RMC No. 65-2018: Circularizes the full text of DOF-DBM-DTI-BOI Joint Administrative Order No. 01-2015 providing the “Guidelines for the Payment Certificate Mechanism to Implement the Fiscal Support for the Comprehensive Automotive Resurgence Strategy (CARS) Program under Executive Order No. 182, Series of 2015”

Key points

1. Fiscal support limits. Total support under the GAA shall not exceed P 27 Billion, with each qualified and enrolled model allocated not more than P 9 Billion. Fixed Investment Support is capped at 40% of total support, and Production Volume Incentive at 60%.
2. Tax Payment Certificates. Availments are evidenced by non-transferrable TPCs in the name of the Participating Car Maker. They are issued by the DTI-BOI and used to pay Excise Tax, Income Tax, import duties and VAT, but not any Withholding Taxes.
3. No other incentives. Registered participants may not register their activity under any other incentive program as a condition for TPC availment.
4. Validity and use. A TPC is valid for thirty (30) days from issue and can be used once, so it must be presented right away to the BIR or BOC. If unused, the original must be returned to DTI-BOI within the validity period for reinstatement, otherwise it is forfeited in favor of the government.
5. Roles of agencies. The DTI-BOI devises the TPC forms and an online validation facility for the BIR, BOC and BTr. The BIR and BOC record TPC amounts as revenue collection and submit a monthly list of TPCs to the BTr.

Who is affected

• Participating Car Makers under the CARS Program

Deadlines and effectivity

• TPC valid for thirty (30) days from date of issue and usable once