Title XIII, Chapter V – Tax Incentives Management and Transparency

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Sec. 305. Filing of Tax Returns and Submission of Tax Incentives Reports. – All registered business enterprises and other registered entities whether taxable or exempt, are required to file their tax returns and pay their tax liabilities, on or before the deadline as provided under the National Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes with the Bureau of Internal Revenue: Provided, That for purposes of complying with their tax obligations, cooperatives and other registered entities which do not have access to the electronic facilities shall file with their respective revenue district offices. For registered business enterprises and other registered enterprises availing of tax incentives administered by the investment promotion agencies and other government agencies administering tax incentives, they shall file with their respective Investment Promotion Agencies or other government agencies administering tax incentives a complete annual tax incentives report of

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Title XIII, Chapter IV – Qualified Project Activities for Tax Incentives

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Sec. 300. Strategic Investment Priority Plan –  The Board of investments, in coordination with the Fiscal Incentives Review Board, Investment Promotion Agencies, other government agencies, other government agencies administering tax incentive, and the private sector, shall formulate the Strategic Investment Priority Plan to be submitted to the President for approval, which may contain recommendations for types of non-fiscal support needed to create high-skilled jobs to grow a local pool of enterprises, particularly Micro, Small and Medium Enterprises (MSMEs), that can supply to domestic and global value chains, to increase the sophistication of products and services that are produced and/ or sourced domestically, to expand domestic supply and reduce dependence on imports, and to attract significant foreign capital or investment. The Strategic Investment Priority Plan shall be valid for a period of three (3) years, subject to review and amendment every three (3) years thereafter unless there would be a supervening

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Title XIII, Chapter III – The Fiscal Incentives Review Board

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Sec. 297. Expanded functions of the fiscal incentives review board. – The functions and powers of the Fiscal Incentives Review Board created under Presidential Decree No. 776, as amended, shall be expanded as follows: (A) To exercise policy making and oversight functions on the administration and grant of tax incentives by the investment promotion agencies and other government agencies administering tax incentives. In particular the Fiscal Incentives Review Board shall: (1) Determine the target performance metrics as conditions to avail of tax incentives; (2) Review and audit the compliance of other government agencies administering tax incentives, with respect to the administration and grant of tax incentives and impose sanctions such as, but not limited to, withdrawal, suspension, or cancellation of their power to grant tax incentives: (3) Determine the minimum contiguous land area that vertical economic zones should comply with; (4) Conduct regular monitoring and evaluation of investments and non-investment

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Title XIII, Chapter II – Tax and Duty Incentives

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Sec. 294. Incentives. – Subject to the conditions and period of availment in Sections 295 and 296, respectively, the following types of tax incentives may be granted to registered projects or activities: (A) Income Tax Holiday (ITH); (B) Special Corporate Income Tax (SCIT) rate – for export enterprise, domestic market enterprise with a minimum investment capital of five hundred million pesos (P500,000,000.00), and domestic market enterprise under the strategic investment priority plan engaged in activities that are classified as “critical,” a tax rate equivalent to five percent (5%) effective July 1, 2020, based on the gross income earned, in lieu of all national and local taxes. (Vetoed by the President) The domestic market enterprise under the Strategic Investment Priority Plan engaged in activities that are classified as “critical” shall refer to those enterprises belonging to industries identified by the national economic and development authority to be crucial to national development.

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Title XIII, Chapter I – General Provisions on Tax Incentives

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Title XIII – Tax Incentives Chapter I – General Provisions on tax Incentives Sec. 291. Scope and Coverage. – This Title shall cover all existing Investment Promotion Agencies as defined in this Code or related law unless otherwise specifically exempted from the coverage of this Code. The Investment Promotion Agencies shall maintain their functions and powers as provided under the special laws governing them except to the extend modified by the provisions of this Code: Notwithstanding the provision of this Section, the Department of Finance, the Bureau of Internal Revenue, and the Bureau of Customs shall retain their respective mandates, powers and functions as provided for under this Act and related laws. Sec. 292. Extent of Authority to Grant Tax Incentives. – The Fiscal Incentives Review Board, or the Investment Promotion Agencies, under a delegated authority from the Fiscal Incentives Review Board, shall grant the appropriate tax incentives provided in

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Title XII – Oversight Committee

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SECTION 290.  Congressional Oversight Committee. – A Congressional Oversight Committee, hereinafter referred to as the committee, is hereby constituted in accordance with the provisions of this Code. The Committee shall be composed of the Chairpersons of the Committee on Ways and Means of the Senate and House of Representatives and four (4) additional members from each house, to be designated by the Speaker of the House of Representatives and four (4) additional members from each house, to be designated by the Speaker of the House of Representatives and the Senate President, respectively. The Committee shall, among others, in aid of legislation: (1)        Monitor and ensure the proper implementation of Republic Act No. 8240; (2)        Determine that the power of the Commissioner to compromise and abate is reasonably exercised; (3)        Review the collection performance of the Bureau of Internal Revenue (4)        Review the implementation of the programs of the Bureau of

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Title XI, Chapter II – Special Disposition of Certain National Internal Revenue Taxes

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SECTION 286.  Disposition of Proceeds of Insurance Premium Tax. – Twenty-five percent (25%) of the premium tax collected under Section 123 of this Code shall accrue to the insurance Fund as contemplated in Section 418 0f Presidential Decree No. 612 which shall be used for the purpose of defraying the expenses of the Insurance Commission. The Commissioner shall turn over and deliver the said insurance Fund to the insurance Commissioner as soon as the collection is made. SECTION 287.  Shares of Local Government Units in the Proceeds from the Development and Utilization of the National Wealth. – Local government units shall have an equitable share in the proceeds derived from the utilization and development of the national wealth, within their respective areas, including sharing the same with the inhabitants by way of direct benefits. (A)       Amount of Share of Local Government Units. – Local government units shall, in addition to

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Title XI, Chapter I – Disposition and Allotment of National Internal Revenue, in General

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Title XI – Allotment of Internal Revenue Chapter I – Disposition and Allotment of National Internal Revenue, in General SECTION 283.  Disposition of National Internal Revenue. – National internal revenue collected and not applied as hereinabove provided or otherwise specially disposed of by law shall accrue to the National Treasury and shall be available for the general purposes of the Government, with the exception of the amounts set apart by way of allotment as provided for under Republic Act No. 7160, otherwise known as the Local Government Code of 1991. In addition to the internal revenue allotment as provided for in the preceding paragraph, fifty percent (50%) of the national taxes collected under Sections 106, 108 and 116 of this Code in excess of the increase in collections for the immediately preceding year shall be distributed as follows: (a)        twenty percent (20%) shall accrue to the city or municipality where

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Title X, Chapter IV – Other Penal Provisions

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SECTION 274.  Penalty for Second and Subsequent Offenses. – In the case of reincidence, the maximum of the penalty prescribed for the offense shall be imposed. SECTION 275.  Violation of Other Provisions of this Code or Rules and Regulations in General. – Any person who violates any provision of this Code or any rule or regulation promulgated by the Department of Finance, for which no specific penalty is provided by law, shall, upon conviction for each act or omission, be punished by a fine of not more than One thousand pesos (P1,000) or suffer imprisonment of not more than six (6) months, or both. SECTION 276.  Penalty for Selling, Transferring, Encumbering or in any way Disposing of Property Placed under Constructive Distraint. – Any taxpayer, whose property has been placed under constructive distraint, who sells, transfers, encumbers or in any way disposes of said property, or any part thereof, without

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Title X, Chapter III – Penalties Imposed on Public Officers

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SECTION 269.  Violations Committed by Government Enforcement Officers. – Every official, agent or employee of the Bureau of Internal Revenue or any other agency of the Government charged with the enforcement of the provisions of this Code, who is guilty of any of the offenses hereinbelow specified shall, upon conviction for each act or omission, be punished by a fine of not less than Fifty thousand pesos (P50,000) but not more than One hundred thousand pesos (P100,000) and suffer imprisonment of not less than ten (10) years but not more than (15) years but not more than (15) years and shall likewise suffer an additional penalty of perpetual disqualification to hold public office, to vote, and to participate in any public election: (a)        Extortion or willful oppression through the use of his office or willful oppression and harassment of a taxpayer who refused, declined, turned down or rejected any of

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