RMC No. 83-2021: Circularizes the Implementing Rules and Regulations of Title XIII of Republic Act (RA) No. 8424, otherwise known as the “National Internal Revenue Code of 1997”, as amended by RA No. 11534 (CREATE Act)

Key points

1. Coverage. The IRR applies to existing Investment Promotion Agencies (IPAs) and to newly registered projects, including qualified expansions, under the Strategic Investment Priority Plan (SIPP). It also covers enterprises already registered and enjoying incentives before the Act, other agencies administering incentives, and GOCCs, Government Instrumentalities, government commissaries and SUCs granted tax subsidies under the Annual General Appropriations Act.
2. Limit on grants. The Fiscal Incentives Review Board (FIRB), or IPAs under delegated authority, grant tax incentives only to the extent of the approved registered project or activity under the SIPP.
3. Incentives covered. Rule 2 covers Income Tax Holiday, Special Corporate Income Tax, Enhanced Deductions, customs duty exemption on capital equipment, raw materials, spare parts or accessories, and VAT zero-rating and exemption. It also covers incentives on importing COVID-19 vaccines and petroleum products, and taxation after incentives expire and of non-registered projects.
4. Availment period, SIPP and registration. Rules 3 and 4 cover the period of availment of incentives and the SIPP. Rules 6 to 8 cover registration of business enterprises, the Certificate of Registration, and applying for the Certificate of Entitlement to Tax Incentives (CETI).
5. FIRB and reporting. Rules 13 to 16 cover the FIRB’s expanded functions, its composition, its Technical Committee and its Secretariat. Rules 11 and 12 cover the Annual Tax Incentives Report (ATIR), the Annual Benefits Report (ABR), impact evaluation and penalties for not filing.
6. Other rules. Other Rules cover the President’s power to grant incentives, investments made before the Act, the prohibition on registered activities, the One-Stop Action Center, and misrepresentation and violations. They also cover temporary measures for exceptional circumstances and final provisions.

Who is affected

• Investment Promotion Agencies
• Registered enterprises, projects and activities
• GOCCs, Government Instrumentalities, government commissaries and SUCs with tax subsidies