Tax Updates April 2021 (SyCipLaw Tax Issues And Practical Solutions (T.I.P.S.) Vol. 9)

1. What are the requirements to claim tax exemption for the procurement, importation, donation, storage, transportation, deployment, and administration of COVID-19 vaccines?

The Secretary of Finance issued Revenue Regulations No. 1-2021 (RR No. 1-2021) which implements the tax incentives granted under Republic Act No. 11525, or the "COVID-19 Vaccination Program Act of 2021." RR No. 1-2021 is effective from January 1, 2021.

Based on RR No. 1-2021, the following entities may avail themselves of tax incentives: (a) the National Government, through the Department of Health and the National Task Force Against COVID-19; (b) any of the political subdivisions of the State; and (c) private entities and international humanitarian organizations, such as the Philippine Red Cross (collectively, the Qualified Entities). The procurement, importation, donation, storage, transportation, deployment, and administration of COVID-19 vaccines by the Qualified Entities are exempt from