The Fiscal Incentives Review Board (FIRB) is finalizing the guidelines on the suspension or withdrawal of tax incentives, and the cancellation of project or activity registration applicable to all registered business enterprises (RBEs).
The guidelines are meant to provide uniform rules for imposing penalties on non-compliant RBEs. FIRB’s power to suspend or withdraw tax incentives, or cancel business registration was granted under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
A public consultation by the end of January 2023 will be conducted once the guidelines have been approved by the FIRB-Technical Committee.
The guidelines will clarify the procedure for RBEs when responding to a show cause order issued by their respective investment promotion agencies (IPAs) or the FIRB, or when filing an appeal from an adverse finding.
Apart from finalizing the guidelines, the Board also approved applications for tax incentives from new domestic enterprises engaged in the operation of Tourist Accommodation Facilities and the construction of Common Passive Telecommunications Tower Infrastructures during the FIRB meeting held on January 6, 2023.
The approved investment applications will accelerate the present administration’s ongoing economic recovery efforts, specifically in areas of tourism and digitalization.
“As we attract all types of big-ticket local and foreign investments into the country, we also strive to be inclusive and not industry-specific in our grant of fiscal incentives. Largely, what we want to ensure is for these projects to result in a win-win situation for both the RBEs and the economy,” said Finance Secretary and FIRB Chairperson Benjamin Diokno.