DEPARTMENT OF FINANCE
The Department of Finance (DOF) issued Revenue Regulations (RR) No. 04-2017, 20 December 2016, to inform all concerned regarding the amendment to the pertinent provisions of RR No. 02-2016, particularly on the issuance of Authority to Release Imported Goods (ATRIGs) for imported automobiles already released from customs custody.
The RR provides that recognized international organizations and foreign embassies in the Philippines are exempted from securing ATRIG as they are exempted from all taxes. However, in cases where automobiles are subsequently sold, transferred or exchanged in the Philippines to non-exempt persons, or entities, including the introduction and re-introduction into customs territory of automobiles intended for exclusive use within the freeport zones, the purchaser or transferee, owner/possessor of the automobiles shall be considered as the importer, and shall be liable for the excise tax due on such importation to be computed based on existing issuances. Foreign embassies and recognized international organizations shall secure a one-time ruling from the International Tax Affairs Division (ITAD) of the Bureau of Internal Revenue (BIR) confirming that they are exempted from the requirement to secure the ATRIG on importation of automobiles. The ruling must be presented to the Bureau of Customs prior to the release of imported automobiles from customs territory.
BUREAU OF INTERNAL REVENUE
The BIR issued the following:
Revenue Memorandum Circular (RMC) No. 19-2017, 01 March 2017, to amend item 12 of RMC No. 80-2010 which lays down the procedure for the issuance of an Electronic Letter of Authority (eLA) for refunds filed with the DOF One-Stop-Shop (DOF-OSS).
Under RMC No. 19-2017, the Chief of VAT Credit Audit Division (VCAD) shall use the eLA Monitoring System (eLAMS) in requesting for the issuance of eLAs, as well as in the updating of the status of the same, until the Case Management System (CMS) of the Electronic Tax Information System (eTIS) is rolled-out in the National Office. The Assistant Commissioner, Assessment Service shall be the authorized approving official/ signatory for eLAs issued covering VAT credit/ refund claims filed with the VCAD.
RMC No. 18-2017, 28 February 2017, to circularize Memorandum No. 008-2017 dated 24 February 2017 issued by the Deputy Commissioner-Legal Group to the Commissioner of Internal Revenue regarding the issuance of Certificate of Tax Exemption (CTE) to service cooperatives.
It is the position of the Deputy Commissioner-Legal Group that service cooperatives must not be totally prohibited from availing of the tax incentives provided under Republic Act (RA) No. 9520 provided that they are duly registered with the Cooperative Development Authority (CDA) and have been issued Certificates of Good Standing to show that they are bona fide cooperatives falling under RA No. 9520. However, these cooperatives will be subject to post audit verification to check on whether they are just being used as a tax shield to evade payment of taxes.
Service cooperatives that fully comply with the guidelines of CDA may be given CTE provided that they also submit the documents required by the BIR under Revenue Memorandum Order No. 76-2010 (Prescribing the Policies and Guidelines in the Issuance of CTE to Cooperatives and Monitoring Thereof) dated 27 September 2010.