# Republic Act No. 8438/Article VIII

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Source: Official Gazette. Vol. 94, No. 20. Manila. National Printing Office. 1998. p. 3543.
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Article—VIII
Sources of Revenues and Other Fiscal Matters
Section 1. The regional government shall have the power to create its own sources of revenues and to levy fees and charges except the power to impose taxes, subject to such guidelines and limitations as the Constitution and this Act may provide, consistent with the basic policy of local autonomy.
Sec. 2. All corporations, partnerships, and other entities directly engaged in business in the region shall pay their corresponding taxes, fees, and charges to the province, city, or municipality where such establishments are conducting their business operations.
Sec. 3. The sources of revenues of the CAR shall include, but are not limited to, the following:
(a) Fees and charges imposed by the regional government;
(b) Appropriations and other budgetary aids from the national government;
(c) Share in the proceeds from the development and utilization of the national wealth within the region;
(d) Share in revenues generated from the operation of public utilities within the region as may be determined by law; and
(e) Block grants derived from economic agreements or conventions authorized by the regional government, donations, endowments, foreign assistance, and other forms of aid, subject to the Constitution and national laws.
Sec. 4. Subject to the Constitution, the regional government shall evolve a system of economic agreements or trade compacts to generate block grants and foreign loans for investments and improvements of regional economic structures. These economic agreements or trade compacts shall be ratified by the assembly.
Upon the recommendation of the Regional Planning and Development Board, the regional government shall assist local government units and regional line agencies in projects requiring counterpart funds.
Sec. 5. Donations or grants to the CAR to finance, to provide for, or to be used in undertaking projects in health, education, culture, youth and sports development, human settlements, science and technology, and economic development, shall be deductible in full in determining the taxable income of the donor or grantor.
Sec. 6. Subject to existing national laws, donations or grants to the autonomous region exclusively to finance, to provide for, or to be used in undertaking projects in education, health, youth and sports development, human settlement, science and culture, and in economic development shall be deductible in full in determining taxable income of the donor or grantor.
Sec. 7. The Cordillera Assembly shall have the power to grant tax incentives or exemption on taxes which the autonomous region is empowered under this Act to impose. A law granting tax exemption shall only be passed with the concurrence of a majority of all the members of the Cordillera Assembly.
Sec. 8. Foreign loans may be contracted only in accordance with the provisions of the Constitution and national laws: Provided, That the Cordillera governor may contract domestic loans subject to the approval of the Cordillera Assembly.
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