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Registered Export Enterprises Taxation Guide

Complete guide to taxation for Registered Export Enterprises under Republic Act No. 12066 CREATE MORE, including RBETS registration and tax compliance requirements

What you'll learn in this Registered Export Enterprises taxation guide

This guide for Philippine export businesses explains the tax obligations of Registered Export Enterprises under the CREATE MORE law (Republic Act No. 12066), including RBETS registration, tax exemptions, and compliance requirements.

For related business registration information, also see our BIR Business Registration Guide, Philippines Business Compliance Guide 2026, and DTI Business Name Registration Guide.

1

What is a Registered Export Enterprise?

Definition Under CREATE MORE Law

A Registered Export Enterprise is a business registered with the Board of Investments (BOI) or PEZA that derives at least 70% of its total annual sales from export of goods or services to foreign markets

RBETS Registration

Must register with the Registered Business Enterprises Taxpayer Service (RBETS) system to avail of tax incentives and ensure proper tax compliance

Legal Basis

Governed by Title XIII of Republic Act No. 12066 (CREATE MORE Law), which provides tax incentives for export-oriented businesses while ensuring tax compliance

2

Why Register as an Export Enterprise?

Key Benefits

Income tax holidays (4-8 years depending on location)
5% special corporate income tax after ITH
Tax exemption on imported capital equipment
VAT zero-rating on export sales
Simplified customs procedures

Eligibility Requirements

📊 Minimum 70% export sales ratio
🏭 Manufacturing or service export business
📝 BOI or PEZA registration
💼 Registered with SEC or DTI
💡 Tip: Maintain proper documentation to prove your export sales percentage during annual compliance reviews
3

Tax Obligations Under the Tax Code

⚠️ Important: Export Sales Are Still Taxable

Despite incentives, sales receipts and other income of Registered Export Enterprises are subject to appropriate taxes imposed under the Tax Code of 1997, as amended. Export enterprises are not completely tax-exempt.

Applicable Taxes:

📈
Income Tax
On non-export income or after ITH period
📦
VAT
Zero-rated on export sales, 12% on local sales
💼
Withholding Tax
On payments to suppliers/contractors
👥
Payroll Taxes
Income tax, SSS, PhilHealth, Pag-IBIG
4

RBETS Registration Process

📋

Prepare Documents

BOI/PEZA registration, SEC/DTI papers, TIN

💻

Apply Online

Submit application through RBETS portal

Get Certificate

Receive RBETS registration certificate

5

Compliance Checklist

Annual Compliance Requirements

Maintain 70% export sales ratio annually
Submit annual report to BOI/PEZA
File BIR tax returns on time
Keep proper books of accounts
Maintain separate export sales records
6

Common Mistakes to Avoid

Assuming Complete Tax Exemption

Export enterprises still pay taxes on non-export income and after incentive periods end

Falling Below 70% Export Ratio

This can result in loss of incentives and retroactive tax assessments

Missing RBETS Registration

Without RBETS registration, you cannot avail of tax incentives even if eligible

Poor Documentation

Inadequate records of export sales can lead to penalties during audits

7

Tips for Success

Work with a Tax Consultant

Export taxation is complex; professional advice ensures compliance and maximizes benefits

Monitor Export Ratio Quarterly

Don't wait until year-end to check if you're meeting the 70% threshold

Stay Updated on CREATE MORE Changes

Tax laws evolve; keep informed about new implementing rules and regulations

Automate Record-Keeping

Use accounting software to track export vs. domestic sales accurately

8

Conclusion

Take Advantage of Export Incentives Responsibly

Registered Export Enterprises enjoy significant tax benefits under CREATE MORE, but must maintain compliance with the Tax Code of 1997. Proper RBETS registration and diligent record-keeping are essential to maximize incentives while avoiding penalties.

📌 Key: Balance tax incentives with full tax compliance