BIR Clarifies Tax Incentive Compliance Requirements for Registered Business Enterprises

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 042-2026, clarifying the requirement for Registered Business Enterprises (RBEs) to attach their Certificate of Entitlement to Tax Incentives (CETI) to their Annual Income Tax Returns (AITR).

The CETI requirement was established under RMC No. 28-2022, which requires RBEs to secure the certificate from their respective Investment Promotion Agency (IPA) before filing their AITR. The CETI serves as a prerequisite for RBEs seeking to avail of the Income Tax Holiday (ITH) or preferential tax rates under the CREATE Act.

The BIR clarifies that RBEs must continue to attach their CETIs to their annual tax returns. The Circular clearly states that the non-inclusion of CETI in the list of attachments in RMC No. 20-2026, which provided guidelines for calendar year 2025 AITR filing and tax payment, did not amend or repeal this requirement.