Special InTAX: July 2021 Issue 2 | Volume 2

 

Department of Finance

 

The Department of Finance (DOF) issued the following:

Revenue regulations (RR) No. 14-2021, 28 July 2021, to suspend the implementation of certain provisions of RR No. 05-2021 dated 8 April 2021.

The following provision of RR No. 05-2021 are hereby suspended:

•  Section 2 (C), on the definition of Proprietary Educational Institutions, insofar as it includes therein the phrase “which are non-profit”.

• Section 2 (E), on the definition of Non-Profit, insofar as it applies to “Proprietary Educational Institutions”, and

• Section 3 (B), which provides illustration on the tax treatment of Proprietary Educational Institutions which are non-profit.

The RR shall take effect immediately.

RR. No. 15-2021, 28 July 2021, to defer the implementation of RR No. 09-2021 which implements the imposition of twelve percent (12%) Value Added Tax (VAT) on transactions covered under Section 106 (A) (2) (a) subparagraphs (3) (4) (5) , and Section 108 (B) subparagraphs (1)  and (5) of the National Internal Revenue Code (Tax Code) of 1997, as amended by R.A. 10963 (TRAIN LAW).

The implementation is deferred until the issuance of the amendatory RR.

The RR shall take effect immediately.

 

Attached are the full texts of the issuances.

Revenue Regulations No. 14-2021

Revenue Regulations No. 15-2021

(RGM & Co. Note:  The RRs are not yet published as of the date of issuance of this InTax Article)