RR No. 3-2023
RR No. 3-2023
RR No. 3-2023
DEWENI‘ OF FINANCE
BUREAU OF INTERNAL REVENUE
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SECTION 1. Scope. —— Pursuant to the provisions o f Sections 244 and 245 of the National
Internal Revenue Code of 1997, as amended (Tax Code), these Regulations are hereby
promulgated to amend certain provisions of Revenue Regulations (R) No. 16-2005, as amended
by R No. 21—2021, implementing Sections 294 (E) and 295 (D) of Title XIII of the Tax Code,
as introduced in Republic Act (RA) No. 11534 or the "Corporate Recovery and Tax Incentives
for Enterprise Act" (CREATE), and Section 5, Rule 2 of its Implementing Rules and Regulations
(IRR), as amended.
1. janitorial services;
2. security services;
3. financial services; -,
4. consultancy services; '
5. marketing and promotion; and
6. services rendered for administrative operations such as Human
Resources (HR), legal, and a c c o u n t i n g . ’
If the purchased goods are used in both the registered project or activity
a n d administrative operations, the registered export enterprise shall
adopt a method to best allocate the same. If a proper allocation could not
be determined, the purchase of such goods shall be subject to twelve
percent (12%) VAT.
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BUREAU OF INTI-19mm EELENUE
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(b) Transactions Subject to Zero Percent (0%) VAT Rate. -—- The following
services performed in the Philippines by a VAT-registered person shall be
subject to zero percent (0%) VAT rate:
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Health'maintenance organization (HMO) plans acquired by registered
export enterprise for its employees who are directly and exclusively
involved in the operations of their registered projects or activities and
forming part of their compensation package shall be considered as
“directly and exclusively used” in the registered project or activity o f a
registered export enterprise subject to the conditions provided under the
existing laws, rules and regulations regarding the availm'ent thereof.
1. janitorial services;
2. security services;
3. financial services;
4. consultancy services;
5. marketing and promotion; and
6. services rendered for administrative operations such as Human
Resources (HR), legal, and accounting.
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'For this 'purpiise, upon the effectivity of these Regulations, local suppliers
o f services of registered export enterprise shall n o longer be required to
apply for approval of VAT zero-rating with the BIR. All applications
with accompanying V‘AT zero-rating certification issued by the
concerned IPA which have been received but have not yet acted upon by
the concerned office of the BER upon the effectivity of these Regulations
shall be accorded VAT zero-rating treatment from the date of filing of
such application subject to the conduct of post audit by the BIR that the
services are indeed directly.and exclusively used by the registered export
enterprise in its registered project or activity.
The concerned IPA shall furnish the BIR through the Assessment Service
Attention: Audit Information, Tax Exemption and Incentives DiVision
(AITEID) within twenty (20) days following the close of each taxable
quarter a list o f registered export enterprise issued with VAT zero-rating
certification. In order to obtain relevant information, for audit purposes,
the Commissioner of Internal Revenue may prescribe a report template
in a separate revenue issuance.”
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BENJAMIN E. DIOKNb
Secretary of Finance
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iiSUPEA U REVENUE
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