June 8, 2004
VAT RULING NO. 018-04
R.R. 8-02
VAT Ruling No. 047-02
Association of MEPZ
Controllers and Accountants
Mactan Export Processing Zone
Lapu-Lapu City, Philippines
Attention: Ms. Edna B. Nagasaka
President
M a d a m :
This refers to your letter dated February 5, 2004 seeking clarification as to whether zone-registered companies are still required to submit the reports mandated to be submitted under the RELIEF Program pursuant to Revenue Regulations (RR) No. 8-2002, considering that these companies are exempt from national taxes, like the value added tax, and in lieu of which, they are subject to 5% gross income tax.
In reply, please be informed that, as a rule, enterprises registered pursuant to the provisions of Republic Act (RA) No. 7916 are covered by a tax regime separate and distinct from those subject to the VAT regime under Title IV of the Tax Code of 1997, as amended. Pursuant to Sec. 24, RA No. 7916, as amended by RA No. 8748, it is provided that:
"SEC. 24. Exemption from National and Local Taxes. — Except for real property taxes on land owned by...
