RMC No. 46-2023: Publishes the full text of Fiscal Incentives Review Board Advisory No. 006-2023 regarding clarifications on the supplemental guidelines on the registration with the Board of Investments (BOI) of Registered Business Enterprises (RBEs) in the Information Technology — Business Process Management (IT-BPM) Sector

Key points

1. Coverage and TEI. Only capital equipment and assets of the BOI-registered IT-BPM project used for WFH are covered. Assets moved out of the zones need a Tax Exemption Indorsement (TEI) from the DOF Revenue Office. Existing goods imported as of January 31, 2023 get a blanket TEI per project, and new importations from February 1, 2023 get a TEI per shipment per project. Purely internet-based software needs no TEI, but software that is a component of physical equipment does.
2. Bond-free period. Under FIRB Resolution No. 33-2022, as extended by FIRB Resolution No. 012-23, the bond-free transition period runs from January 1, 2023 to June 30, 2023. Afterward, goods may move out with a provisional goods declaration and a specific and sufficient surety bond approved by the BOC. The TEI of existing assets outside the zone cannot be secured later than one (1) year from issuance of FIRB AO No. 003-2023 or the end of the bond-free period, whichever is later.
3. Staging or dummy bill of lading. This is needed only for the blanket TEI on existing imported assets, not for locally purchased equipment. The BOC releases it within three (3) working days from submission of complete documents. New importations from February 1, 2023 are covered by an actual signed and dated Import BL or Air Waybill.
4. Other points. The Certificate of Non-Local Availability requirement is deferred until the DOF-DTI joint memorandum circular is issued. Cargoes remain subject to 100% BOC inspection. The BOC valuation for asset disposal applies prospectively only.
5. Extension offices and PEZA transferees. An extension office with added capacity can be registered separately for incentives. One only rearranging premises needs a PEZA Letter of Authority and gets no added incentives. Transferee RBEs registered with PEZA and BOI must keep an office inside PEZA-registered IT Centers/Buildings under PEZA Memorandum Circular No. 2022-067, or face cancellation of registration.
6. BIR registration update. IT-BPM transferees update their BIR COR, showing the new IPA followed by the old IPA separated by a slash, for example BOI/PEZA or BOI/CDC. RBEs with multiple activities under multiple IPAs use additional sheets of BIR Form No. 1905. The update may also be done through ORUS.

Who is affected

• IT-BPM Registered Business Enterprises
• IT-BPM transferees registered with PEZA and BOI

Deadlines and effectivity

• Bond-free transition period: January 1, 2023 to June 30, 2023
• New importations starting February 1, 2023 need a TEI per shipment per project
• Staging BL released within three (3) working days from complete documents