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8box Solutions Inc.

4_20230710_150500_0001

Contact Number: 09369340340
Email: sales@8box.solutions

REVENUE MEMORANDUM CIRCULAR NO. 60-2019 issued on June 7, 2019 clarifies the guidelines in determining the tax treatment of transfer of real property by an Economic Zone (Ecozone) Developer/Operator duly registered under the Philippine Economic Zone Authority (PEZA) to another PEZA entity, and the documentary requirements for the processing of the Electronic Certificate Authorizing Registration (eCAR) under RMC No. 9-2018.

No local and national taxes, including the Documentary Stamp Tax (DST) under Section 180 of the National Internal Revenue Code (NIRC) of 1997 as amended, may be imposed on PEZA-registered enterprises availing of the 5% preferential tax rate on the income earned from their registered activities.

In case of a sale of real property located within an Ecozone by a PEZA-registered Ecozone Developer/Operator enjoying the 5% final tax on Gross Income Earned (GIE) to another PEZA-registered enterprise likewise enjoying the 5% final tax incentive, both parties are exempt from DST, provided that such sale or disposition is directly pursuant to their registered activities.

The following documents shall be required from all parties to support the tax exemption of the transaction for purposes of issuing the eCAR:
1. Certified true copy of the latest PEZA Certificate of Registration of the PEZA Ecozone Developer/Operator and the parties to the transaction;
2. Certified true copy of PEZA Registration Agreement; and
3. Certified true copy of the following PEZA certificate of available tax incentives
as of the time of the transaction:
a. PEZA Form No. 00-00-01 – Certification on Entitlement of 5% Gross
Income Tax; and
b. PEZA Form No. 00-03-01- Certification on Available Incentives.