RR No. 23-2025: Updated Policies, Guidelines and Procedures in the Implementation of the Tax Subsidy Granted by the Fiscal Incentives Review Board (FIRB) to the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES)

Summary

RR No. 23-2025 prescribes updated policies, guidelines and procedures for the tax subsidy granted by the FIRB to the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) on purchases from local suppliers of goods subject to VAT or Excise Tax.

Key points

1. Scope of the subsidy. The privilege is limited to the products, amount, scope and period in the FIRB Resolution and the Certificate of Entitlement to Subsidy (CES). Applications go to the FIRB under DOF-DBM JC No. 001-2024. Suppliers honor purchase orders only if approved by an authorized AFPCES official whose name and specimen signature are given to the CIR.
2. Application at the RDO. AFPCES submits the FIRB Resolution to the RDO having jurisdiction over its head office to apply for a CTSA. For VAT articles it attaches the PO and two copies of the supplier’s invoice, billed VAT inclusive. For Excise Tax articles it submits POs showing the tax base and Excise Tax due, plus the Supply Agreement between dealer and local refiner stating the supply is exclusively for AFPCES.
3. Petroleum purchases. Subsidized purchases from dealers must come from dealers who buy directly from local refiners. Only if the Department of Energy certifies no local refinery exists are purchases from dealers sourcing through importers covered.
4. Liquidation. After receiving articles, AFPCES promptly submits to the RDO the invoices and delivery receipts. The RDO will not process a new Excise Tax CTSA until the previous Tax Subsidy Availment Certificate (TSAC) is fully liquidated.
5. CES, QRTDA and SARO. The CES is valid until December 15 of the current calendar year, unless extended to December 31. Within ten (10) working days after each quarter, AFPCES prepares the Quarterly Report of Taxes and Duties Availments (QRTDA) and requests a SARO from the DBM.
6. TSAC and records. The RDO prepares the TSAC within five (5) working days after receiving complete documents. Suppliers and AFPCES each keep a BIR-registered registry book, and sales to AFPCES are entered no later than the next day.

Who is affected

• Armed Forces of the Philippines Commissary and Exchange Service (AFPCES)
• Local manufacturers, producers and suppliers selling to AFPCES
• Petroleum dealers and local refiners supplying AFPCES

Deadlines and effectivity

• CES valid until December 15 of the calendar year, or December 31 if extended
• QRTDA: within ten (10) working days after each quarter
• TSAC prepared within five (5) working days

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