Special InTAX: April 2022 Issue 1 | Volume 1

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

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special intax

Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) issued the following:

Revenue Memorandum Circular (RMC) No. 36-2022, 06 April 2022, to prescribe the format of the VAT zero percent (0%) certification to be issued by Investment Promotion Agencies (IPA) to duly registered export enterprises (REEs).

In line with Question and Answer No. 34 of RMC No. 24-2002, which provides that the concerned IPA shall annually issue a VAT zero percent (0%) certification to REEs, the RMC provides the templates for the required certification:

1.       Template 1 to be issued to REEs which are registered under Republic Act (RA) No.

11534, otherwise known as CREATE Act; and

2.        Template 2 to be issued to existing REEs registered prior to the effectivity of the 

CREATE  Act.                    

The BIR also mandates all IPAs to provide a master list of all REEs which have been issued a VAT zero percent (0%) certification for counterchecking. The master list shall be submitted to the Assistant Commissioner, Assessment Service, Attention: The Chief, Audit Information, Tax Exemption and Incentives Division and email the same to: aiteid_ies@bir.gov.ph.

RMC No. 37-2022, 06 April 2022, to clarify the coverage of the provisions stated in RMC No. 28-2022.

Prior to the filing of their Annual Income Tax Return (AITR), all registered business enterprises (RBEs) enjoying tax incentives under the transitory provisions of Section 311, Title XIII of the CREATE Act shall apply for a Certificate of Entitlement to Tax Incentives (CETI) with their respective IPA through the Fiscal Incentives Registration and Monitoring System.

For taxable year 2021, RBEs already issued a certificate of entitlement to tax incentives, certificate of available incentives, certificate of registration and tax exemption or any similar certificate in a template/format previously prescribed by the IPA may attach such certification to their AITR in lieu of the Fiscal Incentives Review Board (FIRB) - prescribed CETI.

RMC No. 38-2022, 06 April 2022, to clarify the transitory provisions for non-income related tax incentives pursuant to Section 5, Rule 18 of the amended Implementing Rules and Regulations (IRR) of Section 311, Title XIII of the CREATE Act.

All existing REEs enjoying their income tax incentives prior to CREATE may continue to enjoy VAT zero-rating on local purchases that are directly attributable and exclusively used in the registered project or activity until the expiration of the transitory period, as follows:

REE Category


REEs which are granted only an Income Tax Holiday (ITH)

Until the remaining period of the ITH.

REEs which are granted an ITH and/or five percent (5%) tax on gross income earned

Until the expiration of the ten (10) year limit.

REEs whose income tax incentives expired prior to the CREATE Act

VAT zero-rating on local purchases could no longer be availed.

RMC No. 39-2022, 06 April 2022, to provide for the manner of penalty payments  relative to RMC No. 23-2022 for violations of FIRB Resolution No. 19-2021, or the conditions for RBEs in the Information Technology-Business Process Management (IT-BPM) Sector with Work from Home (WFH) arrangements to continue to avail of tax incentives.

Previously, RMC No. 23-2022 provided that the penalty, payment of regular corporate income tax (20% or 25%) for the month when violation was committed, shall be paid in the following manner:

Manner of Payment

RBEs with current transactions subject to IT

BIR Form 0605

RBSs with no current transactions subject to IT

BIR Form 1702-MX

RMC 39-2021 mandates a uniform manner of penalty payment , as follows:



Tax Type



Voluntary Payment, “Others”

Indicate in the field “Penalty pursuant to FIRB Res. No. 19-2021"


MC 200

RBEs enjoying ITH shall file AITR using BIR Form No. 1702-EX, while RBEs enjoying 5% gross income tax or with mixed transaction shall use the BIR Form 1702-MX.  All RBEs are required to complete the information pertaining to allowable deductions pursuant to existing tax laws and regulations (i.e., Part VI-Schedule 1 for BIR Form No. 1702-EX and Part IV-Schedule 5 for BIR Form No. 1702-MX).

Penalty payment shall be made within 30 days after due date prescribed for payment of the IT.  RBEs shall compute the penalty in the following manner, assuming the RBE committed violations for the months of September, October, November and December 2021:

   ITH (in PHP) 5% GIT (in PHP)
Annual Net Taxable Income*/12 12,000,000.00 12,000,000.00
Average Monthly Net Taxable  1,000,000.00 1,000,000.00
Multiply by the number of months with violation 
x 4  x 4 
Taxable Income subject to regular IT 4,000,000.00 4,000,000.00
Multiply by the regular income tax rate 
x 25%  x 25% 
Income Tax due  1,000,000.00 P1,000,000.00 
Less Payments made per AITR    500,000.00 ** 
Income Tax still due and payable   1,000,000.00  P500,000.00

* Annual Taxable Income must be computed based on existing tax laws and policies

(Item 39 if BIR Form 1702-EX | Item 13 column B if BIR Form 1702-MX)

** Assuming the Gross Income Tax payable per AITR is P 1,500,000.00 (inclusive of LGU share), the monthly GIT paid is P 125,000.00, multiply by 4 months.

RMC No. 40-2022, 06 April 2022, to clarify the guidelines on the use of the electronic audited financial statement (eAFS) system.

Taxpayers may use the eAFS system for the e-filing of their Annual Income tax Return (AITR) and its required attachments for any taxable year and all succeeding fiscal and/or taxable years. The existing procedures on the submission of filed AITR and its attachments to eAFS system shall be observed.

In the same RMC, the BIR clarified that the use of electronic signature applies to all tax returns, attachments and documents required to submit AITR and returns.

Attached are the full texts of the issuances.

RMC No. 36-2022 Template 1

RMC No. 36-2022 Template 2

RMC No. 36-2022

RMC No. 37-2022

RMC No. 38-2022

RMC No. 39-2022

RMC No. 40-2022

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