SEC Form 20-IS - iRemit Global Remittance

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In 2010, the Parent Company recognized dividend income amounting P=0.60 million from
dividends declared by ISPL. In 2009, the Parent Company’s dividend income includes dividends
declared by ISPL (P=14.40 million), IRCL (P=9.54 million), WEPL (P=3.93 million), IAPL (P=3.30)
and PSAGL (P=3.07 million).
The compensation of the key management personnel of the Group in 2011, 2010 and 2009 are as
follows:
2011 2010 2009
Short-term employee benefits P=27,036,984 P=21,059,431 P=19,232,031
Post-employment benefits 1,571,444 549,541 721,632
Share-based payment − – 435,303
P=28,608,428 P=21,608,972 P=20,388,966
25. Income Taxes
The provision for income tax consists of:
2011 2010 2009
Current:
RCIT P=36,053,005 P=28,576,367 P=40,862,007
Final 589,871 643,945 1,534,105
Deferred (745,224) (921,460) (2,471,568)
P=35,897,652 P=28,298,852 P=39,924,544
Parent Company
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the
RCIT rate shall be 35.00% until December 31, 2008. Starting January 1, 2009, the RCIT rate shall
be 30.00%. It also provides that the interest allowed as a deductible expense is reduced by an
amount equivalent to 42.00% until December 31, 2008 and 33.00% starting January 1, 2009 of
interest income subjected to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=4.46 million, P=2.84 million and P=2.62 million in 2011, 2010 and 2009,
respectively. The allowed EAR limit was P=4.90 million, P=2.80 million and P=2.74 million in 2011,
2010 and 2009, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
RA No. 9504, An Act Amending National Internal Revenue Code, provides that starting
July 1, 2008, the optional standard deduction (OSD) equivalent to 40.00% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the 2011 and 2010 RCIT
computation, the Parent Company elected to claim itemized expense deductions instead of the
OSD.
*SGVMC116502*