REVENUE REGULATIONS NO. 10-2012 issued on June 1, 2012 defines the requirements for joint ventures or consortiums formed for the purpose of undertaking construction projects and prescribes the mandatory enrollment of local contractors in the Electronic Filing and Payment System (eFPS). A joint venture or consortium formed for the purpose of undertaking construction projects, which is not considered as corporation under Section 22 of the National Internal Revenue Code (NIRC), of 1997 as amended, should be: a. for the undertaking of a construction project; b. should involve joining or pooling of resources by licensed local contracts; that is, licensed as general contractor by the Philippine Contractors Accreditation Board (PCAB) of the Department of Trade and Industry (DTI); c. the local contractors are engaged in construction business; and d. the Joint Venture itself must likewise be duly licensed as such by the PCAB of the DTI. Joint ventures involving foreign contractors may also be treated as a non-taxable corporation only if the member foreign contractor is covered by a special license as contractor by the PCAB of the DTI, and the construction project is certified by the appropriate Tendering Agency (government office) that the project is a foreign financed/internationally-funded project and that international bidding is allowed under the Bilateral Agreement entered into by and between the Philippine Government and the foreign/international financing institution pursuant to the implementing rules and regulations of Republic Act No. 4566, otherwise known as Contractor’s License Law. Absent any one the aforesaid requirements, the joint venture or consortium formed for the purpose of undertaking construction projects shall be considered as taxable corporations. In addition, the tax-exempt joint venture or consortium shall not include those who are mere suppliers of goods, services or capital to a construction project. The members to a Joint Venture not taxable as corporation shall each be responsible in reporting and paying appropriate Income Taxes on their respective share to the joint ventures profit. All licensed local contractors are required to enroll to the BIR’s eFPS at the Revenue District Office where they are registered as taxpayers.