Section 29Sec./Art. 29

Section 311 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Section 311. Investments Prior to the Effectivity of Republic Act No. 11534. - RBEs with incentives granted prior to the effectivity of Republic Act No. 11534 shall be subject to incentives granted in their certificate of registration or certificate of registration and tax exemption, and to the following rules:

(A) x x x;

(B) RBEs, whose projects or activities were granted an ITH prior to the effectivity of Republic Act No. 11534 and are entitled to the five percent (5%) tax on gross income earned incentive after the ITH, shall be allowed to avail of the five percent (5%) tax on gross income incentive based on Subsection (C), including all corresponding exemptions from national taxes, local taxes, and local fees and charges until December 31, 2034;

(C) RBEs currently availing of the five percent (5%) tax on gross income earned granted prior to the effectivity of Republic Act No. 11534 shall be allowed to continue availing of the said tax incentives at the rate of five percent (5%), including all corresponding exemptions from national taxes, local taxes, and local fees and charges until December 31, 2024; and

(D) RBEs availing of duty exemption on importation under Section 294(D), VAT exemption on importation, and VAT zero-rating on local purchases under Section 294(E) prior to the effectivity of Republic Act No. 11534 shall be allowed to continue availing of the said tax incentives until December 31, 2024: Provided, That registered export enterprises shall continue to avail of the said incentives thereafter, in accordance with Title VI of this Code, the provisions of Republic Act No. 10863, otherwise known as the 'Customs Modernization and Tariff Act', as amended, and other applicable laws."