MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 68-A
AMENDING EXECUTIVE ORDER NO. 68 (s.2012) WHICH ESTABLISHED THE MONETIZATION PROGRAM OF OUTSTANDING VALUE-ADDED TAX TAX CREDIT CERTIFICATES
WHEREAS, Executive Order (EO) No. 68 (s. 2012) was issued establishing the Value-Added Tax (VAT) Tax Credit Certificates (TCCs) Monetization Program (hereinafter referred to as the “Program”) to provide a mechanism for qualified VAT-registered persons to receive the cash equivalent of their outstanding VAT TCCs; and
WHEREAS, in order to facilitate the implementation of the Program, promote a conducive business environment, and raise the business credibility of the government both locally and globally, there is a need to simplify the terms of EO No. 68.
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Section 1 of EO No. 68 is hereby amended to read as follows:
“SECTION 1. VAT TCC Monetization Program. A monetization program is hereby adopted in order to give all qualified...
Details
Amends
n/a
Amended by
n/a
Executive Orders
Amending Executive Order No. 68 (s.2012) Which Established The Monetization Program Of Outstanding Value-Added Tax Tax Credit Certificates
Executive Order No. 68-A
Summary of Executive Order No. 68-A
Establishment of VAT TCC Monetization Program (Section 1)
- Provides a mechanism for qualified VAT-registered taxpayers to receive cash equivalent of outstanding VAT Tax Credit Certificates (TCCs).
Coverage of the Program (Section 2)
- Covers all outstanding VAT TCCs as of December 31, 2012, issued by:
a. Bureau of Internal Revenue (BIR) pursuant to Section 112(A) of Republic Act No. 8424.
b. Bureau of Customs (BOC) pursuant to Section 106(e) of the Tariff and Customs Code of the Philippines.
c. Jointly issued with the One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center (DOF-OSS Center).
Period of Implementation (Section 3)
- The monetization of outstanding VAT TCCs shall be fully implemented not later than June 30, 2016.
- Holders of VAT TCCs valid and outstanding as of December 31, 2012, who did not avail of the monetization program, shall be paid through the cash conversion mechanism implemented by BIR and BOC.
Duties and Responsibilities (Section 4)
- Department of Budget and Management (DBM) shall ensure funding for the monetization program and release amounts upon request of BIR or BOC.
- BIR or BOC shall verify the outstanding VAT TCCs.
- Commission on Audit shall examine the recording of all transactions related to the monetization.
Non-issuance of VAT TCCs by BIR and BOC (Section 6)
- BIR and BOC shall no longer issue TCCs for VAT refund, unless applied for by the VAT taxpayer pursuant to Section 112(A) of Republic Act No. 8424 and Section 106(e) of the Tariff and Customs Code of the Philippines.
- Taxpayers who apply for TCCs shall not be covered by the VAT TCC monetization program but may be paid through the cash conversion mechanism.
Implementing Guidelines (Section 7)
- DBM, DOF, BIR, and BOC shall jointly issue guidelines to implement the provisions of this Order and provide for a streamlined cash conversion mechanism for both BIR and BOC.
- The guidelines shall include the treatment for VAT TCCs that have been enrolled in the Monetization Program pursuant to Executive Order No. 68.
Establishment of VAT TCC Monetization Program (Section 1)
- Provides a mechanism for qualified VAT-registered taxpayers to receive cash equivalent of outstanding VAT Tax Credit Certificates (TCCs).
Coverage of the Program (Section 2)
- Covers all outstanding VAT TCCs as of December 31, 2012, issued by:
a. Bureau of Internal Revenue (BIR) pursuant to Section 112(A) of Republic Act No. 8424.
b. Bureau of Customs (BOC) pursuant to Section 106(e) of the Tariff and Customs Code of the Philippines.
c. Jointly issued with the One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center (DOF-OSS Center).
Period of Implementation (Section 3)
- The monetization of outstanding VAT TCCs shall be fully implemented not later than June 30, 2016.
- Holders of VAT TCCs valid and outstanding as of December 31, 2012, who did not avail of the monetization program, shall be paid through the cash conversion mechanism implemented by BIR and BOC.
Duties and Responsibilities (Section 4)
- Department of Budget and Management (DBM) shall ensure funding for the monetization program and release amounts upon request of BIR or BOC.
- BIR or BOC shall verify the outstanding VAT TCCs.
- Commission on Audit shall examine the recording of all transactions related to the monetization.
Non-issuance of VAT TCCs by BIR and BOC (Section 6)
- BIR and BOC shall no longer issue TCCs for VAT refund, unless applied for by the VAT taxpayer pursuant to Section 112(A) of Republic Act No. 8424 and Section 106(e) of the Tariff and Customs Code of the Philippines.
- Taxpayers who apply for TCCs shall not be covered by the VAT TCC monetization program but may be paid through the cash conversion mechanism.
Implementing Guidelines (Section 7)
- DBM, DOF, BIR, and BOC shall jointly issue guidelines to implement the provisions of this Order and provide for a streamlined cash conversion mechanism for both BIR and BOC.
- The guidelines shall include the treatment for VAT TCCs that have been enrolled in the Monetization Program pursuant to Executive Order No. 68.