Revised Guidelines on the Issuance of Certification for Tax and Duty Exemption Application under RA 7459
The TAPI Administrative Order No. 015, S. 2022 outlines revised guidelines for issuing certifications related to tax and duty exemptions for inventors and designers under Republic Act No. 7459. This program is designed to support Filipino men and women inventors by facilitating the evaluation of their applications, provided they meet specific eligibility criteria, including patent ownership and company legitimacy. The order emphasizes gender equality, ensuring equal opportunities for both male and female inventors to develop their inventions commercially. A Screening Committee, comprising representatives from various government departments, is tasked with overseeing the certification process and recommending awards for outstanding inventions. The order took effect immediately upon posting on the DOST-TAPI official website.
July 29, 2022
TAPI ADMINISTRATIVE ORDER NO. 015, S. 2022
| SUBJECT | : | Revised Guidelines on the Issuance of Certification for Tax and Duty Exemption Application under RA 7459 |
I. Program Description:
The program facilitates the evaluation of a request for the issuance of a certification on tax and duty exemption application of men and women inventor/utility matter/industrial designer for submission to the Bureau of Internal Revenue (BIR) or Department of Finance (DOF).
Pursuant to Article III, Sections 5 and 6 of Republic Act No. 7459, Applicants are given the privilege to apply for tax exemption and customs duties exemption for inventions that are new and original and produced on a commercial scale. The exemptions are principally governed by orders, revenue regulations and/or administrative issuances from the Department of Finance (DOF) through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC). The tax exemption privilege may be extended to the legal heir or assignee upon the death of the inventor.
DOST-TAPI recognizes the principles that fairness and equity demands that everyone in society whether male or female has the right to achieve their full potential, realizes the need to provide varying support to men and women inventors to promote their winning inventions in recognized international events.
Gender Equality Goals and Outcomes:
1. Enhanced gender responsiveness in the entire operation of the Institute to ensure that the services are participatory, fair, empowering and sustainable; and
2. Enhanced equal opportunity principles of men and women inventor beneficiaries of the Program for attaining their full potential and enable them to become effective contributors to development.
II. Assistance Coverage:
The service provided under this program shall be limited to the issuance of a Certification in support of one's application for Tax Exemption and/or Duty Exemption pursuant to BIR Regulation No. 19-93 and DOF No. 121-93, respectively.
III. Checklist of Requirements:
a. Tax Exemption — refer to list provided in the Tax Request Form (ANNEX "A").
b. Duty Exemption — refer to list provided in the Tax Request Form (ANNEX "B").
IV. Eligibility:
No applicant shall be granted a request for the issuance of Certification under this program unless the same complies with all the following eligibility requirements:
a. Must be a Filipino citizen;
b. Must have valid IPOPHL letters patent and utility model/industrial design registration; and
c. Must own legitimate company currently manufacturing the invention/utility model/industrial design.
V. Screening Committee (SC) for RA 7459 Meetings
The DOST-TAPI Secretariat facilitates the SC meeting in reference to DOST Special order and SC's functions (Sec. 3.2, IRR, RA 7459). The SC for RA 7459 consists of technical representatives (Art. II Sec. 4, RA 7459) from:
1. Department of Science and Technology (DOST);
2. Department of Trade and Industry (DTI);
3. Department of Agriculture (DA);
4. Department of Environment & Natural Resources (DENR); and
5. Filipino Inventors Society (FIS).
Meetings:
1. Simple majority constitute a quorum.
2. Shall meet on a regular basis. (indicated in the signed DOST SO)
3. In the absence of a Chairman, the Vice Chair shall preside the meeting.
4. A majority of the members of the SC may call for special meetings.
5. The SC may decide on the venue of the meeting.
The Screening Committee will have the following functions pursuant to the 2005 Implementing Rules and Regulations (IRR) under R.A. No. 7459:
1. Prescribe rules and criteria for the presidential awards for inventions;
2. Choose patented inventions in the Philippines to be granted Presidential Awards;
3. Recommend sending of winners to other countries where their winning inventions or areas of interest are advanced;
4. Adjust cash awards for invention contest and the additional expenses subject to the approval of the Institute;
5. To confirm the certification of the Filipino inventors Society issued to Applicants for tax incentives request;
6. To certify with Filipino Inventors Society that the invention meets the criteria that would enhance the economy of the country such as profitability and viability, dollar-earning capacity and generation of employment opportunities for Filipinos, for purposes of applying for loan assistance from government banks requiring guarantee under Invention Guarantee Fund (IGF).
VI. Effectivity
This Order shall take effect immediately after its posting in DOST-TAPI Official Website and shall supersede all contrary provisions of any previously issued guidelines for the Program.
Taguig City, Philippines, ___________________.
(SGD.) ATTY. MARION IVY D. DECENADirector
ANNEX A
Request for SC for RA 7459 Certificate of Confirmation for Application of Tax Exemption Incentives under RA No. 7459
ANNEX B
Request for SC & DOST Certification for Application of Duty Exemption under RA No. 7459