Notice to All BOI Registered Business Entities Regarding Compliance to Republic Act No. 10708, Otherwise Known as "The Tax Incentives Management and Transparency Act (TIMTA)"

March 9, 2016 BOI MEMORANDUM CIRCULAR NO. 01-16 TO : All Board of Investments (BOI) Registered Enterprises SUBJECT : Notice to All BOI Registered Business Entities Regarding Compliance to Republic Act No. 10708, Otherwise Known as "The Tax Incentives Management and Transparency Act (TIMTA)" Pursuant to the provisions of REPUBLIC ACT (RA) NO. 10708 otherwise known as "The Tax Incentives Management and Transparency Act (TIMTA)" which was signed by President Benigno S. Aquino III on 09 December 2015, notice is hereby given to all BOI registered business entities regarding compliance with RA 10708: I. Policy : It is hereby declared the policy of the State to promote fiscal accountability and transparency in the grant and management of tax incentives by developing means to promptly measure the government's fiscal exposure on these grants and to enable the government to monitor, review, and analyze the economic impact thereof and thereby optimize the social benefit of such incentives. HTcADC II. Coverage : All BOI registered business entities are required to file their tax returns and pay their tax liabilities, on or before the deadline as provided under the National Internal Revenue Code (NIRC), as amended, using the electronic system for filing and payment of taxes of the Bureau of Internal Revenue (BIR) . All registered business entities shall file a complete annual tax incentives report of their income-based tax incentives, value-added tax and duty exemptions, deductions, credits or exclusions from the tax base with the BOI, within thirty (30) days from the statutory deadline for filing of tax returns and payment of taxes . III. Penalties : Failure of the registered business entity to comply with filing and reportorial requirements with the BOI and/or which fails to show proof of filing of tax returns using the electronic system for filing and payment of taxes of the BIR shall be imposed the following penalties: a. First (1st) violation payment of a fine amounting to one hundred thousand pesos (P100,000.00); b. Second (2nd) violation payment of a fine amounting to five hundred thousand pesos (P500,000.00);and c. Third (3rd) violation cancellation of the registration of the registered business entity. Provided, That if the failure to show such proof is not due to the fault of the registered business entity, the same shall not be a ground for the suspension of the ITH and/or other income-based tax incentives availment. IV. Effectivity : This Circular shall take effect immediately after its publication in a newspaper of general circulation in the Philippines. CAIHTE March 9, 2016. Makati City, Philippines. BY AUTHORITY OF THE BOI BOARD (SGD.) DR. CEFERINO S. RODOLFO Undersecretary and BOI Managing Head SECRETARY'S CERTIFICATE This is to certify that Memorandum Circular No. 2016-001 has been approved by the BOI through Board Resolution No. 7-14, Series of 2016 dated 09 March 2016. (SGD.) EXECUTIVE DIRECTOR EFREN V. LEAO Board Secretary Published in The Philippine Star on March 12, 2016.