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REVENUE MEMORANDUM CIRCULAR (RMC) NO. 042-2026
This Circular clarifies that the Certificate of Entitlement to Tax Incentives (CETI) remains a mandatory attachment to the Annual Income Tax Return (AITR) for all Registered Business Enterprise (RBE) taxpayers availing of income tax incentives. It addresses potential confusion by confirming that the omission of the CETI from the illustrative list in RMC No. 20-2026 does not constitute a waiver or removal of this legal requirement.
CETI Submission Compliance Framework
| Taxpayer Compliance Category | Incentive Substantiation and Filing Directives |
| Mandatory Attachment Nature | ● The CETI continues to form an integral and indispensable part of the mandatory attachments to the AITR for RBE taxpayers. ● This submission is critical to substantiate and validate the actual availment of claimed Income Tax incentives. |
| Legal Effect of RMC No. 20-2026 | ● RMC No. 20-2026 did not amend nor repeal any existing statutory or administrative requirements relating to CETI submission. ● The non-inclusion of the CETI in the illustrative list of attachments under RMC No. 20-2026 must not be construed as a waiver or removal of the requirement. |
| Statutory and Regulatory Basis | ● Prescribed under Section 4, Rule 8 of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11534, otherwise known as the CREATE Act. ● Further implemented, reinforced, and governed by the provisions of RA No. 12066, otherwise known as the CREATE MORE Act. |
| Target Taxpaying Entities | ● Applies strictly to all Registered Business Enterprises (RBEs) that are duly registered with various Investment Promotion Agencies (IPAs). ●Mandated for all such enterprises actively claiming or benefiting from income tax incentives. |
| Historical Precedents and Consistency | ● The general reference list of attachments indicated in RMC No. 20-2026 is similar to those prescribed under prior historical issuances: ‣ RMC No. 34-2025 ‣ RMC No. 51-2024 ‣ RMC No. 44-2023 ● All of the above prior circulars were issued in direct reference to, and remain perfectly consistent with, RMC No. 28-2022, which actively governs CETI submissions. |
| Independent Enforceability | ● The requirement to submit the CETI remains fully enforceable and absolute. ● Its validity and enforcement are not dependent on any express enumeration in subsequent circulars that provide general summary lists of AITR attachments. |