RR No. 12-2021 — Prescribes the policies and guidelines on the utilization of the Tax Payment Certificate issued by the DTI-BOI evidencing the availment of the fiscal support for the eligible and registered participants of the Comprehensive Automotive Resurgence Strategy (CARS) Program under EO No. 182, Series of 2015 (Published in Malaya Business Insight on June 24, 2021) Digest | Full Text

a REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OQTNfrDR}.T*L REVENUE JUN 2 3 'tltl, nEVENUE REGULATIONS NO. 12 - 2"0211 SUBJECT : Prescribing the Policies and Guidelines on the Utilization of the'fax Payment Certificate Issued by the Department of Trade and Industry-Board of Investment (DT I-BOI) Evidencing the Avaihnent o1'the Fiscal Support fbr tht: Eligible and Registered Participants of the Comprehensive Automotive Resurgence Strategy (CARS) Program Under Executive Order No. 182, Series of 201 5 TO : All Internal Revenue Oflicials and Others Concerned SECTION l. Scope. - Pursuant to the provisions of Section 244 of the National {nternal Revenue Code (NIRC) of 1997 , as amended, in relation to Section 13 of Executive Order (EO) No. 182, Series of 2015, these Regulations are hereby promulgated to prescribe the policies and guidelines on the Tax Payment Certificate (TPC) issued by the Department of Trade and Industry-Board of Investment (D1-I-BOI) evidencing the availment of the fiscal support fbr the eligible and registered participants of' the Comprehensiv'e Automotive Resurgence Strategy (CARS) Program under the said EO. SECTION 2. Dejinition of terms. - For purposes of these Regulations, the fbliowing words and phrases shall have the meaning indicated below: a. Purticipating Car Msker Incentive Account (PCMIA) ref'ers to an account created b'y the DTI-BOI to track the crediting and disbursements tbr each Participating Car Maker (PCM) and its Participating Part Makers (PPMs) against the approved fiscal support. All availments of flscal support. whether fbr Iiixed lnvestment Support (FIS) or Production Volume Incentive (PVI), will be in the name of the eligible and registered participant -- b. Eligible und Registered Participants refbr to PCMs. parts makers and shared testing service providers registered under the CARS Program and issued with a C'ertii.rcate oi' Registration by the DTI-BOI. c. Tax Payment CertiJicale refers to a non-trarrsfbrrable certificate issued by DTI-BOI, upon the recommendation of the CARS lnter-Agency Committee and based on th,: third party audit of the PCMs' and PPMs' applications to determine cor:rpliance with all the condilions lor the availment of incentives, which shall be used to rJefral, the ta;< and duty obligations of the eligible and registered participants to the National Government. d. Tax obligations refer to ercise tax. income tax, and value-added tax (VAl') only, incurred by PCMs, pafis makers and shared tcsting sen'ice providers in the course of' their operations, and shall not include any type of withholding taxes. alt RE IN NAL { ,r#,wN m

SECTION 3. Coverage. These Regulations shall apply to the PCMs and PPMs registered under the CARS Program who applied and were issued TPCs by' the DI'I-BOI to pay exclusively the following tax obligations. excluding any type of withholding taxes. incurred in the course of their operations: (a) trxcise Tax; (b) Income Tax; and, 83 2821 (c) Value-Added Tax. SECTION 4. General Policies and Guidelines. $ r. 0tvlstoN 1. The total fiscal support for the CARS Program shall be divided into tu'o (2) categories, namely: a. Fixed Investment Support (FIS) - shall not exceed Forly Percent (40%) of the total fiscal support, provided that in case of Parls and Shared Testing Facitrity, the FIS shall not exceed 40% of the capital expenditure for tooling and equiprnent to manufacture the pafts, including training costs for the stafi-up operation fbr the use thereof: and b. Production Volume Incentive ?VD - shall not exceed Sixty Percent (60%) ot" the total fiscal support. 2. The availment of the fiscal support by the eligible and registered participants shall be el'idenced by a TPC, which is non-transl'errable. 3. Eligible and registered participants shall request fiorn DTI-BOI for issuance of'TP( before the statutory deadline for the payment of the tax or taxes mentioned in Section 3 hereof sought to be settled. The request shall include details of their FIS and PVI entitlement, and the specific tax liabilities to which the TPC shall be applied. 4.--Ihe-IPeL-ubgrs-sued-by DTI.B-OI shall he-in thenamsolthe -eligible and-registered- parlicipants and shall cover their specific tax obligations. 5. All TPCs shall have a validity period of only thirty (30) days counted f,ronr date of issue. and can only be used once. The date indicated on the face of thc TPC shall bc presumed to be the date of issuance. 6. The BIR shall recognize and accept valid'IPCs issued by the DTI-BOI as tax payment only upon verification and validation against their records, as well as online validation thru the PCMIA set up by the DTI-IIOI. SECTION 5. Procedure for Utilization of TPC. - The amount of the TPC' shall b,: indicated in the tax retum as deduction fiom,the tax due. The accomplished tax return shall be filed using the electronic Filing and Payment System (etrPS) or eBlRlrorms Pack.age, as the case may be. In case the tax due is rnore than tlre amount o1'the TPC'. the tax^ still duc shall be paid using the available modes o1'payment o{ the BIR. I'he printed hard copics of the tax returns, together with the copy/ies of the TPC and the other prescribed attachments, shall be submitted to the Revenue District Olhce (RDO)/ Large Taxpayers District Offic,: $

(LTDO)l,LT l)ocuments and Quality Assurance Division (L'IDQAD) where the registered participants are duly' registered, pursuant to the existing revenue guidelincs and procedures. In case the amount of TPC exceeds the tax due, net of the creditable taxes, the excess shall not be considered or treated as a refundable amount. The BIR sh;rll issue a s'parate reve'iiLrr: issuance setting iiii'tli tirr: sp,-:r:ilic g,,.ritlciint--s and procedur"c:j on the rr-r.ilization oI"i'PC. SECTION 6. I\o Double Avililment of Incentives. - Liligible and registered participants under the CARS Program shall not be allowed to register their activity under any other program granting incentives as a condition for TPC availment. SECTION 7. Limitation on Availment of Support. - T'he grant o['support is conditioned ott the compliance of the eligible and registered parlicipants with the terms and conditions of its registration. Upon recommendation o1'the Inter-Agency Comrnittee. the Boarcl may lirnit the availment of support, as it may deem necessary. SECTION 8. Monitoring and Compliance. - Audited Financial Statements and Income Tax Returns shall be submitted on or befbre May 15 of each year or one (l) month fiorn the last day of filing of Income Tax Returns to the Bureau of lnternal Revenue (BIR). The BIR shall submit rnonthly to the Bureau of Treasury a list of- TPCs reported and shall record the TPC transaction amollnt as part of its revenue collection. SECTION 9. Repealing Claus All revenue rules and regulations and other revenue issuances or parts thereol, which are inconsistent with these Regulations are hereby repealed or modifled accordingly. fSoElloCwTinIOgNits1p0u.blEicfafteiocntivinityth. e- These Revenue Regulations shall take elfect irnmediatel.v Gazette or newspaper of general circulation. Official Recommending Approval : CARLOS G" DOMINGUT' Sea'elury ofFinlnce Jtr$, .iul,l 1 6 2021 CABSAR R. DULAY' BURE Commissio ncr, o.f' Int ernul Revenue R] 043V 0 s It. .er1 /