Tax Incentives Management and Transparency Act (TIMTA) amendments
THE Philippine Economic Zone Authority (PEZA) recently issued PEZA Memorandum Circular No. 2016035 to clarify certain provisions under the TIMTA by the Department of Finance (DOF) and the Department of Trade and Industry (DTI) under their Joint Administrative Order (JAO) No. 1-2016.
The significant amendments in the provisions of the JAO No. 1-2016 include the following:
The deadline of submission of the reports for both income-based tax incentives and value-added tax (VAT) duty exemptions by Registered Business Entities (RBEs) covering taxable year 2015 is extended to November 15, 2016 from the original due date of September 15,2016;
Only RBEs availing of incentives are required to submit the Annual Tax Incentives Report;
RBE’s using the Fiscal Year accounting period shall state in the title of their Annual Tax Incentives Report – Income-based Tax Incentives the ending date of their fiscal year;
The deadline of submission of the Annual Tax Incentives Report – Income-based Tax Incentives to PEZA for the taxable year 2016 are as follows:
For accounting period ending January to July 2016 – deadline is December 15, 2016;
For accounting period ending August 2016 – deadline is January 14, 2017;
For accounting period ending September 2016 – deadline is February 14, 2017;
For accounting period ending October 2016 – deadline is March 17, 2017;
For accounting period ending November 2016 – deadline is April 14, 2017;
For accounting period ending December 2016 – deadline is May 15, 2017; and
The deadline for submission of Annual Tax Incentives Report – VAT, Excise and Duty-Based Incentives for the taxable year 2016 is March 15, 2017 regardless of the accounting period.
To avoid inaccurate reports, PEZA urges all RBEs to refer to the Notes of the Annual Tax Incentives Report which provides the description of each column. RBEs which have already submitted may review and amend their 2015 reports on or before November 15, 2016. The word “Amended” should be indicated in the printed copy and soft copy.
Please refer to the Memorandum Circular for more guidelines. Source: P&A Grant Thornton Certified Public Accountants Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd