TIMTA orientation slated for BOI registered firms

CEBU, Philippines - Companies in Cebu registered with the Board of Investments (BOI) will be briefed on the implementing rules and regulations of the Tax Incentives Management and Transparency Act (TIMTA).

The BOI is organizing an orientation with registered companies this Friday at Harold's Hotel regarding the availment of incentives and the implementation of Republic Act 10708 or the TIMTA.

Just recently, the Department of Trade and Industry and the Department of Finance issued the final IRR of the TIMTA through the Joint Administrative Order 1-2016.

Aside from the provisions of the TIMTA IRR, policies on the availment of incentives such as income tax holiday for various sectors and duty-free importation of capital equipment will also be discussed.

TIMTA aims to monitor and evaluate the fiscal incentives granted by investment promotion agencies (IPAs) such the BOI and Philippine Economic Zone Authority (PEZA), among others.

According to the IRR, all registered business entities as registered with IPAs are mandated to file the first annual tax incentives report (ATIR) on or before Sept. 15, 2016 for all taxable years ended in 2015.

The ATIR should have information on income-based tax incentives, duty exemptions, value-added tax, deductions, credits, exclusions from the tax base and other needed information.

The TIMTA aims to promote transparency and accountability in granting tax incentives to business entities, private individuals and corporations. 

Under the law, data and information on tax incentives claims of registered entities and individuals, and the amount of tax and duty incentives granted them shall be evaluated and monitored under a comprehensive database.

The TIMTA, signed by former President Benigno Aquino III last December 2015, took effect last August 5, 2016. Its IRR was approved last June 23, 2016.

The IRR states that TIMTA will not affect the amount of incentives that IPAs may grant relative to their charters and existing laws. Further, it will not prevent or delay the promotion and regulation of investments, processing of applications for registration, and the evaluation of entitlement of incentives by IPAs. (FREEMAN)