Special InTAX: April 2022 Issue 1 | Volume 4

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 Revenue Memorandum Circular (RMC) No. 49-2022, dated 20 April 2022, to amend pertinent portion of the questions and answers (Q&A) in RMC No. 24-2022 to align with the CREATE Act and its Implementing Rules and Regulations (IRR), as well as to reflect the deferment of Revenue Regulations (RR) No. 9-2021 pursuant to RR 15-2021.

The RMC introduced the following amendments:

1.       Q&A No. 10 was amended to note that transactions considered by sellers as Value Added Tax (VAT) zero-rated for the period 01 July 2021 to 09 December 2021 shall remain VAT zero-rated. For taxpayers that have declared transactions subject to VAT, the taxpayer may follow the options laid down in Q&A Nos. 8 and 9.    

2.      Q&A No. 17 was amended to elaborate the rules and treatment to the Domestic Market Enterprises (DMEs) sale of goods and services if they are registered prior to CREATE Actor during the effectivity of the CREATE Act:

Registered DME Prior to CREATE Act
Non-export locator under 5% Gross Income Tax (GIT) with sales related to registered activity, whether inside Ecozones, Freeport Zones as well as customs territory VAT exempt
Non-export locator under 5% with VAT passed on by VAT-registered local suppliers VAT shall form part of cost or expenses
Non-export locator under Income Tax Holiday (ITH) with sales of goods and services to registered export enterprises directly and exclusively used in the latter’s registered project or activity VAT zero-rated 
Non-export locator under ITH, with sales to non-export locators or DMEs within Ecozones and Freeport Zones, as well as enterprises within the customs territory 12% VAT
Registered DME during effectivity of CREATE Act
Sales to registered export enterprises of goods and services directly and exclusively used in the registered activity VAT zero-rated
Sales to DMEs within the Ecozones and Freeport Zone, as well as sales to enterprises from the customs territory Subject to VAT

3.        Q&A No. 31 was amended to clarify that registered export enterprise enjoying 5% GIT or Special Corporate Income Tax (SCIT) regime and has other activities that are subject to VAT (ie., VAT at 12% and 0%) shall remain as a VAT taxpayer; and

4.        Q&A No. 33 was amended to include provision for sales transactions (by local supplier of goods and services) that are qualified for VAT zero-rating but failed to secure an approved application for VAT zero-rating with the BIR. Prior application may not be required until 09 March 2022, or the effectivity of this RMC.


Attached is the full text of the issuance.

RMC No. 49-2022

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