THE National Tax Research Center plans to ask investors to submit reports online that would help the government assess the economic impact of the tax incentives it approves, the Department of Finance (DoF) said.
The DoF said potential investors have been able to submit tax incentive applications on the online portal known as the Fiscal Incentives Registration and Monitoring System.
The center launched the online platform in June to comply with provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, which cuts corporate income tax and reforms the tax incentive system.
The center, as the secretariat of the Fiscal Incentives Review Board (FIRB), develops application forms used by business enterprises seeking tax incentives.
Other than an application portal, the online registration system will also be used by investment promotion agencies and the FIRB to review, approve or reject, and monitor investment projects.
The portal will be used to generate electronic certificates of registration and entitlement to tax incentives for approved projects.
The center is asking businesses already receiving government incentives to create accounts in the system.
“It will soon allow business enterprises to electronically submit their reports on the fiscal incentives they have received, in compliance with the provisions of CREATE,” DoF said.
“These electronic submissions will enable the government to better monitor, review, and analyze the economic impact of tax incentives.”
The FIRB, under the law, must conduct cost-benefit analyses on the investment incentives it offers to determine their impact on the economy.
Under CREATE, incentives granted are classified into three tiers based on the projects’ ability to generate high-value and labor-intensive investments that will create more jobs and boost global competitiveness. — Jenina P. Ibañez