BIR to issue rules on Subic VAT exemption
The Bureau of Internal Revenue will come up with a revenue regulation (RR) that will make it clear to the Subic Bay Metropolitan Authority that its petition for value-added tax exemption may not be valid.
"They cannot claim [input VAT] refund since it is part of their cost. We will issue an RR to clarify this," BIR Commissioner Jose Mario Buñag said.
SBMA Administrator Armand Arreza recently submitted to BIR a petition to exempt from VAT payments transactions on goods and services such as refueling for airplanes, dine-in restaurants, and air and sea transportation tickets that are completed or consumed at the Subic Bay Freeport.
Arreza argued that exempting these from VAT would benefit the people who transact business within the special economic zone. He said tourists and OFWs would be lured to Subic because VAT exemptions on plane fuel and tickets, as well as cargos, would lower their costs.
Under the Bases Conversion Act of 1992 (Republic Act 7227), SBMA is exempted from paying taxes; but 3 percent of the gross income earned by all businesses and enterprise within the Subic Special Economic Zone shall be remitted to the national government, one percent to the local government units affected by the declaration of the zone in proportion to their population area, and another one percent will be used for the development of municipalities outside Olongapo City and Subic.
"They cannot claim [input VAT] refund since it is part of their cost. We will issue an RR to clarify this," BIR Commissioner Jose Mario Buñag said.
SBMA Administrator Armand Arreza recently submitted to BIR a petition to exempt from VAT payments transactions on goods and services such as refueling for airplanes, dine-in restaurants, and air and sea transportation tickets that are completed or consumed at the Subic Bay Freeport.
Arreza argued that exempting these from VAT would benefit the people who transact business within the special economic zone. He said tourists and OFWs would be lured to Subic because VAT exemptions on plane fuel and tickets, as well as cargos, would lower their costs.
Under the Bases Conversion Act of 1992 (Republic Act 7227), SBMA is exempted from paying taxes; but 3 percent of the gross income earned by all businesses and enterprise within the Subic Special Economic Zone shall be remitted to the national government, one percent to the local government units affected by the declaration of the zone in proportion to their population area, and another one percent will be used for the development of municipalities outside Olongapo City and Subic.
Likha Cuevas - Manila Times
posted by OlongapoCity Zambales at
10:21 AM
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