RR No. 01-2000: Amends the provision of RR No. 12-97 in respect of sharing, distribution and manner of disposition of the 2% share of the local government units from the 5% special tax paid by PEZA-registered enterprises

Key points

1. 5% special tax. PEZA-registered enterprises pay a tax of 5% on gross income earned in lieu of all taxes, except real property tax on land owned by developers.
2. Sharing of the tax. The tax is shared between the national government (3%) and the treasurer’s office where the registered enterprise is located (2%).
3. Zones covering several localities. If the ECOZONE covers more than one (1) city or municipality, each one’s share of the 2% is set under the implementing PEZA regulations. PEZA issues a certification of the exact share of the cities or municipalities concerned.
4. Returns. Each ECOZONE registered enterprise subject to the 5% tax files a quarterly income tax return within sixty (60) days after the close of each of the first three (3) quarters. It also files a final adjustment income tax return for the entire taxable year, not later than the fifteenth (15th) day of the fourth month after the close of its taxable year.

Who is affected

• PEZA-registered enterprises in ECOZONEs subject to the 5% special tax
• Local government units sharing in the 2%

Deadlines and effectivity

• Quarterly return within sixty (60) days after the close of each of the first three (3) quarters
• Final adjustment return not later than the 15th day of the fourth month after the close of the taxable year