Quite confusing and stressful, right? Well, that might be the same experience for some taxpayers, specifically the registered business enterprises with the Board of Investments , when it comes to local business tax exemption -- upon the passing into law of Republic Act 11534, otherwise known as the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE Act.
Although the Department of Finance issued Department Order 033-2023 to provide clarity to the RBEs registered prior to CREATE regarding the rules for the continuous enjoyment of the LBT exemptions during the transitory period, there are no issuances released to guide the RBEs registered under CREATE.
The DOJ replied that even though the Investment Priorities Plan under EO 226, s. 1987, has been repealed entirely by CREATE Act due to the establishment of the Strategic Investment Priority Plan , there was no express repeal of BOI’s authority to certify and register enterprises as pioneer or non-pioneer under the Omnibus Investments Code of 1987, in relation to Section 133 of the LGC.
This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or KPMG in the Philippines.
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