Publication of Firm-Level Data on Tax Incentives and Benefits

September 14, 2022 FIRB RESOLUTION NO. 029-22 WHEREAS , Section 306 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act," mandates the Fiscal Incentives Review Board (FIRB) to systematically collect and store all tax incentives and benefits data from the Department of Finance (DOF), Investment Promotion Agencies (IPAs), other government agencies administering tax incentives (OGAs), registered business enterprises (RBEs) and other registered enterprises (OREs), as well as to evaluate and assess the process, outcomes, and impact of incentives granted to firms to determine whether agreed performance targets and intended results and outcomes are met; WHEREAS , Section 306 of the NIRC of 1997, as amended by the CREATE Act, states that the tax incentives information shall include per firm data related to incentives availed of by RBEs based on the submissions of the DOF and the concerned IPAs and OGAs administering tax incentives, categorized by sector, by IPA or OGA, and by type of tax incentive; WHEREAS , Rule 11, Section 6 (e) of the CREATE Act Implementing Rules and Regulations (IRR), in relation to Section 306 of the NIRC of 1997, as amended, provides that the FIRB shall publish annually at a per firm level, the data pertaining to the amount of tax incentives, tax payments, and other related information, including benefits data and the results of the cost-benefit analysis (CBA) in the website of the FIRB not later than September 30 of the current year; WHEREAS , Rule 11, Section 2 of the CREATE Act IRR provides that all RBEs and OREs availing of tax incentives shall, within thirty (30) calendar days from the statutory deadline for filing of tax returns and payment of taxes submit to their respective IPAs or OGAs administering tax incentives an Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR); WHEREAS , the deadline for filing the Annual Income Tax Return (AITR) for Calendar Year 2021 was due on April 18, 2022, since April 15, 2022, fell on a non-working holiday. However, the AITR was allowed to be amended on or before May 16, 2022, without the imposition of interest, surcharge, and penalties, as provided for under Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 42-2022, which effectively provided taxpayers with an extension to finalize the amounts in the AITR; WHEREAS , the FIRB allowed RBEs, and OREs to submit a tentative ATIR and ABR on or before May 18, 2022. While the final ATIR and ABR must be submitted to the concerned IPA or before June 15, 2022 copy furnishing the FIRB Secretariat. On the other hand, the FIRB allowed IPAs to submit the consolidated ATIR and ABR to the BIR and FIRB Secretariat on or before August 15, 2022; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED , That the FIRB Secretariat is authorized to publish preliminary firm-level data containing the following: cSaATC Information on the firm and general characteristics 1. Anonymized names of firms/legal entity-level; 2. Registration per IPA; 3. Market orientation; 4. Philippine Standard Industrial Classification Code and description; Information on employment 5. Employment data, including compensation and hours worked; Information on investment realization 6. Approved investments; 7. Actual investments; Information on the preliminary cost-benefit analysis (net revenue approach and employment generation) 8. Net revenue collection or foregone collections ( i.e. , total tax collections less total tax foregone); and 9. Implicit labor subsidy ( i.e. , total tax foregone dividend by the count of employees). RESOLVED, FURTHERMORE , That the Head of the FIRB Secretariat is authorized to reduce, increase, or modify the contents of the annual firm-level data to be published, including the accompanying CBA and the related reports. RESOLVED, FINALLY , That the Head of the FIRB Secretariat is authorized to publish subsequent annual firm-level data and implement adjustments and modifications thereto, including adjustments in the subsequent CBA and the related reports. This resolution may be signed in any number of counterparts, each of which when duly executed and sent by facsimile or electronic transmission to the Secretariat shall be valid and effectual as if executed as an original, but all the counterparts (including counterparts sent by way of facsimile or electronic transmission) shall together constitute one and the same document. Adopted by the Board in its meeting on 14 September 2022 where a quorum was present. (SGD.) AMENAH F. PANGANDAMAN Secretary of Budget and Management (SGD.) ARSENIO M. BALISACAN Secretary of National Economic and Development Authority (SGD.) ROLANDO P. TAN Deputy Executive Secretary for Finance and Administration (SGD.) ALFREDO E. PASCUAL Co-Chairperson and Secretary of Trade and Industry (SGD.) BENJAMIN E. DIOKNO Chairperson and Secretary of Finance October 4, 2022