REVENUE REGULATIONS NO. 5-2019 issued on April 12, 2019 implements the tax incentives provisions of Republic Act No. 10771 (Philippine Green Jobs Act of 2016). Covered by the Regulations are establishments engaged in the production, manufacturing, processing, repacking, assembly, or sale of goods and/or services, including service-oriented enterprises. They shall include (i) self-employed or own-account workers; (ii) micro, small and medium enterprises (MSMEs); and (iii) community-based enterprises duly certified by the Secretary of the Climate Change Commission or his duly authorized representative (referred to as “qualified business enterprises”). A “qualified business enterprise” shall be entitled to a special deduction from the taxable income equivalent to fifty percent (50%) of the total expense for skills training and research development expenses subject to the following conditions: a. That the deduction shall be availed of in the taxable year in which the expenses have been paid or incurred; b. That the taxpayer can substantiate the deduction with sufficient evidence, such as official receipts, delivery receipts and other adequate records –  The amount of expenses being claimed as deduction;  The direct connection or relation of the expenses incurred for skills training and research development of the business enterprise; c. Such special deductions shall be over and above the allowable and ordinary and necessary business deductions for said expenses under the Tax Code of 1997, as amended. In order to avail of the tax incentives provided for under the Regulations, a qualified business enterprise shall: a. Register or update its registration with the BIR by submitting to the Revenue District Office, where the qualified enterprise is registered, the certification issued by the Climate Change Commission that the enterprise is qualified to avail the incentives; b. Upon filing the Income Tax Returns/Annual Information Returns, furnish the Revenue District Officer of the place where the said qualified business enterprise is registered with the following:  A sworn list of the total expenses paid or incurred for skills training and research development during the year;  A sworn list of the activities and/or projects undertaken by the institution and the cost of each undertaking, indicating in particular where and how the expenses were paid or incurred; and  A sworn declaration that the expenses paid or incurred for skills training research development has a direct connection or relation to the activities and/or projects of the business enterprise that generate and sustain green jobs. Claims for special deduction of 50% of the total expense for skills training and research development expenses by the qualified business enterprise shall be filed at the time of filing of the Income Tax Returns. The Income Tax Return and/or Annual Information Return of the qualified business enterprise shall be filed in the Revenue District Office where the qualified business enterprise is registered.