RR No. 18-2024 — Implementing Section 32(B)(5) of the National Internal Revenue Code of 1997, as amended by Republic Act 12066, or the CREATE MORE Act (Date posted: December 17, 2024) Digest | Full Text | Annex A

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing Ir Revenues for Nation-Building EEC 17' 202 PILIPINAS BAGONG

REVENUE REGULATIONS NO.0_1.8 -2024

SUBJECT of 1997, as amended by Republic Act No. 12066, Or the CREATE Implementing Section 32(B)(5) of the Nationat Intemal Revenue Code MORE Act

TO All Intemal Revenue Officers, and others concerned

Republic Act (RA) No. 12066`cr the CREATE MORE (Maximfze Opportunities for SECTION 1. PURPOSE. - Pursuant to the provisions of Sections 244 and 245 of the Reinvigorating the Economy) Act, these Regulations are hereby promulgated to implement National internal Revenue Code (NIRC) of 1997, as amended, in relation to Section 32 of Section 32(B)(5) of the NIRC, as amended by the said Act which now reads:

included in the gross income and shall be exempt from taxation under this Title. "SEC. 32. Gross income, (B) Exclusions from Gross Income, -- The following items shall not be XXXXXX XXX EA (t e uZOZ LT 33G E Aa

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concurrence of the Senate, binding upon the Government of the Philippines. required by any treaty obligation, including agreements entered into by the President with economies and administrative regions, subject to the (5) income Exempt under Treaty. - Income of any kind, to the extent S G Ke

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enter into treaties and international agreements is based on the following legal provisions: SECTION 2. BACKGROUND. Power of the President of the Philippines to Enter into Treaties and International Agreements. -- The power of the President of the Philippines to

a. Section 21 of Article VII (Executive Department) of the 1987 Philippine b. Section 19 of Book Ill, Title I, Chapter 7 of Executive Order No. 292 (the such other powers as are provided for in the Constitution. and effective unless concurred in by at least two-thirds of all the members of the Administrative Code of 1987), which provides that the President shall exercise Constitution, which states that no treaty or intemational agreement shall be valld Senate; and

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

SECTION 3. DEFINITION OF TERMS. - Words and/or phrases used under these Regulations shall mean:

a. international agreement - a contract or understanding, regardless of b. treaty -- an international agreement entered into by the Philippines that nomenclature, entered into between the Philippines and another government in written form and governed by international iaw, whether embodied in a single instrument or in two or more related instruments; requires legisiative concurrence after executive ratification. This term may include compacts like conventions, declarations, covenants, and acts; C. Government of the Philippines the corporate governmental entity

through which the functions of government are exercised throughout the

Philippines, whether pertaining to the autonomous regions, the provincial various arms through which the political authority is made effective in the Philippines, including, save as the contrary appears from the context, the

city, municipal, or barangay subdivisions, or other forms of locall government:3 economies -- used to describe the members of the Asia-Pacific Economic Cooperation (APEC) because the APEC cooperative process is predominantly concerned with trade and economic issues, with members engaging with one another as economic entities rather than as sovereign nations4 and e. administrative regions - territorial units that a country is divided in,

and with its jurisdiction covering the total area inside its borders.s having an administration with some government functions and powers,

SecTiON 4. iNcOME eXEMPT UndEr TREAtiES ANd IntErnATiOnAL

including agreements entered into by the President, or his/her authorized be exempt from income tax to the extent required by any treaty obligation binding upon the Government of the Philippines, or his/her authorized representative(s), 12066 or the CREATE MORE Act, income of any kind shall be excluded from the computation of gross income, as defined under Section 32(A) of the NIRC, and shall AGREEMENTS. - Pursuant to Section 32(B)(5) of the NIRC, as amended by RA No.

representative(s), with economies and administrative regions, and duly concurred in by at least two-thirds of all the members of the Senate.

such economies and administrative regions, and derogating from whateverupolicyte that the Philippines has agreed to adopt and implement. Nothing in these Regulations shafl be construed as recognizing the statehood of PECORDS MANAGEMENY DIVISION

DEC 17 2024

Executive Order No. 292 (1987), Sec. 02 2 ibid.. Sec. 2(b). Asia-Pacific Economic Cooperation, Glossary, https://www.apec.org/glossaPy (Iast accessed"an DeCeffber 06, 5 Organisation for Economic Co-operation and Devejopment, OECD Glossary of Statistical Terms, p. 20 (2008) 1 Executive Order No. 459 (1997}, Sec. 2(a). 2024 T"ADMiN'UNIT"E z:66 A

SECTION 5. LIST OF ECONOMIES AND ADMINISTRATIVE REGIONS. -- The President or his/her authorized representative(s) shall only negotiate with economies and administrative regions as contained in the list provided by the Department of

regions is attached hereto as Annex "A" and forms an integral part of these Foreign Affairs (DFA). The indicative list of such economies and administrative

Regulations.

former deems necessary. Such list shall be regularly updated and/or communicated by the DFA to the Department of Finance (DOF) and the Bureau of Internal Revenue (BiR) as the

SECTION 6. SEPARABILiTY CLAUSE. - If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shail remain in full force and effect.

or parts thereof that are contrary to and inconsistent with any provision of these SECTION 7. REPEALING CLAUSE. - All other issuances and rules and regulations

Regulations are hereby repealed, amended, or modified accordingly.

SECTION 8. EFFECTIVITY. - These Regulations shall take effect immediately following its publication in the Official Gazette or the BIR official website, whichever comes first.

Ra'lph d.recto Secretary of Finance BEC }6 22

Recommending Approval:

Co} ssioner of Internal Revenue RONEOD LUMAGUI, JR. BURTI thnS M DFINTERW I REYEN Y

J

DEC 17 2024

By a5Min uNit- 1 2/se