This document outlines the roles and responsibilities of stakeholders in implementing the Tax Incentives Management and Transparency Act (TIMTA) or R.A. 10708. Key points: 1. Registered business entities must file tax returns and reports with the Bureau of Internal Revenue and Investment Promotion Agencies. 2. Investment Promotion Agencies must submit consolidated tax incentives reports to the BIR and Department of Finance. 3. The BIR and Bureau of Customs submit tax data to the DOF. 4. The DOF maintains a tax incentives database and submits aggregate data to oversight bodies. Compliance is monitored and penalties apply for non-compliance.

1. Cooperative Development Authority
R.A. 10708
An Act Enhancing Transparency in the
Management and Accounting of Tax Incentives
Administered by IPAs, otherwise known as the Tax
Incentives Management & Transparency Act
(TIMTA)
Approved: DEC 09 2015

2. SEC. 2. Declaration of Policy.
— It is hereby declared the policy of the
State to promote fiscal accountability and
transparency in the grant and management
of tax incentives by developing means to
promptly measure the government’s fiscal
exposure on these grants and to enable
the government to monitor, review, and
analyze the economic impact thereof and
thereby optimize the social benefit of such
incentives.
SECTION 1. This
Act shall be known
as “The Tax
Incentives
Management and
Transparency Act
(TIMTA)”.
R.A. 10708
COOPERATIVE DEVELOPMENT
AUTHORITY
DAGUPAN EXTENSION OFFICE

3. SEC. 3. Definition of Terms. — As used in this Act:
a. Investment Promotion Agencies (IPAs) shall refer to
government entities created by law, executive order, decree or other
issuance, in charge of promoting investments, administering tax and non-
tax incentives, and/or overseeing the operations of the different economic
zones and freeports in accordance with their respective charters. These
include the Board of Investments (BOI), Philippine Economic Zone
Authority (PEZA), Bases Conversion and Development Authority (BCDA),
Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation
(CDC), John Hay Management Corporation (JHMC), Poro Point
Management Corporation (PPMC), Bataan Technology Park, Inc. (BTPI),
Cagayan Economic Zone Authority (CEZA), Zamboanga City Special
Economic Zone Authority (ZCSEZA), Phividec Industrial Authority (PIA),
Aurora Pacific Economic Zone and Freeport Authority (APECO), Authority
of the Freeport Area of Bataan (AFAB), Tourism Infrastructure and
Enterprise Zone Authority (TIEZA), and ail other similar authorities that
may be created by law in the future;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICECOOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

4. SEC. 3. Definition of Terms. — As used in this Act:
SEC. 4. Filing of Tax
Returns and
Submission of Tax
Incentives Reports. —
All registered business
entities are required to file
their tax returns and pay
their tax liabilities, on or
before the deadline as
provided under the
National Internal Revenue
Code (NIRC), as
amended, using the
electronic system for filing
and payment of taxes of
the Bureau of Internal
Revenue (BIR).
b. Tax
incentives shall
refer to fiscal
incentives such as
those which come in
the form of income
tax holidays (ITH),
exemptions,
deductions, credits or
exclusions from the
tax base, as provided
by law, to registered
business entities; and
c. Registered
business
entity shall refer
to any individual,
partnership,
corporation,
Philippine branch of
a foreign
corporation, or other
entity incorporated
and/or organized
and existing under
Philippine laws and
registered with an
IPA.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICECOOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

5. Policy Framework
 Section 5 (b) of R.A. 10963
“x x x Provided, that the Cooperative Development
Authority shall submit to the Bureau of Internal
Revenue a tax incentive report, which shall include
information on the income tax, value-added tax, and
other tax incentives availed of by cooperatives
registered and enjoying incentives under Republic
Act No. 6938, as amended:
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

6. Policy Framework
Section 5 (b) of R.A. 10963
Provided, further, that the information submitted by
the Cooperative Development Authority to the
Bureau shall be submitted to the Department of
Finance and shall be included in the database
created under Republic Act No. 10708, otherwise
known as The Tax Incentives Management and
Transparency Act (TIMTA)”.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

7. 1. REGISTERED BUSINESS ENTITY (RBE) - entity incorporated
and/or organized and existing under Philippine laws and registered
with an IPA.
2. INVESTMENT PROMOTION AGENCIES (IPAs) - Government
entities created by law, executive order, decree or other issuance, in
charge of promoting investments, administering tax and non-tax
incentives, and/or overseeing the operations of the different economic
zones and free ports in accordance with their respective charters.
COOPERATIVE DEVELOPMENT
AUTHORITY
DAGUPAN EXTENSION OFFICE
COOPERATIVE DEVELOPMENT
AUTHORITY
DAGUPAN EXTENSION OFFICE
STAKEHOLDERS

8. STAKEHOLDERS
3. BUREAU OF INTERNAL REVENUE (BIR)
4. BUREAU OF CUSTOMS (BOC)
5. DEPARTMENT OF FINANCE (DOF)
6. DEPARTMENT OF BUDGET AND MANAGEMENT
(DBM)
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

9. ROLE OF STAKEHOLDERS
1. REGISTERED BUSINESS ENTITY (RBE)
•File income tax returns and pay tax liabilities on or before
the deadline as provided under the NIRC through the
Electronic Filing and Payment System (eFPS).
•File with the respective IPAs an Annual Tax Incentives
Report within 30 days from deadline for filing of Final
Adjustment Return.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

10. ROLE OF STAKEHOLDERS
2. INVESTMENT PROMOTION AGENCIES (IPAs)
• Submit to the BIR the following:
Master list of all RBEs, whether granted incentives
or not;
Consolidated Annual Tax Incentives Report on
income-based tax incentives;
Consolidated Annual Tax Incentives Report
on VAT incentives and duty exemptions.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

11. ROLE OF STAKEHOLDERS
2. INVESTMENT PROMOTION AGENCIES (IPAs)
• Submit to the NEDA Secretariat the following:
 Aggregate Annual Tax Incentives Report;
 Other relevant data or information, such as but not
limited to, aggregate incentives claimed.
•Disseminate information for the RBEs to provide proper
information in their reports.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

12. ROLE OF STAKEHOLDERS
3. BUREAU OF INTERNAL REVENUE (BIR)
•Submit to the DOF the tax incentives of RBEs as
reflected in their filed ITR on or before September 15 of
every year;
•Submit to the DOF and NEDA Secretariat the update
on the above-report with income-based tax incentives,
deductions, credits or exclusions from the gross
income as assessed under the NIRC, within 90 days
after the lapse of the said period to assess provided
under the NIRC.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

13. ROLE OF STAKEHOLDERS
4. BUREAU OF CUSTOMS (BOC)
•Submit to the DOF the VAT and duty incentives
availed by RBEs as reflected in the filed import
entries on or before September 15 of every year.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

14. ROLE OF STAKEHOLDERS:
5. DEPARTMENT OF FINANCE (DOF)
•Maintain a single database for monitoring
and analysis of tax incentives granted
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

15. ROLE OF STAKEHOLDERS
5. DEPARTMENT OF FINANCE (DOF)
•Submit to DBM and the Joint Congressional Oversight
Committee, and upon request, to the NEDA, the aggregate
data categorized by sector, by IPA and by tax type:
Amount of tax incentives availed by RBEs;
Estimated claims of tax incentives immediately preceding
the current year;
Programmed tax incentives for the current year;
Projected tax incentives for the following year.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

16. ROLE OF STAKEHOLDERS
6. DEPARTMENT OF BUDGET AND MANAGEMENT (DBM)
• Reflect the aforesaid data in the annual Budget
of Expenditures and Sources of Financing
(BESF), which shall be known as the Tax
Incentives Information (TII) section.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

17. R.A. 10708
(TIMTA)
RBEs
IPAs
Upon
reque
st
and
Joint
Congressional
Oversight
Committee

18. PENAL PROVISIONS
REGISTERED BUSINESS ENTITY
•Failure to Comply with Filing and Report
1ST
VIOLATION – Payment of a Fine amounting to
P100,000.00
2ND
VIOLATION – Payment of a Fine amounting to
P500,000.00
3RD
VIOLATION – CANCELLATION OF
REGISTRATION
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

19. PENAL PROVISIONS
GOVERNMENT OFFICIAL OR EMPLOYEE
•Failure to Provide the required Tax Incentives Report or other
Data
Fine equivalent to basic salary for a period of one (1) to six (6)
months, or
Suspension from Government service for not more than one (1)
year, or both,
In addition to any criminal or administrative penalties
imposable under existing laws.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

20. For RBEs
Registered Business Enterprise Master List as of
____________
Registered Name (RBE)
Profile of RBE
Registered Address
Type of Members
Taxpayer Identification No.
Transacting with members and non-members
RDO Code
CDA Registration Certificate
Number
Date
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

21. For RBEs
Registered Business Enterprise Master List as of
____________
•Accumulated Reserves / Savings for co-ops transacting
with non-members
Business Activities
Registered
 Actual
•Philippine Standard industry Classification (PSIC) Code
Type of Tax Incentives
Date of Start of Commercial Operations
Effectivity Date of Tax Relief/Exemption
Income Tax Holiday/Tax Incentives ClaimedCOOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

22. For IPAs
ANNUAL TAX INCENTIVES REPORT - INCOME -
BASED TAX INCENTIVES FOR CALENDAR/FISCAL
YEAR ___________
1. CDA Registration Number
2. Business Activities
Registered
Actual
3. Philippine Standard industry Classification (PSIC)
Code COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE

23. Period of Compliance of
Cooperatives
Extension Office Level – May 15, 2019
Central Office Level – May 30, 2019
BIR Level – June 15, 2019
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE