NextGen Day

Cebuano English Filipino

The classification of ecozone logistics service firms (ELSEs) as “export enterprises” that may be eligible for benefits under the Strategic Investment Priority Plan has finally been determined by the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI) (SIPP).

The Memorandum Circular (MC) 2023-010, issued February 3, 2023, which acknowledges ELSEs as exporters under the 2022 SIPP’s actions in support of exporters, was shared with the media by the PEZA on Tuesday.

The BOI MC stated, “This is in view of the active lobbying and relentless efforts of PEZA through our letter to the BOI dated 24 February 2022, Position Paper to the Fiscal Incentives Review Board – Technical Committee (FIRTB-TC) dated 8 September 2022, and comments/inputs on the BOI MC, for the inclusion and recognition of ELSEs as activities in support of exporters and, therefore, entitled to the VAT (value-added tax) zero-r

Prior to the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, fiscal incentives were provided to ELSEs under the terms of PEZA Board Resolution 97-366, dated November 11, 1997, also known as the “Guidelines for Registration and Operations of Ecozone Facilities Enterprise Engaging in Warehouse Operation.”

The BOI and PEZA are required to define the classification of ELSEs as the government rationalizes tax benefits through the CREATE Act.

According to the new PEZA MC, ELSE projects can be classified as export enterprises if they provide at least 70% of their output and/or services to another registered export enterprise and engage in integrated logistics, which includes building a warehouse storage facility and sourcing goods from regional suppliers and/or PEZA-registered businesses for direct export or consignment to PEZA-registered export enterprises.

Accordingly, all ELSEs that have already submitted their request for a VAT zero-rating certification for the year 2023 and are in compliance with all PEZA reporting criteria, including those for reports required by TIMTA, will be given the certificate.

It also stated that ELSEs may still apply with PEZA if they haven’t already submitted their request for a VAT zero-rating certificate.

***
We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:

1.) ❤️Give a Tip. If you would like to make a small donation to support us, please give a tip thru PayPal at https://paypal.me/SocialBoostVA😊❤️

Subscribers in the Philippines can make donations to mobile number 0917 906 3081, by using the GCash website or GCash mobile application.

2.) Be one of our SPONSOR. We can published your promotions, PR stories/news articles with contact details as an additional exposure of your company products and services.

3.) 👍 Give this news article a Thumbs Up, Leave a Comment (at Least Five Words), and Share!

***

Cebuano English Filipino