“The Corporation includes partnerships, regardless of how they were created or organized, limited partnerships, joint accounts, joint accounts (cuentas in participation), insurance or association companies, but no general professional partnerships and a joint venture or consortium that was created to carry out construction projects or to carry out oil, coal, geothermal and other energy operations. , pursuant to an enterprise consortium agreement under a service contract with the government. In the absence of one (1) of the requirements, the exemption would be too elusive. The joint venture or consortium must not include mere suppliers of goods, services or construction capital. Exempt joint ventures are responsible for reporting and paying income tax on their respective share of joint venture profits. According to the above definition, a joint venture or consortium created for the purpose of construction projects is not considered a business and, as such, is not subject to income tax. It was Presidential Decree 929 of 4 May 1976 that introduced such an exemption to help local entrepreneurs achieve competitiveness with foreign contractors by associating their resources with major construction projects. In its amended version, a reporting entity is defined as the following in the tax code: Tax Provisions 10-2012 of June 1, 2012 (RR 10-12) entitled “Joint Venture or Formed For the Purpose of Undertaking Construction Projects and Mandatory Enrollment of Local Contractors in the Electronic Filing and Payment and System (EFPS) was issued to define the tax exemptions of contractors for construction projects. This provision applies within 15 days of publication, as well as all existing provisions and regulations, as well as any other or part of programming inconsistent with the provisions of RR 10-12, are amended, amended or withdrawn accordingly. Another notable requirement of RR 10-2012 is the mandatory registration of local contractors through the BIR Electronic Registration and Payment System (EFPS) to the Revenue District Office (RDO), where they are registered. Joint ventures with foreign contractors, companies that are members of foreign contractors should be as follows: RR 10-12 defines the requirements for the implementation of tax exemptions for joint ventures carrying out construction projects:
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11
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