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By Chino S. Leyco, Reporter
THE Bureau of Internal Revenue (BIR) has
tightened the rules on tax exemptions enjoyed by enterprises
operating in economic zones.
In a memorandum, Commissioner Lilian B. Hefti
said income realized by an enterprise that is unrelated to its
registered activities shall be subject to the regular internal
revenue taxes.
The directive is aimed at clarifying the tax
treatment of income earned from unregistered activities by
enterprises registered under the Bases Conversion and Development
Act of 1992 and the Philippine Economic Zone Act of 1995 or Republic
Act 7916.
As part of its drive to plug tax leakages, the
BIR is running after businesses that continue to enjoy tax perks
even after their privileges have lapsed.
The tax bureau would zero in on Philippine
Economic Zone Authority (PEZA)-registered businesses and manpower
services that are enjoying income-tax holidays.
PEZA-registered businesses only pay the
government five percent of their gross income earned in lieu of all
national and local taxes for a given period. However, the Department
of Finance said the government has been remiss in monitoring
businesses whose tax holidays already lapsed and a number of these
investors still enjoy the perks beyond the mandated period.
Apart from the five percent preferential tax
based on gross income earned, an enterprise also has to pay real
property tax.
“Except for real property taxes on land owned
by developers, no taxes, local and national, shall be imposed on
business establishments operating within the ecozone,” the
directive read.
Of the tax on gross income earned by an
enterprise, three percent will be remitted to the national
government and two percent to the municipality or city hosting the
ecozone.
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