Revised Guidelines in the Facilitation and Management of Foreign Donations involving Health and Health-Related Products

July 1, 1975 REVENUE ADMINISTRATIVE ORDER NO. 05-75 SUBJECT : Jurisdiction of Investigation and Guidelines on the Procedure of Verification by the Investment Incentives Division TO : All Revenue Service Chiefs, Regional Directors, Division Chiefs, Revenue District Officers, Fieldmen and Others Concerned Pursuant to Letter of Instructions No. 204, dated July 24, 1974, in order to provide a systematic and continuing review of the qualifications and requirements for the availment of tax exemptions, incentives and privileges granted by the Board of Investments, the Philippine Tourism Authority, the National Economic and Development Authority (NEDA), the Department of Industry and other agencies of the government, the following guidelines are hereby promulgated as a matter of policy by the National Office. I Jurisdiction of Investigation A. The Investment Incentives Division, Office of the Commissioner, shall have exclusive jurisdiction of all cases listed hereunder, in accordance with the procedure outlined as follows: 1. Review and Verification of qualifications ; Investigation : (a) For a period of six (6) months beginning July 1, 1975 to December 31, 1975, an exhaustive study and review of the various tax exemptions and incentives granted by different agencies of the government shall be conducted for the purpose formulating a more reasonable tax policy governing tax incentives, the report thereon to be submitted not later than January 30, 1976; (b) Verifications of the qualifications and compliance with the requirements for the availment of tax exemptions and incentives shall be conducted on a case to case basis, with the end in view of recommending the withdrawal or suspension of the registration and/or certification of those who have not complied fully with all the requirements of the incentives laws and their respective implementing regulations; (c) All the data and statistics gathered resulting in the implementation of (a) and (b) hereof, shall be collated and evaluated accordingly, and shall be used as reference or basis in the regular investigation for internal revenue tax purposes under regular Letters of Authority by the Investment Incentives Division. B. Policy Cases for Investigation by the Investment Incentives Division. 1. All car manufacturers registered under the Progressive Car Manufacturing Program (PCMP) of the Board of Investments, including those operating with "phasing out" dollar allocations and their respective dealers. 2. Firms registered or applying for registration under the Electronics Local Contents Program (ELCP) of the Board of Investments and also covered by Revenue Regulation 1-71. 3. Firms registered or applying for registration under the Refrigeration Industry Rationalization Program of the Board of Investments and also covered by Revenue Regulation 1-71. 4. Firms certified or applying for product certification as "locally manufactured products" under Revenue Regulation 1-71 implementing the pertinent sub-sections of Section 185 of the National Internal Revenue Code. 5. Firms registered or applying for registration under the Investment Incentives Act (R.A. 5186). 6. Firms registered or applying for registration under the Export Incentives Act (R.A. 6135). 7. Firms registered or applying for registration with the Philippine Tourism Authority (P.D. 535). II Coordination with other Agencies The Investment Incentives Division shall coordinate with the Board of Investments (BOI), the National Economic and Development Authority (NEDA), the Philippine Tourism Authority, the Department of Industry and other agencies of the government administering tax incentives under the provisions of the National Internal Revenue Code and other special laws. cdta III Repealing Clause Any provision of any Field Circular, Revenue Administrative Order, Revenue Memorandum Order or Circular or other order which are contrary to or inconsistent with the provisions of this Revenue Administrative Order are hereby revoked or amended accordingly. IV Effectivity This Revenue Administrative Order shall take effect upon approval. MISAEL P . VERA Commissioner of Internal Revenue TAN-1601-593-5