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RMC No. 12-2009: Publishes the full text of Administrative Order No. 240, entitled “Ordering Budget Maximizers Without Revamping Expenditure Parameters”

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Summary

RMC No. 12-2009 publishes the full text of Administrative Order No. 240 dated October 3, 2008, entitled Ordering Budget Maximizers Without Revamping Expenditure Parameters.

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Key points

  1. REAPS basket. Under Section 2 of the AO, all the fruits of the Value-Added Tax (VAT) are put in one basket called Revenues Allocated for PUBLIC Services, or REAPS.
  2. What goes into the basket. The most popular, high-impact, big ticket projects and programs are selected and placed together there. All social services and all new activities, both retail such as the LRT expansion, are placed there.
  3. Amount. The amount is P100 Billion, which corresponds to 80% of the Reformed VAT intake.

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.