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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 266
ADMINISTRATIVE ORDER NO. 266 -
CREATING A ONE-STOP-SHOP INTER-AGENCY TAX CREDIT AND DUTY DRAWBACK
CENTER (CENTER) FOR THE PROCESSING OF ALL TAX CREDITS AND DUTY
DRAWBACKS, DEFINING ITS POWERS, DUTIES AND FUNCTIONS, AND FOR OTHER
PURPOSES
WHEREAS, current systems in the processing
of tax credit availment/duty drawbacks are being administered primarily
by different government agencies, resulting in varying documentation
requirements, longer processing time, and a considerable number of
pending applications;
WHEREAS, such current systems hamper the basic objective of government,
which is to enable those eligible for tax credits/duty drawback to
reasonably enjoy their credits for taxes and duties paid on their raw
materials and other inputs used in their products;
WHEREAS, the competitiveness of our locally manufactured products
vis-a-vis their imported equivalents is also dependent on the ability
of our manufacturers/exporters to secure and to use their tax
credits/drawbacks at the earliest time possible;
WHEREAS, the simplification of the availments of said credits on taxes
and duties, as well as safeguarding the system from the occurrence of
undue claim, is urgently needed;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the power vested in me by law, do hereby order the following:
Section 1. Creation of a One-Stop Inter-Agency Tax
Credit and Duty Drawback Center. — A One-Stop-Shop Inter-Agency Tax
Credit and Duty Drawback Center (CENTER) is hereby created for the
purposes of achieving an orderly and expeditious processing of tax
credits and duty drawbacks under Executive Order No. 226; Presidential
Decree No. 1789 as amended by Batas Pambansa Blg. 391, as amended;
Letter of Instructions No. 1355; Executive Order No. 765; RP-US
Military Agreement; Sec. 106 (c), Tariff and Customs Code of the
Philippines; Sec. 106, National Internal Revenue Code; and such
other applicable laws.
Sec. 2. Composition. — The CENTER shall be
composed of representatives from the following agencies:
Chairman
- The Department of Finance
Member
- The Board of Investments
Member
- The Bureau of Customs
Member
- The Bureau of Internal Revenue
Secretariat
- Revenue Operations Group (ROG), Dept. of
Finance
The CENTER shall invite representatives from the Industrial Technology
Development Institute, Bureau of Export and Trade Promotion, Garments
and Textiles Export Board, Philippine International Trading Corporation
and other concerned government Agencies, as well as representatives
from the private sector, as consultants.
Sec. 3. Powers, Duties and Functions. — The Center
shall have the following powers, duties and functions:
a.
To promulgate the necessary rules and regulations and/or guidelines for
the effective implementation of this administrative order;
b. To accept
applications for tax credits and/or duty drawbacks and finish
evaluation thereof within thirty (30) working days from date of
acceptance of complete applications;
c. To
regularly conduct dialogues with the private sector with the end in
view of arriving at realistic standard/usage rates;
d. To adopt
and/or revise standard/usage rates on all raw materials and inputs used
in export products motu propio or upon petition by concerned exporters
which shall be used for computing special tax credits/duty drawbacks;
e. To conduct
regular post-audit examinations on tax credit certificates issued using
standard rates;
f. To
disseminate relevant information to the public on credit/duty drawback
scheme/policies and procedures;
g. To enforce
compliance with tax credit/duty drawback policy and procedural
guidelines;
h. To manage
the data processing for the storage and retrieval of data on tax
credit/duty drawbacks scheme applications;
i. To collect
appropriate fees in connection with the processing of applications,
which may be expended to enhance its effectiveness and efficiency,
including but not limited to granting allowances, overtime pays and
other material benefits to its members and staff;
j. To recruit,
hire, and train the necessary staff to process and evaluate
applications for tax credit/drawback;
k. To accept
donations pursuant to Sec. 8 of R.A. 7078 for purposes of the
functions of the Center; and
l. To perform
such other functions/duties as may be necessary or incidental in the
furtherance of the purpose for which it has been established.
Sec. 4. Filing of Applications. — Except as
otherwise provided herein, all applications for tax credits/duty
drawbacks shall be filed directly with the CENTER, which shall be
located at the Department of Finance, Manila, or where any of its
agencies are located. Applications for tax credit on Net Local Content
(NLC) and Net Value Earned (NVE), domestic capital equipment, and
domestic breeding stocks and genetic materials shall, for a period of
six (6) months from the effectivity of this Administrative Order, shall
continue to be filed with and evaluated by the Board of Investments
(BOI), provided that, after such period, all applications, including
those on NLC and NVE, shall already be filed with and processed by the
CENTER.
Sec. 5. Issuance of Tax Credit Certificates and/or
Duty Drawback. — The Secretary of Finance shall designate his
representatives who shall, upon the recommendation of the CENTER, issue
tax credit certificates within thirty (30) working days from acceptance
of applications for the enjoyment thereof.
Sec. 6. Operationalization. — The Department of
Finance shall ensure the operationalization of the CENTER within sixty
(60) days from the effectivity of this Administrative Order. For a
period of six (6) months from date of said operationalization, all
concerned agencies shall detail, with the CENTER, competent technical
staff who shall initially be responsible for the evaluation of tax
credits/duty drawbacks. Six (6) months thereafter, the processing and
evaluation shall already be undertaken by the staff of the Center. The
operational staff shall include, aside from the technical staff, a
property officer and a disbursing officer who shall be directly
accountable, exclusively for the property and funds which the CENTER
may acquire in the course of its operation.
Sec. 7. Review. — The CENTER shall be subject to
an annual review by the Office of the President to assess its
effectivity and to determine its necessity to continue processing
applications for and issuing tax credits/duty drawbacks. After said
review, the President may or may not continue the operations of said
CENTER.
Sec. 8. Repealing Clause. — All orders, guidelines
and regulations or portions thereof, which are inconsistent or in
conflict with this Administrative Order are hereby repealed or modified
accordingly.
Sec. 9. Effectivity. — This Administrative Order
shall take effect thirty (30) days after publication in the Official
Gazette or in a newspaper of general circulation, and shall remain in
full force and effect until revoked.
DONE in the City of Manila on
this 7th day of February, in the year of our Lord nineteen hundred and
ninety-two.
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