Tax Alert No. 22 [Revenue Memorandum Circular (RMC) No. 042-2026 dated 20 April 2026]

Clarification on the Submission of the Certificate of Entitlement to Tax Incentives as Attachment to the Annual Income Tax Return

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 042‑2026, which clarifies the requirement for the submission of the Certificate of Entitlement to Tax Incentives (CETI) as a mandatory attachment to the Annual Income Tax Return (AITR) of Registered Business Enterprise (RBE) taxpayers.

Set out below is a summary of RMC’s key provisions:

• RMC No. 20‑2026 did not amend or repeal the requirement for RBE taxpayers to submit the CETI. The AITR attachments listed therein are consistent with prior issuances (RMC Nos. 34‑2025, 51‑2024, and 44‑2023), all issued pursuant to and consistent with RMC No. 24‑2022, which governs the submission of CETI in support of income tax incentives.
• Under the CREATE Act and CREATE MORE Act, RBEs registered with Investment Promotion Agencies are required to attach the CETI to their AITR. This requirement remains mandatory and enforceable regardless of whether the CETI is expressly listed in later circulars.
• The CETI shall continue to form part of the mandatory attachment to the AITR for RBE taxpayers availing income tax incentives. The non-inclusion of the CETI from the attachment list in RMC No. 20‑2026 does not constitute a waiver or removal of this requirement.

You may access the full version of RMC No. 042-2026 through the BIR website. 

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link: www.pwc.com/ph/en/about-us/contact-us.html