RR No. 8-2021 — Amends certain provisions of RR No. 4-2021, which implemented the VAT and Percentage Tax provisions under RA No. 11534 (CREATE Act) (Published in Philippine Star on June 12, 2021)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE NTYYT JUN 11 2021 9:40 1 AA

RECORDS MGT. DIVISION GM

Date: JUN 1 1 2021

REVENUE REGULATIONS NG 8- 2021

SUBJECT Amending Certain Provisions of Revenue Regulations No. 4-2021, which

Incentives for Enterprises Act" (CREATE). Implemented the Value-Added Tax (VAT) and Percentage Tax Provisions Under Republic Act (RA) No. 11534, or the "Corporate Recovery and Tax

TO : All Internal Revenue Officials, Employees and Others Concerned

dated April 8, 2021, which implemented the VAT and Percentage Tax provisions of RA No. National Internal Revenue Code (NIRC) of 1997, as amended, these Regulations are hereby promulgated in order to amend certain provisions of Revenue Regulations (RR) No. 4-2021 11534 or the CREATE. SECTION 1. SCOPE. - Pursuant to Section 244 in relation to Section 245 of the

(P2,000,000.00) for sale of house and lot and other residential dwellings should also be adjusted to P3,199,200.00 beginning January 1, 2021 threshold for sale of house and lot and other residential dwelling was Three Million One 2011 dated October 27, 2011, and this became effective January 1, 2012 per RR No. 3-2012 dated February 20, 2012. The VAT-exempt threshold of P3,199,200.00 was applied and enjoyed by the taxpaying-public from January years. As such, fairne or the Tax Reform for Acceleration and Inclusion Law (TRAIN Law), of Two Million Pesos Hundred Ninety-Nine Thousand Two Hundred Pesos (P3,199,200.00). This was the result of the adjustment made in 2011using the 2010 Consumer Price Index Values pursuant to RR No. 16- SECTION 2. AMENDMENTS. - (1) Prior to January 1, 2021, the VAT-exempt ess and equity dictate that the VAT-exempt threshold under RA No. 10963, 1, 2012 up to December 31, 2020, or for eight (8) long

read as follows: Thus, Section 2, sub-section 4.109-1(B)(p)(4), of RR No. 4-2021 is hereby amended to

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selling price of not more than Two Million Pesos (P2,000,000.00), as adjusted Provided, That beginning January 1, 2021, the VAT exemption shall only utilized for socialized housing as defined by Republic Act (RA) No. 7279, as amended, and, sale of house and lot, and other residential dwellings with apply to sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business; sale of real property

to P3,199,200.00 in 2011_using the 2010 Consumer Price Index values Provided, further, That every three (3) years thereafter, the amount stated herein shall be adjusted to its present value using the Consumer Price Index as published by the Philippine Statistics Authority (PSA).

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achieving herd immunity and to require the use of medical grade Personal Protective Equipment (2) With the intensified campaign of the Government to inoculate the population aimed at

(PPE) components as a protection against COVID-19, there is a need to facilitate the early release of the imported items under Section 2, sub-section 4.109-1(B)(p)(bb), of RR No. 4-202] from the Bureau of Customs (BOC).

to read as follows: Section 2, sub-section 4.109-1(B)(p)(bb), therefore, of RR No. 4-2021 is hereby amended

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to the issuance of the Authority to Release Imported Goods (ATRIG) The importation of items under (i, (ii) and (ii) hereof shall not be subject

under Revenue Memorandum Order (RMO) No. 35-2002._as amended. and maybe released by the Bureau of Customs (BOC) without the need of an ATRIG.

The exemption claimed under this subsection shall be subject to post audit by the Bureau of Internal Revenue (BIR) or the Bureau of Customs (BOC), as may be applicable.

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succeeding taxable quarters. This carry-over portion is intended for Percentage Taxpayers who starting July 1, 2020 until the effectivity of RR No. 4-2021 may be carried forward to the (3) Excess percentage tax payments as a result of the decrease of tax rate from 3% to 1%

are regularly filing the returns and are expected to have overpaid taxes as a result of the retroactive application of the CREATE. Tax refund, however, is still allowed in the event that the taxpayer shifted from non-VAT to VAT-registered status, or the taxpayer has opted to avail of the eight percent (8%) income tax rate at the beginning of TY 2021.

Hence, Section 3(2)(b) of RA No. 4-2021 is hereby amended to read as follows:

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Percentage taxpayers who have overpaid taxes as a result of the decrease of tax rate from 3% to 1% starting July 1, 2020 until the effectivity of RR No. 4-2021 are allowed for a tax refund in the event that:

THREAUOF INTERNALREVENUL TNNTYYYN JUN 11 2021 9:40 A.M. MMo

RECORDS MGT. DIVISION

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a The taxpaver shifted from non-VAT to VAT-registered status: or b. The taxpaver has opted to avail the eight percent (8%) income tax rate

at the beginning of TY 2021.

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thereof inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly. SECTION 3. REPEALING CLAUSE. - Any rules and regulations, issuances or parts

hereof shall remain in full force and effect. Regulations is subsequently declared unconstitutional, the validity of the remaining provisions SECTION 4. SEPARABILITY CLAUSE. - If any of the provisions of these

following publication in the Official Gazette or in a leading newspaper of general circulation, whichever comes first. SECTION 5. EFFECTIVITY. - These Regulations shall take effect fifteen (15) days

CARLOS G. DOMINGVE

Secretary of Finance

JUN 0 9 2B21

Recommending Approval:

18a 1

CAESAR R. DULAY Commissioner of Internal Revenue Hireau of intet RALREVENUE

T 043465 NNTiN JUN 11.2021 Q:40 A.Y Ma

RECORDS MGT. DIVISION UU