Special InTAX: April 2023 Issue 1 | Volume 2

Fiscal Incentives Review Board

The Fiscal Incentives Review Board (FIRB) issued FIRB Advisory No. 06-2023 dated 05 April 2023, to clarify the supplemental guidelines on the registration of Registered Business Enterprises (RBEs) in the Information Technology-Business Process Management (IT-BPM) Sector with the Board of Investments (BOI) in relation to FIRB Administrative Order (AO) No. 001-2023, as amended by FIRB AO No. 003-2023.

Salient points discussed in the advisory include concerns on the following:

• Assets of the IT-BPM RBE covered by the abovementioned FIRB AOs
• Coverage of the tax exemption indorsement (TEI)
• Existing assets or assets imported as of 31 January 2023
• New assets or assets imported starting 01 February 2023
• Proof of entitlement to VAT incentives for local assets
• Valuation methods of the Bureau of Customs (BOC) for the sale, transfer, donation, or disposal of the related assets of the covered RBE, whether local or imported
• BOC procedures
• Expansion projects under Philippine Economic Zone Authority (PEZA)
• Updating of the BIR registration of IT-BPM transferees

Please click on the link for the full text of the issuance: FIRB Advisory No. 06-2023, Annex “A”

 

Department of Finance and Department of Trade and Industry

The Department of Finance (DOF) and the Department of Trade and Industry (DTI) issued Joint Administrative Order (JAO) No. 001-2023 dated 12 April 2023, to provide the guidelines to implement Sections 305, 306, 307, and 308 of the National Internal Revenue Code of 1997, as amended (Tax Code), for cooperatives registered with the Cooperative Development Authority (CDA).

This JAO shall apply to:

• The CDA with respect to the submission of reports under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE); and
• All cooperatives registered with the CDA

The relevant provisions of the CREATE Implementing Rules and Regulations (IRR), as amended, shall have a suppletory effect on the provisions of the guidelines in the JAO. 

Other salient points discussed in the JAO include the following:

• Compliance requirements for registered cooperatives (Rule II)
  • Filing of Tax Returns and Payment of Tax Liabilities;
  • Submission of the Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR); and
  • Contents of the ATIR and ABR.
• Incentives Monitoring Mechanism (Rule III)
• Penalties (Rule IV)
  • Failure to submit the Reportorial Requirements by a Registered Cooperative;
  • Material Misinterpretation of Information for purposes of availing of incentives; 
  • Non-compliance of Government Officials or Employees with the provisions of these Rules; and
  • Accrual of penalties to the general fund.

The JAO shall take effect 15 days following its publication in a newspaper of general circulation and filing of three (3) copies with the Office of National Administrative Register (ONAR), University of the Philippine (UP) Law Center, Diliman, Quezon City (Presidential Memorandum Circular No. 11 dated 09 October 1992).

(Note: JAO No. 001-2023 is not yet published as of date of issuance of this newsletter)

Please click on the link for the full text of the issuances: JAO No. 001-2023 and DOF-DTI JAO 001-2023 Annexes ATIR ABR Cooperatives