REVENUE REGULATIONS NO. 27-2002 issued on December 19, 2002 amends RR
No. 1-2000 implementing R.A. No. 8748, entitled “An Act Amending R.A. No. 7916,
otherwise known as the Special Economic Zone Act of 1995”.
The power to audit and assess the five percent (5%) special income tax, as well as
the power to abate, cancel, or compromise the payment of the said tax, including the
power to implement special voluntary payment program/s for last priority in audit, shall
be under the exclusive jurisdiction of the Commissioner of Internal Revenue or his duly
authorized representative, subject to the approval of the Secretary of Finance in cases
where such approval is necessary.
Three-fifths (3/5th) or sixty percent (60%) of the 5% special income tax assessed,
inclusive of increments, representing the share of the National Government, shall be
collected by the Commissioner or his duly authorized representative. Two-fifths (2/5th) or
forty percent (40%) thereof shall be collected by the concerned city/municipality,
representing its share from the 5% special income tax on ECOZONE enterprises.
The same proportionate tax share shall be observed in case of abatement,
cancellation, compromise or implementation of a special voluntary payment program.
The concerned taxpayer shall pay the sixty percent (60%) and forty percent (40%) shares
in the tax directly to the National Government and the city/municipality, respectively