08/08/2018

RA No. 10963
Section 5(b) xxxxxx…Provided, That the
Cooperative Development Authority shall
submit to the Bureau of Internal Revenue
BRIEFER ON TIMTA a tax incentive report, which shall include
LAW information on the income tax, value-
added tax, and other tax incentives
availed of by cooperatives registered and
enjoying incentives under Republic Act
No. 6938, as amended:

Provided, further, That the information RA No. 10708

submitted by the Cooperative An Act Enhancing Transparency
Development Authority to the Bureau
shall be submitted to the Department of
in the Management and
Finance and shall be included in the Accounting of Tax Incentives
database created under Republic Act No. Administered by IPAs, otherwise
10708, otherwise known as ‘The Tax known as the Tax Incentives
Incentives Management and Transparency
Act (TIMTA)’. Management & Transparency
Act (TIMTA)

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STAKEHOLDERS:
1. Registered Business Entity (RBE)
- entity incorporated and/or organized and 3. Bureau of Internal Revenue (BIR)
existing under Philippine laws and 4. Bureau of Customs (BOC)
registered with an IPA 5. Department of Finance (DOF)
2. Investment Promotion Agencies (IPAs) 6. Department of Budget and Management
- government entities created by law, executive (DBM)
order, decree or other issuance, in charge of
promoting investments, administering tax and
non-tax incentives, and/or overseeing the
operations of the different economic zones and
free ports in accordance with their respective
charters.

ROLE OF STAKEHOLDERS:
ROLE OF STAKEHOLDERS: 2. IPAs
1. RBEs - Submit to the BIR the following:
- File income tax returns and pay tax a) Master list of all RBEs, whether
liabilities on or before the deadline as granted incentives or not
provided under the NIRC through eFPS. b) Consolidated Annual Tax Incentives
Report on income-based tax
- File with respective IPAs an Annual Tax incentives (Annex B.1)
Incentives Report within 30 days from c) Consolidated Annual Tax Incentives
deadline for filing of Final Adjustment Report on VAT incentives and duty
Return exemptions (Annex B.2)

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ROLE OF STAKEHOLDERS: ROLE OF STAKEHOLDERS:

2. IPAs 3. BIR
- Submit to the NEDA Secretariat the ff.: - Submit to the DOF the tax incentives of
a) Aggregate Annual Tax Incentives RBEs as reflected in their filed ITR on or
Report before September 15 of every year
b) Other relevant data or information, - Submit to the DOF and NEDA Secretariat
such as but not limited to, aggregate the update on the above report with
incentives claimed income-based tax incentives, deductions,
- Disseminate information for the RBEs to credits or exclusions from the gross
provide proper information in their income as assessed under the NIRC,
reports. within 90 days after the lapse of the said
period to assess provided under the NIRC.

ROLE OF STAKEHOLDERS:
ROLE OF STAKEHOLDERS: 5. DOF
4. BOC - Maintain a single database for monitoring
- Submit to the DOF the VAT and duty and analysis of tax incentives granted
incentives availed by RBEs as reflected in - Submit to DBM and the Joint
the filed import entries on or before Congressional Oversight Committee, and
September 15 of every year upon request, to the NEDA, the aggregate
data categorized by sector, by IPA and by
tax type:

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ROLE OF STAKEHOLDERS:
a) the amount of tax incentives availed ROLE OF STAKEHOLDERS:
by RBEs 6. DBM
b) the estimated claims of tax incentives - Reflect the aforesaid data in the annual
immediately preceding the current Budget of Expenditures and Sources of
year Financing (BESF), which shall be known as
c) the programmed tax incentives for the the Tax Incentives Information (TII)
current year; and section.
d) the projected tax incentives for the
following year.

PENALTY PROVISION
R.A. NO. 10708 (TIMTA)

RBEs:
Failure to comply with Filing and Reportorial Requirements
IPAs
and
1st Violation - payment of a fine amounting to Php100,000.00
RBEs Upon
request Joint
Congressional
2nd Violation - payment of a fine amounting to Php500,000.00
Oversight
Committee
3rd Violation - cancellation of the registration of the RBE

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REPORT FORMATS:
For RBEs:
Government Official or Employee: • Annex A
Failure to provide the required tax incentives report or other data
fine equivalent to basic salary for a period of one (1) to six (6) mos., or
For IPAs:
suspension from government service for not more than one (1) year, or both,
• Annex B
in addition to any criminal and administrative penalties imposable under
• Annex C
existing laws.

For RBEs - Form Annex A For RBEs - Form Annex C

ANNUAL TAX INCENTIVES REPORT - INCOME - BASED TAX INCENTIVES
Registered Business Enterprise Master List as of ____________
FOR CALENDAR/FISCAL YEAR ___________
a. Registered Name (RBE) g. Profile of RBE
1. CDA Registration Number
b. Registered Address h. Type of members
2. Business Activities
c. Taxpayer Identification No. i. Transacting with
 Registered d. RDO Code members and
 Actual e. CDA Registration Certificate non-members
4. Tax Identification No. (TIN)  No j. Accumulated
5. RDO Code  Date Reserves / Savings
6. BIR Registration Date f. Business Activities
Philippine Standard industry Classification (PSIC) Code
 Registered
7.

Tax Incentives Claimed

 Actual
8.

a. Net Sales f. Patronage Refund (e) X 70%

g. PSIC
b. Cost of Sales g. Tax Rate (30%)
h. Type of Tax Incentives
c. Gross Revenues h. Income Tax Holiday/Tax incentive
i. Date of Start of Commercial Operations
d. Expenses Claimed (e) x 30%
j. Effectivity Date of Tax Relief/Exemption
e. Net Surplus i. Final Tax (e) x 10%
k. Income Tax Holiday/Tax Incentives Claimed

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Thank you!