Title
Tax Amnesty for SEZ Businesses
Law
Republic Act No. 9399
Decision Date
Mar 20, 2007
A one-time amnesty is granted to registered business enterprises in designated special economic zones, allowing them to settle outstanding tax and duty liabilities, including penalties and interests, by paying a fixed amnesty tax, while providing immunity from civil, criminal, and administrative liabilities related to these obligations.
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Conditions and Procedures for Availing the Amnesty

  • Businesses must file a notice and return in prescribed form by Commissioners of Internal Revenue and Customs.
  • Pay an amnesty tax of PHP 25,000 within six months from the law's effectivity.
  • Amnesty covers difference between national/local tax impositions and a fixed 5% tax on gross income as determined by revenue regulations.

Immunity from Civil, Criminal, and Administrative Liabilities

  • Full compliance with amnesty conditions grants relief from any liabilities related to nonpayment of covered taxes, duties, and charges.

Rulemaking and Implementation

  • Department of Finance, in coordination with Bureau of Internal Revenue and Customs, will issue implementing rules.
  • Consultations with Bases Conversion and Development Authority and management corporations of the economic zones are required.
  • Rules to be promulgated within two months from the law's effectivity.

Legal Provisions on Constitutionality and Repeal

  • Separability clause ensures unaffected provisions remain valid if any part is declared unconstitutional.
  • Repealing clause amends or repeals inconsistent laws, decrees, orders, or issuances.

Effectivity

  • The law takes effect fifteen days after publication in the Official Gazette or two newspapers of general circulation, whichever comes first.

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