. Jan. 8, 2000 ens REPUBLICOF THE PHLPPINES, i fei BUREAUOP NTERNA, REVENUE } — Noverbor 12,1990 | REVENUE REG! ONS NO. 1-2000 | Regulations Implementing Section 4 R.A. No, 8743, Entitled “An Act Amending Republic Act No. 7916," Otherwise Known as the Special Economic Zone Act of 1995, Ameacing for this Purpose Revenue Regu- lations No. 12-97. To 2 All Internal Revenue Officers and Others Concerned, SECTION 1. Scope. ~ Pursuant to Section 4 of Repuslic Act No. 8746, mented by Revenue Regulations No. 12:87, these Reguations are hercuy promulgated to amend the sions of the aforesaid Revenue Regulations No. 12-87 in respect of sharing, cistrbution and manner of disposition o! the two percent (2%) share of local government units from tho five porcont (5%) special ax on some earned, in leu ofall taxes, except the rea! propery fax, impasec on PEZA-registered enter tered under and operating pursuant fo the Spoe'al Economic Zone Act, as Implemented by the ‘conemic Zone Autnosty (PEZA), mending RA. No. 7916 a5 |B SECTION 2. Sharing and Distribution of the Procosds Registered Enterprises. ~ Pursuant to Section 24 of FLA, No, 7916, as amended by RA, 8748, PEZA- fogistered enierorses shal in fou ofall taxes {except the rea! property tax on land owned by developers), pay 2 tax equivalent to five poreent (6%) based on gross income earned, which shall be shared and buted a8 follows: ‘om the $% Special Tax Paid by PEZA- { (a) Tothe Nasional Government 3% | (byTo tho Traasurer’s Grice of the Municipality or City where the registered ‘enterprise is located 2% SECTION. Rules of Apportionment. ~In case the Spe Zone (ECOZONE) in etuated and encompasses the lartrialjuriscietion of more than one (1) ely or municipalty, the sharo of each cty oF ‘municipality from the 2% special tx pal by ECOZONE anvaprises shall be determined in aceardance with the implementing PEZA regulations on the subject. The Philzzine Economic Zone Authority (PEZA) chal iseva cconifcation as te the exact share of the ecncarned cities o¢ municgsltios rom the 2% tax as allocsted under tne implementing rules ot PEZA. SECTION 4, Nature of the $% Tax and Extent of Tax Exemption. ~ ‘The shove S%staxis imposac on “gross income earn revanve iaw in characte. Registered ECOZONE entern tocal, except the real propery tax on land cwned by a amended by R.A. No. 8748, rence, income tax in nature and a national internal shall be exompt irom all other taxes, national or on 24 of RA. No. 7916, 28, | secriow 5, nouome ana Paymant ofthe Tox - (a) Quarterly ang Final Adjustment Tax Return, ~ Svery ECOZONE registered enterprise subject 10 the herain 5% specat incoma tax shal fle a quarterly and a first adjusimont income tax eetuin showing among others, (1) ts “grass income earned for such period; (2) the emount representing the Sts tax on such ‘gross income earned" (3) the amount representing the aloremontoned 29% share of the cityimuricipaty: (4) iP eaca the entorprice eecupies a parcal of land situated witha the torrteral boundaries of two or more cies! | munccpalties, te area of land within the jurisdiction of can eyimcricipally and the share from the tax ot enuicipay, ‘The storosaid ortororise shal fle quart incoma tax reutn within sixty (60) the Sretthrae (3) quarters and a final adlustment ineome tx retuen covering 30 fikeanth (15°) day of th yes ays atter the close of each 1 entize taxable year, not ur (8%) month folowing the close ct its taxable year, whether a accounting period, in accordance with Tile , Chapter XIl, of the National Internal that it shall goparo and accomplish at least five (6) copies as follows: (1) Criginal and duplicate original copies thereet for fing with the duly authorized fine Commissioner of Internal Revenue, forthe purpose of payment of the aforementioned nt; (2) twa (2) copies area! for the purpose of payment of the aforesaid and (2) ane (1) copy horeot for tha He of the sald ontorprise: Provided, simunis alias are entilad to a share in tna two percent (2%) tax share of ny copies shal! be accomplished for he purpose ct Hing at least to (2} copies neraot with the concerned eiies/municinaites,{ 1 | i | | | | | | | 1 i | | | ‘oprecentatve of the Commissioner shall secure the original and duplicate orginal copies theraa! for BIR Durposes. The remaining copies thereof shall be returned to ‘othe & Adattiongt sopdrata schedite showing (1) th detats bn how the same has Been computed; (2) the 6% speci tax due thereon; (3) the 246 tax share of tho Nationa! Goverament | pases, The same setedule, in adsiton to its duty avciod financial statemeris, shal be submited with is neal final adusiment retutn: Provided, however, datais how ts “goss income earnee has been computed. Prowdsd,f shall secure on an annual basis a cortication trom PEZA that {1} the fed establishment enttlod to the 8% spacial tax en gros roontag SECTION 8. Authority to Issue Any Delicieney 5%. Sy (a) Jurisdiction. Pursuant te Section 6 ofthe Navona! Internal Favonue Code of 1997, in relaion toR.A. No. 7816, as amenced by R.A, No. 8748, be under the exclusive jusciation of te Commissioner of Inocnal Revenue or his duly authorized represen- (©) Distribution and Collection of the Dati (60%) of the 8% special income tax assesses. the concemed ciylmunicinal weasurer with one (1) cerifted ecpy a the formal deficioney 5% special income 350d against an ECOZONE enterprise at tha same ime ine same Henea, the formal defeieney tax assessment for issuanca to such enterprises shall show tho folowing: Unless the taxpayer has duly protostod against ayer not later than the data praseribed for 2 corresponding delinquency increments shall bs imposed. The tsxpayer shall inform the Treasurer of the iyfmunicpality coneerned, in writing, whenever it pro- tested against the aforesaid deficiency tax assessment and shal sum protest duly filed withthe BIR, (c) RetundiCredit for Erronzously Pald 5% Special income Tax. — o SECTION 8, Etfectvity Clouse, in & newspaper of general cre! Recommending Approval _ - BEETHOVEN L.RUALO + missioner of Intsnal Revenue yy aitve af the Commissioner of share of me National GBversiiant, all copies therect snat be stamped 12 ‘and the remaining copy, duly stamped received by ine sais authorized representative, shall ba submited rcerned ciylraunicipal vessurer ") oF tory percent (40%) thereot shell be coliectza by tha eoneerned city TION 7. Repeating Clause. ue issuances which are Inconsistent herewith aze Nereay modifac ar amended accordingly. emantionad tax rotur 2, payment of tha 3% tax wvBEThe said duly authorized neal Raver the sald enterprise, one (1) copy thereat for is Jehment. ‘The said enterprise shal submit with its querer income tax return a ‘gross income exmed” cr the quarter without, however, showing the id (4 the share of each icipalty trom the 2% 2x share of eties and munici- i this purpose, tho said schedule shalt shovr the aly, tall ECOZONE ostablishments, iahmont is a bona‘lide PEZA- income and tht (2) whenever applicable, the ation of tha 2% share in caso of overlapsing municipatieaciies, ial Income Tax Assessment, — te power te audi ard agsaes tha herein 5% special income tax shal ency Tax Assessed, ~ Threorfilth (QS) or sinty incisive of inecemants, ropreserting the share ofthe nt shall be colected by the Commissioner or his duly auhonzed represontatve. Twoith vunlejpality, represaning te the St spacial income tax on ECOZONE entararses, formation. ~ 1e Commissioner or his duly authorized reprasantative shall furnish 's issued fo tho said taxpayer. “CeRMFIED OOPY: The Treasurer GhyMuricpalty of = delisioncy tax assessroni, the same shall be paid by ita payment as shown in the assessment notice, ather- mereuith a copy of the letter of In The Case Of The 3% Tax Share O! Tas National Government. - In case of erconeous Payment of ihe tax, the same may be cefundes or cractad by the GIR, pursuant fo the provisions of Section 206 ofthe National intarnal Revenue Code of 1997, ln The Case Of The 2% Tax Share Of The City/Municipaity. ~ In case of erroneous payment of the tax, the amount erroneously paid to the ctyimunisipaity shall bo refunded by such ety! municipal he provisions enue Reg.tations No. 12:87 and all other jose Regulations shall eke etfect ftteen (15) days alter publestion ‘DGARDO 8. ESPIRTU ‘Secratary of Finance