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- Rules on Service Charges | 13 September 2024
Rules on Service Charges | 13 September 2024
Article 96 of the Labor Code, as amended by R.A. No. 11360, provides that all service charges collected by hotels, restaurants and similar establishments shall be distributed completely and equally among the covered workers except managerial employees.
Alburo Law
September 13, 2024
Article 96 of the Labor Code, as amended by R.A. No. 11360, provides that all service charges collected by hotels, restaurants and similar establishments shall be distributed completely and equally among the covered workers except managerial employees.
THE SUPREME COURT DECIDES: The Court ruled in favor of Manila Peninsula, holding that the additional conditions imposed by the circulars were invalid.
In this case, the Supreme Court addressed the validity of Revenue Memorandum Circulars No. 46-2008 and No. 31-2011, which imposed additional requirements for VAT zero-rating on services provided to entities engaged in international air transport operations. Manila Peninsula argued that VAT zero-rating for such services required only two conditions: the service must be provided by a VAT-registered service provider in the Philippines and rendered to persons engaged in international air transport. In contrast, the CIR contended that the additional conditions stipulated in the circulars—namely, that the services must pertain to the transport of goods or passengers directly from a Philippine port to a foreign port without stopping at any other Philippine port—were also required.
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Alburo Alburo & Associates Law Offices:
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