DC2021-12-0042 — Amendments to IRR §13(E) and §18(C)

Full title: Prescribing Amendments to Sections 13(E) and 18(C) of Department Circular No. DC2009-05-0008 (RA 9513 IRR) Issued: 24 December 2021 Effectivity: ~8 January 2022 (15 days after publication in 2 newspapers + UPLC-ONAR submission) Source: raw/regulations/dc2021-12-0042.md (250 lines; cleaned from raw/_ocr/regulations/dc2021-12-0042.txt)

Coverage

A 6-page targeted amendment to DC2009-05-0008 (the base RA 9513 IRR). Amends two sections: SEC. 13(E) on 10% CIT availment process and SEC. 18(C) on the Certificate of Endorsement structure. Motivated by RA 11032 (Ease of Doing Business) and RA 11234 (EVOSS Law) mandates to streamline government processes, and by need to address implementation gaps in the pass-on requirement.

Amendment 1 — SEC. 13(E): Corporate Tax Rate (10% CIT)

Before (2009 IRR): 10% CIT entitlement required DOE registration + COR; ERC to develop pass-on mechanism.

After (DC2021-12-0042): Added a structured COE gate and annual reporting loop:

• Pre-availment COE: DOE issues COE before first year of 10% CIT; three conditions: (1) valid RE Contract + COR; (2) not in default/breach; (3) Sworn Undertaking to pass on savings as lower power rates.
• Annual sworn reports: Under oath, to DOE + ERC; 6 acceptable evidence types (sales reports, comparative financials, forecasts, deductions estimate, CSP/WESM factoring statement, other).
• PSA/ASPA: Must be ERC-approved; ERC must have factored in CIT entitlement; developer certifies incentive incorporated in rate.
• DOE monitoring: Random review; failure to prove pass-on = COE cancellation/withdrawal.

Amendment 2 — SEC. 18(C): Certificate of Endorsement Restructured

Before (2009 IRR): COE required on a per-transaction basis for ALL incentives; 15-day issuance deadline.

After (DC2021-12-0042):

• Auto-qualification upon COR for all incentives EXCEPT duty-free importation
• Duty-free import COE: Now required per importation (not per transaction generally)
• 10% CIT COE: Separate gate under the amended SEC. 13(E) (see above)
• Non-compliance sanction elevated: Failure = grounds for RE Contract + COR termination/cancellation (vs. old: loss of good standing only). REMB to actively monitor and cancel for non-compliance.
• DOE streamlining authority: May issue further guidelines per RA 11032 + RA 11234.

Pages Updated

Full text: Cleaned copy