Circularizing DOF-DBM Joint Circular (JC) No. 001-2024 and Its Annexes

January 31, 2024 FIRB ADVISORY NO. 002-2024 FOR : All Heads of Departments, Bureaus, Offices, and Other Commissions; Heads of All Other National Government Agencies, Including their Regional Offices; Heads of State Universities and Colleges, Schools, Hospitals, and Sanitaria; Heads of Government-Owned and/or -Corporations, Including Government Financial Institutions and Other Government Instrumentalities; and All Others Concerned SUBJECT : Circularizing the Department of Finance-Department of Budget and Management (DOF-DBM) Joint Circular (JC) No. 001-2024, Entitled "Rules, Guidelines, and Procedures Implementing the Tax Expenditure Subsidy (TES) Section under the General Provisions of the Annual General Appropriations Act (GAA)," and Its Annexes This Advisory is issued to circularize the DOF-DBM JC No. 001-2024 and its annexes, prescribing the rules, guidelines, and procedures relative to the implementation of the TES as provided under the General Provision on "National Internal Revenue Taxes (NIRT) and Import Duties" of the annual GAA. HTcADC DOF-DBM JC No. 001-2024 has been issued to incorporate legislative and policy developments ( e.g. , the passage of the CREATE Act) and to address attendant issues on the grant of tax subsidy. The key features of the joint circular are summarized below: a. The coverage of NIRT eligible for tax subsidy expressly excludes regular income tax liabilities, withholding tax liabilities, and interest, surcharges, and penalties . b. The tax expenditure fund may be utilized to settle prior years' tax liabilities arising from the national government's acquisition, reconveyance, and disposition of assets, among others. c. Streamlined tax subsidy applications process , allowing the Fiscal Incentives Review Board (FIRB) to issue the Certificate of Entitlement to Subsidy as long as the applicant submits proof of actual tax liability. d. Applications for tax subsidy filed beyond the October 15 deadline for applications of the FIRB or the November 15 deadline for issuing the Special Allotment Release Order (SARO) of the DBM may be processed in the first quarter of the immediately succeeding year . Attached to this advisory is a copy of the Joint Circular, signed on 08 January 2024, which shall take effect immediately. CAIHTE For information and guidance. (SGD.) JUVY C. DANOFRATA Assistant Secretary of Finance and Head of the FIRB Secretariat ATTACHMENT DOF-DBM Joint Circular No. 001-2024 January 8, 2024