RMC No. 29-2007: Publishes the full text of Republic Act No. 9399 entitled “An Act Declaring a One-Time Amnesty on Certain Tax and Duty Liabilities, Inclusive of Fees, Fines, Penalties, Interests and Other Additions Thereto, Incurred by Certain Business Enterprises Operating Within the Special Economic Zones and Freeports Created under Proclamation No. 163, Series of 1993; Proclamation No. 216, Series of 1993; Proclamation No. 420, Series of 1994 and Proclamation No. 984, Series of 1997, Pursuant to Section 15 of Republic Act No. 7227, as Amended, and for Other Purposes”

Summary

RMC No. 29-2007 publishes the full text of Republic Act No. 9399, which declares a one-time amnesty on certain tax and duty liabilities of business enterprises in special economic zones and freeports created under Section 15 of Republic Act No. 7227, as amended.

Key points

1. Who may avail. Registered business enterprises operating before RA No. 9399 took effect in the Clark, Poro Point, John Hay and Morong zones may avail. These zones were created under Proclamation No. 163, series of 1993, Proclamation No. 216, series of 1993, Proclamation No. 420, series of 1994 and Proclamation No. 984, series of 1997.
2. How to avail. The enterprise files a notice and return in the form prescribed by the Commissioner of Internal Revenue and the Commissioner of Customs. It then pays an amnesty tax of P 25,000.00 within 6 months from the effectivity of RA No. 9399.
3. Liabilities covered. The amnesty covers tax and duty liabilities with fines, penalties, interest and other additions that were incurred or may have accrued due to the Supreme Court rulings in John Hay People’s Coalition v. Lim, G.R. No. 119775, and Coconut Oil Refiners Association, Inc. v. Torres, G.R. No. 132527. It covers only the difference between all national and local tax impositions and the 5% tax on gross income earned.
4. Exclusion. Articles, raw materials, capital goods, equipment and consumer items removed from the zone and entered into the customs territory for local or domestic sale are not covered. They remain subject to the usual taxes and duties under the NIRC of 1997, as amended, and the Tariff and Customs Code, as amended.
5. Relief from liability. Those who availed and fully complied with all conditions are relieved of civil, criminal and/or administrative liabilities arising from or incident to the non-payment of the taxes, duties and charges covered by the amnesty.

Who is affected

• Registered business enterprises operating in the Clark, Poro Point, John Hay and Morong zones before RA No. 9399 took effect

Deadlines and effectivity

• Amnesty tax of P 25,000.00 payable within 6 months from the effectivity of RA No. 9399
• Issued April 23, 2007

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