Special InTAX: January 2023 Issue 1 | Volume 3
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
Fiscal Incentives Review Board
The Fiscal Incentives Review Board (FIRB) issued FIRB Administrative Order No. 001-2023, dated 16 January 2023, to supplement the existing guidelines on the registration with the Board of Investments (BOI) of Registered Business Enterprises (RBEs) in the Information Technology-Business Process Management (IT-BPM) sector for purposes of adopting up to 100% Work-From-Home (WFH) arrangements without adversely affecting the enjoyment of their fiscal and non-fiscal incentives. This is pursuant to FIRB Resolution No. 026-22 dated 14 September 2022, as further extended by FIRB Resolution No. 033-22 (from 31 December 2022 to 31 January 2023).
This Administrative Order covers the following RBEs in the IT-BPM sector (Section A):
| a) | Those availing of Transitory Provisions under Section 311 of the National Internal Revenue Code of 1997, as amended by Corporate Recovery and Tax Incentives for Enterprises or CREATE (Tax Code); or |
| b) | Those registered with the concerned investment promotion agency (IPA) and with approved incentives under CREATE on or before 14 September 2022. |
The covered RBEs shall have until 31 January 2023 to exercise the option to register with the BOI on a per project or activity basis (not per enterprise). In case the covered RBEs decide not to exercise their option by 31 January 2023, they are no longer allowed to register with the BOI under FIRB Resolution Nos. 026-22 and 033-22 but shall be covered by Section 309 of the Tax Code.
Other salient points in the Administrative Order include guidelines on the following:
- Availment of Incentives (Section B);
1. Issuance of BOI-COR;
2. Application for a Certificate of Entitlement of Tax Incentives (CETI);
3. Application for a Certificate of Authority to Import (CAI);
4. Application for a Value-added Tax (VAT) zero-rating certification;
5. Required Annotation in the Certifications for availment of incentives
- Submission of reports and compliance monitoring (Section C);
- Allocation of the five percent (5%) tax on gross income earned (GIE) or special corporate income tax (SCIT) (Section D);
- Movement of capital equipment and other assets within and outside the economic zones and/or freeport zones (Section E);
- Transitory period for the movement of capital equipment and other assets within and outside the economic zones and/or freeport zones (Section F);
- Implications of the registration with the BOI (Section G);
- Valuation methods of the BOC for the sale, transfer, donation, or disposal of the related assets of the covered RBE, whether local or imported (Section H);
- Treatment of existing capital equipment and other assets with lost or missing documents, specific to the requirements needed for the DOF-RO’s TEI (Section I);
- Allowable ratio of WFH arrangements for covered RBEs from 1 January to 31 January 2023 (Section J); and
- BIR and BOC rules and regulations (Section K).
Please click on the link for the full text of the issuances:
FIRB Administrative Order No. 001-2023
Attachment 1 (Request to register with BOI Form)
Attachment 2.1 (IPA List of Endorsed RBEs Cover Letter)
Attachment 2.2 (IPA List of Endorsed RBEs Template)
Attachment 3 (Sample BOI Certificate of Registration)
Attachment 4 (Sample Official Receipt to be issued by the BOI)
Attachment 6 (Sample dummy or staging bill of lading)
Attachment 8 (DOF-RO Form No. 91)
Attachment 9 (Notarized Affidavit of End-Use_Ownership)
Attachment 10 (Authorization Letter, if filing as an authorized representative)
Attachment 11 (Duly processed consumption entry)
Attachment 12 (Statement of Settlement of Duties and Taxes)
Attachment 13 (Signed and dated import BL_Air Way bill)
Attachment 14 (Commercial invoice(packing list, if applicable))
Attachment 15 (Undertaking while TEI is outstanding)
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