RMC No. 91-2023

RMC No. 91-2023 (September 11, 2023) circularizes the amended Rule 18, Section 5 of the IRR of Republic Act No. 11534 (CREATE Act), covering non-income related tax incentives. Registered export and domestic enterprises that continue to avail of existing tax incentives under Sections 1, 2 and 3 of Rule 18 may keep duty exemption, VAT exemption on importation, and VAT zero-rating on local purchases per their IPA registrations. Export enterprises under Section 293(E) whose income tax-based incentives have expired may continue VAT zero-rating on local purchases until the BIR electronic sales reporting system (Section 237-A) is fully operational or the Section 311(C) transitory period expires, whichever comes earlier. RBEs classified as DMEs inside economic or freeport zones during the transitory period may register as VAT taxpayers, but DMEs that opt to register cannot claim VAT refunds for transactions before the Rules take effect. The incentives apply only to goods and services directly attributable to and exclusively used in the registered project or activity, and the Rules apply prospectively.