RR No. 31-2003: Prescribes the policies, guidelines and procedures in the implementation of the tax subsidy granted by the Fiscal Incentives Review Board to the Armed Forces of the Philippines Commissary and Exchange Service.

Summary

RR No. 31-2003 provides the policies, guidelines and procedures for the tax subsidy granted by the Fiscal Incentives Review Board (FIRB) to the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES).

Key points

1. Coverage. The subsidy covers AFPCES purchases from local manufacturers, producers or suppliers of articles subject to Excise Tax and VAT, for sale to persons entitled to commissary privileges. Privileges are limited to the products, amount, scope and period of subsidy in the FIRB Resolution and the Certificate of Entitlement to Subsidy (CES) issued by the Department of Finance.
2. Purchase orders. No AFPCES purchase order paid through the subsidy is honored unless approved by the authorized AFPCES official. The official’s name and specimen signature are furnished to the Commissioner of Internal Revenue or authorized officers.
3. DBM application and SARO. AFPCES applies to the Department of Budget and Management (DBM) for entitlement to the subsidy. On approval, the DBM issues a Special Allotment Release Order (SARO) in favor of the Bureau of Treasury (BTr) to cover the taxes due to the BIR. AFPCES gives a copy of the SARO to the RDO over its principal office and to the BTr.
4. Quarterly list of purchases. AFPCES submits to the RDO a Quarterly Summary List of Purchases and Input Tax in diskette form under RR No. 8-2002. The list also shows the PO number, the sales invoice of the manufacturer, producer or supplier, and their delivery receipts.
5. Registry books and TSAC. AFPCES and the manufacturers, producers or suppliers each keep a BIR-registered registry book. Sales to AFPCES are entered not later than the day after the transaction. Procedures for the Tax Subsidy Availment Certificate (TSAC) for VAT and Excise Tax items are set out in the Regulations.

Who is affected

• Armed Forces of the Philippines Commissary and Exchange Service (AFPCES)
• Manufacturers, producers or suppliers selling to AFPCES

Deadlines and effectivity

• Registry book entries not later than the day after the transaction
• Quarterly Summary List of Purchases and Input Tax

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