BIR Revenue Regulations No. 6-2020
REVENUE REGULATIONS NO. 6-2020 issued on March 30, 2020 implements the Tax Exemption provision of Republic Act (RA) No. 11469 (Bayanihan to Heal as One Act). Under the said law, the President has been given the power to liberalize the grant of incentives for the manufacture or importation of critical or needed equipment or supplies, which include healthcare equipment and supplies: Provided, That importation of these equipment and supplies shall be exempt from import duties, taxes and other fees.Based on the said provision, the following declarations are made in the regulations:
a. The importation of critical or needed healthcare equipment or supplies intended to combat the COVID-19 public health emergency, including personal protective equipment; laboratory equipment and its reagents; medical equipment and devices; support and maintenance for laboratory and medical equipment, surgical equipment and supplies; medical supplies, tools, and consumables; common medicines; testing kits, and such other supplies or equipment as may be determined by the Department of Health and other relevant government agencies, shall be EXEMPT from Value Added Tax, Excise Tax and other fees;
b. Importation of materials needed to make health equipment and supplies deemed as critical or needed to address the current public health emergency shall likewise be EXEMPT from Value-Added Tax, Excise Tax and other fees, provided that the importing manufacturer is included in the Master List of the Department of Trade and Industry and other incentive granting bodies;
c. The importation thereof shall not be subject to the issuance of Authority to Release Imported Goods (ATRIG) under Revenue Memorandum Order No. 35-2002. Hence, the ATRIG shall not be necessary for the release of said goods from the Bureau of Customs (BOC). Based on the BOC list of importers who made importations without any ATRIG, the BIR will conduct post investigation/audit;
d. Donations of these imported articles to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said government are EXEMPT from Donor’s Tax, and subject to the ordinary rules of deductibility under existing rules and issuances.
The regulations shall take effect immediately and shall be in full force only during the three (3) month effectivity of RA No. 11469, unless extended or withdrawn by Congress or ended by Presidential Proclamation.
