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IRR of Title XIII of 1997 Tax Code as amended by R.A no. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which sets its effectivity on July 27, 2021

Posted by on February 19th, 2022

This IRR covers the tax and duty incentives period for availment of incentives, rules and criteria of SIPP, creation of the FIRB, reporting requirements, roles and function of FIRB and other Agencies in implementing the IRR, among others

The salient portions of the Implementing Rules and Regulations (IRR) include:


These amendments shall apply to:

  • All existing investment promotion agencies (IPAs);
  • All newly registered projects or activities under the Strategic Investment Priority Plan;
  • Registered enterprises, projects, or activities currently registered with lPAs and enjoying incentives prior to the effectivity of the Act;
  • Other government agencies administering tax incentives; and
  • Government-owned and/or – controlled corporations (GOCCs), government instrumentalities (GIs), government commissaries, and state universities and colleges (SUCs).


  1. The Income Tax Holiday (ITH) – shall be limited to the income generated by an RBE from a registered project or activity.
  2. The Special Corporate Income Tax (SCIT) – Tax rate of 5% based on the gross income earned (GIE), in lieu of all national and local taxes.

*For Export Enterprises – 3% to the National Government and 2% to the Municipality/ Local Government unit where enterprise located.

  • For the Purpose of Gross Income Earned (GIE)
  • Direct Costs: Direct Salaries, wages or labor expenses, production supervision salaries; raw materials used in manufacturing; goods in process; finished goods; supplies and fuels used in production; depreciation of machinery, equipment and building, rent and utility charges, financing charges associated with fixed assets and any other costs that are directly and exclusively used in the rendition/production of registered activity.
  • Enhanced Deductions
  • Depreciation allowance for assets acquired for the production of goods and services (Qualified capital expenditures of additional 10% for buildings and additional 20% for machineries and equipment.);
  • Labor expense – 50% additional deduction;
  • Research and development – 100% additional deduction;
  • Training expense – 100% additional deduction;
  • Domestic input expense – 50% additional deduction;
  • Power expense – 50% additional deduction;
  • Deduction for reinvestment allowance to manufacturing industry – maximum of 50%, from its taxable income within period of five (5) years from the time of such reinvestment;
  • Enhance NOLCO – Net Operating Loss not yet offset from Gross Income operations can be carried over as deduction from Gross Income within 5 next years following the loss.
  • The Importation of Capital Equipment, Raw materials, spare parts or Accessories made by RBEs shall be exempt from custom duties, provided such importation are directly and reasonably needed by the RBE; will be used exclusively in and as part of direct cost of the activity and are not produced domestically.
  • Sale, transfer or disposition of the capital equipment, raw materials, spare parts or accessories which were granted customs duty exemption shall require to pay the duties previously exempted based on the net book value of such sale. Provided, such sale happened within 5 years from the date of importation. Provided further, such sale, transfer or disposition shall be allowed only under the following:
  • If made to another enterprise availing duty exemption for its direct and exclusive use;
  • If made to another enterprise not availing of duty exemption upon payment of any taxes and duties;
  • Any exportation required for pollution abatement and control;
  • Proven technical obsolescence; and
  • If donated to TESDA, DepEd, CHED provided the donation shall be exempt from import duties and donor’s tax.
  • Solidary Liability. Within 5 years from date of importation, If RBEs sells, transfer, or disposes the aforementioned imported items without prior approval from the IPA, the RBE, vendee, transferee or assignee shall be solidarily liable to pay twice the amount that should have been paid during importation.
  • Utilization in non-registered project or activity of RBE on aforementioned imported items at any time within 5 years from the date of importation, the RBE shall secure prior approval of the concerned IPA and pay the amount corresponding to the exempt duties on importation thereof.
  • For part-time utilization, the amount corresponding to the duties exempt shall be paid proportion to its utilization for the non-registered project or act.
  • VAT exemption on importation and VAT zero rating on local purchases shall only apply to goods and services directly and exclusively used in the registered activity of export enterprises.
  • The importation of Covid-19 vaccines by RBEs shall be exempt from import duties, taxes and other fees provided it must not be intended for resale or other commercial use.
  • Other incentives on Importation of Petroleum products. Persons who directly import petroleum products defined under RA 8479 for resale in the CMTA shall not be entitled to the foregoing tax and duty incentives, and shall be subject to appropriate taxes imposed. 


This part provides for the period for availment of incentives as discussed in the preceding articles, thus:

  1. Export enterprises – 4 to 7 years depending on location and followed by SCIT or enhanced deduction for 10 years. Such option (SCIT or ED) shall be irrevocable for the entire duration of entitlement of incentives.
  2. Domestic Market enterprise – 4 to 7 years followed by enhanced deductions for 5 years
  3. Qualified expansion projects or activities – 3 years ITH

The income tax-based incentives mentioned above shall commence from the actual start of commercial operations with the RBE availing of the tax incentives within 3 years from the date of registration. The determination of the category shall be based on both location and industry or as may be defined in the SIPP.

  • For Exporter activities:
Location/ IndustryTier I (No. of Years)Tier II (No. of Years)Tier III (No. of Years)
Metropolitan areas5 ITH + 10 ED/ SCIT6 ITH + 10 ED/SCIT7 ITH + 10 ED/SCIT
Others6 ITH + 10 ED/SCIT7 ITH + 10 ED/SCIT7 ITH + 10 ED/SCIT
  • For Domestic Market activities – ITH is same with export activities, with additional 5 years of enhanced deductions.
  • Additional Extensions:
  • Projects or activities located in areas recovering from armed conflict or a major disaster shall be entitled to 2 additional years of ITH subject to the following:
  • Declaration of the President of the existence of such disaster; and
  • The issuance of a presidential directive.
  • Projects or activities relocating from the NCR – 3 additional years after the expiration of the incentives granted or after the expiration of the transition period.


The SIPP shall provide for the types of fiscal and non-fiscal support needed to:

  • Create high-skilled jobs to grow a local pool of MSMEs;
  • Increase the sophistication of products and services;
  • Expand domestic supply and reduce dependence on imports;
  • Attract significant foreign capital or investment; and
  • Promote export diversification.

Criteria for Investment Priority Determination.

Any of the following shall be considered in the evaluation:

  1. Project or act is covered by the Philippine development plan
  2. Whether the project or act meets any of the ff:
  3. substantial amount of investment;
  4. considerable generation of employment;
  5. considerable amount of net exports;
  6. use of modern and advance technology;
  7. process and innovations;
  8. addresses the missing links and other gaps in the supply;
  9. promote market competitiveness;
  10. enhance capabilities of Filipino enterprises;
  11. contribute to Philippine agriculture and fisheries; and
  12. promote regional and global operations in the country.

c.    Industry tiers:

  • Tier 1 – high potential for job creation, take place in sectors w/ market failures, innovation, provide essential support, potential comparative advantage
  • Tier 2 – activities that produce supplies, parts and intermediate services components that are locally produced.
  • Tier 3 – R & D resulting in demonstrably significant value-added, higher productivity, generation of new knowledge, commercialization of patents, critical to the structural transformation of the economy.
  • Constraints preventing RBEs from entering or upgrading the specified project or activity.
  • Areas necessary for countrywide development or found to be deficient in infrastructure, public utilities, and other facilities such as irrigation, drainage, or other similar infrastructure.

Validity. The SIPP shall be submitted to the President for the approval and shall be valid for 3 years from its issuance.

Mandatory Laws. The SIPP shall include sectors or industries that are mandated by special laws to be listed in the investment priority plan and/or granted incentives.

Steering Committee. The steering committee shall be composed of the BOI managing head as chairperson, Representatives of the office of the President and the IPAs and Chairperson of the technical Committee of the FIRB.

Amendments. The BOI may alter any of the terms of the declaration of an investments area and suspends activities provided, that any amendment or suspension of the SIPP shall not prejudice the availment of fiscal incentives already granted to RBEs.

Publication. Upon approval of the plan or amendment specifying or declaring the preferred areas of investments shall be published in at least one newspaper or in the Official Gazette.


This part of the implementing rules provides for the authority of the (FIRB) and of the IPAs:

Authority of FIRB. To grant tax incentives where the investment capital is equal to ₱1 billion or below. The FIRB may approve or disapprove the grant of tax incentives with investment capital of more than ₱1 billion.

Splitting of investment capital for the purpose of evading the jurisdiction of the FIRB to approve shall not be allowed. The following may be considered in determining whether splitting occurred:

  1. Nature of the activity;
  2. Similarities of activity’s products or services;
  3. Expected customer or clients;
  4. Time interval between applications; or
  5. Proposed start of commercial operations.

Standards by the Policy Making Power of the FIRBs are as follows:

  1. Develop a more responsive and globally-competitive tax incentives;
  2. Attracts preferred investments;
  3. Create more job and develop skills;
  4. Promote fiscal responsibility;
  5. Promote exports of products and services;
  6. Promote domestic inputs and development of rural areas; and
  7. Enable parallel development for rural areas recovering from armed conflict and calamities.


This section lays out the qualifications and process for the application, evaluation, and registration of business enterprises, as follows:

Qualified business enterprises are Export enterprises and Domestic market enterprises. Application for registration shall be filed electronically through a system prescribed by the FIRB or IPA provided that the system is unavailable, such application may be filed manually by any manner prescribed by the concerned IPA.

The application shall be supported by the following requirements:

  1. Enterprise-level information – DTI or SEC, Certificate of Registration, TIN, Company Info, Business structure, etc.
  2. Project or activity-level information – Location, type of activity, set-up timetable, Projected financial analysis and employment
  3. Other documents or info as may be required

IPA evaluation process:

  1. Conduct a pre-evaluation on the applicant’s eligibility
  2. Initial impact evaluation to determine 1ex ante impact of tax incentives to the investment project or activity applied for
  3. IPA shall issue the Order of payment for the filing fee and stamp the date of official filing
  4. IPA shall notify the applicant for any issue encountered during the evaluation process.
  5. In all cases, the FIRB shall decide on the recommended tax incentives by the concerned IPA for projects or activities with investment capital of more than ₱1 billion.

FIRB evaluation process:

  1. The secretariat shall review the evaluation and recommendations of the IPAs and prepare an evaluation report which shall be submitted to the technical committee.
  2. The Technical committee may adopt or reject the secretariats evaluation.
  3. The Board have the exclusive authority to decide on all applications on tax incentives. The Board may adopt, revise or reverse the recommendations of the technical committee through a board resolution.
  4. The FIRB secretariat shall provide the concerned IPA with a copy of the board resolution on the approved tax incentives.


In relation to the preceding rule, this part of the IRR defines the actions to be taken by the FIRB and IPAs regarding the registration of business enterprises.

The concerned IPA shall decide on the application of the concerned RBE upon evaluation of complete documentary requirements. The COR shall be issued by the concerned IPA.

The contents of Certificate of Registration:

  1. Name and business address of the RBE;
  2. TIN of the RBE;
  3. Unique control number;
  4. Registered project or activity;
  5. Tax incentives entitlement; and
  6. Period of entitlement.

Requirements before the issuance of COR:

  1. Payment of registration fee;
  2. Letter or resolution of applicant’s Board of Directors (BOD);
  3. Sworn statement authorized by BOD; and
  4. All pre-registration requirements are imposed by the concerned IPA.


Following the next preceding rule, an RBE may already apply for the tax incentives available under CREATE by way of the sections in this rule.

  • Form. – All applications shall be filed on a per project basis and made upon the prescribed forms under these Rules
  • Application for Certificate of Entitlement to Tax Incentives (CETI) – RBE shall apply for a CETI prior to the filing of ITR, the together with the documentary requirements. The CETI shall be issued by the concerned IPA. The CETI shall state among others:
  • Name and business address of the RBE;
  • TIN of the RBE;
  • Unique control number;
  • Registered project or activity;
  • Name of IPA having jurisdiction over the registered enterprise; and
  • Types and approved amounts of tax incentives.
  • Conditions for the Grant of Tax Incentives
  • Subject to the requirements and conditions set by SIPP and performance review by IPA;
  • Compliance with the target performance metrics. When any of the agreed performance are not met, justification shall be submitted to the concerned IPA. The enjoyment of tax incentives may be canceled, suspended, or withdrawn upon due notice;
  • Compliance with the e-receipting and e-sales requirements;
  • Installation of an adequate accounting system; and
  • Submission of annual reports.

Monitoring Report. Within 90 days after the statutory deadline for filing the ITR with investment capital of more than ₱1 billion and within 180 days for RBE with investment capital ₱1 billion and below.


Aside from tax incentives, the qualified RBEs also have the privilege of exemption to customs duty on importation of capital equipment, raw materials, spare parts, and accessories, the regulation for which are given in this section.

Certificate of Authority to Import (CAI)/ Admission Entry. The Certification shall be issued by the concerned IPA.

The application for CAI or admission entry shall be filed electronically through a system prescribed by the FIRB or IPA provided that the system is unavailable, such application may be filed manually by any manner prescribed by the concerned IPA. The action of the concerned IPA shall be communicated in writing to the applicant. If approved, a copy of the CAI shall be sent to the BOC.

Validity. The CAI or Admission Entry is non-transferable and shall be valid for a period of 1 year from date of issuance. In the event that CAI remained unutilized, the applicant shall surrender the Certificate within 15 days.

Performance Bond. In the event of violation of its terms and conditions for importation, the principal stockholders shall be solidarily liable with the RBE. The concerned IPA may lift the performance bond posted in the ff cases:

  1. For domestic enterprises, upon installation and utilization of the imported capital
  2. For export enterprises, after a period of 1 year of exportation

Monitoring of the Imported Capital Equipment 

  1. Every 5th day of the month, RBE shall submit a list of tax and duty-free importation with copy which is also known as Single Administrative Document (SAD).
  2. Subject to inspection by the concerned IPA


CREATE also given the President the power to grant incentives, details of which are discussed in this rule.

Power of the President. The President may in the interest of national economic development and upon the recommendation of the FIRB, modify the mix, period or manner of availment of tax incentives.

Limitations to the Period of Incentives Availment:

  1. Total period of incentive shall not exceed 40 years;
  2. ITH shall not exceed 8 years. For the remaining incentive period, a SCIT rate of five percent (5%) may be granted or a maximum of 32 remaining incentive period for 5% SCIT rate.

Conditions for the grant. The FIRB shall determine if the benefit of such grant outweighs the cost of incentives before recommending the President to exercise its power. It shall be positive that the following conditions are met:

  1. Project has a comprehensive sustainable development plan and high level of sophistication & innovation
  2. Minimum investment capital of ₱50 billion or minimum direct local employment of 10,000 within 3 years


This section governs the reporting requirements of RBEs and OREs in relation to their annual tax incentives and the roles of related government agencies in the implementation of these parts of CREATE.

All RBEs and OREs whether taxable or not are required to file their tax returns and pay their tax liabilities.

All RBEs and OREs shall w/in 30 calendar days from the statutory deadline for filing, submit:

  1. ATIR (Annual Tax Incentives Report), VAT exemptions and zero-rating and all their tax exclusion and exemptions
  2. Complete annual benefits report

Contents of the ATIR (Annex A) and ABR (Annex B) such as but not limited to:

  1. Cost data: Income based tax incentives, VAT exemption, VAT zero-rated, Customs duty exemptions, Deductions, Expenses, Enhanced NOLCO, Net income report, Duty and tax payment on local sales.
  2. Benefits data: Total number of Filipino employees, direct and indirect employment, direct and indirect employee hired, compensation and benefits, training expenses, R & D, export and import sales, Dividends, R/E (Retained Earnings), Total approved investment and actual investment.

Role of IPAs and OGAs

  1. Submit to the FIRB per firm and per registered project or activity in a machine-readable format: data on tax incentives in Annex C and Annex D for other investment and non-investment-related data
  2. Submit to the FIRB a master list format in Annex E
  3. Submit to the BIR the master list w/In 60days after the close of each calendar year
  4. Submit to the BIR the ATIR on income-based tax incentives, VAT incentives and duty exemptions within 60days from the statutory deadline for filing of Final adjustment return. Thus:
Accounting PeriodYear ending onIPAs shall submit on:
Calendar YearDecember 31June 14 of the following year
Fiscal YearJanuary – NovemberJune 14 of the following year
  • The IPA shall submit to the FIRB a list of projects or activities with investment capital of ₱1 billion and bellow. It includes name, project or activity, location, Certificate of registration, investment capital and types of incentives granted.

Role of the BIR and BOC

The BIR and BOC shall submit on or before August 15 of every year to the DOF:

  1. All tax and duty incentives of RBEs and OREs
  2. Actual tax and duty incentives as evaluated and determined by the BIR and BOC

Role of the FIRB

  1. Systematically collect and store all tax incentives and benefits data from the DOF, IPAs, OGAs
  2. Evaluate and assess the process, outcomes and impact of incentives
  3. Conduct periodic performance review
  4. Maintain a master list of registered products and services
  5. Publish the data pertaining to the amount of tax incentives, tax payments and other related information
  6. Submit the result of the CBA and other evaluation to the office of the President and Congress

Role of the DOF

  1. Maintain a single database for monitoring and analysis of tax incentives granted
  2. Submit to the FIRB per firm and per registered project or activity in a machine-readable format: Data on tax incentives and other investment and non-investment-related data
  3. Submit to the Department of Budget and Management: (1) The amount of tax incentives availed of by RBEs and OREs, (2) Estimate claims of tax incentives (3) Programmed tax incentives for the current year (4) Projected tax incentives
  4. Submit to the join congressional oversight committee the aggregate data categorized by sector

Role of the DBM

Reflect the data submitted by the DOF in the BESF which shall be known as the tax incentives information section. The Tax Incentive Information (TII) shall include a per firm data related to incentives availed by RBEs categorized as by sector, by IPA or OGA and by type of tax incentives.


For good measure, and to appreciate the effectiveness of this part of CREATE, the law itself provided for the conduct of impact evaluation on tax incentives and its effect on the Philippine economy and set up reporting requirements and penalties for non-compliance.

The FIRB Secretariat within 6 months from the acceptance of the required submissions from all IPAS, OGAs administering tax incentives, RBEs and OREs annually conduct an impact evaluation such as CBA on the investment and non-investment incentives.

The FIRB shall utilize the following information:

  1. The ATIRS (Annual Tax Incentives Report);
  2. Per firm and per registered project and activity data;
  3. Other information and reports as endorsed by DOF and DTI; and
  4. All other information to be identified by the FIRB Secretariat

Penalties for failure to comply with filing and reportorial requirements:

  1. 1st violation – fine amounting to 100K
  2. 2nd violation – fine amounting to 500K
  3. 3rd violation – cancellation by the FIRB of the registration of the RBE with the IPA or OGA administering tax incentives.


CREATE also empowered the FIRB with new functions and powers as administrator of tax incentives granted through the IPAs and OGAs.

Functions of the FIRB         

  1. Determine the target performance metrics
  2. Review the compliance OGAs administering tax incentives
  3. Determine the minimum contiguous land area. The minimum contiguous land area for vertical economic zones shall be:
  4. NCR and metropolitan areas – 5,000 square meters
  5. Others – 10,000 square meters
  6. Conduct regular monitoring and evaluation
  7. Check and verify, as necessary the compliance of registered business enterprises
  8. Other related function

FIRB oversight functions over other government agencies administering tax incentives. All OGAs administering tax incentives are mandated to monitor the compliance of all registered entities within its jurisdiction and submit a report to the FIRB w/in 180 days after the statutory deadline for filing the annual income tax return.

FIRB oversight functions over registered enterprises with tax incentives. The FIRB through the IPAs, shall monitor and review the compliance of registered enterprises with the terms and conditions and verify the documents for verification and reconciliation of the records.

Power to approve or disapprove the grant of tax incentives. The grant of tax incentives to registered projects or activities with investment of ₱1 billion and below shall be delegated by the FIRB to the concerned IPA. Furthermore, the FIRB may increase the threshold amount of ₱1 billion.

Power to formulate place-specific strategic investment plans. The FIRB, upon consultation with concerned LGUs and IPAs, may formulate and approve place-specific strategic investments plan and recommend incentives to the President.

Other Expanded functions:

  1. Power to cancel, suspend or withdraw the enjoyment of Tax incentives
  2. Power to require submission of incentives and benefits data
  3. Authority to publish incentives and benefits data
  4. Power to recommend the grant of non-fiscal incentives for highly desirable projects
  5. Power to adopt policies for supply chain development and expansion
  6. Power to approve application for tax subsidies
  7. Power to cancel, suspend or withdraw the enjoyment of tax subsidy
  8. Submission of annual report to President
  9. Evaluation of tax incentives granted to registered entities
  10. Exercise all necessary and incidental powers in accordance with its expanded functions



1 Chairperson – Secretary of finance

1 Co-Chairperson – Secretary of trade and industry

3 Members – Executive secretary of the Pres, Secretary of budget and management and NEDA Director General

Powers and Function of the Chairperson

  1. Provide leadership and ensures the effective function of the board;
  2. Call meetings, approve and set agenda;
  3. Exercise control over quality, quantity and timeliness;
  4. Assist in ensuring compliance;
  5. Ensure that the board makes an informed decision; and
  6. Exercise other powers and duties.



Undersecretary of Finance as chairperson

Undersecretary or assistant secretary of the office of the executive secretary

Undersecretary of Trade and Industry and Board of Investment managing head, or assistant secretary of trade and industry

Undersecretary or Assistant secretary of Budget and management

NEDA Deputy or Assistant Director General

Commissioner or deputy commissioner of Internal Revenue

Commissioner or deputy commissioner of Customs

Commissioner of the Philippine Competition Commission PCC

Director General or Chairperson Administrator of IPAs

Roles and responsibilities of the Technical Committee:

  1. Review the secretariats evaluation report;
  2. Recommend the approval, disapproval, suspension or withdrawal of tax incentives;
  3. Perform functions as may be assigned or delegated by the board; and
  4. Assist the board


Composition and Responsibilities.

The secretariat shall be headed by an Assistant Secretary of Finance and shall be staffed by the National Tax research Center. The NTRC, as secretariat of the FIRB, shall composed and perform the following responsibilities.

  1. Fiscal Incentives Management Group – Tax incentives division and tax subsidies and large investments division
  2. Monitoring and Evaluation Group – Manufacturing Industries division, Infrastructure and Resourced Based Industries division and service industries division
  3. Legal Group – Legal research and communication division and Legal management Division

Powers and functions of the head of secretariat:

  1. To execute and administer the policies and measures;
    1. To direct and supervise the operation and internal administration;
    2. To cause the preparation of an annual report to the President;
    3. To present the FIRB in all dealings and transactions with other offices, agencies and instrumentalists; and
    4. To exercise such other powers and duties.


This rule provides for the qualifications to tax and duty incentives under CREATE of existing registered projects or activities prior to its effectivity. 

Qualification for registration. Projects or activities already existed prior to effectivity of this Act may qualify to register and avail of the incentives for the prescribed period. Provided, that the RBE shall surrender its certificate of registration or certificate of tax incentives as applicable.

Entitlement to Duty exemption on importation of capital equipment, raw materials, spare parts or accessories.

RBEs with valid Certificate of Authority to Import (CAI)/ Admission entry whose capital equipment, raw materials, spare parts or accessories were ordered or purchased during the effectivity of E.O. 85, Series 2019 shall qualify for the duty exemption until the expiration of CAI/Admission Entry or the transitory period under section 311 of the Code.


This section provides for the qualifications to tax and duty incentives under CREATE of existing RBEs prior to its effectivity. 

Projects or activities granted only an ITH – allowed to continue the remaining period as specified in the terms and conditions.

Projects or activities granted an ITH and are entitled to the 5% tax on gross income earned (GIE) – allowed to use the ITH for the period specified in the terms and conditions and thereafter, avail of the 5% tax on GIE subject to the 10-year limit for both incentives.

RBE currently availing of the 5% tax on GIE – allowed to continue the remaining tax incentives for 10 years.

Allocation of GIE – If applicable, as specified in the latter’s governing laws shall be observed and shall not result in the diminution of their respective shares.

Non-income related tax incentives.  – All RBEs that will continue to avail of their existing tax incentives subject to the above provisions may continue to enjoy the duty exemption until the expiration of the CAI/Admission entry or until expiration of the transitory period under section 311 of the Code.


A project or activity administering economic zone or freeport administering economic zone or freeport shall be exclusively conducted or operated within the geographical boundaries of the zone or freeport.  Any project or activity conducted outside the geographical boundaries shall not be entitled to the incentives unless such project or activity is registered.


All IPAs shall establish a one stop shop action center to comply with the “Ease of Doing Business” and efficient government service delivery act of 2019 within 1 year from the effectivity of this rule.


All forms and certificates under these rules shall be prescribed by the FIRB in coordination with the DTI.


This section defines the misrepresentations and violations under the act and provides for its penalties and sanctions. 

The FIRB or the concerned IPA may cancel the registration, suspend or require refund of incentives enjoyed including interest, monetary penalties for misrepresentation of information for the purpose of availing incentives. Furthermore, the FIRB with the recommendation of the Commissioner may revoke or suspend incentives granted or business closure that violates:

                           Title VI (Excise taxes on certain goods)

                           Title X (Statutory Offenses and Penalties)

Provided, no penalty shall be imposed upon the IPAs, OGAs, RBEs, OREs or any responsible officer for failure to comply with the requirements unless the latter was informed in writing of such violation.


Exceptional circumstances – Pandemic, war, armed conflict, state of national emergency, outbreak of diseases, international or regional financial crisis and other fortuitous event.

Temporary measures – The temporary measures shall, without diminution of incentives, cover all RBEs that are affected by such exceptional circumstances and may include any of the following:

  1. Suspension of the export requirements
  2. Deferment of the income tax incentive availment period
  3. Movement of the start commercial operations
  4. Adoption of any other measure


All applications, reports and communications under the jurisdiction of the FIRB will be coursed through the official email of the FIRB Secretariat. Likewise, all resolutions, decisions and communications of the FIRB will be sent by email to the concerned parties.

Separability Clause. If any provision of these rules is subsequently declared invalid or unconstitutional, other provisions hereof which are not affected shall remain in full force and effect.

Effectivity. These rules shall take effect upon publication in a newspaper or general circulation.


ATIR          –             Annual Tax Incentives Report

BOD         –             Board of Directors

BOI            –              Board of Investments

CAI           –             Certificate of Authority to Import

CBA           –             Cost-benefit Analysis

CETI           –             Certificate of Entitlement to Tax Incentives

COR           –             Certificate of Registration

DTI           –             Department of Trade and Industry

ED             –             Enhanced Deductions

FIRB          –             Fiscal Incentives Review Board

GIE            –             Gross Income Earned

GOCC        –             Government-Owned and/or Controlled Corporations

IPAs         –             Investment Promotion Agencies

ITH            –             Income Tax Holiday

NEDA        –             National Economic and Development Authority

NOLCO      –             Net Operating Loss Carry Over

OGA          –             Other Government Agencies

ORE           –             Other Registered Entities

RBE          –             Registered Business Enterprise

SAD          –             Single Administrative Document

SCIT           –             Special Corporate Income Tax

SEC           –             Security and Exchange Commission

SIPP         –             Strategic Investment Priority Plan

SUC          –             State Universities and College

TII             –             Tax Incentive Information