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RMC No. 30-2003: Clarifies issues on the imposition of Value-Added Tax on sales of services by banks and other financial institutions to “PEZA-registered/Ecozone export enterprises.”

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Summary

RMC No. 30-2003 clarifies Paragraph 1-Q of RMC No. 28-2003 on VAT on services sold by banks and other financial institutions to BOI-registered and PEZA-registered/Ecozone export enterprises.

Key points

  1. Zero rate. Under Paragraph 1-Q, income from these services sold to a BOI-registered export enterprise with 100% export sales and to a “PEZA-registered/Ecozone export enterprise” is subject to VAT at 0%.
  2. Meaning of the term. “PEZA-registered/Ecozone export enterprises” means an enterprise registered as an export enterprise with PEZA or with another Ecozone.
  3. Limit on zero-rating. Zero-rating applies only to services directly related to the registered activity of the export enterprise. The financial institution requires the enterprise to show proof of this and to submit a Sworn Statement attesting to it.

Who is affected

  • Banks, non-bank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions
  • BOI-registered export enterprises with 100% export sales
  • PEZA-registered/Ecozone export enterprises

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

Related issuances

CitesRMC No. 28-2003

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.