THE Board of Investments (BoI) said it may adjust the start date for tax holidays of projects that do not expect to begin commercial operations on time if the delays were caused by the extraordinary events of recent years.
The BoI said Fiscal Incentives Review Board (FIRB) Resolution No. 24-21, Series of 2021, authorizes it to adjust the start date for income tax holidays for project delays caused by extraordinary events that were affecting businesses at the time the resolution was issued, such as the pandemic, the African Swine Fever outbreak, or the Taal Volcano eruption.
The BoI will receive such applications until Nov. 20.
“The BoI has until Dec. 31 to act on said requests under FIRB Resolution No. 24-21. The affected RBEs must file on or before Nov. 20 to give sufficient time to evaluate and process such requests,” the BoI said.
A ruling to waive penalties for such delays is considered a “temporary measure” under the FIRB resolution.
The BoI said that its authority to act under Rule 23 or the “Temporary Measures for Exceptional Circumstances’ of the CREATE Act IRR (implementing rules and regulations)” will be effective for as long as any of the exceptional circumstances covered are still affecting business.
Registered business enterprises (RBEs) that have not been able to commence commercial operations and projects that are still in the pre-operating stage may apply for the temporary measures.
The income tax holiday (ITH) adjustment will correspond to the duration that business activities have been affected or disrupted.
RBEs whose profitability is adversely affected because of continuing extraordinary circumstances may also defer their ITH incentive entitlement corresponding to the duration that operations were affected.
However, RBEs are liable for income tax due for the taxable year in which the deferment took place to avail of the temporary measures. — Justine Irish D. Tabile
