RMC No. 135-2024 Digest

RMC No. 135-2024 (issued December 18, 2024) circularizes Republic Act No. 12066, which further amends numerous provisions of the NIRC of 1997 — including corporate income tax rates (Sections 27 and 28), gross income and deductions (Sections 32 and 34), withholding at source (Section 57), VAT on sale of goods, services, exempt transactions, and input tax refunds (Sections 106, 108, 109, 112), petroleum products sold to international carriers (Section 135), invoicing and electronic sales reporting (Sections 237 and 237-A), and fiscal incentive provisions (Sections 292 to 311) — and adds new Sections 135-A, 295-A, 296-A, and 297-A. The Secretary of Finance shall include in the Department's program the operationalization of the electronic processing of the VAT refund system, funded through the annual General Appropriations Act. Enumerated incentive-related provisions apply prospectively to projects or activities granted tax incentives under RA No. 11534 upon the Act's effectivity, including the exemption from national and local taxes for SCIT availing projects, additional enhanced deductions under Section 294(C)(6)-(9), the 20% income tax rate on RBEs under the enhanced deduction regime, RBE local tax for those availing ITH or EDR, and the conditions for duty/VAT exemption on importation and VAT zero-rating on local purchases. No tax refund or credit shall be granted to RBEs covered by Section 19 of the Act.