- The Bureau of Internal Revenue (BIR) has issued a circular informing taxpayers about the amendment to the period of enjoyment of non-income related tax incentives for registered business enterprises (RBEs) under the Create Law.
- Registered domestic and export businesses can continue to enjoy value-added tax (VAT) exemption on importation, duty exemption, and VAT zero-rating on local purchases of goods and services directly used in the registered project or activity.
- Registered export enterprises can still benefit from VAT zero-rating on local purchases until the BIR’s electronic sales reporting system is fully operational or until the transitory period expires.
- Export enterprises are required to register to the BIR’s electronic sales reporting system.
- Domestic market enterprises (DME) located inside the economic or freeport can register as VAT taxpayers but cannot claim VAT refunds for transactions before the rule took effect.
- These rules will be applied prospectively and take effect immediately.
Source: sunstar.com.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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