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REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OQTNfrDR}.T*L REVENUE

JUN 2 3 'tltl,

nEVENUE REGULATIONS NO. 12 - 2"0211

SUBJECT : Prescribing the Policies and Guidelines on the Utilization of the'fax Payment
Certificate Issued by the Department of Trade and Industry-Board of
Investment (DT I-BOI) Evidencing the Avaihnent o1'the Fiscal Support fbr tht:
Eligible and Registered Participants of the Comprehensive Automotive
Resurgence Strategy (CARS) Program Under Executive Order No. 182, Series
of 201 5
TO : All Internal Revenue Oflicials and Others Concerned

SECTION l. Scope. - Pursuant to the provisions of Section 244 of the National {nternal
Revenue Code (NIRC) of 1997 , as amended, in relation to Section 13 of Executive Order
(EO) No. 182, Series of 2015, these Regulations are hereby promulgated to prescribe the
policies and guidelines on the Tax Payment Certificate (TPC) issued by the Department of
Trade and Industry-Board of Investment (D1-I-BOI) evidencing the availment of the fiscal
support fbr the eligible and registered participants of' the Comprehensiv'e Automotive
Resurgence Strategy (CARS) Program under the said EO.

SECTION 2. Dejinition of terms. For purposes of these Regulations, the fbliowing words
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and phrases shall have the meaning indicated below:

a. Purticipating Car Msker Incentive Account (PCMIA) ref'ers to an account created b'y
the DTI-BOI to track the crediting and disbursements tbr each Participating Car
Maker (PCM) and its Participating Part Makers (PPMs) against the approved fiscal
support. All availments of flscal support. whether fbr Iiixed lnvestment Support (FIS)
or Production Volume Incentive (PVI), will be in the name of the eligible and
registered participant --

b. Eligible und Registered Participants refbr to PCMs. parts makers and shared testing
service providers registered under the CARS Program and issued with a C'ertii.rcate oi'
Registration by the DTI-BOI.

c. Tax Payment CertiJicale refers to a non-trarrsfbrrable certificate issued by DTI-BOI,

upon the recommendation of the CARS lnter-Agency Committee and based on th,:
third party audit of the PCMs' and PPMs' applications to determine cor:rpliance with
all the condilions lor the availment of incentives, which shall be used to rJefral, the ta;<
and duty obligations of the eligible and registered participants to the National
Government.

d. Tax obligations refer to ercise tax. income tax, and value-added tax (VAl') only,
incurred by PCMs, pafis makers and shared tcsting sen'ice providers in the course of'
their operations, and shall not include any type of withholding taxes.
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SECTION 3. Coverage. These Regulations shall apply to the PCMs and PPMs registered
under the CARS Program who applied and were issued TPCs by' the DI'I-BOI to pay
exclusively the following tax obligations. excluding any type of withholding taxes. incurred
in the course of their operations:

(a) trxcise Tax;

(b) Income Tax; and, 83 2821

(c) Value-Added Tax.
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SECTION 4. General Policies and Guidelines.
1. The total fiscal support for the CARS Program shall be divided into tu'o (2)
categories, namely:

a. Fixed Investment Support (FIS) - shall not exceed Forly Percent (40%) of the
total fiscal support, provided that in case of Parls and Shared Testing Facitrity, the
FIS shall not exceed 40% of the capital expenditure for tooling and equiprnent to
manufacture the pafts, including training costs for the stafi-up operation fbr the
use thereof: and

b. Production Volume Incentive ?VD - shall not exceed Sixty Percent (60%) ot"
the total fiscal support.

2. The availment of the fiscal support by the eligible and registered participants shall be
el'idenced by a TPC, which is non-transl'errable.

3. Eligible and registered participants shall request fiorn DTI-BOI for issuance of'TP(
before the statutory deadline for the payment of the tax or taxes mentioned in Section
3 hereof sought to be settled. The request shall include details of their FIS and PVI
entitlement, and the specific tax liabilities to which the TPC shall be applied.

4.--Ihe-IPeL-ubgrs-sued-by DTI.B-OI shall he-in thenamsolthe -eligible and-registered-

parlicipants and shall cover their specific tax obligations.

5. All TPCs shall have a validity period of only thirty (30) days counted f,ronr date of
issue. and can only be used once. The date indicated on the face of thc TPC shall bc
presumed to be the date of issuance.

6. The BIR shall recognize and accept valid'IPCs issued by the DTI-BOI as tax
payment only upon verification and validation against their records, as well as online
validation thru the PCMIA set up by the DTI-IIOI.

SECTION 5. Procedure for Utilization of TPC. - The amount of the TPC' shall b,:
indicated in the tax retum as deduction fiom,the tax due. The accomplished tax return shall
be filed using the electronic Filing and Payment System (etrPS) or eBlRlrorms Pack.age, as
the case may be. In case the tax due is rnore than tlre amount o1'the TPC'. the tax^ still duc
shall be paid using the available modes o1'payment o{ the BIR. I'he printed hard copics of the
tax returns, together with the copy/ies of the TPC and the other prescribed attachments, shall
be submitted to the Revenue District Olhce (RDO)/ Large Taxpayers District Offic,:

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(LTDO)l,LT l)ocuments and Quality Assurance Division (L'IDQAD) where the registered
participants are duly' registered, pursuant to the existing revenue guidelincs and procedures.

In case the amount of TPC exceeds the tax due, net of the creditable taxes, the excess shall
not be considered or treated as a refundable amount.

The BIR sh;rll issue a s€'parate reve'iiLrr: issuance setting iiii'tli tirr: sp,-:r:ilic g,,.ritlciint--s and
procedur"c:j on the rr-r.ilization oI"i'PC.

SECTION 6. I\o Double Avililment of Incentives. - Liligible and registered participants

under the CARS Program shall not be allowed to register their activity under any other
program granting incentives as a condition for TPC availment.

SECTION 7. Limitation on Availment of Support. - T'he grant o['support is conditioned ott

the compliance of the eligible and registered parlicipants with the terms and conditions of its
registration. Upon recommendation o1'the Inter-Agency Comrnittee. the Boarcl may lirnit the
availment of support, as it may deem necessary.

SECTION 8. Monitoring and Compliance. - Audited Financial Statements and Income Tax
Returns shall be submitted on or befbre May 15 of each year or one (l) month fiorn the last
day of filing of Income Tax Returns to the Bureau of lnternal Revenue (BIR).

The BIR shall submit rnonthly to the Bureau of Treasury a list of- TPCs reported and shall
record the TPC transaction amollnt as part of its revenue collection.

SECTION 9. Repealing Claus All revenue

rules and regulations and other revenue
issuances or parts thereol, which are inconsistent with these Regulations are hereby repealed
or modifled accordingly.

SECTION 10. Effectivity. These Revenue Regulations shall take elfect irnmediatel.v
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following its publication in the Official Gazette or newspaper of general circulation.

CARLOS G" DOMINGUT'

Sea'elury ofFinlnce
Recommending Approval :

.iul,l 1 6 2021

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CABSAR R. DULAY'
Commissio ncr, o.f' Int ernul Revenue
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