Company Overview

For fifty seven years, Diaz Murillo Dalupan and Company Certified Public Accountants (formerly
L.C. Diaz and Associates) has been dedicated to the pursuit of providing world-class services in
audit, accounting, tax and allied services. Founded in 1959 by Chairman Emeritus Luis C. Diaz,
DMD and Co. partners, principals and associates in Makati, Cebu and Davao have gained the trust
of clients from local and multinational firms.
DMD and Co. is a member firm of HLB International a dynamic network of independent
professional accounting firms and business advisers. The global network comprises member firms in
over 130 countries in 600 offices.

Diaz Murillo Dalupan and Company

is a professional services firm established in 1956 under the name of Benjamin Callirgos & Cia., principally
engaged in providing independent Auditing as well as Business Consulting services.

Company Info : Diaz Murillo Dalupan and Company Certified Public

Accountants (formerly L.C. Diaz and Associates) was founded during 1959
by Chairman Emeritus Luis C. Diaz, a man with immense contribution in
the progression of the Accountancy Practice in the Philippines. It is
presently affiliated with HLB International, a worldwide organization of
independent member firms and correspondents with over 500 offices
across the globe. With its peoples dedication, competence, and
integrity, DMD has earned the respect of the local and international
business communities as one of the top Accounting Firms of the country
today. It is committed to provide audit assurance services, tax advisory
and compliance, business process outsourcing, and other fullrange corporate and management advisory services.

Details

Diaz Murillo Dalupan and Company Certified Public Accountants (formerly

L.C. Diaz and Associates) was founded in 1959 by Chairman Emeritus Luis
C. Diaz, a man with immense contribution in the progression of the Accountancy
Practice in the Philippines. It is an independent member of HLB International, a
worldwide organization of member firms and correspondents in over 110
countries in 500 offices.

With its peoples dedication, competence, and integrity, DMD has earned the
respect of the local and international business communities as one of the top
Accounting Firms of the country today. It is committed to provide audit and
business assurance, tax advisory and compliance, business process technology
services, and a full-range of other corporate and management advisory services.

For over four decades, Diaz Murillo Dalupan and Company is dedicated to the pursuit
of providing world-class services in audit and business assurance, tax advisory and
compliance, corporate services, and internal audit. With personal attention as a must,

our partners, principals and support staff in Metro Manila, Cebu and Davao, have
gained the trust of clients from local and multinational firm.

UPDATES
Weekly Updates (June 20 - 24, 2016)

Revenue Memorandum Order (RMO) No. 24-2016 [dated June 7, 2016] prescribes the
investigation of parties in transactions involving the transfer of properties whether by
sale, assignment or any other modes of transfer of properties requiring tax clearance
from the BIR.
Weekly Tax Updates (June 13 - 17, 2016)

Revenue Memorandum Order (RMO) No. 22-2016 [dated May 12, 2016 with June 1,
2016 as effective date of implementation] revises the procedures and policies on the
issuance of electronic tax clearance in replacement of manual tax clearance.
Weekly Tax Updates (June 06 - June 10, 2016)

TAX NEWS
1. Balikbayan boxes get P150,000 tax-free ceiling
2. BIR starts issuing eCAR to combat tax syndicates
3. New govt plans tax cuts, loose fiscal policy
4. Carlo J. Caparas posts bail for tax raps
Weekly Tax Updates (May 30 - June 03, 2016)

TAX NEWS
1. Court Orders Tax Refund to Philex Mining
2. Duterte administration to overhaul BIR-Alvarez
3. Henares laments Duterte criticism, but says BIR doubled tax collection to P1.5 trillion in 6
years
4. BIR sad, hurt by Dutertes vilification as the most corrupt agency
5. BIR to block reduction of P3.2-B bail bond of Pacquiao
6. BIR: Candidates will be taxed for excess campaign donations
7. DOF proposes 14% VAT rate, higher income tax exemption
8. Purisima to submit $3B tax reform proposal to the next admin
9. Angara welcomes Dutertes tax plans

10. IMF backs removal of tax exemptions, incentives

11. SEC warns public on investment scam related to agriculture-Promising 50% profit
12. DOF agency: Additional tax on real property needed
Weekly Tax Updates (May 23 - May 27, 2016)

TAX NEWS
1. BIR files Php 5.3B tax evasion case vs. QC black market jeweler
2. Tax court orders arrest of film director Carlo Caparas
3. Micro enterprises can now avail of govt tax incentives
4. Tax evasion raps vs Corona junked
5. Duterte government mulls indexation of tax rates
6. Duterte mulls tax hike for high earners
7. TMAP to lawmakers: Take cue from Dutertes stand on taxes
Weekly Tax Updates (May 16 - 21, 2016)

TAX NEWS
1. Lawmakers told to take cue from Duterte's tax plans
2. SC: Php 3.2-Billion cash bond BIR demands from Pacquiao too much
3. SEC to update Corporate Governance Code
Weekly Tax Updates (May 10 - May 13, 2016)

TAX NEWS
1. Green Jobs now a law
2. BIR launches cigarette stamp verifier app
3. Chemicals trading firm, 2 firm officers sued for failing to pay P203M in taxes
4. BIR to audit poll candidates spending on media campaigns
5. BOI extended P247-B tax perks in 17 years---From 1995 to 2012
Weekly Tax Updates (May 02 - May 07, 2016)

Revenue Memorandum Order (RMO) No. 14-2016 [April 4, 2016 released on April 18,
2016] revises the procedures and policies on the proper execution of Waivers from the
Defense of Prescription pursuant to Section 222 of the National Internal Revenue Code
of 1997.

Weekly Tax Updates (April 25 - April 30, 2016)

TAX NEWS
1. Online payments cut lines on last day of ITR filing
2. Shell seeks COA, NBI probe on tax informer reward
3. BIR charges Philrem for tax evasion
4. SC spares Pacquiao, wife from P3-B cash bond
5. IC Shuts Down Non-Life Insurance Company
6. Tax, Smuggling Cases Languish in Courts
7. SC: Senior Citizens Government-issued IDs Must be Honored
8. Lifting of Bank Secrecy Law Pushed
9. Now, BIR Discovers Some Accountants Dont Pay Taxes
10.BSP Shuts Down Another Rural Bank

Weekly Tax Updates (April 18 - April 23, 2016)

TAX NEWS
1. Fewer glitches, complaints in this years ITR filing
2. BIR expands mobile payment platform
3. BIR full-year target in peril
4. Kim satisfied with ITR filing, but calls target unrealistic
5. BIR allows senior citizens, PWDs to file ITR manually with no payment return
6. 1 in 10 lawyers in 4 major cities paid zero tax for 2014, says DOF
Weekly Tax Updates (April 11 - 16, 2016)

Revenue Memorandum Circular (RMC) No. 41- 2016 [April 1, 2016] suspends the
requirement to disclose other income of individuals for the 2015 Annual Income Tax
Return (ITR) due for submission on or before April 15, 2016.
PRC-BOA Resolution No. 3-2016

The Professional Regulation Commission-Board of Accountancy (PRC-BOA) has amended its

BOA Resolution No. 3-2016 re Certification on Compilation Services, in its recently released
BOA Resolution No. 68-2016 [Date of Publication-March 23, 2016 with Effectivity today April 8,
2016].

Weekly Tax Updates (April 04 - April 09, 2016)

Revenue Regulations (RR) No. 3-2016 [March 23, 2016] prescribes the policies and
guidelines on the Adoption of Additional Modes of Payment of Internal Revenue Taxes.
Revenue Memorandum Circular No. 36-2016

The BIR clarifies that the Certification on Compilation Services is still not applicable for the 2015
ITR due for submission this coming April 15, 2016. This will become effective only for the
Financial Statements to be submitted for fiscal year ending June 30, 2016 and subsequent
periods.
Weekly Tax Updates (March 28 - April 02, 2016)

Revenue Memorandum Circular No. 35-2016, March 21, 2016 announces the
availability of eBIRForms Package Version 6.0.
Revenue Memorandum Circular No. 21-2016

The BIR circularized Board of Accountancy (BOA) Resolution No. 3, Series of 2016 thru
the issuance of Revenue Memorandum Circular (RMC) No. 21-2016.
Revenue Regulations No. 1-2016

BIR's new tax rules on government bidding for government contractors.

SEC Opinion on Stockholders Holding Teleconference

In the first SEC opinion issued for 2016 [SEC Opinion No. 16-01, January 19, 2016], the
SEC opined that stockholders meeting cannot be facilitated through teleconferencing,
video conferencing or other electronic medium.
SEC Memorandum Circular No. 1-2016

The Securities and Exchange Commission, in its Memorandum Circular No. 1, series of
2016, has adopted measures for the filing of the Audited Financial Statements and
General Information Sheet of companies.
Revenue Memorandum Order No. 9-2014

This Order is issued to serve as guidelines in the processing of requests for rulings with
the Law and Legislative Division.
Revenue Memorandum Order No. 9-2014

In applying a ruling with the BIR Law and Legislative Division, the applicant must, in
addition to the specific documentary requirements provided under applicable revenue
issuances, submit a LETTER REQUEST which is a sworn statement executed under
oath by the individualtaxpayer or by the authorized official/representative of the
corporation, partnership or entity containing the following:
Revenue Memorandum Circular No. 5-2014
Clarifying the Provisions of Revenue Regulations No. 1-2014 Pertaining to the Submission of Alphabetical List of
Employees/Payees of Income Payments.

SEC New Schedule of Fees and Charges

NOTICE TO THE PUBLIC

The Commission informs the public that it has proposed a new schedule of
fees
and chargespursuant to Administrative Order (A.O.) No. 31 series of 2012 "Directing
and Authorizing All Headsof Departments, Bureaus, Commissions, Agencies, Offices
and Instrumentalities of the NationalGovernment, including Government-Owned and/or
Controlled Corporations (GOCCs}, to Rationalizethe Rates of their Fees and Charges,
Increase their Existing Rates and Impose New Fees andCharges'. The set of
implementing rules and regulations for A.O. 31 was released on 30 January2013
through DOF-DBM-NEDA Joint Circular No. 1-2013.
Weekly Tax Updates (January 20-24, 2014)
REVENUE REGULATION NO. 1-2014
RR No. 1-2014 provides for new modes of submission of the Alphalist of Employees/Payees (attached in BIR forms
1604CF/1604E, 1601C, etc.), by ALL withholding agents regardless of number of employees/payees and whether or
not employees/payees are exempt from tax, as follows:

RR 1-2014 e-submission of Alphalist

Amending the Provisions of Revenue Regulations (RR) No. 2-98, as Further Amended by RR No. 10-2008,
Specifically on the Submission of Alphabetical List of Employees/Payees of Income Payments

2014 Start of the Year Tax Reminders

Registration of Books of Accounts

RMC 82-08 provides that manual books that have been registered by a taxpayer but have not yet been fullyutilized
can still be used in the succeeding years without the need for re-stamping. The only requirement is tolabel the p
ages applicable to a particular period for proper monitoring. In other words,
a new set of booksshall be registered only when the previously registered books have been fully utilized. Therefo
re, taxpayersare not required to register a new set of books every year.

2013 Year End Tax Reminders

RMC 8208 provides that manual books that have been registered by a taxpayer but have not yet beenfully utilized can still
be used in the succeeding years without the need for re-stamping. The only requirementis to label the pages
applicable to a particular period for proper monitoring. In other words,
a new set ofbooks shall be registered only when the previously registered books have been fully utilized. Theref
ore,taxpayers are not required to register a new set of books every year.

RR 6-2014 Mandatory use of eBIR forms

The eBIRForms was developed to provid taxpayers particularly the non-eFPS filers with accessible and convenient
service through easy preparation of tax returns.

Weekly Tax Updates (January 20-24, 2014)

REVENUE REGULATION NO. 1-2014
RR No. 1-2014 provides for new modes of submission of the Alphalist of Employees/Payees (attached in BIR forms
1604CF/1604E, 1601C, etc.), by ALL withholding agents regardless of number of employees/payees and whether or
not employees/payees are exempt from tax, as follows:

Weekly Tax Updates (October)

This regulation implements the provisions in the Tax Code pertaining to preservation of books of accounts and other
accounting records of taxpayers.

Year-End Tax Reminders 2012

Registration of Books of Accounts

Local Business Permits and Licenses

Refund of excess taxes withheld

Annualization of Withholding Taxes of Employees

Inventory List

Tenants Profile

List of Regular Suppliers

Annual Registration Fee

Annual Tax Certificates

SEC Guidelines in the Filing of Audited Financial Statements

Doing Business in the Philippines

TYPES OF BUSINESS ORGANIZATIONS
There are several types of business enterprises an investor can choose from in establishing operations in the
Philippines.

Tax Alerts - (August 2012)

A non-stock non-profit corporation organized for charitable purpose is exempt from tax on its income received
by it as a beneficiary society, order, or association under Section 30 (C) of the Tax Code.

Tax Alerts - (September 2012)

Data Privacy Act of 2012.

Instance where rental payments of PEZA Registered Entity is tax exempt.

Sale of franchise constitutes sale of intangible not subject to creditable withholding tax.

Proceeds from sale of property owned by a tax exempt corporation is considered income from its
properties subject to tax

Tax Alert - Securities and Exchange Commissions (SEC) Mandate and Functions
Securities Regulation Code (RA 8799)
Corporation Code of the Philippines (BP68)
PD 902-A as amended (except forsections repealed by RA 8799)
Investment Houses Law (PD 129 as amended by RA 8366)

TAX Alerts

Penalty for Failure to Separately Indicate VAT in ORs or Invoices.

Right to be Informed of the Facts and the Law on Which Assessment is Based.
New VAT Exemption Thresholds...
TAX Highlights
Its more fun in the Philippines: Is it in Tax Legislation?

A Quick Glance on Tax Updates & Other Reportorial Requirements - October 2011
Diaz Murillo Dalupan and Company Tax update for the month of October 2011 discusses the following key points:

Tax Alert - BIR issues new Income Tax Returns

As part of its continuing efforts to streamline its processes, the Bureau of Internal Revenue (BIR) issued
Revenue Memorandum Circular (RMC) No. 40-2011 dated September 5, 2011 notifying all concerned of
the new Income Tax Return Forms for individual and corporate taxpayers that will be used starting this
year covering taxable year 2011.

Revenue Memorandum Circular 47-2011

Revenue Memorandum Circular 47-2011

Tax Alert
Clarification on the definition of "Gross Receipts" for the purposes of the common carrier's tax of international
carriers.

Gearing Towards A Sounder Tax

Under the administration of the present BIR Commissioner, Atty. Kim Henares, the Bureau has streamlined a good
number of programs anchoring on its sole objective of enforcing the provisions of our tax statutes.

Revenue Regulations
List of Revenue Regulations from 1998 to 2012.

Revenue Memorandum Circulars

List of Revenue Memorandum Circulars from 2002 to 2012.

Revenue Memorandum Orders

List of Revenue Memorandum Orders from 1998 to 2012.

Tax Update and Other Reportorial Requirements

After the successful Audit Season of 2011, the Training and Professional Development Program came back with a 2hour seminar on Tax Update and Other Reportorial Requirements last May 13, 2011.

The New IFRS for SMEs (A 2-day Seminar)

The Client Services Department under Asian Development Bank (ADB) had their training on The New IFRS for
SMEs (A 2-day Seminar) held last March 19 and 26, 2011.

AUDIT AND BUSINESS ASSURANCE

We partner with your clients towards sustaining their corporate socio-economic mission, business objectives and
good corporate governance practices.

Our Services:

Statutory Audit for Public and Private Corporations

Due Diligence and Acquisition Audit

Special Agreed-Upon Procedures and Processes

Operational and Compliance Audit

Local companies must be equipped to compete globally, maintain the clients trust and promote investor confidence.
Good corporate governance manifested in financial statement audit reports helps projects good image of the
company. Your company will learn to adopt a culture of transparency, integrity and accountability.

Diaz Murillo Dalupan and Company can provide clients with a wide range of audit services. Our broad scope of
industry experience in general, and an in-depth knowledge of the clients own business in particular, are invaluable
assets when future plans have to be formulated in the volatile business environment.

Our audit approach is sufficiently flexible to respond to each individual clients specification circumstances. For
DMDC to form an objective opinion on the accuracy of financial statements under examination, the adequacy of the
clients of the clients internal control structures are assessed in detail by the Firms competent audit professionals.
The audit process is not limited to the finalization of a formal report: evaluation and recommendations for improving
operational efficiency and controls are made to management whenever appropriate.

The Firm is kept fully abreast of all the evolving changes in the international audit environment with streamlining of
the profession and the worldwide promulgation of the International Auditing Standards (IAS) and International
Financial Reporting Standards (IFRS)

BUSINESS PROCESS OUTSOURCING SERVICES

We customize our services to fulfill the unique needs of businesses, ranging from high net-worth individuals to
emerging and middle market companies.

Our Services:

Computerized Financial Accounting and Bookkeeping

Payroll Preparation and Bank-Transactions Processing

Corporate and Business Tax Reporting

Controllership and Management Information Systems and Reports

Accounting, Payroll Remittance and Management Information Systems are required to properly allocate your scarce
resources, measure your equities and evaluate your less predictable markets. Compliance with statutory regulatory
requirements become more tedious and complex as you expand your operations. We could equip your people with
the latest productivity tools including technology, to best optimize your current assets.

DIAZ MURILLO DALUPAN AND COMPANY evaluates the financial management needs of few and emerging
businesses, and offer computerized application for the most reliable and effective operation of accounting and recordkeeping systems. Providing financial information to our clients in a timely and accurate manner is a commitment that
we feel cannot be compromised. Meaningful, timely and efficiently on a daily basis.

We provide a wide array of financial services including establishing accounting systems, assistance in all areas of
payroll, corporate and business tax reporting, monthly transactional services, financial statements compilation with
analytical tools, annual audit compliance, and project-based experts from controllers to accounting staff.

For a personalized service, we assign a Partner to handle your particular needs. He or she will quickly learn about
your business, will be a constant source of support and advice in the possible future financial or fiscal issues that
would benefit your and your company and empower your colleagues to manage with prudence and economic
foresight the optimum use of your company resources.

CORPORATE AND MANAGEMENT ADVISORY SERVICES

We implement corporate planning systems in all levels to enable the clients to maximize their potential growth within
the industry and across the globe.

Our services:

Company Formation and Registration with Regulatory Agencies

Organizational, Marketing, and Financial Restructuring

Mergers, Acquisition and Consolidation

Business Receivership and Liquidation

Training Programs which provide Cost-Effective Solutions to Management Issues

DIAZ MURILLO DALUPAN AND COMPANY maintains specialist in the fields of corporate dues diligence and
efficient functional management practices. The specialist-industry experts go to great lengths to ensure the accuracy
and timelines of required financial reporting compliance and transactions-related issued for all our clients.

We assist our clients in preparing and meeting requirements in the increasingly complex regulatory environment of all
corporations in order to comply with rules of the Security and Exchange Commission (SEC), the Bureau if Internal
Revenue (BIR), Board of Investments (BOI), Philippine Economic Zone Authority (PEZA), Bangko Sentral ng Pilipinas
(BSP), Insurance Commission (IC), Energy Regulatory Board (ERB), Cooperative Development Authority (CDA),
National Electrification Administration (NEA), Department of Trade and Industry (DTI), Institute of Internal Auditors,
United States Agency for International Development (USAID), Canadian and Australian Aids, and Asian Development
Bank (ADB).

INTERNAL AUDIT

We implement process-oriented and preventive programs as we regard internal audit to be an important business
process improvement tool.

Effective internal audit and internal controls are crucial to sustain the practice of good corporate governance. We
have the company-wide change management and risk management capabilities to support the implementation of
your business strategies, improve operational performance and design proactive management audit initiatives. These
include the identification, control assessment and metrics for a continuous total quality management system.

Diaz Murillo Dalupan and Company recognizes the challenges in public and private companies, are faced with the
implementing corporate and regularity policies and procedures. Public companies, investment firms, and other
economically viable enterprises are required to adopt a Code of Good Corporate Governance. Our experienced
internal audit specialists can assists you with all of your internal audits service needs.

TAX ADVISORY AND COMPLIANCE

Our forward looking approach enables the firm to arrange the clients tax affairs so that the tax regulators demands
on their resources are kept to a minimum.

OUR SERVICES:

Compliance Review, Consulting and Advisory

Application for Tax Refund, Tax Credit, Tax Incentive and Tax Holiday

Alerts, Opinions and Rulings on the Recent Tax Issues and Developments

Continuing Education on Tax Compliance and Strategic Tax Planning Skills

Corporate, Estate Planning and Expatriate Services

Taxes are permanent cost component of your business. You will be advised on how to pay greater attention to
legitimate tax planning in order to minimize your tax exposure. You will be able to manage your company-wide task
risks, control costs and execute remedial measures.

DIAZ MURILLO DALUPAN AND COMPANY professionals are specialist who fully understand tax laws and practices
and can alert you on the impact of the current/forthcoming tax issues in your own industry, business and specific
functional management area. The firm provides expert advice on activities with international tax implications such as
double tax treaties.

Although constant change has been endemic to taxation ever since income tax was first introduced, no period has
witnessed so complicated and comprehensive an onslaught of new taxes as on the past three decades. In that time,
long standing imposts such as income tax and stamp duty were joined VAT and corporation tax, as well as capital
gains tax.

Operating in a global environment and getting involved in cross-frontier transactions necessitate the careful
elaboration of tax planning opportunities to achieve the optimum post-tax effect for our clients. We have a long and
diversified experience in resolving matters pertaining to the selection of the most tax efficient structures arranging the
design and implementation of practical remedies to facilitate the legal tax mitigation and advising on the use of
double tax treaties.