DOF-DTI Joint Memorandum Circular No. 1-2016 Clarifying Certain Provisions of DOF-DTI Joint Administrative Order No. 1-2016, Entitled "Rules and Regulations to Implement Republic Act No. 10708, Otherwise Known as the "Tax Incentives Management and Transparency Act (TIMTA)"

September 30, 2016

PEZA MEMORANDUM CIRCULAR NO. 2016-035

 

The Department of Finance and the Department of Trade and Industry issued Joint Memorandum Circular (JMC) No. 01, Series of 2016 (copy of the JMC is attached). Clarifying certain provisions of Joint Administrative Order (JAO) No. 1-2016 (Rules and Regulations to Implement Republic Act No. 10708).

Please be advised of the key provisions of JMC No. 01-2016, which includes amendments of certain provisions of JAO No. 1-2016, as follows:

1. The deadline of submission of the reports for both income-based tax incentives and value-added tax (VAT) duty exemptions by RBEs covering Taxable Year 2015 is amended, as follows:

 

	Submission by IPAs to BIR of
	Consolidated Annual Tax Incentives
	Reports and to the NEDA Secretariat
Submission by RBEs to PEZA	of Aggregate Annual Tax Incentives
	Report
November 15, 2016 a/	December 30, 2016 b/
a/ from original due date of September 15, 2016 under JAO 1-2016
b/ from original due date of November 15, 2016 under JAO 1-2016

 

2. Only Registered Business Entities (RBEs) availing of incentives are mandated to submit the Annual Tax Incentives Report (Annex A.1 and Annex A.2 of JAO No. 1-2016) to their respective Investment Promotions Agency (IPA).

3. RBEs employing the Fiscal Year accounting period shall state in the title of their Annual Tax Incentives Report-Income-based Tax Incentives (Annex A.1 of JAO No. 1-2016) the ending date of their fiscal year.

4. Deadline of Submission of Annual Tax Incentives Reports for Taxable Year 2016 shall be as follows:

	Statutory Deadline for
Accounting Period	Filing the Final Adjustment	Submission of Annual Tax
Ending	Return and Payment of Tax	Incentives Report to PEZA
	Due Thereon, if Any
31 January 2016	15 May 2016	15 December 2016
29 February 2016	15 June 2016
31 March 2016	15 July 2016
30 April 2016	15 August 2016
31 May 2016	15 September 2016
30 June 2016	15 October 2016
31 July 2016	15 November 2016
31 August 2016	15 December 2016	14 January 2017
30 September 2016	15 January 2017	14 February 2017
31 October 2016	15 February 2017	17 March 2017
30 November 2016	15 March 2017	14 April 2017
31 December 2016	15 April 2017	15 May 2017

 

5. Submission of Annex A.2 of JAO No. 1-2016 or Annual Tax Incentives Reports-VAT, Excise Tax and Duty-Based Incentives for the year 2016 (calendar) shall be submitted on or before 15 March 2017, regardless of accounting period.

6. Deadline for submission of reports for Taxable Year 2017 and subsequent years is provided (see attached JMC).

We urge all RBEs to please refer to the Notes to the Annual Tax Incentives Report which provides the description of each column in order to avoid inaccurate reports. A considerable number of the reports already submitted by RBEs were returned to the concerned RBEs due to inaccurate or incomplete data reported.

RBEs which have already submitted their 2015 reports are advised to review their reports based on the Notes to the Annual Tax Incentives Reports. RBEs which intend to amend their report, may do so on or before November 15, 2016. The RBE should indicate "Amended" in the printed copy and soft copy.

For any clarification on the Report Forms, please contact the PEZA-Incentives Management Division at 551-9540 loc. 421, 422 or 426 or email to [email protected]

For strict compliance.

(SGD.) JUSTO PORFIRIO LL. YUSINGCODeputy Director GeneralOfficer-in-Charge

ATTACHMENT

DOF-DTI Joint Memorandum Circular No. 001-16