Special InTAX: September 2023 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

Fiscal Incentives Review Board

The Fiscal Incentives Review Board (FIRB) issued FIRB Advisory No. 014-2023 dated 31 August 2023, circularizing the Department of Finance (DOF) Department Order (DO) No. 033-2023, which provides the guidelines on the imposition of local taxes, fees, and charges by local government units (LGUs) on transitioning Registered Business Enterprises (RBEs) or those granted incentives prior to the effectivity of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Under Section 311 of the National Internal Revenue Code of 1997, as amended (Tax Code), transitioning RBEs may continue to avail of their respective incentives until the end of the transitory period.

The salient points of DOF DO Order No. 033-2023 captured in the FIRB Advisory No. 014-2023 are as follows:

▪     The rules on local taxes applicable to transitioning RBEs:


Those availing of income tax holiday (ITH) only and classified as either pioneer or non-pioneer (under Executive Order No. 226 and/or specified in the registration agreement);

Exempt from local business tax (LBT) for the remaining period of the ITH


All other transitioning RBEs: Subject to local taxes


Those currently availing of ITH that are also entitled to 5% tax on gross income earned (GIE) after the ITH

Exempt from LBT (during the remaining period of ITH) and exempt from all local taxes* (while availing the 5% tax on GIE), subject to the 10-year limitation for both incentives


Those availing of 5% tax on GIE

Exempt from local taxes* for 10 years from the effectivity of CREATE

*except real property taxes imposed on land owned by developers

▪      Exemption on local fees and charges shall continue for 10 years for transitioning RBEs that are granted such exemption under their registration agreements with the concerned Investment Promotion Agency (IPA), or by their respective LGUs. The LGUs may collect such fees and charges if RBEs are liable thereto prior to the effectivity of CREATE.

Here are the links to the full text and respective annexes of the issuance: FIRB Advisory 014-2023, DO 033-2023.

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