Registered export enterprises with expired income tax-based incentives can enjoy zero-rated VAT on local purchases until the BIR’s electronic sales reporting system is fully operational or until the end of the transitional period under section 311(C) of CREATE, whichever comes first. Section 311(C) allows these enterprises to maintain a 5% corporate income tax rate for the first 10 years of CREATE.
RBEs categorized as domestic market enterprises within economic or freeport zones can register as VAT taxpayers. However, they won’t be eligible for VAT refunds for transactions before the issuance of RMC No. 91-2023, dated September 11, 2023.
Source: taxathand.com
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