Category Archives: Business & Corporate

Philippine Lemon Law

Philippine Lemon Law: Consumer Claims before its Effectivity

Questions and confusion come with all things new. Same with the Philippine Lemon Law (Republic Act 10642, full text). Let’s tackle something basic. It’s not about the coverage or the claim procedure. Something more basic — what happens to brand new motor vehicles purchased BEFORE the effectivity of the Philippine Lemon Law? Or shall we reckon it from the issuance of the Implementing Rules and Regulations (the DTI is required to issue the IRR within 90 days from effectivity of the Philippine Lemon Law). [Update: the Philippine Lemon Law took effect on 7 August 2014; see also effectivity and coverage] Continue reading

Philippine Lemon Law

Why Motorcycles Are Not Covered by the Philippine Lemon Law

We’ve previous noted that the exact coverage of lemon laws varies from one country/jurisdiction to another, but lemon laws uniformly refer to “lemons” as defective products [see Q&A on the Philippine Lemon Law (Republic Act 10642)]. In the Philippines, President Benigno Aquino signed the Philippine Lemon Law (Republic Act 10642,full text) into law on 15 July 2014.  Continue reading

Philippine Lemon Law

Steps in Availing of Consumer Rights under the Philippine Lemon Law

We know a few things about Republic Act No. 10642, also known as the Philippine Lemon Law, and we’ll know a whole lot more about this newly signed law as soon as the Department of Trade and Industry (DTI) issues the necessary Implementing Rules and Regulations (IRR). Based on what we know about the law, here are the steps that a consumer must take to avail of his/her rights under the Philippine Lemon Law [Update: the Philippine Lemon Law took effect on 7 August 2014; see also effectivity and coverage]: Continue reading

Q&A on the Philippine Lemon Law (Republic Act 10642)

The exact coverage of lemon laws varies from one jurisdiction to another, but lemon laws uniformly refer to “lemons” as defective products. After numerous bills filed in Congress through the years, the proposed lemon law has been approved by both chambers and on 15 July 2014, President Benigno Aquino signed the Philippine Lemon Law (Republic Act 10642, full text), set to take effect fifteen (15) days from publication [Update: the Philippine Lemon Law took effect on 7 August 2014; see also effectivity and coverage]. While this law directly affects only a small portion of the population, the fact remains that this law covers a major purchase or investment, with the purchase money coming from years of hard work. Let us dissect this new law. Continue reading

Encouraging Micro, Small and Medium Enterprises (MSME) through the Go Negosyo Act of 2013

The crucial role played by micro, small and medium enterprises (MSMEs) has long been recognized. The established figures are astounding — more than 99% of enterprises in the Philippines are MSMEs. These business entities heavily contribute to economic development and, more importantly, generate employment in a scale larger than big industries. It thus makes absolute sense for lawmakers to pass a legislation that encourages and assists MSMEs during registration, in the conduct of business, and compliance with regulatory requirements.

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Increase the Maximum Bonus and 13th Month Pay Tax Exemption?

A proposal is currently pending in the Senate to increase the tax exemption of 13th month pay, Christmas bonuses, productivity incentives and similar benefits — from the original maximum tax-free amount of P30,000 to P75,000. The proposal also provides for an adjust of the cap every three years, to raise the maximum exemption to its present value using the consumer price index. Under existing laws, any amount beyond P30,000 is subject to income tax. Continue reading

Why Sari-Sari Stores, Carinderia and other Marginal Income Earners Must Register with BIR

The Bureau of Internal Revenue recently issued Memorandum Circular No. 7-2014, clarifying the issues relating to the registration and tax compliance requirements of Marginal Income Earners (MIE). The circular provides that an MIE refers to an individual not deriving compensation as an employee under an employer-employee relationship but who is self-employed and deriving gross sales or receipts not exceeding P100,000 in any 12-month period. Moreover, the activities of such MIE should be principally  for subsistence or livelihood. The term includes, but not limited to, agricultural growers/producers (farmers/fishermen) selling directly or indirectly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos”, drivers/operators of a single unit tricycle, and such, but shall not include licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including all others whose income have been subjected to withholding tax. Continue reading

Philippine Lemon Law (Republic Act 10642; full text)

(See also Question and Answer on the Lemon Law; Claim Procedure; Consumer Claims Before its Effectivity; Motorcycle Coverage)

Republic of the Philippines
Congress of the Philippines
Metro Manila



SECTION 1. Short Title. – This Act shall be known as the “Philippine Lemon Law”. Continue reading

New Scam Involving Change of Payment Details

A scam is always waiting to happen. It pounces on the vigilant and clueless alike. In this era of [presumably] secure money transfers in business transactions, it’s amazing to see a simple scheme hit one company after another. This scam is really not a new but we’ve seen an alarming rise of incidents in the past months. The modus operandi goes like this. Continue reading