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Circularizes the Implementing Rules and Regulations of Title XIII of Republic Act (RA) No. 8424, otherwise known as the “National Internal Revenue Code of 1997”, as amended by RA No. 11534 (CREATE Act)

REVENUE MEMORANDUM CIRCULAR NO. 83-2021 issued on July 12, 2021 circularizes the Implementing Rules and Regulations (IRR) of Title XIII of Republic Act (RA) No. 8424, otherwise known as the “National Internal Revenue Code of 1997”, as amended by RA No. 11534 (CREATE Act).
                The IRR shall apply to:
              a. All existing Investment Promotion Agencies (IPAs) as defined in the Act or related laws                         with respect to the administration and grant of tax incentives unless otherwise specifically                    exempted from the coverage thereof;
              b. All newly-registered projects or activities, including qualified expansion projects or                                activities of export enterprises and domestic market enterprises, under the Strategic                              Investment Priority Plan (SIPP);
               c. Registered enterprises, projects or activities currently registered with IPAs and
                   enjoying incentives prior to the effectivity of the Act;
              d. Other government agencies administering tax incentives with respect to the                                           administration and grant of tax incentives and other registered enterprises availing of tax                      incentives; and
               e. Government-Owned and/or –Controlled Corporations (GOCCs),                                                               Government Instrumentalities (GIs), government commissaries, and State Universities and                     Colleges (SUCs) that were granted tax subsidies under the tax expenditure fund of the                          Annual General Appropriations Act.
                The Fiscal Incentives Review Board (FIRB), or the IPAs mentioned under Rule 1, Section 4(P) under a delegated authority from the FIRB, shall grant tax incentives to registered business enterprises only to the extent of their approved registered project or activity under the SIPP. The IRR has the following contents/information:
                A. Under Rule 2 – Tax and Duty Incentives
                     i. Income Tax Holiday
                     ii. Special Corporate Income Tax
                     iii. Enhanced Deductions
                     iv. Customs Duty Exemption on Importation of Capital Equipment, Raw Materials,
                         Spare Parts or Accessories
                      v. Value-Added Tax (VAT) Zero-Rating and Exemption
                      vi. Other Incentives on Importation of COVID-19 Vaccines
                      vii. Other Incentives on Importation of Petroleum Products
                      viii. Taxation after the expiration of the period of availment of incentives
                      ix. Taxation of non-registered project or activity
                B. Under Rule 3 – Period of Availment of Incentives
                     i. Period of availment for export enterprises
                     ii. Period of availment for domestic market enterprise
                     iii. Qualified expansion, entirely new project or existing registered projects or activities
                     iv. Start of period of availment
                     v. Prioritization and tiering
                     vi. Period of availment of incentives based on location and industry priorities
                     vii. Projects or activities located in areas recovering from armed conflict or a major
                     viii. Projects or activities relocating from the National Capital Region
                     ix. Review and revision
                C. Under Rule 4 – Strategic Investment Priority Plan
                     i. General Principles
                     ii. Formulation
                     iii. Contents
                     iv. Criteria for Investment Priority Determination
                     v. Validity
                     vi. Mandatory Laws
                     vii. Steering Committee
                     viii. Amendments to the SIP
                     ix. Publication
                D. Under Rule 5 – Scope
                     i. Authority of the FIRB to Grant Tax Incentives
                     ii. Authority of the IPAs
                E. Under Rule 6 – Registration of Business Enterprise
                     i. Qualified Business Enterprise
                     ii. Qualifications for Registration
                     iii. Method of filing and Fees
                     iv. Basic Documentary Requirements
                     v. Incomplete Application
                     vi. IPA Evaluation Process
                     vii. FIRB Evaluation Process
                F. Under Rule 7 – Action on the Registration
                    i. IPA Action and Notice to Applicant
                    ii. Certificate of Registration
                    iii. Conditions Precedent for Issuance of Certificate
                    iv. Issuance of Certificate
                G. Under Rule 8 – Application for Tax Incentives
                    i. Filing of Application
                    ii. Form
                    iii. Application for Certificate of Entitlement to Tax Incentives (CETI)
                    iv. Issuance of CETI
                    v. Conditions for the Grant of Tax Incentives
                    vi. Finality of Decision on Application for Tax Incentives
                    vii. Monitoring Report
                     viii. Burden of Proof
                H. Under Rule 9 – Customs Duty Exemption on Importation of Capital Equipment,
                     Raw Materials, Spare Parts and Accessories
                     i. Certificate of Authority to Import (CAI)/Admission Entry
                     ii. Application for Certificate of Authority to Import (CAI)/Admission Entry
                     iii. Validity of CAI/Admission Entry
                     iv. Performance Bond
                    v. Monitoring of the Imported Capital Equipment, Spare Parts and Accessories
                I. Under Rule 10 – Power of the President to Grant Incentives
                   i. Power of the President to Grant Incentives
                   ii. Limitations to the Period of Incentives Availment
                   iii. Conditions for the grant
                   iv. Periodic review of thresholds
                   v. Cancellation of incentives
                   vi. Suspension of the power of the President to grant incentives
                J. Under Rule 11 – Filing and Submission of the Annual Income Tax Incentives Report
                    i. Filing of Tax Returns and Payment of Tax Liabilities
                    ii. Submission of the Annual Tax Incentives Report (ATIR) and Annual Benefits
                       Report (ABR)
                    iii. Contents of the ATIR and ABR
                    iv. Role of the IPAs and OGAs administering tax incentives
                    v. Role of the BIR and the BOC
                    vi. Role of the FIRB
                    vii. Role of the DOF
                    viii. Role of the DBM
                K. Under Rule 12 – Conduct of Impact Evaluation on Tax Incentives
                    i. Conduct of impact evaluation on tax incentives
                    ii. Third-party peer review
                    iii. Penalties for noncompliance with filing of ATIR and ABR
                L. Under Rule 13 – Expanded Functions of the FIRB
                    i. Policy making and oversight functions
                    ii. FIRB oversight functions over other government agencies administering tax
                       incentives under Section 297(A)
                    iii. FIRB oversight functions over registered enterprises with tax incentives
                    iv. Power to approve or disapprove the grant of tax incentives
                    v. Power to formulate place-specific strategic investment plans
                    vi. Power to cancel, suspend or withdraw the enjoyment of tax incentives
                    vii. Power to require submission of incentives and benefits data
                    viii. Authority to publish incentives and benefits data
                    ix. Power to recommend the grant of non-fiscal incentives for highly desirable projects
                    x. Power to adopt policies for supply chain development and expansion
                    xi. Power to approve application for tax subsidies
                    xii. Power to cancel, suspend, or withdraw the enjoyment of tax subsidy
                    xiii. Submission of annual report to President
                    xiv. Evaluation of tax incentives granted to registered entities
                    xv. FIRB’s exercise of all necessary and incidental powers in accordance with its
                         expanded functions
                M. Under Rule 14 – Fiscal Incentives Review Board Proper
                    i. Composition
                    ii. Powers and Functions of the Chairperson
                    iii. Meetings and Quorum
                N. Under Rule 15 – Fiscal Incentives Review Board Technical Committee
                    i. Composition
                    ii. Roles and Responsibilities of the Technical Committee
                    iii. Meetings and Quorum
                O. Under Rule 16 – Fiscal Incentives Review Board Secretariat
                    i. Composition and Responsibilities of the Secretariat
                    ii. Powers and Functions of the Head of Secretariat
                P. Under Rule 17 – Transitory and Miscellaneous Provisions
                    i. Qualification for Registration
                    ii. Entitlement to Duty Exemption on Importation of Capital Equipment, Raw 
                        Materials, Spare Parts or Accessories
                 Q. Under Rule 18 – Investments Prior to the Effectivity of the Act
                      i. Projects or activities granted only an ITH
                      ii. Projects or activities granted an ITH and are entitled to the 5% tax on gross
                          income earned
                      iii. Registered business enterprises currently availing of the 5% tax on gross income
                      iv. Allocation of gross income earned
                      v. Non-income related tax incentives
                 R. Under Rule 19 – Prohibition on Registered Activities
                     i. General Rule
                 S. Under Rule 20 – One-Stop Action Center
                     i. Establishment of One-Stop Action Center
                     ii. Period to establish a One-Stop Action Center
                 T. Under Rule 21 – Forms and Certificates
                     i. Forms
                 U. Under Rule 22 – Misrepresentation and Violation of Other Provisions of the Code
                     i. Misrepresentation of information for the purpose of availing of incentives
                     ii. Violation of other provisions of the Act
                     iii. Observance of due process
                     iv. Effect of cancellation, suspension or withdrawal of fiscal incentives or tax
                 V. Under Rule 23 – Temporary Measures for Exceptional Circumstances
                      i. Exceptional circumstances
                      ii. Implementation of the temporary measures
                      iii. Temporary measures
                      iv. Period
                      v. Effect on the incentives of the affected RBEs
                      vi. Availment of temporary measure
                 W. Under Rule 24 – Final Provisions
                       i. Web-based tax incentives and subsidies applications and monitoring system
                       ii. Revies of Rules and Regulations
                       iii. Separability Clause
                       iv. Effectivity