Revenue Memorandum Circular · RMC
RMC No. 38-2022
To clarify the Transitory Provisions for the non-income related tax incentives granted to Registered Export Enterprises (REEs) under Investment Promotion Agencies (IPAs), pursuant to Section 5, Rule 18 of the amended Implementing Rules and Regulations in relation to Section 311 of Title Xlll of Republic Act No. 11534 (CREATE Act).
- Document type
- RMC
- Number
- 38
- Year
- 2022
- Text quality
- Not specified
Document text
Reference copy · verify against the official sourceRMC No. 38-2022 (April 6, 2022) clarifies the transitory rules for non-income related tax incentives of Registered Export Enterprises (REEs) under Investment Promotion Agencies. Existing REEs prior to CREATE that continue to avail of their existing income tax incentives may continue to enjoy VAT zero-rating on local purchases directly attributable and exclusively used in their registered project or activity until the transitory period ends: until the remaining Income Tax Holiday period for REEs granted only an ITH, and until the ten (10)-year limit expires for REEs granted an ITH and/or the 5% tax on gross income earned. If the income tax incentive of an REE had already expired prior to CREATE, the VAT zero-rating on local purchases could no longer be availed.