RMC No. 60-2019: Clarifies the guidelines in determining the tax treatment of transfer of real property by an Economic Zone Developer/Operator duly registered under the Philippine Economic Zone Authority to another PEZA entity, and the documentary requirements for the processing of eCAR

Key points

1. No local and national taxes. No local and national taxes, including Documentary Stamp Tax (DST) under Section 180 of the NIRC, may be imposed on PEZA-registered enterprises availing of the 5% preferential tax rate on income from their registered activities.
2. DST exemption on sale. When a PEZA-registered Ecozone Developer/Operator enjoying the 5% final tax on Gross Income Earned sells real property within an Ecozone to another PEZA-registered enterprise with the same 5% incentive, both parties are exempt from DST. The sale or disposition must be directly pursuant to their registered activities.
3. Documents for the eCAR. All parties submit a certified true copy of the latest PEZA Certificate of Registration of the Developer/Operator and the parties, and a certified true copy of the PEZA Registration Agreement. They also submit certified true copies of PEZA Form No. 00-00-01 (Certification on Entitlement of 5% Gross Income Tax) and PEZA Form No. 00-03-01 (Certification on Available Incentives), as of the time of the transaction.

Who is affected

• PEZA-registered Ecozone Developers/Operators
• PEZA-registered enterprises enjoying the 5% final tax on Gross Income Earned

Deadlines and effectivity

• PEZA incentive certifications must be as of the time of the transaction