REVENUE MEMORANDUM CIRCULAR (RMC) NO. 032-2025
Republic Act (RA) No. 12066 was issued to amend various Section and adding New Sections, 135-A, 295-A, 296-A, 297-A of the National Internal Revenue Code (NIRC) of 1997, as amended and other purposes. The mentioned RA was enacted on November 08, 2024.
Section 6,7 and 8 of RA No. 12066 of the Tax Code and provides for the Value Added Tax (VAT) zero-rating sales of goods and sale of services performed for export-oriented enterprises and VAT exemption of importation of goods by export-oriented enterprises; Provided, that the export sales of the mentioned enterprises are at least 70% of its total annual production for the preceding year if the goods and services are directly attributable to the export activity of the export-oriented enterprise. Same provisions designated the Department of Trade and Industry (DTI)- Export Marketing Bureau (EMB) to determine compliance with the aforementioned thresholds.
| Department of Finance (DOF) | responsible for the formulation, institutionalization, and administrative fiscal policies in coordination with other concerned political subdivisions, agencies, and instrumentalities of the government. |
| DTI | primary coordinative, promotive, facilitative, and regulatory arm of the government for the country’s trade, industry, and investment activities. |
| Bureau of Internal Revenue (BIR) | assesses and collects all national internal revenue taxes, fees, and charges, enforces all forfeitures, penalties and fines connected therewith, and interprets the provision of the Tax Code and other tax laws. |
| Bureau of Customs (BOC) | supervises and controls the entrance and clearance of vessels and aircraft engaged in foreign commerce, enforces the Customs Modernization and Tarif Act and all other laws, Rules and regulations related to tariff and customs administration, including the reinforcement of forfeitures, penalties, and fines connected therewith. |
| DTI-EMB | oversee the development, promotion, and monitoring of Philippine exports and provide exporter with the enabling and provide exporters with the enabling environment to make them globally competitive. The department is also tasked to determine and certify compliance of export-oriented enterprise with the 70% threshold under Section 106 (A)(2)(a)(3), 108(B)(5) and 109(dd) of the Tax Code. The Certification that they issue will be one of the requirements in the availment of the VAT zero-rating on local purchases or VAT exemption on importation. For this purpose, the export-oriented enterprise shall furnish a copy of the DTI-EMB Certification to its supplier. |
CERTIFICATION PROCEDURE
- Export-oriented enterprise who are availing VAT zero rating shall secure a certification with the DTI-EMB. The certification is to be distinguished from the VAT zero rating certification issued by the Investment Promotion Agencies on the sale of Registered Business Enterprises (RBEs) under Title XIII of the Tax Code;
- Documentary requirements:
> DTI-EMB application form;
> Certified True Copy of BIR form No. 1556 and proof of 70% export sales by direct exporter;
> Sworn affidavit by the Owner, President, or Finance Officer certifying that at least 70% of the total annual production in the previous taxable year was exported;
> Notarized Copy of Secretary’s Certificate or Special Power of Attorney (Original copy) or any similar documents authorizing to file and sign the documents on behalf of the claimant or follow up the DTI-EMB certification;
> Photocopy of 1 government ID with 3 wet signatures of authorized representative; and
> Any additional documents as may be required by DTI-EMB. - The DTI-EMB shall process the application within 20 working days from the complete submission of the documentary requirements.
- Subsequent application for the DTI-EMB Certification by export-oriented enterprise shall be filed with the DTI-EMB not earlier than 45 working days prior to the close of the taxable year of the export-oriented enterprise.
VALIDITY OF THE CERTIFICATION
This shall be valid until the end of the applicable taxable year either calendar or fiscal adopted by the export-oriented
Enterprise unless revoked earlier.
REVOCATION OF CERTIFICATION
The Certification shall be revoked if the export sales of the export-oriented enterprise is less than 70% of the total annual production of the preceding taxable year. The mentioned enterprise will then be subject to VAT on their importations for the taxable year covered by the revoked DTI-EMB Certification.
VIOLATIONS AND PENALTIES
Any violation of the provisions of this RA as implemented by these guidelines will be grounds for the initiation of appropriate action against export-oriented enterprise without prejudice to the filing of appropriate administrative, civil or criminal charges.
ADDITIONAL REQUIREMENTS
BIR, BOC and DTI-EMB may issue administrative orders, memorandum circulars or other similar documents providing further details of enforcement of these guidelines.
INFORMATION DISSEMENATION
JAO shall be disseminated nationwide by DTI-EMB, BIR and BOC. Information and programs shall be undertaken
to educate export-oriented enterprises, local suppliers and other stakeholders.
EFFECTIVITY
JAO shall take effect immediately following its publication in a newspaper or general circulation and filing of 3 copies with the Office of National Administrative Register (ONAR), University of the Philippines (UP) Law Center Diliman. Pursuant to Presidential Memorandum Circular No. 11 dated October 09, 1992.