Revenue Memorandum Circular · RMC

RMC No. 63-2023

To revoke and invalidate BIR Ruling Nos. 038-2001 and 046-1995 (which treated Clark Development Corporation as a business enterprise) and to clarify that CDC is a GOCC and an IPA whose income is subject to income tax under Section 27(C) of the Tax Code and which cannot avail of incentives granted to RBEs.

Bureau of Internal RevenueIndependent research copy

Document type: RMC
Number: 63
Year: 2023
Text quality: Not specified

Document text

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RMC No. 63-2023 (issued May 31, 2023) revokes and invalidates BIR Ruling Nos. 038-2001 and 046-1995, which had ruled that Clark Development Corporation (CDC) is a business enterprise. The BIR holds that CDC, despite being structured as a stock corporation, is a Government-Owned and Controlled Corporation (GOCC) performing regulatory functions and is classified as an Investment Promotion Agency (IPA) under the CREATE Law and Section 293(H) of the Tax Code. Accordingly, CDC's income is subject to income tax under Section 27(C) of the Tax Code, and CDC cannot avail of the fiscal and non-fiscal incentives exclusively granted to Registered Business Enterprises (RBEs). All revenue issuances inconsistent with the Circular are deemed repealed without prejudice to Section 246 of the Tax Code.