the Philippines.

  • Multiple Entry Privileges – retirees may travel outside the Philippines, and re-enter anytime.

  • Holders of the visa are exempt from:

  • Exit clearance and re-entry permits of the Bureau of Immigration.

  • Annual registration requirement of the Bureau of Immigration.

  • Customs Duties and Taxes for the importation of personal effects and household goods up to US$7,000.00.

  • Travel tax, if stay in the Philippines is less than one year from the last entry date.

  • Special Study Permit.

  • Assistance in securing/obtaining documents from other Government Agencies such as:

  • Department of Labor & Employment (DOLE)- Alien Employment Permit

  • Land and Transportation Office (LTO) – Driver’s License

  • National Bureau of Investigation (NBI)

  • Department of Foreign Affairs (DOF)- Tax Exemption/ Extension Certificate

  • Bureau of Internal Revenue (BIR) – Tax Identification Number

  • Tax-Free remittance of Annuities and Pensions

  • Guaranteed Repatriation of the Requisite Time Deposit


MFBR’s specialist Immigration & Visa Department, which is accredited with both the Bureau of Immigration and The Philippine Retirement Authority, will be happy to assist any foreign national with their application for a Special Resident Retiree’s Visa. With the benefits on offer, it is perhaps not surprising that it is becoming evermore popular; and with glorious locations such as the one in the photograph accompanying this article (Balabac, Palawan, by Chris Tagupa @ Unsplash), the Philippines is deservedly becoming a very popular retirement haven.

By: Atty. Jasmin Fiel-Samson



For more details on the Special Resident Retirees Visa (SRRV), the Philippine Retirement Authority’s Information Guide is available on our website here.

For more information and assistance with obtaining this or other visas and work permits, please contact us.

Demotion….Is it Legal?


The case of Norkis Trading Co., Inc. vs. Melvin Gnilo[1] defines “demotion” as a situation in which an employee is relegated to a subordinate or less important position constituting a reduction to a lower grade or rank, with a corresponding decrease in duties and responsibilities, and usually accompanied by a decrease in salary.


In the Philippines, the Courts have recognized that management has considerable latitude in regulating all aspects of employment, including the freedom to transfer and reassign employees according to the requirements of its business.


However, the transfer of an employee may constitute constructive dismissal when it amounts to “an involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank and/or a diminution in pay; or when a clear discrimination, insensibility or disdain by an employer becomes unbearable to the employee.”[2]


From the foregoing, you might infer that a demotion constitutes constructive dismissal; and if that is indeed so, how is it that many companies regularly ‘get away with’ demoting employees?


Well, to clarify, demotion only constitutes constructive dismissal when no reasonable or valid cause is shown for demoting the employee, or when said demotion is an act of clear discrimination, insensibility or disdain by an employer.


In fact, the case of Danilo Leonardo vs. National Labor Relations Commission[3] provides that the right to demote an employee falls within the prerogative of the management. The Court held, however, that the due process required by law in dismissals also applies to demotions since these likewise affect the employment of a worker whose right to continued employment, under the same terms and conditions, is also protected by law. Moreover, considering that demotion is, like dismissal, also a punitive action, the employee being demoted should, as in cases of dismissal, be given a chance to contest the same.


In sum, as long as there are reasonable grounds for demoting an employee and said demotion is coupled with the twin-notice requirement, demotion is allowed and does not constitute constructive dismissal.


Atty. Cindy Climaco

[1] G.R. No. 159730, 11 February 2008

[2] Benguet Electric Cooperative vs. Josephine Fianza, G.R. No. 158606, 09 March 2004

[3] G.R. No. 125303, 16 June 2000

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