The Fiscal Incentives Review Board (Firb) recently promulgated Administrative Order 001-2023 stating the additional guidelines for Registered Business Enterprises (RBEs) in the IT-BPM sector that have successfully registered with the Board of Investments (BOI) on Jan. 31, 2023. The covered RBEs that were issued the BOI – Certificate of Registration (BOI-COR) are mandated to comply with the following:
1. Application for Certificate of Entitlement to Tax Incentives (Ceti) - Before filing their Income Tax Return (ITR), the covered RBEs shall apply for Ceti with the concerned Investment Promotion Agency (IPA). Once the IPA has verified the RBEs’ tax incentives, it shall issue the Ceti. The said Ceti shall be considered valid and sufficient proof of compliance and must be attached to the ITR upon filing with the Bureau of Internal Revenue (BIR).
2. Application for value-added tax (VAT) zero-rating certification to the concerned IPA - The IPA shall submit to the BIR the master list and endorsements for VAT zero-rating. The BIR shall then rely on these documents for counterchecking purposes.
3. Allocation of Special Corporate Income Tax (Scit) - For RBEs currently availing the five percent tax on Gross Income Earned (GIE) or the SCIT, existing rules as to the allocation between the National Government and Local Government Units (LGUs) shall still be observed. However, for RBEs governed by special laws that do not provide allocation, the allocation shall be three percent to the National Government (filed and remitted using eFPS) and two percent to the Municipality or City where the RBE is located.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants