Certification of Export-Oriented Enterprises under the CREATE MORE Act

  • To qualify for VAT-zero rated local purchases of goods and services and VAT-exempt importation, export sales of EOE must be at least seventy percent (70%) of its total annual production of the preceding taxable year;
  • The DTI-EMB shall determine and certify the compliance with the seventy percent (70%) threshold;
  • The issuance of the CREATE MORE EOE Certificate is without prejudice to the conduct of post-audit investigation/verification by the BIR.
  • Email : createmoreexports@dti.gov.ph
  • Phone : (+632) 7791.3274

CREATE MORE Act (RA 12066)

  • Signed into law on 08 November 2024.
  • Amended Sections 106, 108, and 109 of the Tax Code and enhanced the non-income tax-based incentives for export-oriented enterprises through VAT zero-rated local purchases of goods and services and VAT-exempt importation.

Incentives Under the CREATE MORE Act

  1. Value-added tax (VAT) zero-rating on sales of goods to export-oriented enterprises with export sales of at least seventy percent (70%) of its total sales for the preceding taxable year; 
  2. VAT zero-rating on sales of services performed for export-oriented enterprises with export sales of at least seventy percent (70%) of its total sales for the preceding taxable year; and 
  3. VAT exemption on importation of goods by export-oriented enterprises with export sales of at least seventy percent (70%) of its total annual sales for the preceding taxable year. 

* Provided that the goods or services purchased by the EOE are directly attributable to its export activity/-ies.

Export-Oriented Enterprises (EOE)

  • Refers to a person, natural or juridical, engaged in the sale and actual shipment of goods and/or sale of services from the Philippines to a foreign country or economy as contemplated under Sections 106(A)(2)(a)(3), 108(B)(5) and 109(1)(dd) of the Tax Code;
    • Export sales refer to the actual sale and shipment of goods or services rendered that are covered under Sections(106)(A)(2)(a)(1) and 108(B)(2), respectively, of the NIRC, as amended;

Note: EOEs are to be distinguished from Registered Export Enterprises (REEs) under the jurisdiction of Investment Promotion Agencies (IPAs) whose fiscal incentives fall under Title XIII of the Tax Code. Provided, that after the expiration of an REEs fiscal incentives, they may apply as EOEs with the EMB to continue enjoying VAT incentives.

Directly Attributable

Refers to goods and services that are incidental to and reasonably necessary for the export activity of the export-oriented enterprise, including:

  • Janitorial
  • Security
  • Financial
  • Consultancy
  • Marketing and promotion services
  • Services rendered for administrative operations such as human resources, legal, and accounting

Documentary Requirements for Export-Oriented Enterprises (EOE) Certification

  1. Duly accomplished and notarized Application Form
  2. Certified true copies of the following:
    • BIR Certificate of Registration (BIR Form No. 2303)
    • Interim Financial Statement for the first nine month-period, with Quarterly Tax Return filed with the BIR, of the preceding taxable year to be covered by the Certification
    • Audited Annual Financial Statement (FS), with an Annual Income Tax Return (ITR) filed with the BIR, of the year preceding taxable year period to be covered by the Certification
    • BOC Certificate of Registration (COR) as an Exporter
  3. Original copy of Bank Certification of Inward Remittance (covering export payments in foreign currency for the preceding year)
  4. Summary of Export Remittances
  5. Summary of Export Sales of (Goods and/or Services)
  6. Schedule of offsetting of receivables and payables, including agreements or correspondences, if any, if company has offsetting agreement with foreign buyers/affiliates/companies (if applicable)
  7. Export Documents (Export Declarations, Final Bill of Lading or Airway Bill (whichever is applicable), and Commercial Invoice)
  8. Notarized affidavit executed by the Owner/President or Finance Officer of EOE, attesting and certifying that the export sales for the preceding taxable year is at least 70% of the total annual production
  9. Original copy of Notarized Secretary’s Certificate (for corporate claimant) or Special Power of Attorney (for individual & Regional Operating Headquarters (ROHQ) exporters) or similar documents stating the authorized representative/s to file, sign documents on behalf of the claimant and/or follow-up the CREATE MORE EOE Certificate application together with the photocopy of at least one (1) government-issued ID with three (3) specimen signatures of authorized representative/s
  10. For services exports
    • proof of international contract such as, but not limited to, purchase orders, letters of engagement, or any other document demonstrating a formal service agreement with a foreign client;
    • original copy of certification from SEC that the non-resident foreign corporation (NRFC) is not a registered corporation in the Philippines and photocopy of Articles or Certificate of Foreign Incorporation or if not available, printed screenshots from the SEC website

Applications Forms and Other Supporting Documents

Below are the applications forms and other supporting documents for download:

Procedure of Issuance of Export-Oriented Enterprises (EOE) Certificates

  1. The applicant shall submit to the DTI-EMB hardcopies of the documentary requirements listed above (Documentary Requirements for Export-Oriented (EOE) Certification);
  2. The DTI-EMB shall review the completeness of the submitted documents. Applications with insufficient documents will not be accepted. If complete, the application will be accepted and an application number will be assigned;
  3. The DTI-EMB shall evaluate the application based on the requirements of the CREATE MORE Act and its implementing rules and regulations. The DTI-EMB shall process the application within twenty (20) working days from the acceptance of the application. The period of processing shall be without prejudice to any written clarification that DTI-EMB may address to the applicant, and in such case, the twenty (20) working day period may be stalled, as circumstances may warrant;
  4. The DTI-EMB shall issue the CREATE MORE EOE Certificate with a corresponding Certificate Number.
  5. If the percentage of export sales of the applicant for the taxable year is below the seventy percent (70%) threshold or there is a misrepresentation in any of the documents submitted, the DTI-EMB shall issue a written notification to the applicant.

Other important notes:

  • The DTI-EMB shall process the application within twenty (20) working days from the acceptance of the application.
  • If the percentage of export sales of the applicant for the taxable year is below the seventy percent (70%) threshold or there is a misrepresentation in any of the documents submitted, the DTI-EMB shall issue a written notification to the applicant.
  • The applicant, upon receipt of the written notification of failure to meet the 70% threshold or a misrepresentation in any of the documents submitted, may request for reconsideration and comply within five (5) working days from the date of notice. If the reevaluation still indicated a negative finding, the DTI-EMB shall issue a Final Notice to the applicant.
  • Issuance of an EOE Certificate is free-of-charge.

Validity of Export-Oriented Enterprises (EOE) Certificate

  • The EOE Certificate shall be valid until the end of the applicable taxable year (calendar or fiscal) adopted by the EOE, unless earlier revoked;
  • Subsequent applications by the EOE shall be filed with the DTI-EMB not earlier than forty-five (45) working days prior to the close of the taxable year of the EOE;

Revocation of Export-Oriented Enterprises (EOE) Certificate

  • Failure to submit to DTI-EMB the certified true copy of the Audited Annual FS on or before five (5) working days after the last day of filing of income tax return with the BIR. Additional documents may be required by the DTI-EMB to determine compliance; or
  • Upon review of the submitted Annual Audited FS, it is determined that the EOE failed to meet the seventy percent (70%) export sales threshold;

Department Administrative Order No. 25-03

Link to Department Administrative Order No. 25-03

List of Certified Export-Oriented Enterprises (EOE)

List of Certified Export-Oriented Enterprises