RMC No. 32-2025 — Circularizing Joint Administrative Order No. 002-2025, Series of 2025, titled "Guidelines to Implement Sections 6, 7, and 8 of Republic Act No. 12066, on the Certification of Export-Oriented Enterprise with Export Sales of at least Seventy Percent (70%) of the Total Annual Production of the Preceding Taxable Year"

Bringing In Revenues for Nation-Building BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE National Office Building Quezon City PILIPINAS BagOng

APR g 7 Z025

REVENUE MEMORANDUM CIRCULAR NO. 0 3 2 - 2 0 2 5

SUBJECT Circularizing Joint Administrative Order No. 002-2025, Series of 2025, Entitled "Guidelines to Implement Sections 6, 7, and 8 of Republic Act No. 12066, on the Certification of Export- Oriented Enterprise with Export Sales of at least Seventy Percent (70%) of the Total Annual Production of the Preceding Taxable Year

TO All Internal Revenue Officials, Employees and Others Concerned

Republic Act No. 12066, on the Certification of Export-Oriented Enterprise with Export Sales of at Least Seventy Percent (70%) of the Total Annual Production of the Preceding and others concerned, attached as Annex "A" hereof is the Joint Administrative Order No. 002-2025, Series of 2025, entitled "Guidelines to Implement Sections 6, 7, and 8 of Taxable Year. For the information and guidance of all internal revenue officials, employees

Circular as wide a publicity as possible. All internal revenue officials and employees are hereby enjoined to give this

pamissioner of/Internal Revenue UMAGUI, JR

BUREAU OF INTERNAL REVENUE RECORDS MANAGEMENT DIVISION

SPe P} I Ws

APR 0 7 2025

Gsd b mH ADMIN UNIt - TIME: 3-10

BIR National Office Bldg., Senator Miriam Defensor-Santiago Avenue, Ditiman, Quezon City Trunk!ine: 8981-7000 : 8929-7676 Website: www.bir.gov.ph

Y

at 4RF CORNS MANAGEMENT DIVISION D T-1

X f ee

Joint adMinIStrative Order no. 00 2 . 20 2 5 Series of 2025 B APR 0 7 2025 ADMIN UN!I.. fIME Subject: NO. 12066, ON THE CERTIFICATION OF EXPORT-ORIENTED ENTERPRISE WITH EXPORT SALES OF AT LEAST SEVENTY PERCENT (70%) OF THE TOTAL ANNUAL PRODUCTION OF THE PRECEDING TAXABLE YEAR GUIdELINES tO IMPLEMENT SECTIONS 6, 7, ANd 8 OF REPUBLIC aCt

A, 296-A, and 297-A of the National Internal Revenue Code of 1997, as amended (Tax WHEREAS, Republic Act (RA) No. 12066, otherwise known as "An Act Amending Sections 27, 28, 32, 34, 57, 106, 108, 109, 112, 135, 237, 237-A, 269, 292, 293, 294 Code), and for Other Purposes", was enacted on 08 November 2024; 295, 296, 297, 300, 301, 308, 309, 310, and 311, and Adding New Sections 135-A, 295-

year: Provided, further, That such goods and services are directly attributable to the WHEREAS, Sections 6, 7, and 8 of RA No. 12066 amended Sections 106(A)(2)(a)(3), 108(B)(5), and 109(dd) of the Tax Code and provides for the Value-added tax (VAT) least seventy percent (70%) of its total annuai production for the preceding taxable zero-rating of saies of goods to and sale of services performed for export-oriented enterprises, and VAT exemption of importation of goods by export-oriented enterprises: Provided, that the export sales of such export-oriented enterprises are at export activity of the export-oriented enterprise;

WHEREAS, the same provisions designated the Department of Trade and Industry {DTI)-Export Marketing Bureau (EMB) to determine compliance with the aforementioned thresholds;

institutionalization, and administration of fiscal policies, acting in coordination with WHEREAS, the Department of Finance (DOF) is responsible for the formulation, other concerned political subdivisions, agencies, and instrumentalities of the government;

regulatory arm of government for the country's trade, industry, and investment WHEREAS, the DTI serves as the primary coordinative, promotive, facilitative, and activities;

WHEREAS, the Bureau of Internal Revenue (BIR) assesses and collects all national internal revenue taxes, fees, and charges, enforces all forfeitures, penaities, and fines connected therewith, and interprets the provisions of the Tax Code and other tax laws;

Guidelines to impiement Sections 6, 7, and 8 of Republic Act No. 12066

Page 1of 6

Modernization and Tariff Act and all other laws, rules, and regulations related to tariff and customs administration, including the enforcement of forfeitures, penalties, and fines connected therewith. clearance of vessels and aircraft engaged in foreign commerce, enforces the Customs WHEREAS, the Bureau of Customs (BOC) supervises and controls the entrance and

enabling environment to make them globally competitive; WHEREAS, the DTI, through the DTI-EMB, is mandated to oversee the development, promotion, and monitoring of Philippine exports and provide exporters with the

NOW, THEREFORE, pursuant to the above-mentioned, and subject to the limitations the following guidelines through this Joint Administrative Order (JAO). of their mandates conferred by law, the DOF, BIR, BOC, and DTI, do hereby promulgate

SECTION 1. GENERAL PROVISIONS

a. The DTI-EMB shall determine and certify the compliance of export-oriented enterprises with the seventy percent (70%) threshold under Sections 106 (A)(2)(a)(3),108(B)(5), and 109(dd) of the Tax Code; and

b. The Certification to be issued by DTI-EMB (DTI-EMB Certification) shall be a requirement in the availment of the VAT zero-rating on local purchases or VAT exemption on importation. For this purpose, the export-oriented enterprise shall furnish a copy of the DTI-EMB Certification to its local supplier prior to the transaction, and submit the same to the BOC in case of importation.

SECTION 2. DEFINITION OF TERMS

As used in the JAO:

a. Total annual production refers to, for goods, the volume or sales value of production, manufactured, and sold, including mark-up, by the export-oriented enterprise during a taxable year, and for services, the value of services rendered by the export-oriented enterprise during a taxable year;

b. Export-oriented enterprise refers to a person, natural or juridical, engaged in the sale and actual shipment of goods and/or sale of services_from..the RUREAS MANHEMENTDIVISION REAUOF INTERNALRFVENH b

APR 0 7 2025

BY ADMIN UNIT - IiMt Guideiines to Implement Sections 6, 7, and 8 of Republic Act No. 12066

Page 2 of 6

Philippines to a foreign country or economy as contemplated under Sections 106(A)(2)(a)(3),108(B)(5),and 109(dd) of the Tax Code;and

c. Export Sales refer to the actual sale and shipment of goods and services rendered that are covered under Sections 106(A)(2)(a)(1) and 108(B)(2), respectively, of the Tax Code.

SECTION 3. CERTIFICATION PROCEDURE

b. The following are the documentary reguirements: a. An export-oriented enterprise availing of the VAT zero-rating under Sections the VAT zero-rating certification to be issued by the investment Promotion? 106 (A)(2)(a)(3) and 108(B)(5) of the Tax Code, and VAT exempt importation Agencies on the sale to Registered Business Enterprises (RBEs) which is cover under Title XIIl of the Tax Code; under Section 109(dd) of the Tax Code, shall apply for a Certification with the DTI-EMB. The DTI-EMB Certification in this provision is to be distinguished frorm SE WE SZ0Z LO PdY CoE +ng ig

I I. Application Form prescribed by DTI-EMB; Certified True Copy. of the following:

U. Affidavit executed by the Owner/President or Finance Officer of the 1. BIR Certificate of Registration (BIR Form No. 1556); and 2. Proof of 70% export sales by the direct exporter (including but not limited to Financial Statements, Export documents, Bank Certification of Inward Remittances, etc.); C e

Iv. sales for the taxable year prior to the taxable year applied for is at least export-oriented enterprises, attesting and certifying that the export 70% of the total annual production; Original copy of Notarized Secretary's Certificate (for corporate

V Photocopy of at least one (1) government-issued ID with three (3) claimant)/Special Power of Attorney (for individual and ROHQ Certification; exporters) or similar documents authorizing the representative/s to file. sign documents on behalf of the ctaimant and/or follow-up the DTI-EMB

Vi. Other additional documentary requirements to be prescribed by the specimen signatures of authorized representative/s; and

DTI-EMB.

c. The DTi-EMB shall process the application within twenty (20) working days from the complete submission of the documentary requirements.

d. Subsequent applications for the DTI-EMB Certification by export-oriented

Guidelines to Implement Sections 6, 7, and 8 of Republic Act No. 12066

Page 3 of 6

enterprise. enterprises shail be filed with the DTi-EMB not earlier than forty-five (45) working days prior to the close of the taxable year of the export-oriented

SECTION 4. VALIDITY OF THE CERTIFICATION

(calendar/fiscal) adopted by the export-oriented enterprise unless earlier revoked. The DTI-EMB Certification shall be valid until the end of the applicable taxable year

SECTION 5. REVOCATION OF CERTIFICATION

If it is determined that export sales of the export-oriented enterprise is less than the Certification shall be revoked by the DTI-EMB. seventy percent (70%) of the total annual production of the preceding taxable year

EMB Certification and shall be allowed to refund the excess input tax after verification. subject to VAT on their importations for such taxable year covered by the revoked DTI- After revocation of the DTi-EMB Certification, the export-oriented enterprise shall be

SECTION 6. ROLES AND RESPONSIBILITIES

To fully implement the provisions of these Guidelines, the following agencies shall have the following roles and responsibilities:

a. DOF

I. I The DOF shall provide policy direction, after consultation with the BIR, The DOF shall include in the database created under RA No. 10708 the BOC, and DTI-EMB, on the implementation of the provisions of Sections 6,7 and 8 of RA No. 12066 amending Sections 106 (A)(2)(a)(3),108(B)(5), and 109(dd) of the Tax Code and its impiementing rules and regulations; and

reports herein submitted by the DTI-EMB to the DOF.

b. DTI-EMB

BY: ADMIN UNITiME: 3.0 e W APR 0 '7 2025 R JREAY F NTERNANTREVENUN I The DTI-EMB shall determine and certify the compliance of export- oriented enterprises with the seventy percent (70%) threshold under Sections 106 (A)(2)(a)(3),108(B)(5),and 109(dd); The DTI-EMB shall submit to the DOF, BIR, and BOC, a Master List of all disapproved applications, beginning on the thirtieth (30th) day after the export-oriented enterprises issued a DTI-EMB Certification, including effectivity of these Guidelines;

3 Guidelines to Implement Sections 6, 7, and 8 of Republic Act No. 12066

Page 4 of 6 S

IN. I. V. Such Master List shall be updated by the DTI-EMB on or before the fifth The DTI-EMB, in consultation with DOF, BIR, and BOC, shall establish a enterprises to the BIR, BOC, and DOF; and The DTI-EMB shall facilitate the publication of such Master List for the (5th) day following the close of each month, which includes the revoked certifications; mechanism for the transmission of the Master List of export-oriented

information of stakeholders, including the suppliers of export-oriented enterprises. For this purpose, the DTI-EMB may make use of any electronic means of publication.

C. BIR and BOC

I The BIR and 8Oc shall maintain a database of export-oriented

these Guidelines. enterprises based on the DTI-EMB's Master List of export-oriented enterprises with an issued certificate in accordance with Section 3 of

SECTION 7. VIOLATIONS AND PENALTIES

Any violation of any of the provisions of RA No. 12066, as implemented by these Guidelines, shall be grounds for the initiation of appropriate action against the export- oriented enterprise without prejudice to the filing of appropriate administrative, civil, or criminal charges:

SECTION 8. ADDITIONAL REQUIREMENTS

The DTI-EMB, BIR, and BOC may issue pertinent administrative orders, memorandum circulars, or other similar documents further providing details of enforcement of these Guidelines.

SECTION 9. INFORMATION DISSEMINATION

campaigns, and dissemination programs and activities shall be undertaken by the agencies to educate export-oriented enterprises, local suppliers, and other This JAO shall be disseminated nationwide by the DTI-EMB, BIR, and BOC. Information stakeholders.

SECTION 10. SEPARABILITY

If any provision or part of this JAO is found invalid, illegat, and unenforceable, the remainder of the rules shall remain valid, legal, and subsisting.

BUREAt nf iNTrtAl REVENUE Guidelines to implement Sections 6,7, and 8 of Republic Act No. 12066 RECOR S : *H: -!T hIWSION Page 5 of 6

APR O 7 Zu25

BY T o ADMIN UNI - TIME: 3:

W

SECTION 11. REPEALING CLAUSE

All other orders, issuances, rules and regulations which are inconsistent with RA No. 12066 and these rules are hereby repealed and modified.

SECTION 1Z. EFFECTIVITY

This JAO shall take effect immediately following its publication in a newspaper of general circulation and filing of three (3) copies hereof with the Office of National Administrative Register (ONAR), University of the Philippines (UP) Law Center, Dillman, Quezon City, pursuant to Presidential Memorandum Circular No. 11 dated 09 October 1992. Issued this 2 6. day of February 2025.

Departhent of Finance Setretary Department of Trade and Industry MA. CRISTINA A. ROQUE Secretary Q

Bureau of Internal Revenue. 4 Commissioner 0.2 28. 11 aR c BIENVENIDG Bureau of &u Commisbior er KRUBIC

BUREAU OF INTERNAL REVENUE A ECGADS MANAGFMENT DiVSION B

APR 0'7 2025

B ADMIN uNI M. 3:0

Guidelines to Implement Sections 6, 7, and 8 of Republic Act No. 12066

Page 6 of 6