RR No. 12-2021: Prescribes the policies and guidelines on the utilization of the Tax Payment Certificate issued by the DTI-BOI evidencing the availment of the fiscal support for the eligible and registered participants of the Comprehensive Automotive Resurgence Strategy (CARS) Program under EO No. 182, Series of 2015

Summary

RR No. 12-2021 sets policies and guidelines on using the Tax Payment Certificate (TPC) issued by the DTI-BOI as fiscal support for registered participants of the CARS Program under EO No. 182, Series of 2015.

Key points

1. Who and what taxes. The Regulations apply to Participating Car Makers (PCMs) and Participating Part Makers (PPMs) issued TPCs by the DTI-BOI. The TPC pays only Excise Tax, Income Tax and Value-Added Tax, and no withholding taxes.
2. Fiscal support split. Fixed Investment Support (FIS) is capped at forty percent (40%) of total fiscal support, and for Parts and Shared Testing Facility at 40% of the capital expenditure for tooling and equipment. Production Volume Incentive (PVI) is capped at sixty percent (60%).
3. TPC rules. The TPC is non-transferrable, issued in the participant’s name for specific tax obligations, and requested before the statutory payment deadline. It is valid for only thirty (30) days from issue, usable once, and accepted by the BIR only after verification and online validation through the Participating Car Maker Incentive Account (PCMIA).
4. Using the TPC in returns. The TPC amount is shown in the tax return as a deduction from tax due, with filing through eFPS or eBIRForms and any balance paid by the BIR’s payment modes. Hard copies and the TPC go to the RDO, LTDO or LTDQAD where the participant is registered, and any excess of TPC over tax due is not refundable.
5. Conditions and reporting. Participants may not register under any other incentive program as a condition for TPC availment, and support depends on compliance with registration terms. Audited Financial Statements and Income Tax Returns are due on or before May 15 of each year or one (1) month from the last day of filing Income Tax Returns.

Who is affected

• Participating Car Makers (PCMs)
• Participating Part Makers (PPMs)

Deadlines and effectivity

• TPC valid thirty (30) days from issue, single use
• AFS and ITR due on or before May 15 of each year or one (1) month from the last filing day of ITRs

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