Gov't to grant tax perks to 'green' firms starting May.
'Green' firms can enjoy tax perks from the government starting May, after the Bureau of Internal Revenue (BIR) on Tuesday published the guidelines for their availment under a law signed three years ago.
BIR Revenue Regulations (RR) No. 5-2019 issued by Finance Secretary Carlos G. Dominguez III and Internal Revenue Commissioner Caesar R. Dulay implements the tax provisions of Republic Act (RA) No. 10771 or the Philippine Green Jobs Act of 2016.
According to RR 5-2019, a qualified business enterprise under RA 10771 'shall be entitled to a special deduction from the taxable income equivalent to 50 percent of the total expense for skills training and research development expenses.'
The tax incentive nonetheless can only be availed during the same taxable year when such expenses were incurred or paid; when the taxpayer 'can substantiate the deduction with sufficient evidence'; and when special deductions were over and above the allowable, ordinary and necessary business deductions for the said expenses, according to RR 5-2019.
Qualified business enterprises engaged in climate change mitigation, green building practices, green technologies, production and provision of green goods and services, and projects that promote the green economy and sustainable development as well as create green jobs may avail of this fiscal perk.
The business enterprises applying for this fiscal incentive needed to be first certified by Climate Change Commission Secretary.
'Green' businesses must register or update their registration with their revenue district office (RDO) by submitting the certification from the Climate Change Commission.
Claims for the special deduction should be filed during income tax return filing season in the RDO where the project was registered.
RR 5-2019 takes effect on May 1, 15 days after its publication.
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|Publication:||Philippines Daily Inquirer (Makati City, Philippines)|
|Date:||Apr 16, 2019|
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