InTAX: August 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
DEPARTMENT OF FINANCE
The Department of Finance (DOF) issued the following:
Revenue Regulations (RR) No. 7-2022, 30 June 2022, providing for policies and guidelines for the availment of tax incentives under the Renewable Energy Act of 2008 (RE Law).
This RR provides for the required certifications and accreditations before an RE developer and manufacturer, fabricator, and supplier of locally-produced RE equipment may avail any of the incentives provided in the RE Law.
Salient points of the RR are as follows:
1. | List of fiscal incentives for RE projects and activities, including the hybrid and co-generation systems (Sections 4 and 5) |
2. | List of incentives for RE Commercialization (Section 6) |
3. | List of incentives for farmers engagement in the plantation of biomass resources (Section 7) |
In addition to the incentives above, purchasers of RE equipment for residential, industrial, or community use shall be entitled to a rebate equivalent to the VAT passed on to them. The rebate shall only be available to purchasers who are not VAT-registered and shall be in the form of a tax credit from the income tax liability of the purchasers during the year of purchase. Any unutilized rebate or tax credit shall be forfeited.
Unless otherwise provided by law, the registration or accreditation to avail of incentives under this Act shall disqualify the availment of other tax and non-tax incentives under the National Internal Revenue Code, as amended. The non-compliance with the filing and reportorial requirements under requirements under RA No. 11534 or the CREATE Act shall be meted with penalties under the law.
The RR shall take effect 15 days after its publication or on 16 July 2022 since it was published in Manila Times on 1 July 2022.
RR No. 10-2022, 30 June 2022, prescribing the guidelines and procedures through which taxpayers can request Mutual Agreement Procedure (MAP) assistance from the designated Competent Authority for the Philippines or Philippine CA (i.e., the Commissioner of Internal Revenue or CIR) to resolve disputes arising from taxation not in accordance with the provisions of the relevant Double Tax Agreements (DTAs) or tax treaties.
The following items are specified in RR No. 10-2022:
1. | Typical scenarios of taxation that are not in accordance with a DTA requiring MAP assistance (Section 3) |
||||||||||||||||||||||||||
2. | Composition of the MAP team (Section 4) |
||||||||||||||||||||||||||
3. | Procedures for initiating a MAP request, including pre-filing consultation, what a valid MAP request is, and the specific information and documentation to be submitted with |
||||||||||||||||||||||||||
4. | Processing of the MAP request (Section 6):
|
||||||||||||||||||||||||||
5. | Audit settlements reached between the tax authority and the taxpayers do not preclude access to MAP (Section 7) |
||||||||||||||||||||||||||
6. | The information and documents submitted in support of the MAP request shall be treated with utmost confidentiality and shall only be used and disclosed in accordance with the provisions of the relevant DTA (Section 8) |
The RR shall take effect 15 days after its publication or on 23 July 2022 since it was published in Malaya Business Insight on 8 July 2022.
RR No. 11-2022, 29 June 2022, prescribing the guidelines and procedures for the spontaneous exchange of taxpayer-specific rulings pursuant to international exchange of information agreements such as Double Taxation Agreement (DTAs), Tax Information Exchange Agreements (TIEAs) or the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC).
This RR provides for the procedures of information gathering for both past rulings and future rulings (Section 5).
Salient points of the RR are as follows:
1. | The EOI Section of the International Tax Affairs Division (ITAD) of the BIR shall be responsible for exchanging the taxpayer-specific rulings to the foreign tax authority of the potential exchange jurisdiction on or before the prescribed deadline. |
||||||||||||||||
2. | The rulings within the scope of the transparency framework include the following:
|
||||||||||||||||
3. | The potential exchange jurisdictions depending on the type of ruling are summarized in Section 3(d). |
||||||||||||||||
4. | Upon effectivity of this RR, the EOI Section of ITAD shall:
|
||||||||||||||||
5. | If it is established, upon evaluation, that the rulings spontaneously exchanged will aid the BIR examiners in their tax investigation, the EOI Section of ITAD shall immediately forward a copy of the ruling to the Revenue District Office (RDO) having jurisdiction over the taxpayer. |
The RR shall take effect 15 days after its publication or on 23 July 2022 since it was published in Business World on 8 July 2022.
Attached are the full texts of the issuances.
© 2024 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.