of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7214

Introduced by Representatives HORACIO P. SUANSING, JR.
and ESTRELLITA B. SUANSING

AN ACT
AMENDING SECTIONS, 20, 22, 27, 28, 34, 40, 50, 220, 237, 237-A, 290, 291, 292 AND
ADDING SECTIONS 293, 294, 295, 296, 297, 298, 298-A, 299, 300, 301, 302, 303, 304,
305, AND 306 UNDER CHAPTERS I, Il, If, IV, V AND VI, ALL UNDER THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

EXPLANATORY NOTE

This bill is the second package of the Comprehensive Tax Reform Program (CTRP)
envisioned by the administration of President Rodrigo Roa Duterte. It complements
Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and
Inclusion (TRAIN) Law. This bill seeks to lower the corporate income tax rate, reform the
corporate income tax system and broaden the tax base by modernizing investment tax
incentives to enhance faimess, improve competitiveness, plug tax leakages and achieve fiscal
sustainability.

To achieve such purposes, this bill endeavors to address the following major policy issues:

1. The Philippines’ corporate income tax system is characterized by a high rate
and a narrow base. Despite having the highest corporate income tax rate in the
ASEAN region at 30%, the country’s tax collection efficiency is one of the lowest.
This is due to very generous tax incentives that are given in perpetuity and in licu of
other taxes (including local taxes), and thus seriously erode the tax base.

2. The country’s investment tax incentive system is very complex. It has 14
investment promotion agencies and around 123 laws that grant various types of
investment tax incentives with little regard to cost-efficiency and effectiveness.
Moreover, another 192 laws grant various non-investment tax incentives. All
these result to a tax incentive system that is less transparent, less targeted, not
time-bound and not performance-based.

3. The outdated tax code lacks adequate provisions to address transfer pricing and
other tax avoidance practices that have led to an erosion in tax revenues.

4. Ironically, the Department of Finance (DOF), which is the steward of the
government's fiscal health and mandated to formulate sound fiscal policy, has very
little involvement in the formulation and granting of tax incentives to registered
business enterprises. This is contrary to best practice employed in other government
institutions where the finance minister holds a significant role in the decision-
making process in matters relating to the design and granting of tax incentives. To
date, tax incentives are being administered by the Department of Trade and Industry
(DTI); through the Board of Investments (BOI) and Investments Promotion Agencies

1


(IPAs).

5. Despite granting generous tax incentives, both foreign and domestic investments in the
Philippines, and consequently the rate of job creation, have not increased
significantly and are much lower than those of the country’s ASEAN neighbors.
Tax incentives play a critical role in attracting investments and addressing market
failures, but they need to be modernized and disciplined to ensure that the country
reaps the most benefit from forgoing its scarce tax revenues.

6. Finally, incentives alone are not enough to attract investments, and consequently
create jobs. A more comprehensive strategy is needed, and must include key
investments and improvements in infrastructure, skilled labor, ease of doing
business, and integration of the domestic supply chain. Implementing such
strategy in order to develop a favorable investment climate requires, among others, a
stable source of revenues.

The cost of investment tax incentives to the country is significant, In 2015, the Department of
Finance, using data required by the Tax Investment Management and Transparency Act
(TIMTA) Law (Republic Act No. 10708) and other available data, estimated that the
investment tax incentive system costs the government around Php 301 billion in forgone
income tax, value added tax (gross of refund) and customs duties. This estimate does not yet
include forgone local taxes and leakages that arise from tax avoidance and tax evasion due to
the complicated system. While the country benefits from these incentives in terms of
investments, jobs, exports and rural development, the staggering cost, which stands at more
than 2% of the country’s Gross Domestic Product (GDP), warrants the government to review its
incentives system und make it time-bound, performance-based, transparent and targeted to
ensure that redundant incentives are removed, that the benefits fully outweigh the costs and
that fiscal prudence is maintained at all times.

It must be stressed that despite the Philippines being the most generous provider of tax
incentives in the region, its share of investments and its export performance relative to its
ASEAN neighbors is not high. This means that the government is not able to successfully
translate its tax incentive scheme into investments and overseas business. The Phili has
fone of the lowest export-to-GDP ratio among the ASEANS, while its foreign direct
investments-to-GDP ratio, while increasing in recent years, remains lackluster relative to its
neighbors. The answer to this conundrum lies in the fact that investments and exports are
mainly influenced by country’s ability to provide efficient infrastructure, modern logistics,
effective governance, low cost of doing business and a productive workforce. In general,
while tax incentives can help a country improve its competitiveness, these do not provide the
real solution over the long-term and often only serve as band-aid solutions to compensate for
a country’s inability to provide reliable infrastructure and basic services. In line with this, the
administration of President Duterte seeks to reform the tax system by removing redundant and
costly tax incentives in order to generate more tax revenues which would be used to fund
priority programs geared towards improving the country’s investment climate in the long-term.

With tax incentives modemized and the tax base expanded, the corporate income tax rate can be
reduced to correct the present inequitable and unjust system which benefits a few industries
while negatively impacting the rest of the business community — notably micro-, small- and
medium-size enterprises which are made to pay the regular 30% corporate income tax rate.
The reduction in the corporate income tax rate would be a welcome relief that will benefit all
corporate taxpayers — whether large or small, whether domestic or foreign — and will attract
more investments. Further, the reduction in corporate income tax rate will also boost the
Philippines’ competitiveness in the global business landscape by making the country’s CIT rate

FS


Ultimately, this bill aims to yield benefits not just for the government, but more
importantly, for Filipino taxpayers who have been diligently fulfilling their tax obligations by
making the tax system more progressive, more efficient and simpler.

In view of the foregoing, urgent approval of this bill is eamestly sought.

oR rss, JR.
ad of Sultan Kudarat

1" District of Nueva Ecij


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
Second Regular Session

House BILLNo._7214

Introduced by Representatives HORACIO P. SUANSING, JR.
and ESTRELLITA B. SUANSING

AN ACT
AMENDING SECTIONS, 20, 22, 27, 28, 34, 40, 50, 220, 237, 237-A, 290, 291, 292 AND
ADDING SECTIONS 293, 294, 295, be 297, 298, 298-A, 299, 300, 301, 302, 303, 304, 305,
AND 306 UNDER CHAPTERS I, iI, 1'V, V AND VI, ALL UNDER THE NATIONAL
INTERNAL REVENUE CODE OF on AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION |, Title, This Act shall be known as the “Corporate Income Tax and Incentives
Reform Act.”

SEC. 2. Declaration of Policy, The national economy shall be developed so as to enhance its
global competitiveness by implementing corporate tax policies that are instrumental in inducing
investments geared towards productivity enhancement, employment generation, and countrywide
development, while maintaining fiscal prudence and stability at all times. To achieve these
objectives, the state shall develop a tax incentives regime governed by the following major
principles: performance-based, targeted, time-bound, and transparent. Accordingly, the following
are the declared policies of the State:

1. The State shall pursue a market-responsive and globally-competitive investment and tax
incentive regime subject to the rules of fiscal prudence and discipline;

2. The State shall formulate targeted and performance-based industry and sectoral
development programs;

3. The State shall pursue policies to enhance the progressivity of the tax system by
reforming the Philippine internal and border revenue tax system, thereby promoting
rapid, sustainable, and more inclusive economic growth:

4, The State shall improve the equity and efficiency of the corporate tax system by
lowering the rate, widening the tax base, and reducing tax distortions and leakages to
arrive at a tax incentive system that is performance-based, targeted, time-bound, and
tran:

5. The State * shall endeavor to improve the productivity and competitiveness of the
country through a fairer tax system relevant to the changing economic conditions of the
country and aligned with its ASEAN neighbors;

6, The State shall ensure that the grant of tax incentives will promote substantial social and


economic spillovers and equitable development across income classes, across
industries, and across regions/provinces;

7. The State shall ensure that the grant of tax incentives to investments shall be
conducted in a manner that respects the laws of the land, including the protection of the
environment, natural resources, labor, and good corporate governance principles.

8. The State shall recognize the indispensable role of the private sector, encourages
private investments, and provides fiscally responsible and sustainable tax incentives
necessary to boost economic growth.

SEC. 3. Section 20 of the National Internal Revenue Code of 1997, as amended is hereby further
amended to read as follows:

“SEC. 20. Submission of Report and Pertinent Information by the Commissioner. —
(A) Xxx

(B) SUBMISSION OF TAX-RELATED INFORMATION TO THE DEPARTMENT
OF FINANCE. — THE COMMISSIONER SHALL, UPON THE REQUEST OF
THE SECRETARY OF FINANCE SPECIFICALLY IDENTIFYING THE
NEEDED INFORMATION AND JUSTIFICATION FOR SUCH REQUEST,
FURNISH THE SECRETARY PERTINENT TAXPAYER INFORMATION:
PROVIDED, HOWEVER, THAT THE SECRETARY AND THE RELEVANT
OFFICERS HANDLING SUCH SPECIFIC INFORMATION SHALL BE
COVERED BY THE PROVISIONS OF SECTION 270, UNLESS TAXPAYER
CONSENTS IN WRITING TO SUCH DISCLOSURE.

(BHC) Report t0 Oversight Committee. - The Commissioner shall, with reference to
Section 204 of this Code, submit to the Oversight Committee referred to in Section
290 hereof, through the Chairmen of the Committee on Ways and Means of the
Senate and House of Representatives, a report on the exercise of his powers pursuant to
the said Section, every six (6) months of each calendar year.

SEC. 4. Section 22 of the National Internal Revenue Code of 1997, as amended is hereby further
amended to read as follows:

(A) Xxx
(B) Xxx
(C) Xxx


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(D) Xxx

(E)THE TERM ‘CAPITAL EQUIPMENT’ REFERS TO MACHINERY,
EQUIPMENT, MAJOR COMPONENTS THEREOF, FITTINGS AND
ACCOMPANIMENTS WHICH FORM PART OF THE DIRECT COST AND
ARE DIRECTLY AND REASONABLY NEEDED IN THE REGISTERED
ACTIVITY OF THE REGISTERED ENTERPRISE.

(F) THE TERM ‘EXPORT ENTERPRISE’ SHALL MEAN A REGISTERED
ENTERPRISE WHICH IS A MANUFACTURER, PROCESSOR, OR SERVICE
PROVIDER AND WHOSE EXPORT SALE OF ITS PRODUCTS OR
SERVICES IS AT LEAST NINETY PERCENT (90%) OF ITS TOTAL
ANNUAL PRODUCTION OF THE PRECEDING TAXABLE YEAR.
PROVIDED, HOWEVER, IT SHALL NOT INCLUDE ANY OF THE
FOLLOWING ENTERPRISES SUCH AS, BUT NOT LIMITED TO, THOSE
ENGAGED IN CUSTOMS BROKERAGE, TRUCKING OR FORWARDING
SERVICES, PARCEL SERVICES, JANITORIAL SERVICES, SECURITY
SERVICES, INSURANCE AND/OR BANKING, OR OTHER FINANCIAL
SERVICES, CONSUMERS* COOPERATIVES, CREDIT UNIONS,
CONSULTANCY SERVICES, RETAIL BUSINESS, RESTAURANTS, OR
SUCH OTHER SERVICES, WITHIN THE FREEPORT AND/OR SPECIAL
ECONOMIC ZONE, AS MAY BE DETERMINED BY THE BOARD OF THE
CONCERNED AUTHORITY OR THE FISCAL INCENTIVES REVIEW
BOARD (FIRB), DULY ACCREDITED AND/OR LICENSED BY ANY OF THE
AUTHORITIES AND WHOSE INCOME DERIVED WITHIN THE
FREEPORT AND/OR SPECIAL ECONOMIC ZONE SHALL BE SUBJECT
TO TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE OF 1997,
AS AMENDED.

(G)THE TERM ‘DOMESTIC ENTERPRISE’ SHALL MEAN A REGISTERED
ENTERPRISE WHICH PRODUCES GOODS FOR SALE OR RENDERS
SERVICES EXCLUSIVELY TO THE DOMESTIC MARKET OR DOES NOT
MEET THE MINIMUM EXPORT REQUIREMENT OF AN EXPORT
ENTERPRISE.

(H)THE TERM ‘EXPORT SALES OF GOODS’ SHALL MEAN THE SALES
REVENUES OF AN EXPORT ENTERPRISE PAID FOR IN FREELY
CONVERTIBLE FOREIGN CURRENCY, DETERMINED FROM INVOICES,
BILLS OF LADING, INWARD LETTERS OF CREDIT, LANDING
CERTIFICATES, OR OTHER COMMERCIAL DOCUMENTS, OF THE
FOLLOWING:

(1) THE SALE AND ACTUAL SHIPMENT OF GOODS FROM THE
PHILIPPINES TO A FOREIGN COUNTRY BY AN EXPORT
ENTERPRISE;

(2) SALES TO DIPLOMATIC MISSIONS AND INSTITUTIONS COVERED
BY INTERNATIONAL TREATY;


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(3) SALES OF AN EXPORT ENTERPRISE TO AN INTERNATIONAL SEA
OR AIR TRANSPORT OPERATIONS OF GOODS, EQUIPMENT, SPARE
PARTS, AND SUPPLIES, EXCEPT FUEL, FORMING PART OF DIRECT
COSTS AND TO BE USED IN THE AIRCRAFT OR SEACRAFT, AND
CAPITAL EQUIPMENT NEEDED FOR THE SHIPPING OR AIR
TRANSPORT OPERATIONS;

(1) THE TERM ‘EXPORT SALES OF SERVICES’ SHALL MEAN THE SALES
REVENUES AND/OR GROSS RECEIPTS OF AN EXPORT ENTERPRISE,
PAID FOR IN FREELY CONVERTIBLE FOREIGN CURRENCY,
DETERMINED FROM CONTRACTS, INVOICES, VOUCHERS, OFFICIAL
RECEIPTS, OR OTHER COMMERCIAL DOCUMENTS OF THE
FOLLOWING:

(1) SERVICES RENDERED TO NON-RESIDENT FOREIGN CLIENTS BY
EXPORT ENTERPRISES;

(2) SERVICES RENDERED TO DIPLOMATIC MISSIONS AND
INSTITUTIONS COVERED BY INTERNATIONAL TREATY;

(3) SERVICES FOR THE OVERHAUL, REPAIR, AND MAINTENANCE OF
INTERNATIONAL SHIPPING, OR AIR TRANSPORT OPERATIONS.

{(E)] @) The term ‘non-resident citizen’ means: xxx
[(F)] (K) The term ‘resident alien’ means: xxx
[(G)] (L) The term ‘nonresident alien’ means: xxx
((H)] (M) The term ‘resident foreign corporation’ appli
[(] (N) The term ‘nonresident foreign corporation’ appli

xX
XXX,

(0) THE TERM ‘INVESTMENT PROMOTION AGENCIES’ (IPAS) SHALL
REFER TO GOVERNMENT ENTITIES CREATED BY LAW, EXECUT!
ORDER, DECREE OR OTHER ISSUANCE, IN CHARGE OF PROMOTING
INVESTMENT, ADMINISTERING TAX AND NON-TAX INCENTIVES,
AND/OR OVERSEEING THE OPERATIONS FOR THE DIFFERENT
ECONOMIC ZONES AND FREEPORTS IN ACCORDANCE WITH THEIR
RESPECTIVE CHARTERS. THESE INCLUDE THE BOARD OF
INVESTMENTS (BOD, PHILIPPINE ECONOMIC ZONE AUTHORITY
(PEZA), BASES CONVERSION AND DEVELOPMENT AUTHORITY
(BCDA), SUBIC BAY METROPOLITAN AUTHORITY (SBMA), CLARK
DEVELOPMENT CORPORTION (CDC), JOHN HAY MANAGEMENT
CORPORATION (JHMC), PORO POINT MANAGEMENT CORPORATION
(PPMC), BATAAN TECHNOLOGY PARK, INC. (BTPI), CAGAYAN
ECONOMIC ZONE AUTHORITY (CEZA), ZAMBOANGA CITY SPECIAL
ECONOMIC ZONE AUTHORITY (ZCSEZA), PHIVIDEC INDUSTRIAL
AUTHORITY (PIA), AURORA PACIFIC ECONOMIC ZONE AND
FREEPORT AUTHORITY (APECO), AUTHORITY OF THE FREEPORT
AREA OF BATAAN (AFAB), TOURISM INFRASTRUCTURE AND
ENTERPRISE ZONE AUTHORITY (TIEZA), AND ALL OTHER SIMILAR
AUTHORITIES THAT MAY BE CREATED BY LAW IN THE FUTURE.



(P)THE TERM ‘REGISTERED ENTERPRISE’ SHALL MEAN ANY
INDIVIDUAL, PARTNERSHIP, CORPORATION, PHILIPPINE BRANCH
OF A FOREIGN CORPORATION, OR OTHER ENTITY INCORPORATED
AND/OR ORGANIZED AND EXISTING UNDER PHILIPPINE LAWS AND
REGISTERED WITH AN INVESTMENT PROMOTION AGENCY (IPA) AS
DEFINED UNDER REPUBLIC ACT NO, 10708, OR THE TIMTA LAW, IN
ACCORDANCE WITH THIS ACT. PROVIDED, HOWEVER, THAT THE
TERM “REGISTERED ENTERPRISE” SHALL NOT INCLUDE ANY OF
THE FOLLOWING SERVICE ENTERPRISES SUCH AS, BUT NOT
LIMITED TO, THOSE ENGAGED IN CUSTOMS BROKERAGE,
TRUCKING OR FORWARDING SERVICES, JANITORIAL SERVICES,
SECURITY SERVICES, INSURANCE AND/OR BANKING, AND OTHER
FINANCIAL SERVICES, CONSUMERS’ COOPERATIVES, CREDIT
UNIONS, CONSULTANCY SERVICES, RETAIL BUSINESS,
RESTAURANTS, OR SUCH OTHER SIMILAR SERVICES, AS MAY BE
DETERMINED BY THE IPA BOARD OR THE FIRB, IRRESPECTIVE OF
LOCATION, WHETHER INSIDE OR OUTSIDE THE ZONES, DULY
ACCREDITED AND/OR LICENSED BY ANY OF THE IPAS AND WHOSE
INCOME DELIVERED WITHIN THE ECONOMIC ZONES SHALL BE
SUBJECT TO TAXES UNDER THE NATIONAL INTERNAL REVENUE
CODE OF 1997, AS AMENDED.

(Q) THE TERM ‘SPECIAL ECONOMIC ZONE’ OR ‘ECOZONE’ SHALL REFER
TO A SELECTED AREA WITH HIGHLY DEVELOPED OR WHICH HAS
THE POTENTIAL TO BE DEVELOPED INTO AGRO-INDUSTRIAL,
INDUSTRIAL, INFORMATION TECHNOLOGY,
TOURIST/RECREATIONAL, WHOSE METES AND BOUNDS ARE FIXED
OR DELIMITED BY PRESIDENTIAL PROCLAMATIONS AND WITHIN A
SPECIFIC GEOGRAPHICAL AREA. AN ECOZONE MAY CONTAIN ANY
OR ALL OF THE FOLLOWING: INDUSTRIAL ESTATES (IES), EXPORT
PROCESSING ZONES (EPZS), ICT PARKS AND CENTERS, AND FREE
‘TRADE ZONES, PROVIDED, HOWEVER, THAT AREAS WHERE MINING
EXTRACTIONS ARE UNDERTAKEN SHALL NOT BE DECLARED AS
ECOZONES. PROVIDED FURTHER, THAT THE ECOZONES SHOULD
COMPLY WITH THE MINIMUM CONTIGUOUS LAND AREA TO BE
DETERMINED BY THE SECRETARY OF FINANCE.

(R)THE TERM ‘FREEPORT ZONES’ REFERS TO AN ISOLATED AND
POLICED AREA ADJACENT TO A PORT OF ENTRY, WHICH SHALL BE
OPERATED AND MANAGED AS A SEPARATE CUSTOMS TERRITORY
TO ENSURE FREE FLOW OR MOVEMENT OF GOODS, EXCEPT THOSE
EXPRESSLY PROHIBITED BY LAW, WITHIN, INTO, AND EXPORTED
OUT IN THE FREEPORT ZONE WHERE IMPORTED GOODS MAY BE
UNLOADED FOR IMMEDIATE TRANSSHIPMENT OR STORED,
REPACKED, SORTED, MIXED, OR OTHERWISE MANIPULATED


WITHOUT BEING SUBJECT TO IMPORT DUTIES, HOWEVER,
MOVEMENT OF THESE IMPORTED GOODS FROM THE FREE-TRADE
AREA TO A NON-FREE TRADE AREA IN THE COUNTRY SHALL BE
SUBJECT TO ALL APPLICABLE INTERNAL REVENUE TAXES AND
DUTIES.

Letters (J) to (HH) under this section shall be re-lettered accordingly,

SEC. 5. Section 27 of the National Internal Revenue Code of 1997, as amended is hereby further
amended to read as follows:

“SEC. 27. Rates of Income tax on Domestic Corporations. ~

(A) In General. - Except as otherwise provided in this Code, THE CORPORATE
INCOME TAX (CIT) RATE SHALL BE THIRTY PERCENT (30%), [is-hereby}
imposed upon the taxable income derived during each taxable year from all sources
within and without the Philippines by every corporation, as defined in Section 22(B) of
this Code and taxable under this Title as a corporation, organized in, of existing under the
laws of the Philippines. i i

.| PROVIDED, THAT THE PRESIDENT, UPON THE.
RECOMMENDATION OF THE SECRETARY OF FINANCE, SHALL REDUCE
THE CIT RATE BY ONE PERCENTAGE POINT EFFECTIVE JANUARY 1,
2020 FOR EVERY 0.15% OF GROSS DOMESTIC PRODUCT (GDP)
REDUCTION IN THE COST OF GRANTING TAX INCENTIVES TO BUSINESS
INVESTMENTS, TWO YEARS PRIOR TO THE EFFECTIVITY OF THE NEW
RATE. PROVIDED FURTHER, THAT THE CIT RATE SHALL NOT BE
REDUCED TO LOWER THAN TWENTY FIVE PERCENT (25%).

In the case of corporations adopting the fiscal-year accounting period, the taxable income
shall be computed without regard to the specific date when specific sales, purchases and
other transactions occur. Their income and expenses for the fiscal year shall be deemed to
have been earned and spent equally for each month of the period.

‘The corporate income tax rate shall be applied on the amount computed by multiplying
the number of months covered by the new rate within the fiscal year by the taxable
income of the corporation for the period, divided by twelve.

FOR PURPOSES OF THIS SECTION, SECTION 28 (A) (1) AND SECTION 28
(B), THE COST OF GRANTING TAX INCENTIVES SHALL BE DETERMINED
THROUGH THE ANNUAL TAX EXPENDITURE REPORT BEING PREPARED
BY THE DEPARTMENT OF FINANCE AND SUBMITTED TO THE
DEPARTMENT OF BUDGET AND MANAGEMENT, AS MANDATED BY
REPUBLIC ACT NO, 10708 OR THE TIMTA LAW.


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(B) Government-owned or ~Controlled Corporations, Agencies or Instrumentalitie
The provisions of existing special or general laws to the contrary notwithstanding, all
corporations, agencies, or instrumentalities owned or controlled by the Government,
except the Government Service Insurance System (GSIS), the Social Security System
(SSS), AND the Philippine Health Insurance Corporation (PHIC), theJocabwaterdistriets
(LWDs}. and the local water districts, shall pay such rate of tax upon their
taxable income as are imposed by this Section upon corporations or associations engaged
in similar business, industry, o

XXX

‘SEC. 6, Section 28 of the National Internal Revenue Code of 1997, as amended is hereby further
amended to read as follows:

“SEC. 28. Rates of Income Tax on Foreign Corporations. -
(A) Tax on Resident Foreign Corporations. -

(1) In General. - Except as otherwise provided in this Code, a corporation organized,
authorized, or existing under the laws of any foreign country, engaged in trade or
business within the Philippines, shall be subject to an income tax equivalent to THIRTY
PERCENT (30%) [thirty-five pereent-425%)] of the taxable income derived in the
preceding taxable year from all sources within the Philippines. [:ProvidedThat-effective

Janiiary +2000, the-raie-of ineometax-shall-be-thirty-percent-{30%)4- PROVIDED,
THAT THE PRESIDENT, UPON THE RECOMMENDATION OF THE
SECRETARY OF FINANCE, SHALL REDUCE THE CIT RATE BY ONE
PERCENTAGE POINT EFFECTIVE JANUARY 1, 2020 FOR EVERY 0.15% OF
GROSS DOMESTIC PRODUCT (GDP) REDUCTION IN THE COST OF
GRANTING TAX INCENTIVES TO BUSINESS INVESTMENTS, TWO YEARS
PRIOR TO THE EFFECTIVITY OF THE NEW RATE, PROVIDED FURTHER,
THAT THE CIT RATE SHALL NOT BE REDUCED TO LOWER THAN
TWENTY FIVE PERCENT (25%).

In the case of corporations adopting the fiscal-year accounting period, the taxable income
shall be computed without regard to the specific date when sales, purchases and other


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transactions occur. Their income and expenses for the fiscal year shall be deemed to have
been earned and spent equally for each month of the period.

The corporate income tax rate shall be applied on the amount computed by multiplying
the number of months covered by the new rate within the fiscal year by the taxable
income of the corporation for the period, divided by twelve.

sujet be dhe fay
Ra a Enodis Seotion 23005;
often percent 1U%s) uf their taxable income |

(4) Tax on Certain Incomes Received by a Resident Foreign Corporation. —
(a) Interest from Deposits and Yield or any other Monetary Benefit from Deposit

Substitutes, Trust Funds and Similar Arrangements and Royalties. — Interest from any
currency bank deposit and yield or any other monetary benefit from deposit substitutes

2


and from trust funds and similar arrangements and royalties derived from sources within
the Philippines shall be subject to a final income tax at the rate of twenty percent (20%)
of such interest: Provided, however, That interest income derived by a resident foreign
corporation from a depository bank under the expanded foreign currency deposit system
shall be subject to a final income tax at the rate of FIFTEEN PERCENT (15%) [seven
and-one-half pereent-(7-'/2%)] of such interest income.

(b) Income Derived under the Expanded Foreign Currency Deposit System.

XXX

(c) Capital Gains from Sale of Shares of Stock Not Traded in the Stock Exchange.
—A final tax at the rate[s-preseribed-below] OF FIFTEEN PERCENT (15%) is hereby
imposed upon the net capital gains realized during the taxable year from the sale, barter,
‘exchange or other disposition of shares of stock in a domestic corporation except shares
sold or disposed of through the stock exchanges

[Netever—————P4.00,000——S%
Or-any-amountin-excess-0f #400.000 —— 10%}

(d) Intercorporate Dividends. Xxx
(B) Tax on Nonresident Foreign Corporation. -

(1) In General, - Except as otherwise provided in this Code, a foreign corporation not
engaged in trade or business in the Philippines shall pay a tax equal to THIRTY
PERCENT (30%) [thiriy-five-percent-{35%)] of the gross income received during
cach taxable year from all sources within the Philippines, such as interests, dividends,
rents, royalties, salaries, premiums (except reinsurance premiums), annuities,
‘emoluments or other fixed or determinable annual, periodic or casual gains, profits
and income, and capital gains, except capital gains subject to tax under subparagraph
5 (c) [: Provided That-effective Januiary-+-2000-the-rate-of income tax-shall-he-thirty

-}-PROVIDED, THAT THE PRESIDENT, UPON THE
RECOMMENDATION OF THE SECRETARY OF FINANCE, SHALL
REDUCE THE CIT RATE BY ONE PERCENTAGE POINT EFFECTIVE
JANUARY 1, 2020 FOR EVERY 0.15% OF GROSS DOMESTIC PRODUCT
(GDP) REDUCTION IN THE COST OF GRANTING TAX INCENTIVES TO
BUSINESS INVESTMENTS, TWO YEARS PRIOR TO THE EFFECTIVITY
OF THE NEW RATE. PROVIDED FURTHER, THAT THE CIT RATE
SHALL NOT BE REDUCED TO LOWER THAN TWENTY FIVE PERCENT
(25%).


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(2) Tax on Certain Incomes Received by a Nonresident Foreign Corporation. —
(a) Interest on Foreign Loans. —xxx

(b) Imercorporate Dividends. ~ A final withholding tax at the rate of fifteen percent
(15%) is hereby imposed on the amount of cash and/or property dividends
received from a domestic corporation, which shall be collected and paid as
provided in Section 57 (A) of this Code, subject to the condition that the country
in which the nonresident foreign corporation is domiciled, shall allow a credit
against the tax due from the nonresident foreign corporation taxes deemed to have
been paid in the Philippines equivalent to tventy-pereent-(20%}-FIFTEEN
PERCENT (15%) which represents the difference between the regular income
tax of thirty-five-percent-35%)-THIRTY PERCENT (30%) and the fifteen
percent (15%) tax on dividends as provided in this subparagraph: Provided, that
EFFECTIVE JANUARY 1, 2019, effective tantary+,2009, the credit against
the tax due shall REMAIN be-equivalent to fifteen percent (15%), which
represents the difference between the regular income tax of thirty percent (30%)
and the fifteen percent (15%) tax on dividends. PROVIDED FURTHER, THAT
THE ABOVE RATE SHALL BE REDUCED BY ONE PERCENTAGE
POINT FOR EVERY ONE PERCENTAGE POINT REDUCTION IN THE
CIT RATE AS PROVIDED IN SECTION 28 (B)(1) OF THIS CODE.

(©) Capital Gains from Sale of Shares of Stock not Traded in the Stock Exchange. ~
final tax at the rate[s-preseribed-below] OF FIFTEEN PERCENT (15%) is
hereby imposed upon the net capital gains realized during the taxable year from
the sale, barter, exchange or other disposition of shares of stock in a domestic
corporation, except shares sold, or disposed of through the stock exchange.[:

Not-ver 240,009 —___________50%

On any- amount in excess of PHOO.0K — Ha]

SEC, 7, Section 34 of the National Internal Revenue Code of 1997, as amended is hereby further
amended to read as follows:

“SEC. 34. Deductions from Gross Income. - Except for taxpayers earning compensation
income arising from personal services rendered under an employer-employee relationship
where no deductions shall be allowed under this Section other than under subsection (M)
hereof, in computing taxable income subject to income tax under Sections 24(A); 25(A);


26; 27(A), (B) and (C); and 28(A)(1), there shall be allowed the following deductions
from gross income;

(A) Expenses. -

(1) Ordinary and Necessary Trade, Business or Professional Expenses.~

(a) Jn General. - There shall be allowed as deduction from gross income all the
ordinary and necessary expenses paid or incurred during the taxable year in
carrying on or which are directly attributable to, the development, management,
operation and/or conduct of the trade, business or exercise of a profession,
including:

(i) A reasonable allowance for salaries, wages, and other forms of
compensation for personal services actually rendered, including the grossed-
up monetary value of fringe benefit furnished or granted by the employer to
the employee IN THE YEARS APPLICABLE: Provided. That the final tax
imposed under Section 33 hereof has been paid;

(i) A reasonable allowance for travel expenses, here and abroad, while away
from home in the pursuit of trade, business or profession;

(iii) A reasonable allowance for rentals and/or other payments which are
required as a condition for the continued use or possession, for purposes of the
trade, business or profession, of property to which the taxpayer has not taken
or is not taking title or in which he has no equity other than that of a lessee,
user or possessor;

(iv) A reasonable allowance for entertainment, amusement and recreation
expenses during the taxable year, that are directly connected to the
development, management and operation of the trade, business or profession
of the taxpayer, or that are directly related to or in furtherance of the conduct
of his or its trade, business or exercise of a profession not to exceed such
ceilings as the Secretary of Finance by rules and regulations prescribe,
upon recommendation of the Commissioner, taking into account the needs as
well as the special circumstances, nature and character of the industry, trade,
business, or profession of the taxpayer: Provided, That any expense incurred
for entertainment, amusement or recreation that is contrary to law, morals
public policy or public order shall in no case be allowed as a deduction.

(b) Substantiation Requirements. - No deduction from gross income shall be
‘allowed under Subsection (A) hereof unless the taxpayer shall substantiate
with sufficient evidence, such as official receipts or other adequate records: (i)
the amount of the expense being deducted, and (ii) the direct connection or
relation of the expense being deducted to the development, management,
operation and/or conduct of the trade, business or profession of the taxpayer.


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(©) Bribes, Kickbacks and Other Similar Payments, - No deduction from gross
income shall be allowed under Subsection (A) hereof for any payment made,
directly or indirectly, to an official or employee of the national government, or
to an official or employee of any local government unit, or to an official or
employee of a government-owned or controlled corporation, or to an official
or employee or representative of a foreign government, or to a private
corporation, general professional partnership, or a similar entity, if the
payment constitutes a bribe or kickback.

(B) Interest.

(1) In General. - The amount of interest paid or incurred within a taxable year on
indebtedness in connection with the taxpayer's profession, trade or business shall be
allowed as deduction from gross income: Provided, however, That the taxpayer's
otherwise allowable deduction for interest expense shall be reduced by fory-4we
THIRTY THREE PERCENT (33%) of the interest income
subjected to final tax+
PROVIDED FURTHER, THAT THE
FOLLOWING PERCENTAGES SHALL APPLY IF THE CIT RATE AS
PROVIDED IN SECTIONS 27 (A) AND 28(A1) IS ADJUSTED AS
FOLLOWS:

IF CIT RATE IS 29%, INTEREST EXPENSE REDUCTION RATE IS 31%;
IF CIT RATE IS 28%, INTEREST EXPENSE REDUCTION RATE IS 28%:
IF CIT RATE IS 27%, INTEREST EXPENSE REDUCTION RATE IS 25%
IF CIT RATE IS 26%, INTEREST EXPENSE REDUCTION RATE IS 23%
IF CIT RATE IS 25%, INTEREST EXPENSE REDUCTION RATE IS 20%

(L) Optional Standard Deduction (OSD). - \n lieu of the deductions allowed under the
preceding Subsections, an individual subject to tax under Section 24, other than a
nonresident alien,

percent (40%) of his gross-sales-or-gress-receipts-as-the case-maybetin-the ease-oF a]
AND A corporation subject to tax under Sections 27(A) and 28 (A\(1), fit-may elect a
standard deduction in an amount not exceeding TWENTY PERCENT (20%) [forty
pereent-{40%}-of its gross income as defined in Section 32 of this Code. Unless the
taxpayer signifies in his return his intention to elect the optional standard deduction, he
shall be considered as having availed himself of the deductions allowed in the preceding


1 ‘Subsections. Such election when made in the return shall be irrevocable for the taxable
2 year for which the return is made: Provided, That an individual who is entitled to and
3 Claimed for the optional standard deduction shall not be required to submit with his tax
4 return such financial statements otherwise required under this Code: Provided, further,
5 ‘That except when the Commissioner otherwise permits, the said individual shall keep
6 such records pertaining to his gross sales or gross receipts, or the said corporation shall
7 keep such records pertaining to his gross income as defined in Section 32 of this Code
8 during the taxable year, as may be required by the rules and regulations promulgated by
9 the Secretary of Finance, upon, recommendation of the Commissioner.
10
uu Notwithstanding the provision of the preceding Subsections, the Secretary of Finance,
2 upon recommendation of the Commissioner, after a public hearing shall have been held
B for this purpose, may prescribe by rules and regulations, limitations or ceilings for any of
4 the itemized deductions under Subsections (A) to (J) of this Section: Provided, That for
15 purposes of determining such ceilings or limitations, the Secretary of Finance shall
16 consider the following factors: (1) adequacy of the prescribed limits on the actual
v7 expenditure requirements of each particular industry; and (2)effects of inflation on
18 expenditure levels: Provided, further, That no ceilings shall further be imposed on items
19 of expense already subject to ceilings under present law.”
20
21

22 SEC. 8. Section 40(C)(2) of the National Intemal Revenue Code of 1997, as amended, is hereby
23 further amended to read as follows:

24

25 “SEC. 40. Determination of Amount and Recognition of Gain or Loss. -

26

27 XXX

28

23 (C) Exchange of Property. -

30 (1) XXX

31 (2) Exception, - No gain or loss shall be recognized TO A CORPORATION OR
32 ON ITS STOCK OR SECURITIES IF SUCH CORPORATION IS A PARTY
33 TO A REORGANIZATION AND EXCHANGES PROPERTY, if in pursuance of
34 a plan of merger-or-conselidation- REORGANIZATION SOLELY FOR STOCK
35 OR SECURITIES IN ANOTHER CORPORATION A PARTY TO THE
36 REORGANIZATION. A REORGANIZATION IS DEFINED AS:

37

38 (a) A-eorperation—which—is—a—partyte—a—A STATUTORY merger or
39 consolidation;-exehanges-property-solelyfor-stock-in-a-corporitionwhich-is-a
40 party-to-the merger-or-consolidation; oF

4)

42 (b) A-shareholder exchanges sieek-in-t- corporation which s-4 party tothe merger
43 ot sonsolidation,-solely_for-the-stock-of another-corporation-alse-a-party-to-the
“4 merger-or- consolidation; or THE ACQUISITION BY ONE CORPORATION,
45 IN EXCHANGE SOLELY FOR ALL OR A PART OF ITS VOTING

46 STOCK (OR IN EXCHANGE SOLELY FOR ALL OR A PART OF THE

"7


VOTING STOCK OF A CORPORATION WHICH IS IN CONTROL OF
THE ACQUIRING CORPORATION), OF STOCK OF ANOTHER
CORPORATION IF, IMMEDIATELY AFTER THE ACQUISITION, THE
ACQUIRING CORPORATION HAS CONTROL OF SUCH OTHER
CORPORATION 9WHETHER OR NOT SUCH ACQUIRING
CORPORATION HAD CONTROL IMMEDIATELY BEFORE THE
ACQUISITION);

6 . dea ttn
securities—in—sueh—corporation,—a_party_to_the-merger—or_consolidation- THE,
ACQUISITION BY ONE CORPORATION, IN EXCHANGE SOLELY
FOR ALL OR A PART OF ITS VOTING STOCK (OR IN EXCHANGE
SOLELY FOR ALL OR A PART OF THE VOTING STOCK OF A
CORPORATION WHICH IS IN CONTROL OF THE ACQUIRING
CORPORATION), OR SUBSTANTIALLY ALL OF THE PROPERTIES
OF ANOTHER CORPORATION, BUT IN CORPORATION OF A
LIABILITY OF THE OTHER SHALL BE DISREGARDED;

(D) A RECAPITALIZATION; OR
(E) A REINCORPORATION
No gain or loss shall also be recognized if property is transferred to a corporation by @

ONE OF MORE person$ in exchange for stock or-unit-of- partieipation-in such a
corporation

*rovided,
that stocks issued for services shall not be considered as issued in return for property.

IN ALL OF THE ABOVE INSTANCES, THE TRANSACTION OR
ARRANGEMENT MUST BE UNDERTAKEN FOR A LEGITIMATE OR
BONA FIDE BUSINESS PURPOSE AND NOT SOLELY FOR THE PURPOSE
OF AVOIDING OR ESCAPING THE BURDEN OF TAXATION,

THE PROVISION OF SECTION 50 OF THIS CODE SHALL BE APPLIED
AND ENFORCED, IN CASES WHERE THE TRANSACTION OR
ARRANGEMENT ENTERED INTO IS FOUND TO BE NOT FOR
LEGITIMATE OR BONA FIDE BUSINESS PURPOSE.

PROVIDED, HOWEVER, SALE OR EXCHANGES OF PROPERTY USED
FOR BUSINESS FOR SHARES OF STOCK COVERED UNDER THIS
SUBSECTION SHALL NOT BE SUBJECT TO VALUE ADDED TAX (VAT).

SEC. 9. Section 50 of the National Internal Revenue Code of 1997, as amended, is hereby
further amended to read as follows:


ieee i fk z ¢ ‘ation:
business—SEC. 50. AUTHORITY OF THE COMMISSIONER TO DISTRIBUTE,
APPORTION, ALLOCATE, AND IMPUTE INCOME AND DEDUCTIONS TO
DISREGARD AND COUNTERACT TAX AVOIDANCE ARRANGEMENTS. — IN
CASE OF TWO OR MORE ORGANIZATIONS, TRADES OR BUSINESSES
(WHETHER OR NOT INCORPORATED AND WHETHER OR NOT
ORGANIZED IN THE PHILIPPINES) OWNED OR CONTROLLED DIRECTLY
OR INDIRECTLY BY THE SAME INTERESTS, THE COMMISSIONER IS
AUTHORIZED TO DISTRIBUTE, APPORTION, ALLOCATE, OR IMPUTE
INCOME OR DEDUCTIONS BETWEEN OR AMONG SUCH ORGANIZATION,
TRADE OR BUSINESS, IF THE COMMISSIONER DETERMINES THAT SUCH
DISTRIBUTION, APPORTIONMENT, ALLOCATION, OR IMPUTATION IS
NECESSARY IN ORDER TO PREVENT EVASION OF TAXES OR CLEARLY
TO REFLECT THE INCOME OF ANY SUCH ORGANIZATION, TRADE, OR
BUSINESS.

IN CASES WHEN A TRANSACTION OR ARRANGEMENT, WHETHER
ENTERED INTO BY THE PERSON AFFECTED BY THE TRANSACTION OR
ARRANGEMENT OR BY ANOTHER PERSON, THAT DIRECTLY OR
INDIRECTLY HAS TAX AVOIDANCE AS ITS PURPOSES OR EFFECTS,
WHETHER OR NOT ANY OTHER PURPOSE OR EFFECT IS ATTRIBUTABLE
AS TO ORDINARY BUSINESS OR FAMILY DEALINGS, IF THE TAX
AVOIDANCE PURPOSE OR EFFECT IS NOT MERELY INCIDENTAL, THE
COMMISSIONER IS AUTHORIZED TO DISREGARD AND CONSIDER SUCH
TRANSACTION OR ARRANGEMENT AS VOID FOR INCOME TAX
PURPOSES, AND MAY ADJUST THE TAXABLE INCOME OF A PERSON
AFFECTED BY THE ARRANGEMENT IN A WAY THE COMMISSIONER
‘THINKS APPROPRIATE, IN ORDER TO COUNTERACT A TAX ADVANTAGE
OBTAINED BY THE PERSON FROM OR UNDER THE ARRANGEMENT.

FOR PURPOSES OF THIS SECTION, THE TERM “TAX AVOIDANCE”
INCLUDES (A) DIRECTLY OR INDIRECTLY ALTERING THE INCIDENCE
OF ANY INCOME TAX; (B) DIRECTLY OR INDIRECTLY RELIEVING A
PERSON FROM LIABILITY TO PAY INCOME TAX OR FROM A POTENTIAL
OR PROSPECTIVE LIABILITY TO FUTURE INCOME TAX; (C) DIRECTLY
OR INDIRECTLY AVOIDING, POSTPONING, OR REDUCING ANY


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LIABILITY TO INCOME TAX, OR ANY POTENTIAL OR PROSPECTIVE
LIABILITY TO FUTURE INCOME TAX. THERE IS ‘TAX AVOIDANCE’ IN
THE AFOREMENTIONED INSTANCES, WHERE THE TRANSACTION OR
ARRANGEMENT IS MOTIVATED BY OBTAINING TAX BENEFIT OR
ADVANTAGE WITH NO COMMERCIAL REALITY OR ECONOMIC EFFECT
AND THE USE OF THE PROVISIONS OF THE TAXATION LAW ON SUCH
TRANSACTION OR ARRANGEMENT WOULD NOT HAVE BEEN THE
INTENTION OF THE LAW.”

SEC. 10. Sec. 220, Chapter Il, Title VIII of the National Internal Revenue Code of 1997, as
amended is hereby amended to read as follows:

“SEC. 220. Form and Mode of Proceeding in Actions Arising under this Code. — Civit

i naps ; :
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— ie eee ee Sanne ne eee eee ee naar st

in-court-without-the-approval-of the-Commissioner—CIVIL ACTIONS INVOLVING
DISPUTED ASSESSMENTS AND COLLECTIONS OR REFUNDS OF
INTERNAL REVENUE TAXES, FEES OR OTHER CHARGES OR PENALTIES
IN RELATION THERETO, OR OTHER MATTERS ARISING UNDER THIS
CODE OR OTHER LAW ENFORCED BY THE BUREAU OF INTERNAL
REVENUE SHALL BE HANDLED EXCLUSIVELY BY LEGAL OFFICERS OF
THE BUREAU OF INTERNAL REVENUE IN ALL STAGES OF THE
PROCEEDINGS, INCLUDING APPEALS BEFORE THE PROPER COURTS.

CRIMINAL ACTIONS INVOLVING VIOLATIONS OF THIS CODE OR OTHER
LAW ENFORCED BY THE BUREAU OF INTERNAL REVENUE SHALL BE
INVESTIGATED, PROSECUTED, AND HANDLED EXCLUSIVELY BY THE
LEGAL OFFICERS OF THE BUREAU OF INTERNAL REVENUE IN ALL
STAGES OF THE PROCEEDINGS, INCLUDING APPEALS BEFORE THE
PROPER COURTS. FOR PURPOSES OF DETERMINING WHETHER THERE
IS SUFFICIENT GROUND TO ENGENDER A WELL-FOUNDED BELIEF THAT
A CRIMINAL VIOLATION OF THIS CODE OR OTHER LAW ENFORCED BY
THE BUREAU OF INTERNAL REVENUE HAS BEEN COMMITTED AND
THAT THE RESPONDENT IS PROBABLY GUILTY THEREOF AND SHOULD
BE HELD FOR TRIAL, THE LEGAL OFFICERS OF THE BUREAU OF
INTERNAL REVENUE ARE HEREBY AUTHORIZED TO CONDUCT THE
REQUISITE PRELIMINARY INVESTIGATION. SHOULD THERE EXISTS
PROBABLE CAUSE TO HOLD THE RESPONDENT FOR TRIAL, THE
INVESTIGATING LEGAL OFFICER SHALL PREPARE THE INFORMATION
TO BE FILED DIRECTLY WITH THE APPROPRIATE COURTS.


ALL CIVIL AND CRIMINAL ACTIONS SHALL BE BROUGHT IN THE NAME
OF THE GOVERNMENT OF THE PHILIPPINES AND SHALL BE FILED IN
COURT WITH THE APPROVAL OF THE COMMISSIONER OF INTERNAL
REVENUE OR HIS/HER DULY AUTHORIZED REPRESENTATIVE. NO
REFERRAL BY THE BUREAU OF INTERNAL REVENUE TO THE OFFICE OF
THE SOLICITOR GENERAL, DEPARTMENT OF JUSTICE, OR ANY
GOVERNMENT AGENCY SHALL BE NEEDED IN CONNECTION WITH A
CIVIL OR CRIMINAL ACTION HANDLED BY THE LEGAL OFFICERS OF
THE BUREAU OF INTERNAL REVENUE.

FOR THIS PURPOSE, THE SECRETARY OF FINANCE, UPON
RECOMMENDATION OF THE COMMISSIONER, SHALL PROMULGATE
THE NECESSARY RULES AND REGULATIONS FOR THE
IMPLEMENTATION OF THIS PROVISION,

SEC. 11, Sec, 237 of the National Internal Revenue Code of 1997, as amended is hereby
amended to read as follows:

“SEC. 237. Issuance of Receipts or Sales or Commercial Invoices, —
(A) Issuance. — xxx

“Within five (5) years from the effectivity of this Act and upon the establishment of a
system capable of storing and processing the required date, the Bureau shall require
taxpayers engaged in the export of goods and service, taxpayers engaged in e-
commerce, and taxpayers under the jurisdiction of the Large Taxpayers Service to
issue AND TRANSFER electronic receipts or sales or commercial invoices in-tiew-of
manual—receipis—or—sales—or—commercia—invoices—THRU DESIGNATED
ELECTRONIC CHANNELS WITH A PUBLIC CERTIFICATION SYSTEM
ACCREDITED BY THE BUREAU, subject to the rules and regulations to be
issued by the Secretary of Finance upon recommendation of the Commissioner and
after-a-following a public hearing shall-have-been-held for this purpose: Provided,
‘That taxpayers not covered by the mandate of this provision may issue electronic
receipts of sales or commercial invoices in lieu of manual receipts or sales or
commercial invoices.

A PUBLIC CERTIFICATION SYSTEM SHALL REFER TO A DIGITAL
PERSONAL AUTHENTICATION PROGRAM WITH ABILITY TO VERIFY
THE IDENTITY OF ISSUING TAXPAYER AND ATTEST TO THE
AUTHENTICITY OF THE INFORMATION IN THE ELECTRONIC
RECEIPTS OR SALES OR COMMERCIAL INVOICES. THIS MAY
INCLUDE THE USE OF DIGITAL SIGNATURE ISSUED BY
CERTIFICATION AUTHORITY AS ACCREDITED BY THE BUREAU OF
INTERNAL REVENUE.


A DESIGNATED ELECTRONIC CHANNEL SHALL REFER TO ANY
MEDIUM OR PORTAL IDENTIFIED BY THE BUREAU WITH AN ABILITY
TO RECEIVE THE TRANSACTION DATA OF THE ELECTRONIC
RECEIPTS OF SALES OR COMMERCIAL INVOICES FOR ASSIGNMENT
OF AN APPROVED ELECTRONIC TAX TRANSACTION NUMBER.

AN APPROVED TAX TRANSACTION NUMBER SHALL REFER TO THE
UNIQUE ASSIGNED SERVIES OF NUMBERS AND/OR LETTERS LINKED
TO A VALIDATED SALES TRANSATION REPORTED THROUGH THE
DESIGNATED ELECTRONIC CHANNEL.

‘The original of each receipt or invoice shall be issued to the purchaser, customer, or
client at the time the transaction is effected, who, if engaged in the business or in the
exercise of profession, shall keep and preserve the same in his place of business for a
period of three (3) years from the close of the taxable year in which such invoice or
receipt was issued, while the duplicate shall be kept and preserved by the issue, also
in his place of business, for a like period: Provided, that in case of electronic receipts
or sales or commercial invoices, digital record of the same shall-be-kept-by-the

purchaser —customer—or—client—and—the—issuer—for—the—same—peried—above
stied BEARING THE APPROVED ELECTRONIC TAX TRANSACTION
NUMBER SHALL BE SUFFICIENT COMPLIANCE.

‘The Commissioner may, in meritorious cases, exempt any person subject to internal
revenue tax from compliance with the provision of this Section.”

SEC. 12. Sec, 237-A of the National Internal Revenue Code of 1997, as amended is hereby
amended to read as follows:

“SEC. 237-A. Electronic Sales Reporting System.— Within five (5) years from the
effectivity of this Act and upon the establishment of a system capable of storing and
processing the required data, the Bureau shall require taxpayers engaged in the export of
goods and services, taxpayers engaged in e-commerce, and taxpayers under the
jurisdiction of the Large Taxpayers Service to USE A SYSTEM CAPABLE OF
ISSUING ELECTRONIC RECEIPTS OR SALES OR COMMERCIAL
INVOICES, COLLECT TRANSACTION RECORDS, AND TRANSMIT THE
SAME THRU THE DESIGNATED ELECTRONIC CHANNELS OF THE
BUREAU IN THE STANDARD FORMAT REQUIRED

subject to
the rules and regulations to be issued by the Secretary of Finance upon recommendation
of the Commissioner of Internal Revenue: Provided, That the POINT OF SALE (POS)
machines, VALUE ADDED NETWORK (VAN) TERMINALS, fiscal devices, and
fiscal memory devices WITH CAPACITY TO MAKE SUCH TRANSMISSION shall
be at the expense of the taxpayers.


IN YEAR ONE TO YEAR FOUR OF THE IMPLEMENTATION PERIOD, A
TAXPAYER WHO ADOPTS THE REQUIRED SYSTEM SHALL BE GRANTED
ATAX CREDIT OF 0.1% OF THE PURCHASE VALUE, NET OF VALUE
ADDED TAX, FOREVERY ELECTRONIC RECEIPT OR SALE OR
COMMERCIAL INVOICE TRANSMITTED THRU THE DESIGNATED
ELECTRONIC CHANNELS OF THE BUREAU AND ISSUED AN ELECTRONIC
TAX TRANSACTION NUMBER.

IN SUPPORT OF THE ELECTRONIC SALES REPORTING SYSTEM, THE
BUREAU OF INTERNAL REVENUE MAY GRANT TAX INCENTIVES FOR
ELECTRONICALLY TRACEABLE PAYMENTS (ETP) IN THE FORM OF
ALLOWABLE DEDUCTIBLE EXPENSE OF UP TO 10% OF THE ETP MADE
BY THE TAXPAYER. AN ANNUAL LIMIT ON THE ALLOWED ETP
DEDUCTIBLE EXPENSE PER TAXPAYER MAYBE SET BY THE
COMMISSIONER WITH THE APPROVAL OF THE SECRETARY OF
FINANCE.

ELECTRONICALLY TRACEABLE PAYMENTS REFER TO CREDIT CARD,
DEBIT CARD, OR OTHER METHOD OF PAYMENT WITH A SYSTEM TO
VERIFY OR LINK THE PAYMENT TO THE IDENTITY OF PAYOR.

THE BUREAU MAY LIKEWISE ESTABLISH A RECEIPT AND INVOICE
LOTTERY PROGRAM FOR ELECTRONIC RECEIPTS OR SALES OR
COMMERCIAL INVOICES TRANSMITTED THRU THE DESIGNATED
ELECTRONIC CHANNELS OF THE BUREAU AND ISSUED AN ELECTRONIC
TAX TRANSACTION NUMBER.

The data processing of sales and purchase data shall comply with the provisions of
Republic Act No. 10173, otherwise known as the "Data Privacy Act" and Section 270 of
the NIRC, as amended, on unlawful divulgence of taxpayer information and such other
laws relating to the confidentiality of information.

‘The Bureau shall also establish polices, risk management approaches, actions, training,
and technologies to protect the cyber environment, organization, and data in compliance
With Republic Act No. 10175 or the "Cybercrime Prevention Act of 2012."

SEC. 13. Sec, 290 of Title XII of the National Internal Revenue Code of 1997, as amended is
hereby amended to read as follows and shall be re-titled as Title XII]. The subsequent titles and
sections shall be renumbered accordingly:

TITLE XU

CHAPTER I
GENERAL PROVISIONS ON TAX INCENTIVES


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“SEC 290, GENERAL PROVISION. — ALL EXPORT ACTIVITIES AND
STRATEGIC INVESTMENTS, INCLUDING THOSE INTENDED FOR THE
DOMESTIC MARKET FOR IMPORT-SUBSTITUTING OR IMPORT-COMPETING
PRODUCTS OR ACTIVITIES, UNDER THE STRATEGIC INVESTMENTS PRIORITY
PLAN (SIPP) AS DEFINED UNDER CHAPTER I OF THIS TITLE, WHETHER
LOCATED INSIDE OR OUTSIDE ECOZONES AND FREEPORT, ELIGIBLE FOR
REGISTRATION IN THE RESPECTIVE INVESTMENT PROMOTION AGENCIES
(IPAS) EFFECTIVE JANUARY 1, 2019, AND WHICH WILL QUALIFY FOR
INCENTIVES UPON EVALUATION AND REVIEW BY THE FISCAL INCENTIVES
REVIEW BOARD (FIRB), MAY ONLY BE GRANTED INCOME TAX AND CUSTOMS
DUTY INCENTIVES UNDER THIS TITLE, AND IN NO SUCH CASE SHALL THE
VALUE-ADDED TAX AND LOCAL TAXES BE USED AS INVESTMENT TAX
INCENTIVES, PROVIDED, THAT THE TAX INCENTIVES AVAILABLE UNDER
THIS TITLE TO THE AFOREMENTIONED ENTERPRISES SHALL BE APPLICABLE
TO THE REGISTERED ACTIVITY OR PROJECT ONLY. INCOME DERIVED FROM
NON-REGISTERED ACTIVITY OR PROJECT SHALL, THUS, BE SUBJECT TO
APPROPRIATE TAXES UNDER THIS CODE. THE PERIOD OF AVAILMENT OF
INCENTIVES SHALL BE RECKONED FROM THE START OF COMMERCIAL
OPERATION,

SEC. 291. SCOPE AND COVERAGE. — THIS TITLE SHALL COVER ALL
EXISTING INVESTMENT PROMOTION AGENCIES (IPAS) AS DEFINED IN THIS
CODE OR RELATED LAWS, AND ALL OTHER IPAS AND OTHER SIMILAR
AUTHORITIES THAT MAY BE CREATED BY LAW. THESE IPAS INCLUDE THE
BOARD OF INVESTMENTS (BOI), PHILIPPINE ECONOMIC ZONE AUTHORITY
(PEZA), BASES CONVERSION AND DEVELOPMENT AUTHORITY (BCDA), SUBIC
BAY METROPOLITAN AUTHORITY (SBMA), CLARK DEVELOPMENT
CORPORTION (CDC), JOHN HAY MANAGEMENT CORPORATION (JHMC), PORO-
POINT MANAGEMENT CORPORATION (PPMC), BATAAN TECHNOLOGY PARK,
INC, (BTPI), CAGAYAN ECONOMIC ZONE AUTHORITY (CEZA), ZAMBOANGA
CITY SPECIAL ECONOMIC ZONE AUTHORITY (ZCSEZA), PHIVIDEC
INDUSTRIAL AUTHORITY (PIA), AURORA PACIFIC ECONOMIC ZONE AND
FREEPORT AUTHORITY (APECO), AUTHORITY OF THE FREEPORT AREA OF
BATAAN (AFAB), TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE
AUTHORITY (TIEZA), AND ALL OTHER SIMILAR AUTHORITIES THAT MAY BE
CREATED BY LAW IN THE FUTURE.

SEC. 291-A. GOVERNING PROVISION FOR IPAS. — ALL EXISTING AND
FUTURE IPAS SHALL UNIFORMLY RECOMMEND THE GRANT OF TAX
INCENTIVES PROVIDED IN THIS TITLE TO THE FIRB FOR ITS APPROVAL.

SEC. 291-B. EXISTING CHARTERS OF IPAS. ~ THE IPAS SHALL MAINTAIN
THEIR FUNCTIONS AND POWERS AS PROVIDED UNDER THE SPECIAL LAWS
GOVERNING THEM EXCEPT ON THE EXTENT MODIFIED BY THE PROVISIONS


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46

OF THIS CODE, SUCH AS THOSE PERTAINING TO THE REVIEW AND GRANT OF
TAX INCENTIVES.

CHAPTER IL
TAX AND DUTY INCENTIVES

SEC. 292. - THE FOLLOWING TAX AND CUSTOMS DUTY INCENTIVES
MAY BE GRANTED FOR QUALIFIED REGISTERED ENTERPRISES, AS
DETERMINED BY THE BOARD OF THE RESPECT! INVESTMENT
PROMOTION AGENCY (IPA), SUBJECT TO THE REVIEW AND APPROVAL OF
THE FIRB AND THE SECRETARY OF FINANCE.

(A) INCOME TAX INCENTIVES

(a) INCOME TAX HOLIDAY (ITH). — THE ITH SHALL BE GRANTED
FOR A PERIOD NOT EXCEEDING THREE (3) YEARS. PROVIDED,
THAT AFTER THE EXPIRATION OF THE ITH, THE FOLLOWING
INCENTIVES MAY BE APPLIED FOR A PERIOD NOT EXCEEDING
FIVE (5) YEARS, WHICH INCLUDES THE PERIOD OF ITH
AVAILMENT.

(b) REDUCED CORPORATE INCOME TAX. - A REDUCED TAX RATE
OF FIFTEEN PERCENT (15%) OF THE TAXABLE INCOME AS
DEFINED UNDER SECTION 31 OF THIS CODE.

(c) TAX ALLOWANCE FOR INVESTMENTS. - AN ALLOWANCE OF UP
TO FIFTY PERCENT (50%) OF THE ACTUAL QUALIFIED
CAPITAL EXPENDITURE INCURRED WITHIN THREE (3) YEARS
SHALL BE ALLOWED AS A DEDUCTION FROM THE TAXABLE
INCOME.

(d) DOUBLE DEDUCTION FOR RESEARCH AND DEVELOPMENT. -
EXPENSES INCURRED FOR RESEARCH AND DEVELOPMENT
RELATED TO THE REGISTERED ACTIVITY, IDENTIFIED AND
APPROVED AS SUCH BY THE APPROPRIATE GOVERNMENT
AGENCY/ES SHALL BE DEDUCTIBLE FROM THE GROSS
INCOME FOR INCOME TAX PURPOSES TO THE EXTENT OF
TWO HUNDRED PERCENT (200%) ON THE YEAR THE SAID
RESEARCH AND DEVELOPMENT EXPENSES WERE INCURRED.

(e) DOUBLE DEDUCTION FOR TRAINING. - EXPENSES INCURRED
FOR TRAINING GIVEN TO EMPLOYEES BY THE REGISTERED
ENTERPRISE FOR THE DEVELOPMENT OF SKILLS, IDENTIFIED
AND APPROVED AS NECESSARY BY THE APPROPRIATE
GOVERNMENT AGENCY/IES SHALL BE DEDUCTIBLE FROM


evn EwNe

THE GROSS INCOME FOR INCOME TAX PURPOSES TO THE
EXTENT OF TWO HUNDRED PERCENT (200%) ON THE YEAR
THE SAID TRAINING EXPENSE WAS INCURRED.

() ADDITIONAL DEDUCTION FOR LABOR EXPENSE. — A

REGISTERED ENTERPRISE MAY BE ALLOWED AN ADDITIONAL
DEDUCTION FROM TAXABLE INCOME OF FIFTY PERCENT
(50%) OF THE WAGES CORRESPONDING TO THE INCREMENT
IN THE NUMBER OF DIRECT LABOR.

(g) ONE HUNDRED PERCENT (100%) DEDUCTION ON

INFRASTRUCTURE DEVELOPMENT. - REGISTERED
ENTERPRISES ESTABLISHING THEIR ACTIVITY IN AN AREA
THAT THE STRATEGIC INVESTMENTS PRIORITY PLAN (SIPP)
DESIGNATES AS NECESSARY FOR COUNTRY-WIDE
DEVELOPMENT OR IN AN AREA FOUND TO BE DEFICIENT IN
INFRASTRUCTURE, PUBLIC UTILITIES, AND OTHR FACILITIES,
SUCH AS IRRIGATION, DRAINAGE, OR OTHER SIMILAR
WATERWORKS INFRASTRUCTURE MAY DEDUCT FROM THE
GROSS INCOME AN AMOUNT EQUIVALENT TO ONE HUNDRED
PERCENT (100%) OF NECESSARY AND MAJOR
INFRASTRUCTURE WORKS IT MAY HAVE UNDERTAKEN WITH
THE PRIOR APPROVAL AND RECOMMENDATION OF THE IPA
CONCERNED; PROVIDED, THAT THE TITLE TO ALL SUCH
INFRASTRUCTURE WORKS SHALL UPON COMPLETION, BE
TRANSFERRED TO THE PHILIPPINE GOVERNMENT; PROVIDED
FURTHER, THAT ANY AMOUNT NOT DEDUCTED FOR A
PARTICULAR YEAR MAY BE CARRIED OVER FOR DEDUCTION
FOR SUBSEQUENT YEARS NOT EXCEEDING FIVE (5) YEARS
FROM COMMERCIAL OPERATION.

(h) DEDUCTION: FOR REINVESTMENT ALLOWANCE To

MANUFACTURING INDUSTRY. — WHEN A MANUFACTURING
REGISTERED ENTERPRISE REINVESTS ITS UNDISTRIBUTED
PROFIT OR SURPLUS IN ANY OF THE ACTIVITIES LISTED IN
THE SIPP, THE AMOUNT SO REINVESTED SHALL BE ALLOWED
AS A DEDUCTION FROM ITS TAXABLE INCOME WITHIN A
PERIOD OF FIVE (5) YEARS FROM THE TIME OF SUCH
REINVESTMENT: PROVIDED, THAT PRIOR APPROVAL AND
RECOMMENDATION BY THE IPA CONCERNED OF SUCH
REINVESTMENT WAS OBTAINED BY THE REGISTERED
ENTERPRISE PLANNUNG SUCH REINVESTMENT.

PROVIDED, THAT IN LIEU OF THE ITH UNDER (a), THE TAX INCENTIVES
UNDER (b), (c), (d), (e), (f), (g) AND (h) MAY BE GRANTED.


PROVIDED FURTHER, THAT IN NO SUCH CASE SHALL AN INCOME TAX
INCENTIVE BE EXTENDED BEYOND THE INITIAL GRANT OF FIVE (5) YEARS.

PROVIDED FURTHERMORE, THAT SUPERIOR INCENTIVES, AS MAY BE
DEFINED IN THE SIPP, MAY BE GRANTED IN LAGGING AREAS, AND AREAS
RECOVERING FROM ARMED CONFLICT OR A MAJOR DISASTER.

PROVIDED FINALLY, THAT REGISTERED ACTIVITIES PRIOR TO THE
EFFECTIVITY OF THIS ACT RELOCATING FROM METRO MANILA AND
SELECTED AREAS OF REGIONS II] AND IV-A TO OTHER AREAS OF THE
COUNTRY MAY BE ALLOWED A ONE-YEAR INCOME TAX INCENTIVE AS
RELOCATION INCENTIVE.

(B)CUSTOMS DUTY INCENTIVES, - REGISTERED ENTERPRISES
QUALIFIED FOR INCENTIVES MAY BE ALLOWED A MAXIMUM OF
FIVE (5) YEARS EXEMPTION ON CUSTOMS DUTY ON IMPORTED
CAPITAL — EQUIPMENT, MACHINERY, AND SPARE PARTS
EXCLUSIVELY USED FOR CAPITAL EQUIPMENT AND MACHINERY,
ALL INCLUDING CONSIGNMENT THEREOF, RAW MATERIALS USED
IN THE MANUFACTURE, PROCESSING, AS DEFINED HEREIN, OF
PRODUCTS, AND IMPORTATION OF SOURCE DOCUMENTS BY THE
REGISTERED ENTERPRISE. PROVIDED, THAT THE DUTY-FREE
IMPORTATION SHALL BE USED EXCLUSIVELY FOR THE
REGISTERED EXPORT ACTIVITY. PROVIDED FURTHER, THAT
EXPANSION OF REGISTERED ACTIVITIES MAY BE GRANTED DUTY
EXEMPTION ON CAPITAL EQUIPMENT ONLY, SUBJECT TO THE
FOLLOWING CONDITIONS:

() THE ACTIVITY IS STILL COVERED BY THE STRATEGIC
INVESTMENTS PRIORITY PLAN (SIPP);

(if) CUSTOMS DUTY EXEMPTION WILL ONLY APPLY ON THE
INCREMENTAL PORTION OF THE ACTIVITY; AND

(i) ~THE CUSTOMS DUTY EXEMPTION EXTENSION SHALL NOT
EXCEED FIVE (5) YEARS.

FOR THIS PURPOSE, ‘PROCESSING’ SHALL REFER TO
CONVERTING RAW MATERIALS INTO MARKETABLE FORM THROUGH
PHYSICAL, MECHANICAL, CHEMICAL, ELECTRICAL, BIOCHEMICAL,
BIOLOGICAL, OR OTHER MEANS, OR BY A SPECIAL TREATMENT OR A
SERIES OF ACTIONS, SUCH AS SLAUGHTERING, MILLING, PASTEURIZING,
DRYING, OR DESICCATING, QUICK FREEZING, THAT RESULTS IN A
CHANGE IN THE NATURE OR STATE OF THE PRODUCTS. MERE PACKING
OR PACKAGING SHALL NOT CONSTITUTE PROCESSING.

‘SOURCE DOCUMENTS’ REFER TO INPUT MATERIALS AND
DOCUMENTS REASONABLY NEEDED BY LT. AND LT.-ENABLED INDUSTRIES

n


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SUCH AS, BUT NOT LIMITED TO, BOOKS, DIRECTORIES, MAGAZINES,
NEWSPAPERS, BROCHURES, PAMPHLETS, MEDICAL RECORDS/FILES,
LEGAL RECORDS/FILES, INSTRUCTION MATERIALS, AND
DRAWINGS/BLUEPRINTS/OUTLINES,

CHAPTER Il
ADMINISTRATION OF TAX INCENTIVES

SEC. 293. EXPANDED FUNCTIONS OF THE FISCAL INCENTIVES REVIEW
BOARD. - THE INCENTIVES PROVIDED IN SECTION 290 MAY BE GRANTED BY
THE FISCAL INCENTIVES REVIEW BOARD (FIRB) TO THE REGISTERED
ENTERPRISE TO THE EXTENT OF THEIR REGISTERED ACTIVITY UPON
RECOMMENDATION OF THE ADMINISTERING INVESTMENT PROMOTION
AGENCY (IPA), THE PERIOD OF AVAILMENT OF INCENTIVES SHALL BE
RECKONED FROM THE START OF COMMERCIAL OPERATION. IN THIS
REGARD, THE FIRB CREATED UNDER PRESIDENTIAL DECREE (PD) NO. 776, AS
AMENDED BY PD 1931 AND PD 1955, OFFICE OF THE PRESIDENT
MEMORANDUM ORDER NO. 23, SERIES OF 1986 AND EXECUTIVE ORDER 93,
SERIES OF 1986, SHALL HAVE THE FOLLOWING FUNCTIONS AND POWERS:

a) TO SERVE AS THE CENTRAL GOVERNING BODY TO OVERSEE ALL
IPAS;

b) TO REVIEW ALL IPA POLICY DECISIONS RELATED TO THE
ENDORSEMENT AND AVAILMENT OF TAX INCENTIVES;

¢) TO REVIEW AND ENDORSE FOR APPROVAL OF THE SECRETARY OF

FINANCE THE GRANT OF INVESTMENT TAX INCENTIVES AS

RECOMMENDED BY THE IPAS;

TO PUBLISH THE NAMES OF THE REGISTERED ENTERPRISES OR

BENEFICIARIES OF TAX INCENTIVES WITH APPROVED ESTIMATED

AMOUNT OF THE CORRESPONDING INCENTIVES; AND

e) TO GRANT TAX SUBSIDIES TO GOVERNMENT-OWNED AND/OR-
CONTROLLED CORPORATIONS (GOCCS), GOVERNMENT
INSTRUMENTALITIES (GI), GOVERNMENT COMMISSARIES, AND
STATE UNIVERSITIES AND COLLEGES (SUCS) AS MAY BE PROVIDED
UNDER THE ANNUAL GENERAL APPROPRIATIONS ACT,

d)

PROVIDED THAT, AS CHAIR OF THE FIRB AND APPROVING HEAD, THE
SECRETARY OF FINANCE SHALL HAVE VETO POWER AS THE CUSTODIAN OF
FISCAL PRUDENCE AND RESPONSIBILITY, AND AS SUCH, MAY CANCEL OR
SUSPEND THE GRANT OF INCENTIVES UPON THE REVIEW AND
RECOMMENDATION OF THE FIRB.

PROVIDED FURTHER, THAT THE SECRETARY OF FINANCE SHALL
AUTOMATICALLY BE THE CO-CHAIR OF ALL THE EXISTING AND FUTURE
IPAS.


Bowuaweun—

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PROVIDED FINALLY, THAT THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY (NEDA) SHALL BE A MEMBER OF ALL IPAS, BOTH
EXISTING AND FUTURE.

SEC. 294. COMPOSITION OF THE FIRB - THE FIRB SHALL BE
RECONSTITUTED AS FOLLOWS:

BOARD PROPER:

CHAIR — SECRETARY OF THE DEPARTMENT OF FINANCE (DOF)
MEMBERS —

SECRETARY OF THE DEPARTMENT OF TRADE AND INDUSTRY (DTI)
DIRECTOR GENERAL OF THE NATIONAL ECONOMIC AND

DEVELOPMENT AUTHORITY (NEDA)
SECRETARY OF THE DEPARTMENT OF BUDGET AND MANAGEMENT

(DBM)

TECHNICAL COMMITTEE— UNDERSECRETARY OF DOF
UNDERSECRETARY OF DTI
UNDERSECRETARY OF DBM

DEPUTY DIRECTOR GENERAL OF NEDA
COMMISSIONER OF INTERNAL REVENUE
COMMISSIONER OF CUSTOMS
EXECUTIVE DIRECTOR OF THE
NATIONAL TAX AND RESEARCH CENTER
(NTRO)

SECRETARIAT - NTRC

CHAPTER IV
QUALIFIED ACTIVITIES FOR TAX INCENTIVES

SEC. 295. ‘STRATEGIC INVESTMENTS PRIORITY PLAN’ (SIPP). — THE
BOARD OF INVESTMENT (BOI), IN COORDINATION WITH THE OFFICE OF THE
PRESIDENT, THE CONCERNED IPAS, AND OTHER GOVERNMENT AGENCIES
AND THE PRIVATE SECTOR, SHALL FORMULATE THE PLAN TO BE
SUBMITTED TO THE PRESIDENT FOR HIS APPROVAL THROUGH THE
ISSUANCE OF AN EXECUTIVE ORDER NOT LATER THAN DECEMBER OF THE
THIRD YEAR SET FOR PERIODIC REVIEW. THE PLAN SHALL BE VALID FOR A
PERIOD OF THREE (3) YEARS SUBJECT TO REVIEW AND AMENDMENT AS THE
NEED ARISES.


THE FOLLOWING CRITERIA SHALL BE COMPLIED WITH IN THE LIST
OF ECONOMIC ACTIVITIES IN THE PLAN:

a. THE ACTIVITY SHALL BE COVERED BY THE PHILIPPINE
DEVELOPMENT PLAN OR ITS EQUIVALENT AND OTHER
GOVERNMENT PROGRAMS, AND SHALL REFLECT THE HIGH-LEVEL
PRIORITIES OF THE COUNTRY;

b. THE ACTIVITY SHALL ENDEAVOR TO BE NEUTRAL IN TERMS OF
NATIONALITY AND MARKET, PROVIDED THAT THOSE INTENDED
FOR THE DOMESTIC MARKET BE IMPORT-SUBSTITUTING OR
IMPORT-COMPETING PRODUCTS OR ACTIVITIES;

¢. THE ACTIVITY’S PERFORMANCE SHALL BE MEASURABLE IN TERMS
OF EXPORT SALES, ACTUAL INVESTMENTS, ACTUAL JOB CREATION,
INVESTMENTS IN LAGGING REGIONS AS DEFINED IN THE SIPP,
INVESTMENT AND EMPLOYMENT IN RESEARCH AND
DEVELOPMENT, LINKAGES CREATION, AND SPILL-OVER EFFECTS,
AMONG OTHERS;

d. THE ACTIVITY SHALL NOT INCLUDE THOSE THAT ARE PART OF
CROSS-SUBSIDY SCHEMES;

« THE ACTIVITY IN LAGGING REGIONS SHALL BE GIVEN
PREFERENCE;

{. THE ACTIVITY SHALL TAKE INTO ACCOUNT THE FOLLOWING:

(1) SUBSTANTIAL AMOUNT OF ACTUAL INVESTMENTS;

(2) CONSIDERABLE GENERATION OF ACTUAL FULL TIME

EMPLOYMENT;

(3) ADOPT INCLUSIVE BUSINESS ACTIVITIES AND VALUE-ADDED
PRODUCTION BY MICRO, SMALL, AND, MEDIUM-SIZE
ENTERPRISES (MSMES);

(4) USE OF MODERN OR NEW TECHNOLOGY;

(5) ADOPTION OF ADEQUATE ENVIRONMENTAL PROTECTION

SYSTEMS;

(6) ADDRESS MISSING GAPS IN THE SUPPLY/VALUE CHAIN AND/OR
MOVE UP THE VALUE CHAIN OR PRODUCT LADDER;

(7) PROMOTION OF MARKET COMPETITIVENESS; AND

(8) COMMERCIALIZATION OF IDEAS AND INTRODUCTION OF

INNOVATION ACTIVITIES WHETHER PRODUCT, PROCESS,
MARKETING, OR NEW BUSINESS MODEL.

THE THRESHOLD AMOUNT OF INVESTMENTS AND EMPLOYMENT
GENERATION REQUIRED FOR A SPECIFIC ACTIVITY TO BE GRANTED TAX
INCENTIVES AND RETAIN THE TAX INCENTIVE SHALL BE SUBJECT TO A
PERIODIC REVIEW EVERY THREE (3) YEARS TAKING INTO CONSIDERATION
INTERNATIONAL STANDARDS AND OTHER INDICATORS.

30


THE ACTIVITY MUST COMPLY WITH THE SPECIFIC QUALIFICATION
REQUIREMENTS AND/OR CONDITIONS FOR A PARTICULAR SECTOR OR
INDUSTRY AND OTHER LIMITATIONS AS SET AND DETERMINED BY THE BOI.

PROVIDED, THAT THE PRESIDENT MAY, IN THE INTEREST OF
NATIONAL ECONOMIC DEVELOPMENT AND UPON THE RECOMMENDATION
OF THE BOARD OF INVESTMENTS AND THE ECONOMIC MANAGERS, GRANT
INCENTIVES TO HIGHLY DESIRABLE PROJECTS THAT MAY INCLUDE THOSE
THAT ARE NOT PROVIDED IN THE SIPP: PROVIDED, THAT THE BENEFITS
THAT THE GOVERNMENT COULD DERIVE FROM SUCH INVESTMENT
THERETO IS CLEAR AND CONVINCING AND FAR OUTWEIGHS THE COST OF
INCENTIVES THAT WILL BE GRANTED. PROVIDED FURTHER, THAT THE
FOLLOWING CRITERIA, AMONG OTHERS, ARE CONSIDERED: (A) MINIMUM
INVESTMENT OF FIVE HUNDRED MILLION US DOLLARS (US$500,000,000); (B)
MINIMUM DIRECT EMPLOYMENT GENERATION OF AT LEAST ONE
THOUSAND FIVE HUNDRED (1,500) WITHIN THE FIRST YEAR OF ITS
OPERATION. PROVIDED FINALLY, THAT THE GOVERNMENT MAY UTILIZE ITS
RESOURCES FOR THE GRANT OF INCENTIVES SUCH AS LAND USE, WATER
APPROPRIATION, POWER PROVISION, AND THE LIKE.

SEC. 296. AMENDMENTS. - SUBJECT TO PUBLICATION REQUIREMENTS
AND THE CRITERIA FOR INVESTMENT PRIORITY DETERMINATION, THE BOL
MAY, AT ANY TIME, INCLUDE ADDITIONAL AREAS IN THE PLAN, ALTER ANY
OF THE TERMS OF THE DECLARATION OF AN INVESTMENT AREA, AND
TEMPORARILY OR PERMANENTLY SUSPEND ACTIVITIES ON THE PLAN IF IT
CONSIDERS THAT SUCH ACTIVITY IS NO LONGER A PRIORITY. THE IPAS
SHALL NOT ACCEPT APPLICATIONS IN AN AREA OF INVESTMENT PRIOR TO.
THE APPROVAL OF THE SAME AS A PREFERRED AREA OR AFTER APPROVAL
OF ITS DELETION AS A PREFERRED AREA OF INVESTMENT IN THE PLAN.

SEC. 297. PUBLICATION. —- UPON APPROVAL OF THE PLAN, IN WHOLE OR
IN PART, OR UPON APPROVAL OF AN AMENDMENT THEREOF, THE PLAN OR
THE AMENDMENT, SPECIFIYING AND DECLARING THE AREAS OF
INVESTMENTS SHALL BE PUBLISHED IN AT LEAST ONE (1) NEWSPAPER OF
GENERAL CIRCULATION OR THE OFFICIAL GAZETTE AND ALL SUCH AREAS
SHALL BE OPEN FOR APPLICATION UNTIL PUBLICATION OF AN AMENDMENT
OR DELETION THEREOF.

SEC, 298. QUALIFICATIONS OF A REGISTERED ENTERPRISE FOR TAX
INCENTIVES, — A REGISTERED ENTERPRISE MUST SATISFY THE FOLLOWING
CONDITIONS FOR CONSIDERATION IN THE REVIEW AND GRANT OF TAX
INCENTIVES:

A. IT WILL ENGAGE IN AN ACTIVITY INCLUDED IN THE PLAN;

B. IF THE APPLICANT IS ENGAGED OR PROPOSES TO ENGAGE IN
ACTIVITIES OTHER THAN THE REGISTERED PROJECTS, IT SHALL

3


INSTALL AN ADEQUATE ACCOUNTING SYSTEM THAT SHALL
IDENTIFY THE INVESTMENTS, REVENUES, COSTS AND PROFITS OR
LOSSES OF EACH REGISTERED PROJECT UNDERTAKEN BY THE
ENTERPRISE SEPARATELY FROM THE AGGREGATE INVESTMENTS,
REVENUES, COSTS AND PROFITS OR LOSSES OF THE WHOLE
ENTERPRISE, OR ESTABLISH A SEPARATE CORPORATION FOR EACH
REGISTERED PROJECT IF THE IPAS SHOULD SO REQUIRE;

C. IT SHALL SATISFY THE PERFORMANCE TARGETS SET FORTH IN THE
SIPP, WHICH SHALL INCLUDE, BUT NOT LIMITED TO, EXPORT
SALES, ACTUAL INVESTMENTS, ACTUAL JOB CREATION,
INVESTMENTS IN LAGGING REGIONS AS DEFINED IN THE SIPP,
INVESTMENT AND EMPLOYMENT IN RESEARCH AND
DEVELOPMENT, AND INVESTMENT AND EMPLOYMENT _ IN
INTERMEDIATE PARTS AND COMPONENTS, SUPPLIES, AND RAW
MATERIALS, AMONG OTHERS.

D. IT SHALL REGULARLY REPORT AND COMPLY WITH THE
REPORTORIAL REQUIREMENTS UNDER REPUBLIC ACT NO. 10708 OR
THE TIMTA LAW.

PROVIDED, THAT NON-COMPLIANCE OF THE ABOVE-MENTIONED
CONDITIONS SHALL CAUSE THE REVOCATION OF THE TAX INCENTIVES
GRANTED AND THE REGISTERED ENTERPRISE SHALL BE LIABLE TO THE
PENALTIES UNDER SECTION 301 OF THIS CODE.

CHAPTER V
AVAILMENT OF TAX INCENTIVES

SEC. 299. INCOME TAX-BASED INCENTIVES. -— ALL REGISTERED
ENTERPRISES ARE REQUIRED TO FILE ALL THEIR TAX RETURNS USING THE
ELECTRONIC/ONLINE FACILITIES OF THE BUREAU OF INTERNAL REVENUE
(BIR). ON AVAILING THE INCOME TAX-BASED INCENTIVES, THE REGISTERED
ENTERPRISE SHALL BE REQUIRED TO SECURE A CERTIFICATE OF
ENTITLEMENT ISSUED BY THE FIRB AND ATTACH THE SAME TO ITS INCOME
TAX RETURN (ITR) OR ANNUAL INFORMATION RETURN (AIR), WHICHEVER IS
APPLICABLE. THEREAFTER, THE REGISTERED ENTERPRISE SHALL FILE ITS
CLAIM WITH THE BIR FOR VALIDATION.

FAILURE TO SECURE AND ATTACH THE CERTIFICATION TO THE ITR
OR AIR, AND/OR FILE THE INCENTIVE AVAILMENT APPLICATION SHALL
CAUSE THE FORFEITURE OF THE INCENTIVE FOR THAT TAXABLE PERIOD.

SEC. 300, CUSTOMS DUTY EXEMPTION ON CAPITAL EQUIPMENT.
IMPORTATION OF CAPITAL EQUIPMENT, MACHINERY AND SPARE PARTS
EXCLUSIVELY USED FOR CAPITAL EQUIPMENT AND MACHINERY INCLUDING
CONSIGNMENT THEREOF BY REGISTERED ENTERPRISES MAY BE EXEMPTED


eNVanueune

TO THE EXTENT OF ONE HUNDRED PERCENT (100%) OF THE CUSTOMS DUTY,
PROVIDED THAT THE FOLLOWING CONDITIONS ARE COMPLIED WITH:

(A) THE CAPITAL EQUIPMENT AND/OR SPARE PARTS IS DIRECTLY
AND REASONABLY NEEDED AND WILL BE USED EXCLUSIVELY
IN AND AS PART OF THE DIRECT COST OF THE REGISTERED
ACTIVITY OF THE REGISTERED ENTERPRISE, AND ARE NOT
MANUFACTURED DOMESTICALLY IN SUFFICIENT QUANTITY,
OF COMPARABLE QUALITY AND AT REASONABLE PRICES.
PRIOR APPROVAL OF THE IPA MAY BE SECURED FOR THE PART
‘TIME UTILIZATION OF SAID EQUIPMENT IN A NON-REGISTERED.
ACTIVITY TO MAXIMIZE USAGE THEREOF, PROVIDED THE
PROPORTIONATE TAXES AND DUTIES ARE PAID ON A SPECIFIC
EQUIPMENT AND MACHINERY IN PROPORTION TO ITS
UTILIZATION FOR NON-REGISTERED ACTIVITIES. IN THE
EVENT, IT SHALL BE USED FOR NON-REGISTERED ACTIVITY OF
THE REGISTERED ENTERPRISE AT ANYTIME WITHIN THE FIRST
FIVE (5) YEARS FROM DATE OF IMPORTATION, THE
REGISTERED ENTERPRISE SHALL FIRST SEEK PRIOR
APPROVAL OF THE AUTHORITY, AND PAY THE TAXES AND
CUSTOMS DUTIES THAT WERE NOT PAID UPON ITS
IMPORTATION; AND

(B) THE APPROVAL OF THE IPA WAS OBTAINED BY THE
REGISTERED ENTERPRISE PRIOR TO THE IMPORTATION OF
SUCH CAPITAL EQUIPMENT AND/OR SPARE PARTS.

APPROVAL OF THE IPA MUST BE SECURED BEFORE ANY SALE,
TRANSFER OR DISPOSITION OF THE CAPITAL EQUIPMENT AND/OR
SPARE PARTS WHICH WAS GRANTED TAX AND CUSTOMS DUTY
EXEMPTION HEREUNDER IS MADE, AND IT SHALL BE ALLOWED ONLY
UNDER THE FOLLOWING CIRCUMSTANCES:

(A) IF MADE TO ANOTHER ENTERPRISE ENJOYING CUSTOMS
DUTY EXEMPTION ON IMPORTED CAPITAL EQUIPMENT
AND/OR SPARE PARTS;

(B) IF MADE TO ANOTHER ENTERPRISE NOT DUTY EXEMPTION
ON IMPORTED CAPITAL EQUIPMENT AND/OR SPARE PARTS,
UPON PAYMENT OF ANY TAXES AND DUTIES DUE ON THE NET
BOOK VALUE OF THE CAPITAL EQUIPMENT AND/OR SPARE
PARTS TO BE SOLD;

(C) EXPORTATION OF CAPITAL EQUIPMENT, MACHINERY, SPARE
PARTS OR SOURCE DOCUMENTS, OR THOSE REQUIRED FOR
POLLUTION ABATEMENT AND CONTROL; OR


(D) FOR REASONS OF PROVEN TECHNICAL OBSOLESCENCE.

PROVIDED, THAT IF THE REGISTERED ENTERPRISE SELLS, TRANSFERS
OR DISPOSES THE AFOREMENTIONED IMPORTED ITEMS WITHOUT
PRIOR APPROVAL, THE REGISTERED ENTERPRISE AND THE VENDEE,
‘TRANSFEREE, OR ASSIGNEE SHALL BE SOLIDARILY LIABLE TO PAY
TWICE THE AMOUNT OF THE DUTY EXEMPTION THAT SHOULD HAVE
BEEN PAID DURING ITS IMPORTATION. PROVIDED FURTHER, THAT
EVEN IF THE SALE, TRANSFER OR DISPOSITION OF THE CAPITAL
EQUIPMENT WAS MADE AFTER FIVE (5) YEARS FROM DATE OF
IMPORTATION WITH THE APPROVAL OF THE IPA, THE REGISTERED
ENTERPRISE IS STILL LIABLE TO PAY THE DUTIES BASED ON THE NET
BOOK VALUE OF THE CAPITAL EQUIPMENT IF IT HAS VIOLATED ANY
OF ITS REGISTRATION TERMS AND CONDITIONS.

SEC. 301. DUTY EXEMPTION ON RAW MATERIALS.- IMPORTATION OF RAW
MATERIALS, SUPPLIES, AND SEMI-FINISHED PRODUCTS BY EXPORT
ENTERPRISES INSIDE OR OUTSIDE THE ECOZONE OR FREEPORTS MAY BE
EXEMPTED TO THE EXTENT OF ONE HUNDRED PERCENT (100%) OF THE
DUTY, PROVIDED, THAT THE RAW MATERIALS, SUPPLIES, AND SEMI-
FINISHED PRODUCTS IMPORTED ARE EXCLUSIVELY USED BY AN EXPORT
ENTERPRISE IN THE MANUFACTURE, PROCESSING OR PRODUCTION OF THE
EXPORT PRODUCTS COVERED BY ITS REGISTERED ACTIVITY AND IT
ACTUALLY FORMS PART OF THE PRODUCT EXPORTED.

CHAPTER VI
FINAL PROVISIONS

SEC. 302. NO DOUBLE REGISTRATION OF ENTERPRISES. — REGISTERED
ENTERPRISES SHALL NOT BE ALLOWED TO REGISTER THEIR ACTIVITIES IN
MORE THAN ONE (1) IPA.

SEC. 303. INVESTMENTS PRIOR TO THE EFFECTIVITY OF THIS ACT.
EXISTING REGISTERED ACTIVITIES GRANTED THE INCOME TAX
HOLIDAY SHALL BE ALLOWED TO CONTINUE WITH THE
AVAILMENT OF THE SAID INCENTIVE FOR THE REMAINING PERIOD
OF THE ITH OR FOR A PERIOD OF FIVE (5) YEARS ONLY, WHICHEVER
COMES FIRST; PROVIDED THAT THE SPECIAL RATE OF FIVE
PERCENT (5%) OF GROSS INCOME EARNED (GIE) GRANTED TO
EXISTING REGISTERED ACTIVITIES SHALL BE ALLOWED TO
CONTINUE FOLLOWING THE SCHEDULE STATED HEREIN:

(A) TWO (2) YEARS FOR ACTIVITIES THAT HAVE RECEIVED THE TAX
INCENTIVE FOR MORE THAN TEN (10) YEARS;


(B) THREE (3) YEARS FOR ACTIVITIES THAT HAVE RECEIVED THE
‘TAX INCENTIVE BETWEEN FIVE (5) AND TEN (10) YEARS;

(©) FIVE (5) YEARS ACTIVITIES THAT HAVE RECEIVED THE TAX
INCENTIVE BELOW FIVE (5) YEARS.

SEC. 304. SUSPENSION AND FORFEITURE OF TAX INCENTIVES OF
REGISTERED ENTERPRISES, REFUND AND PENALTIES; WAIVER AND
CONDONATION. WHEN THERE IS PROBABLE CAUSE TO BELIEVE THAT THE
REGISTERED ENTERPRISE HAS VIOLATED ITS REGISTRATION TERMS AND
CONDITIONS, THE IPA SHALL RECOMMEND TO THE FIRB THE SUSPENSION
OF ITS AVAILMENT OF INCENTIVES, UNTIL PROVEN OTHERWISE,

IN CASE OF CANCELLATION OF THE CERTIFICATE OF REGISTRATION
GRANTED UNDER THIS ACT, THE BIR, IN COORDINATION WITH THE FIRB,
WILL REQUIRE THE PAYMEN OF INCENTIVES ASESSED TO HAVE BEEN
GRANTED TO THE SAID ENTERPRISE FOR ITS REGISTERED ACTIVITY AND
IMPOSE CORRESPONDING FINES AND PENALTIES.

THE FOREGOING IS WITHOUT PREJUDICE TO THE AUTHORITY OF THE
BIR TO CONDUCT AUDIT AND IMPOSE PENALTIES UNDER THIS CODE.

. 14. Title XII of the National Internal Revenue Code of 1997, as amended, is hereby
amended to read as follows:

“SEC. [294}-305. AMENDING CLAUSE. - |4n-General—Atiaws,-deorees exeoutive

are-hereby-repeaied-amended-or- modified accordingly}-A. TO ENSURE THAT THE DOF
AND NEDA ARE REPRESENTED IN THE GOVERNING BOARDS OF ALL IPAS,
WHERE THE DOF SHALL AUTOMATICALLY SERVE AS CO-CHAIR, PURSUANT
TO SECTION 293 OF THIS ACT, THE FOLLOWING PROVISIONS, AMONG
OTHERS, ARE AMENDED ACCORDINGLY:

i ARTICLE 4 OF EXECUTIVE ORDER NO. 226, AS AMENDED
ENTITLED, THE “OMNIBUS INVESTMENT CODE OF 1987;

ii, SECTIONS 9 AND 13 (C) OF REPUBLIC ACT NO. 7227 ENTITLED, “AN
ACT ACCELERATING THE CONVERSION OF MILITARY
RESERVATIONS INTO OTHER PRODUCTIVE USES, CREATING THE
BASES CONVERSION AND DEVELOPMENT AUTHORITY FOR THIS
PURPOSE, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES”;

SECTION 3 OF EXECUTIVE ORDER NO. 80 ENTITLED,
“AUTHORIZING THE ESTABLISHMENT OF THE CLARK
DEVELOPMENT CORPORATION AS THE IMPLEMENTING ARM OF


THE BASES CONVERSION AND DEVELOPMENT AUTHORITY FOR
THE CLARK SPECIAL ECONOMIC ZONE, AND DIRECTING ALL
HEADS OF DEPARTMENTS, BUREAUS, OFFICES, AGENCIES AND
INSTRUMENTALITIES OF GOVERNMENT TO SUPPORT THE
PROGRAM;”

iv. SECTION 6 OF EXECUTIVE ORDER NO = 132 ENTITLE!
“AUTHORIZING THE CREATION OF THE PORO POINT
MANAGEMENT CORPORATION AS THE IMPLEMENTING ARM OF
THE BASES CONVERSION DEVELOPMENT AUTHORITY OVER THE
PORO POINT SPECIAL ECONOMIC AND FREEPORT ZONE AND
RENAMING THE JOHN HAY PORO POINT DEVELOPMENT
CORPORATION AS THE JOHN HAY MANAGEMENT
CORPORATION;”

vy. SECTION 9 OF REPUBLIC ACT NO, NO, 7903 ENTITLED, “AN ACT
CREATING SPECIAL ECONOMIC ZONE AND FREE PORT IN THE
CITY OF ZAMBOANGA AND ESTABLISHING FOR THIS PURPOSE
THE ZAMBOANGA CITY SPECIAL ECONOMIC ZONE AUTHORITY,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER;”

vi.

SECTION 14 OF REPUBLIC ACT NO, 9728 ENTITLED, “AN ACT
CONVERTING THE BATAAN ECONOMIC ZONE LOCATED IN THE
MUNICIPALITY OF MARIVELES, PROVINCE OF BATAAN, INTO THE
FREEPORT AREA OF BATAAN (FAB), CREATING FOR THIS
PURPOSE THE AUTHORITY OF THE FREEPORT AREA OF BATAAN
(AFAB), APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES OR THE “FREEPORT AREA OF BATAAN ACT OF 2009;"

vii. SECTION 65 OF REPUBLIC ACT NO. 9593 ENTITLED, “AN ACT
DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE
OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL
DEVELOPMENT, AND STRENGTHENING THE DEPARTMENT OF
TOURISM AND ITS ATTACHED AGENCIES TO EFFECTIVELY
EFFICIENTLY IMPLEMENT THAT POLICY, AND APPROPRIATING
FUNDS THEREFOR;

viii, SECTION 15 OF REPUBLIC ACT NO. 9490 ENTITLED, “AN ACT
ESTABLISHING THE AURORA SPECIAL ECONOMIC ZONE IN
THE PROVINCE OF AURORA, CREATING FOR THE PURPOSE THE
AURORA SPECIAL ECONOMIC ZONE AUTHORITY,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES;” SEC. 8 OF REPUBLIC ACT NO. 10083, ENTITLED, “AN
ACT AMENDING REPUBLIC ACT NO. 9490, OTHERWISE KNOWN AS:
THE "AURORA SPECIAL ECONOMIC ZONE ACT OF 2007;”


20

ix. SECTION 7 OF REPUBLIC ACT NO. 7922, ENTITLED, “AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE PORT IN
THE MUNICIPALITY OF SANTA ANA AND THE NEIGHBORING
ISLANDS IN THE MUNICIPALITY OF APARRI, PROVINCE OF
CAGAYAN PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.”

B. THE FOLLOWING PROVISIONS PROVIDING FOR TAX INCENTIVES,

AMONG OTHERS, ARE HEREBY AMENDED. ACCORDINGLY, ALL TAX
OBLIGATIONS OF THE CORPORATION SHALL BE CHARGEABLE TO THE TAX
EXPENDITURE FUND (TEF) IN THE ANNUAL GENERAL APPROPRIATION ACT
PURSUANT TO THE PROVISIONS OF EXECUTIVE ORDER NO. 93, SERIES OF

1986:

i. SECTION 18 OF REPUBLIC ACT NO. 7884 ENTITLED, “AN ACT
CREATING THE NATIONAL DAIRY AUTHORITY TO ACCELERATE
THE DEVELOPMENT OF THE DAIRY INDUSTRY IN THE
PHILIPPINES, PROVIDING FOR A DAIRY DEVELOPMENT FUND,
AND FOR OTHER PURPOSES;”

ii, SECTION 142 OF REPUBLIC ACT NO, 10654 ENTITLED, “AN ACT TO
PREVENT, DETER AND ELIMINATE ILLEGAL, UNREPORTED AND
UNREGULATED FISHING, AMENDING REPUBLIC ACT NO. 8550,
OTHERWISE KNOWN AS THE PHILIPPINE FISHERIES CODE OF
1998, AND FOR OTHER PURPOSES;

iii. SECTION 8 OF REPUBLIC ACT NO. 7903 ENTITLED, “AN ACT
CREATING SPECIAL ECONOMIC ZONE AND FREE PORT IN THE
CITY OF ZAMBOANGA FOR THIS PURPOSE THE ZAMBOANGA
CITY SPECIAL ECONOMIC ZONE AUTHORITY, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSE;”

iv. SECTION 12-A OF REPUBLIC ACT NO. 10083 ENTITLED, “AN ACT
AMENDING REPUBLIC ACT NO, 9490, OTHERWISE KNOWN AS THE
AURORA SPECIAL ECONOMIC ZONE ACT OF 2007;”

vy. SECTIONS 29, 57, 74, 95 (C) OF REPUBLIC ACT NO. 9593 ENTITLED,
“AN ACT DECLARING TOURISM AS ENGINE OF INVESTMENT,
EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT AND
STRENGTHENING THE DEPARTMENT OF TOURISM OR TOURISM
ACT OF 2009;"

vi. SECTION 10 OF PRESIDENTIAL DECREE NO. 538 ENTITLED,
“CREATING AND ESTABLISHING THE PHIVIDEC INDUSTRIAL
AUTHORITY AND MAKING IT A SUBSIDIARY AGENCY OF THE
PHILIPPINE VETERANS INVESTMENT DEVELOPMENT

”


CORPORATION DEFINING ITS POWERS, FUNCTIONS AND
RESPONSIBILITIES, AND FOR OTHER PURPOSES;”

vii. SECTION 16 (A) (B) OF REPUBLIC ACT NO. 9497 ENTITLED, “AN ACT
CREATING THE CIVIL AVIATION AUTHORITY OF THE
PHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS
THEREFOR, AND FOR OTHER PURPOSES;”

viii, SECTION 8 OF REPUBLIC ACT NO. 7278 ENTITLED, “AN ACT
AMENDING COMMONWEALTH ACT 111, AS AMENDED BY PD 460,
ENTITLED “AN ACT TO CREATE A PUBLIC CORPORATION
KNOWN AS THE BOYS SCOUTS OF THE PHILIPPINES AND TO
DEFINE ITS POWERS AND PURPOSES,” BY STRENGTHENING THE
VOLUNTEER AND DEMOCRATIC CHARACTER OF THE BOYS
SCOUTS OF THE PHILIPPINES AND FOR OTHER PURPOSES,”

ECTION 11 (A), (B), (C), (D) OF REPUBLIC ACT NO, 10073 ENTITLED,
N ACT INSTITUTING THE NEW GIRL SCOUTS OF THE
PHILIPPINES CHARTER, PENALIZING VIOLATIONS THEREFOR
AND FOR OTHER PURPOSES;”

x. SECTION 14 OF REPUBLIC ACT NO. 7354 ENTITLED, “AN ACT
REATING THE PHILIPPINE POSTAL CORPORATION,
ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, PROVIDING
FOR REGULATION OF THE INDUSTRY AND FOR OTHER PURPOS
CONNECTED THEREWITH;”

e

SECTION 8 AND 14 OF PRESIDENTIAL DECREE NO. 269 ENTITLED,
“CREATING THE NATIONAL ELECTRIFICATION
ADMINISTRATION AS A CORPORATION, PRESCRIBING ITS
POWERS AND ACTIVITIES, APPROPRIATING THE NECESSARY
FUNDS THEREFORE AND DECLARING A NATIONAL POLICY
OBJECTIVE FOR THE TOTAL ELECTRIFICATION OF THE
PHILIPPINES ON AN AREA COVERAGE SERVICE BASIS, THE
ORGANIZATION, PROMOTION AND DEVELOPMENT OF ELECTRIC
COOPERATIVES TO ATTAIN THE SAID OBJECTIVE, PRESCRIBING
TERMS AND CONDITIONS FOR THEIR OPERATIONS, THE REPEAL
OF RA 6038, AND FOR OTHER PURPOSES;

xii, SECTION 10 OF REPUBLIC ACT NO. 6675 ENTITLED, “AN ACT TO
PROMOTE, REQUIRE AND ENSURE THE PRODUCTION OF AN
ADEQUATE SUPPLY, DISTRIBUTION, USE AND ACCEPTANCE OF
DRUGS AND MEDICINES IDENTIFIED BY THEIR GENERIC



eVaueuwne

uu
12
13
14
1S
16
7
18
9
20
a
2
23
24
25
26
7
28
29
30
31
32
33

35

37
38
39
40

a2
3

4s
46

xiii, SECTION 10 OF REPUBLIC ACT NO. 7719 ENTITLED, “AN ACT
PROMOTING VOLUNTARY BLOOD DONATION, PROVIDING FOR
AN ADEQUATE SUPPLY OF SAFE BLOOD, REGULATING BLOOD
BANKS, AND PROVIDING PENALTIES FOR VIOLATION
THEREFOR;”

xiv. SECTION 19 OF REPUBLIC ACT NO, 9679 ENTITLED, “AN ACT
AMENDING THE HOME DEVELOPMENT MUTUAL FUND
OTHERWISE KNOWN AS THE PAG-IBIG FUND;”

xy. SECTION 17 (C) REPUBLIC ACT NO. 9576 ENTITLED, “INCREASING
THE MAXIMUM DEPOSIT INSURANCE COVERAGE, AND
STRENGTHENING THE REGULATORY AND ADMINISTRATIVE
AUTHORITY AND FINANCIAL CAPABILITY OF PDIC;”

xvi. SECTION 56 OF REPUBLIC ACT NO. 10801 ENTITLED, “AN ACT
GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE
OVERSEAS WORKERS WELFARE ADMINISTRATION;”

xvii. SECTION 13 OF REPUBLIC ACT NO. 7820 ENTITLED, “AN ACT
CREATING THE PARTIDO DEVELOPMENT ADMINISTRATION,
DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES;”

xviii. SECTION 10 OF REPUBLIC ACT NO. 10349 ENTITLED, “AN ACT
AMENDING REPUBLIC ACT NO. 7898, ESTABLISHING THE
REVISED AFP MODERNIZATION PROGRAM AND FOR OTHER
PURPOSES;*

xix, SECTION 6 OF REPUBLIC ACT NO. 10591 ENTITLED, “AN ACT
PROVIDING FOR A COMPREHENSIVE LAW ON FIREARMS AND
AMMUNITION AND PROVIDING PENALTIES FOR VIOLATIONS
THEREOF;

xx. SECTION 14 OF REPUBLIC ACT NO. 6958 ENTITLED, “AN ACT
CREATING THE MACTAN-CEBU INTERNATIONAL AIRPORT
AUTHORITY, TRANSFERRING EXISTING ASSETS OF THE
MACTAN INTERNATIONAL AIRPORT AND THE LAHUG AIRPORT
TO THE AUTHORITY, VESTING THE AUTHORITY WITH POWER
TO ADMINISTER AND OPERATE THE MACTAN INTERNATIONAL
AIRPORT AND THE LAHUG AIRPORT, AND FOR OTHER
PURPOSES;”

xxi, SECTION 5(J) OF REPUBLIC ACT NO. 9510 ENTITLED, “AN ACT
ESTABLISHING THE CREDIT INFORMATION SYSTEM AND FOR
OTHER PURPOSES;”


Cav aueun—

10
1
2
13
14
15
16
w7
18
19
20
a
2
23
oo)
2
26
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34
35
36
37

38
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a
a2

43
44

c

xxii. SECTION 13(E) OF PRESIDENTIAL DECREE NO. 857 ENTITLED,
“AN ACT PROVIDING FOR THE REORGANIZATION OF PORT
ADMINISTRATION AND OPERATION FUNCTIONS IN THE
PHILIPPINES, REVISING PD 505 DATED JULY 11, 1974, CREATING
THE PHILIPPINE PORT AUTHORITY, BY SUBSTITUTION, AND
FOR OTHER PURPOSES;”

xxiii. SECTION 19 OF REPUBLIC ACT NO. 6847 ENTITLED, “AN ACT
CREATING AND ESTABLISHING THE PHILIPPINE SPORTS
COMMISSION, DEFINING ITS POWERS, FUNCTIONS, AND
RESPONSIBILITIES, APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES;”

xxiv, SECTION 5(C) OF REPUBLIC ACT NO. 8180 ENTITLED, “AN ACT
DEREGULATING THE DOWNSTREAM OIL INDUSTRY, AND FOR
OTHER PURPOSES (DOWNSTREAM oO INDUSTRY
DEREGULATION ACT OF 1996);”

THE FOLLOWING PROVISIONS PROVIDING FOR “IN LIEU OF ALL

TAXES” ARE HEREBY AMENDED ACCORDINGLY, TO READ AS FOLLOWS:

SECTION 13 OF PRESIDENTIAL DECREE 1590 ENTITLED “AN ACT
GRANTING A NEW FRANCHISE TO PHILIPPINE AIRLINES, INC. TO.
ESTABLISH, OPERATE AND MAINTAIN AIR TRANSPORT SERVICES
IN THE PHILIPPINES AND OTHER COUNTRIES” IS HEREBY
AMENDED AS FOLLOWS:

“Section 13. In consideration of the franchise and rights hereby granted,
the grantee shall pay to the Philippine government during the life of this franchise
sedtchever et ilbncetinns tte ttl tt ereteicer sett rest eat dent ttt

(A) the haste-comperate tneome tax based on the gramee's annual net taxable
: r 4
reverme—eode—ALL APPLICAPLE TAXES UNDER THE NATIONAL

INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES; OR

(B) A franchise tax of two per cent (2%) of the gross revenues derived by the
grantee from all sources, without distinction as to transport or non-transport
operations; provided, that with respect to international air-transport service, only
the gross passenger, mail, and freight revenues from its outgoing flights shall be
subject to this tax.

n r ienug ti


41


ey anewn—

u
2
13
14

16
7
18

20
Fay

23
24

26
7
28
29

a1
32
33

3s
36
7
39
a1
42
43

45

He depreckate tte assets-to-the-extent-of- not-more-than-twiee-as-fast-the
24 ; ; ,

li, SECTION 11 OF REPUBLIC ACT NO, 7151 ENTITLED “AN ACT
GRANTING CEBU AIR, INC. FRANCHISE TO ESTABLISH, OPERATE
AND MAINTAIN TRANSPORT SERVICES FOR THE CARRIAGE OF
PASSENGERS, MAIL, GOODS AND PROPERTY BY AIR, BOTH
DOMESTIC AND INTERNATIONAL WITH CEBU AS ITS BASE” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section I1. Tax provisions. —The grantee shall pay to the Philippine
government during the life of this franchise a franchise tax of five percent (5%) of
the gross revenues derived by the grantee from transport operations AND ALL
APPLICAPLE TAXES UNDER THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

iii, SECTION 11 OF REPUBLIC ACT NO. 7583 ENTITLED“AN ACT
GRANTING  ABOITIZ AIR TRANSPORT CORPORATION A
FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN TRANPORT
SERVICES FOR THE CARRIAGE OF GOODS, MAIL AND OTHER
PROPERTY BY AIR, BOTH DOMESTIC AND INTERNATIONAL” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 11. Tax provisions. — In consideration of the franchise and the
rights hereby granted, the grantee shall pay to the Philippine government during
the life of this franchise a franchise tax of five percent (5%) of the gross revenues
derived by the grantee from transport operations AND ALL APPLICAPLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

IN -FHE EVENT FHAF ANY COMPETING INDI-IDUAL, PARTNERSHIP:
OR-CORPORA TION RECEIWES AND-ENJOFVS FAX PRIVILEGES WHICH
FEND-TO-PLACE-FHE-HEREIN-GRANTEE-AT-ANY DISADVANTAGE,


» SECTION 14 OF REPUBLIC ACT NO. 7783 ENTITLED “AN ACT

GRANTING THE MAJOR TELECOMS, INC., A FRANCHISE TO
ESTABLISH, INSTALL, MAINTAIN, LEASE AND OPERATE WIRE
AND/OR WIRELESS TELECOMMUNICATIONS SYSTEMS, LINES,
CIRCUITS AND STATIONS THROUGHOUT THE PHILIPPINES FOR
PUBLIC DOMESTIC AND INTERNATIONAL COMMUNICATIONS,
AND FOR OTHER PURPOSES” IS HEREBY AMENDED TO READ AS
FOLLOWS:

“Section 14. Tax provisions. — The grantee, its successors or assigns
shall be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations as now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three (3%) of all
gross receipts of the business transacted under this franchise by the grantee, its
successors or assigns-anel-the-sakd percemterge-hutlt-be-t-Hew of all ences on-this
sshettl-eontinue-to-be-thable-for-income-tares peavable-tnder-titte-t-of the national
internal revemie- cence purstant ter section 2-of Bxceutive Onder Mer 22-wndess the

D ALL APPLICAPLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

XXX"

» SECTION 10 OF REPUBLIC ACT NO 7939 ENTITLED “AN ACT

GRANTING THE ISLAND COUNTRY TELECOMMUNICATIONS, INC.,
A FRANCHISE TO ESTABLISH, INSTALL, MAINTAIN, LEASE AND
OPERATE WERE AND/OR WIRELESS TELECOMMUNICATION
SYSTEM AND SERVICES, LINES, CIRCUITS AND STATIONS WITHIN
AND WITHOUT THE PHILIPPINES, AND FOR OTHER PURPOSES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 10. Tax provisions. — The grantee shall be liable to pay the same

taxes on their real estate, buildings and personal property exclusive of this
franchise, as other persons or telecommunication entities are now or hereafter

B


vii.

may be required by law to pay. In addition thereto, the grantee, its successors or
assigns, shall pay a franchise tax equivalent to three percent (3%) of all gross
receipts transacted under this franchise-and-the-said-pereentage-shall-be-in-tien
of all-teaxes-on-this-franchise-or-camings-thereof—provided-that-the-grantce-shall

continue-to-he-Hiable-forincome-taxes-prayable-tnder-tthe-it-of-the-national
internal—reverme—code—AND ALL APPLICAPLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

20K"

SECTION 9 OF REPUBLIC ACT NO. 7961 ENTITLED “AN ACT
GRANTING TO CRUZ TELEPHONE COMPANY, INC., (CRUZTELCO),
A FRANCHISE TO INSTALL, OPERATE AND MAINTAIN A
TELECOMMUNICATIONS SYSTEM THROUGHOUT THE
PHILIPPINES” IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 9. Tax provisions. — The grantee shall be liable to pay the same
taxes on their real estate, buildings and personal property, exclusive of this
franchise, as other persons or corporations are naw or hereafter may be required
by law to pay. In addition thereto the grantee, its successors or assigns shall pay
a franchise tax equivalent to three percent (3%) of all gross receipts of the
business transacted under this franchise by the grantee, its successors or assigns,

thereof-previded-that-the-granteeite-successors-or-asvigne-shuil-continne-to-be

Herble-fortneometenes-praverhle-sunder-tithe-ti-of- thenatiomel-internal-revenne
code: AND ALL APPLICAPLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES.

xxx"

SECTION 8 OF REPUBLIC ACT NO. 7962 ENTITLED “AN ACT
GRANTING THE PHILIPPINE BROADCASTING CORPORATION A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS WITHIN THE.
PHILIPPINES, AND FOR OTHER PURPOSES” IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax at equivalent to three percent
(3%) of all gross receipts of the radio/television business transacted under this
franchise by the grantee, its successors or assigns—and-the-said-percentage-shell


Sewovaunsune

: Title-H-of the Nati R G See
2 of Excoutive Order No-72. E

tet whol cose the amendment on repedt shel! be applicable terete AND. ‘ALL
APPLICAPLE TAXES UNDER THE NATIONAL INTERNAL REVENUE

CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

Axx”

viii. SECTION 8 OF REPUBLIC ACT NO. 7963 ENTITLED “AN ACT
GRANTING THE CEBU BROADCASTING COMPANY A FRANCHISE
‘TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS WITHIN THE
PHILIPPINES AND FOR OTHER PURPOSES” IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay, In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent 10 three percent (3%)
of all gross receipts of the radio/television business transacted under this
franchise by the grantee, its successors or assigns:

of Bxceutive Order No—72 unless the-tatter enactment-is-amended-or-repedled-
in-which-case-the-amendment-or-repeal-shalt-be-applicable-thereto—AND ALL
APPLICAPLE TAXES UNDER THE NATIONAL INTERNAL REVENUE

CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

XXX"

ix. SECTION 8 OF REPUBLIC ACT NO. 7966 ENTITLED “AN ACT
GRANTING THE ABS-CBN BROADCASTING CORPORATION A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
TELEVISION AND RADIO BROADCASTING STATIONS IN THE
PHILIPPINES AND FOR OTHER PURPOSES” IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 8, Tax provisions. — The grantee, its successors or assigns, shall

be liable to pay the same taxes on their real estate. buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or

4s


hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent to three percent (3%)
of all gross receipts of the radio/television business transacted under this
franchise by the grantee, its successors or assigns-amd-the-said percentarge-shall

‘e-in-tiew-of-all-taxes-on-this-franchise-or-carnings-thereofprovided-that-the
: 3 : aight
peevettte:tentcher 4 tte H et the: Svcttreorvert Interment Reewertee + rhe peestecttt tee Sette
Sat Bewectitiwe Order See 22 settlers tte fetter ercectnent os cttettited ce reprectied,
tee wetttch carve the cemendment-on repeat shettt be applicable there AND ALL
APPLICAPLE TAXES UNDER THE NATIONAL INTERNAL REVENUE

CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

XxX”

SECTION 8 OF REPUBLIC ACT NO. 7967 ENTITLES “AN ACT
GRANTING THE PACIFIC BROADCASTING SYSTEM, INC. A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS WITHIN THE
PHILIPPINES AND FOR OTHER PURPOSES” IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three percent (3%) of
all gross receipts of the radio/television business transacted under this franchise
hy the grantee, its successors or assigns and-the-said pereentare-shalt-be-in-tiew

. fo »
Fithe-H-of the National Internal Revenue-Code purstant-to Seetion-2-of Bxcoutive
Order Nr22-nless-the-tatter-enactment-isamended-or-repedledin-which-ease
the-amendment-ov- repeat shell be-apppiteabte-theret AND ALL APPLICAPLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

ax"

SECTION 8 OF REPUBLIC ACT NO. 7969 ENTITLED “AN ACT
GRANTING THE CENTRAL CATV, INC. A FRANCHISE TO
ESTABLISH, MAINTAIN AND OPERATE FOR COMMERCIAL
PURPOSES ‘CABLE/COMMUNITY ANTENNAE TELEVISION
SYSTEMS IN THE PHILIPPINES” IS HEREBY AMENDED TO READ AS
FOLLOWS:


ON aMeune

nn
12
13
14
15
16
7
18
19
20
a

23
24

26
7

29
31
32
33
35
36
37
39
a1
42

43

45

“Tax provisions. — The grantee, its successors or assigns, shall be liable
to pay the same taxes on their real estate, buildings and personal property,
exclusive of this franchise, as other persons or corporations are now or hereafter
‘may be required by law to pay. In addition thereto, the grantee, its successors or
assigns, shall be levied, assessed and collected a franchise tax equivalent to three
percent (3%) of all gross receipts of the business transacted under this franchise
by the grantee, its successors or assigns

Pithe-HLof the National Internal-Revente-Code-AND ALL APPLICAPLE TAXES
UNDER THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED,
FOR REVENUES EARNED FROM ALL ACTIVITIES.

Xxx"

xii. SECTION 13 OF REPUBLIC ACT NO, 8004 ENTITLED “AN ACT
GRANTING To MILLENNIA ‘TELECOMMUNICATIONS
CORPORATION A FRANCHISE TO INSTALL, OPERATE AND
MAINTAIN TELECOMMUNICATION SERVICES WITHIN THE
PHILIPPINES AND INTERNATIONAL POINTS, AND FOR OTHER
PURPOSES” IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 13. The grantee, its successors or assigns shall be liable to pay
the same taxes on its real estate, buildings and personal property, exclusive of
this franchise, as other persons or corporations which are now or hereafter may
be required by law to pay. In addition thereto, the grantee, its successors or
assigns, shall be levied, assessed and collected a franchise tax equivalent to three
percent (3%) of all gross receipts of the business transacted under this franchise
by the grantee, its successors or assigns,

GaeIEaF ihe Walerat Mearial tovaion code AND Al ALL APPLICAPLE TAXES
UNDER THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED,
FOR REVENUES EARNED FROM ALL ACTIVITIES,

Jo

xiii, SECTION 9 OF REPUBLIC ACT NO. 10900 ENTITLED “AN ACT
EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO BELL TELECOMMUNICATION
PHILIPPINES, INC., AMENDING FOR THE PURPOSE REPUBLIC ACT
NO. 7692, ENTITLED “AN ACT GRANTING BELL
TELECOMMUNICATION PHILIPPINES, INC, A FRANCHISE TO
INSTALL, OPERATE, AND MAINTAIN TELECOMMUNICATIONS
SYSTEMS THROUGHOUT THE PHILIPPINES AND FOR OTHER
PURPOSES" IS HEREBY AMENDED TO READ AS FOLLOWS:


xiv.

“SECTION 9. TAX PROVISIONS.— the grantee shall be liable to pay
ALL APPLICAPLE TAXES UNDER THE NATIONAL INTERNAL
REVENUE CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES
mnieedtinenies canted spreere preetts—reededt_ttconniection with thetnesiness fromthe

s t-in addition thereto, the
grantee shall pay to the bureau of internal revenue each year three per centum
(3%) of the gross receipts of its regulated telecommunications services transacted
under this francl

SECTION 3 OF REPUBLIC ACT NO. 7859 ENTITLED “AN ACT
AMENDING SECTION ONE OF THE FRANCHISE OF WORLDWIDE
COMMUNICATIONS, INC., GRANTED UNDER REPUBLIC ACT NO.
FIVE THOUSAND THREE HUNDRED TWENTY-ONE AND
EXTENDING IT FOR ANOTHER TWENTY-FIVE (25) YEARS, AND
FOR OTHER PURPOSES” IS HEREBY AMENDED TO READ AS
FOLLOWS:

“Section 14, The grantee shall be liable to pay ALL APPLICAPLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES the-seme

eS

In addition thereto, the grantee shall pay the
bureau of internal revenue each year, three per centum (3%) of the gross receipts
of its regulated telecommunication services transacted under this franchise-and

4


Beexvansune

relict cave the amendment an repect-shealtbe-cippltcete terete.”

» SECTION 9 OF REPUBLIC ACT NO. 7908 ENTITLED “AN ACT

GRANTING THE MULTI-MEDIA TELEPHONY INCORPORATED, A
FRANCHISE TO CONSTRUCT, ESTABLISH, OPERATE AND
MAINTAIN RADIO PAGING SYSTEM IN THE PHILIPPINES, AND FOR
OTHER PURPOSES” IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 9. Tax provision. — The grantee. its successors or assigns shall
be liable to pay the same taxes on their real estate buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall be levied, assessed and collected a franchise tax
‘equivalent to three percent (3%) on all gross receipts of the business transacted
under this franchise by the grantee

shealt-comtinnve-terbe-tHable-for-income-taxes pravable-tnder-tithe-t-of-the-national
internal—revenwe—code—AND ALL APPLICAPLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

xxx"

SECTION 8 OF REPUBLIC ACT NO, 8060 ENTITLED “AN ACT
GRANTING PALAWAN BROADCASTING CORPORATION A
FRANCHISE TO INSTALL, CONSTRUCT, OPERATE AND MAINTAIN
COMMERCIAL RADIO AND TELEVISION BROADCASTING
STATIONS THROUGHOUT THE PHILIPPINES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent to three percent (3%)
of all gross receipts of the radio television business transacted under this
franchise by the grantee, its successors or assigns and-the-said-percentarge-shall
etn thet ot alt tenes cts trameditee anemic tenet —perrviehed thet tet

age atenonalipae aah scabies > irae tint marenne Col permeate Soe
in-wwhich-case-the-amendment-or-repeal-shall-he-applicable-thereto-AND ALL
APPLICAPLE TAXES UNDER THE NATIONAL INTERNAL REVENUE


CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

XXX”

xvii. SECTION 8 OF REPUBLIC ACT NO. 8063 ENTITLED “AN ACT
GRANTING THE BEACON COMMUNICATIONS SYSTEMS, INC,, A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND
MAINTAIN COMMERCIAL RADIO STATIONS IN THE PHILIPPINES”
IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee. its successors or assigns, shall
be liable 10 pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafier may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise (ax equivalent to three percent (3%)
af all gross receipts of the radio business transacted under this franchise by the
‘grantee, its successors or ass

ALL APPLICAPLE

the-amendment-or repeat shall be-applicable-therete-AND
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

xx"

xviii. SECTION 9 OF REPUBLIC ACT NO. 8065 ENTITLED “AN ACT

GRANTING THE ISLA CELLULAR COMMUNICATIONS, INC. A
FRANCHISE TO CONSTRUCT, MAINTAIN, ESTABLISH, OPERATE
COMMERCIAL MOBILE AND FIXED WIRELESS
TELECOMMUNICATIONS SYSTEM IN THE PHILIPPINES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 9. Tax provisions. —The grantee, its successors or assigns, shall
be lable 10 pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax at such percemage as may be
prescribed by prescribed by law on law on all gross receipts of the business
‘transacted under this franchise by the grantee and-the-said pereentage-shall-bein

tnider tite t+-of the national internat revennecode-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS

0


BSGkESeavaueun—

SRPESSS SES RRR ERE SBeY

AMENDED, FOR REVENUES EARNED FROM ALLACTIVITIES.
Jao

xix. SECTION 9 REPUBLIC ACT NO. 8066 ENTITLED “AN ACT

GRANTING THE ISLA PAGING COMPANY, A FRANCHISE TO
CONSTRUCT, MAINTAIN, ESTABLISH, AND OPERATE
COMMERCIAL RADIO PAGING SERVICES IN THE PHILIPPINES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 9. Tax provision. — The grantee, its successors or assigns shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as the persons or corporations are now or
hereafier may be required by law to pay. On addition thereto, the grantee. its
successors or assigns shall pay a franchise tax at such percentage as may be
prescribed by law on all gross receipts of the business transacted under this
Sranchise by the grantee and-the-said- percentage-shall-be-in-tiew-of-all-taxes-on
this-franchise-o-carnings- thereof prewided—that-the-eranteeits-sWccessors-oF

_etsstserrs steed ceventeettee ter the dtetlobe teen srnceotmne: fetcesprevetittes terteber ste tt et tte:
national-internal-reverme-code-AND ALL APLLICABLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

XXX”

SECTION 8 OF REPUBLIC ACT NO. 8067 ENTITLED “AN ACT
GRANTING THE RADIO GUBAT NETWORK, INC., A FRANCHISE TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO
BROADCASTING STATIONS IN THE BICOL REGION” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafier may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a value-added tax equivalent to
40%)-TWELVE PERCENT (12%) of all gross receipts of the business
transacted under this franchise by the grantee, its successors or assigns and-the

Hetbte fom incerneteecespretvctteverncber tithe itt Hie trettteonneed—tenteenneel rementie:
code. AND ALL APPLICABLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES.

XXX"

31


xxi, SECTION 8 OF REPUBLIC ACT NO. 8068 ENTITLED “AN ACT
GRANTING A FRANCHISE TO AGUSAN COMMUNICATIONS
FOUNDATION, INC., TO CONSTRUCT, OPERATE AND MAINTAIN
STATIONS FOR RADIO AND TELEVISION IN THE PROVINCE OF
AGUSAN DEL SUR AND FOR OTHER PURPOSES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns shall
be liable 10 pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three percent (3%) of
all gross receipts of the radio business transacted under this franchise by the
grantee, its successors or assigns, ard-the-said-percentage-shall-he-in-tiew of all
teexes—onthisfranchise—onearnings—thereof-previded-that—the—grantee—its
ose eet peek foto te Se aniayor trsewen aes pce satwerrel
order no—22- unless the tatter-enactment-is-amended-or-repedted—in-whieh-ease

the-amendment-or-repeal-shall-be-applicable-thereto-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

xy"

El

ii. SECTION 8 OF REPUBLIC ACT NO. 8071 ENTITLED “AN ACT
GRANTING VISMIN RADIO AND TELEVISION BROADCASTING
NETWORK, INCORPORATED A FRANCHISE TO CONSTRUCT,
INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL
PURPOSES RADIO AND TELEVISION BROADCASTING STATIONS IN
THE VISAYAS AND MINDANAO, AND FOR OTHER PURPOSES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay, In addition thereto, the grantee, its
successors or assigns shall be levied, assessed and collected a value-added tax
equivalent to ten—percent-+H%6)TWELVE PERCENT (12%) on all gross
receipts of the business transacted under this franchise by the grantee, its
successors or assigns, and-the-said-percentage-shalthein-tiew of all-taves-on-this

national internal-reverne-code-AND ALL APPLICABLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
‘REVENUES EARNED FROM ALL ACTIVITIES.


eeranewn—

12
B
14
15
16
7
18
19
20
a

24
25

27

29

31
32
33
4
35

a7
38
39

41
a2
43

45

xxiii,

XXX"

SECTION 8 OF REPUBLIC ACT NO, 8080 ENTITLED “AN ACT
GRANTING THE ASIAN-PACIFIC BROADCASTING COMPANY, INC.,
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND
MAINTAIN BROADCASTING STATIONS IN THE PHILIPPINES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns shall
he liable to pay the same taxes on their real state, buildings and personal
property, exclusive of this franchise, as other persons or corporations which are
now or hereafier may be required by law to pay. In addition thereto, the grantee,
its successors or assigns shall pay a franchise tax such percentage as may be
prescribed by law on all gross receipts of the radio/television business transacted
under this franchise by the grantee, its successors or assigns, and-the—said

Co ate OSA NEEDS ir oor ee ee ene ene.

therete—AND ALL APPLICABLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES.

XXX"

SECTION 8 OF REPUBLIC ACT NO, 8094 ENTITLED “AN ACT
GRANTING THE IPIL BROADCASTING NEWS NETWORK, INC. A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS IN
ZAMBOANGA DEL SUR AND FOR OTHER PURPOSES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall be levied, assessed and collected a value-added tax
equivalent 10 ten—percent+40%)TWELVE PERCENT (12%) of all gross
receipts of the business transacted under this franchise by the grantee, its
successors or assigns, te ee Hews 094 i

: pies rigid
nationalinternal-reverme-code-AND ALL APPLICABLE TAXES UNDER THE


xxv.

NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
‘REVENUES EARNED FROM ALL ACTIVITIES.

Axx

SECTION 10 OF REPUBLIC ACT NO, 8095 ENTITLED “AN ACT
GRANTING THE ISLATEL CORPORATION A FRANCHISE TO
CONSTRUCT, MAINTAIN, ESTABLISH AND OPERATE
COMMERCIAL NATIONWIDE AND REGIONAL TRANSMISSION
NETWORK AND OTHER TELEPHONE SERVICES IN THE
PHILIPPINES” IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 10. Tax provision. — The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafier may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax at such percentage as may be
prescribed by law on all gross receipts of the business transacted under this
‘franchise by the grantee

assigns—shalt-comtinue to he Hable jor income taxes paveble under title tof He
national-internal-revenue-code-AND ALL APPLICABLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

XxX"

SECTION 8 OF REPUBLIC ACT NO. 8096 ENTITLED “AN ACT
GRANTING THE ALLIED BROADCASTING CENTER,
INCORPORATED A FRANCHISE TO CONSTRUCT, OPERATE AND
MAINTAIN STATIONS FOR RADIO IN CEBU CITY AND OTHER
AREAS IN THE PHILIPPINES WHERE FREQUENCIES ARE STILL
AVAILABLE FOR RADIO BROADCASTING FOR EDUCATIONAL AND
CULTURAL, AS WELL AS FOR COMMERCIAL PURPOSES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafier may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall be levied, assessed and collected a franchise tax
equivalent 10 three percent (3%) of all gross receipts of the radio business
transacted under this franchise by the grantee, its successors or assigns; awé-the

Hethhefor tnccrmne-teexessprayetile anchor tithe ito the national inernelreveniie


eV anew

nu
2
13
14
15
16
7

19
20
2
2
23
24
25
26

28
29

31
32
33
35
37
39
a
42
43

45

eode—AND ALL APPLICABLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES.

xxx"

SECTION 8 OF REPUBLIC ACT NO. 8097 ENTITLED “AN ACT
GRANTING THE PARTIDO BROADCASTING CORPORATION A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND
MAINTAIN BROADCAST AND CABLE RADIO AND TELEVISION
STATIONS IN THE BICOL REGION” IS HEREBY AMENDED TO READ
AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns. shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall be levied, assessed and collected a value-added tax
equivalent 10 ten—pereent+40%)TWELVE PERCENT (12%) of all gross
receipts of the radio“elevision business transacted under this franchise by the
grantee, its successors or assigns, ¢

AND ALL APPLICABLE TAXES
UNDER THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED,
FOR REVENUES EARNED FROM ALL ACTIVITIES.

AX"

xxviii. SECTION 8 OF REPUBLIC ACT NO. 8098 ENTITLED “AN ACT

GRANTING BROADCAST ENTERPRISES AND AFFILIATED MEDIA
(BEAM), INC. A FRANCHISE TO ESTABLISH, CONSTRUCT,
OPERATE AND MAINTAIN COMMERCIAL RADIO AND TELEVISION
BROADCAST STATIONS INCLUDING CABLE TELEVISION SYSTEMS
IN THE PHILIPPINES” IS HEREBY AMENDED TO READ AS
FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns shall
be liable to pay the sa.ne taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations which are
now or hereafter may be required by law to pay. In addition thereto, the grantee,
its successors or assigns shall pay a value-added tax equivalent 10 tew-pereent
#4036)-TWELVE PERCENT (12%) of all gross receipts of the radio television
business transacted under this franchise by the grantee, its successors or assigns

ss


Swaaaneune

u
2
13
14
15
16
7

19

2
2
23
24
25
26
7
28
29

3
32
33
35
37
39
41
az
43

45

iable-fe peli wisa-ak 2
eode—AND ALL APPLICABLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES.

xxx"

SECTION 8 OF REPUBLIC ACT NO. 8099 ENTITLED “AN ACT
GRANTING A FRANCHISE TO SAGAY BROADCASTING
CORPORATION (SBC) TO CONSTRUCT, OPERATE AND MAINTAIN
STATIONS FOR RADIO AND TELEVISION IN THE PHILIPPINES AND
FOR OTHER PURPOSES” IS HEREBY AMENDED TO READ AS
FOLLOWS:

“Section 8. Tax provisions. — The grantee, its successors or assigns shall
be liable to pay the same taxes on their real state, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three percent (3%) of
all gross receipts of the radio business transacted under this franchise by the
grantee, its successors or assigns. and -the-said-pereemage-shall-be-in-Hiew-of-all

pas ooescair ip apieee tebe Neila for ties wires er Sas iese Me
ne 2-tentlesns the tation emcctment is-amended on repectted inhi ese the
ALL APPLICABLE

aemendment—orrepedt shell he—appolieale theret—AND
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALLACTIVITIES.

SECTION 7 OF REPUBLIC ACT NO. 8102 ENTITLED “AN ACT
GRANTING THE ULTIMATE ENTERTAINMENT, INC., A FRANCHISE
TO CONSTRUCT, INSTALL, MAINTAIN AND OPERATE RADIO
BROADCASTING STATIONS WITHIN THE PHILIPPINES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 7. Tax provisions. —The grantee, its successors or assigns shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a value-added tax equivalent to
TWELVE PERCENT (12%) of all gross receipts of the business transacted
under this franchise by the grantee, its successors or assigns,

percentage shall he in-Hew-of all-taces-on-this_franchise-or-carnings-thereof:
: “ hessuaewt -


er2aneune

nu
2
13
4
15
16
7
18
19
20
a
2
23
24
roy
26

28
29
30
31
32
33

37
38
39

a
42
43

xxxi.

‘hervtthes tebe phenvctlides tepteket Lite 44 oof tte pteettentnetd smteosteed peventtees ceed AND
ALL APPLICABLE TAXES UNDER THE NATIONAL INTERNAL
REVENUE CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

SECTION 8 OF REPUBLIC ACT NO, 8116 ENTITLED, “AN ACT
GRANTING THE VIMCONTU BROADCASTING CORPORATION A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS, WITHIN THE
PHILIPPINES AND FOR OTHER PURPOSES”, IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns,
shall be liable to pay the same taxes, on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall be levied, assessed and collected a franchise tax
equivalent to three percent (3%) of all gross receipts of the radio/television
business transacted under this franchise by the grantee, its successors or assigns,

brethte ter _teceme tenes permite tintder tite tof the metttentead internet reventice
eode- AND ALL APPLICABLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES,

XXX"

SECTION 8 OF REPUBLIC ACT NO. 8119 ENTITLED “AN ACT
GRANTING THE GOOD NEWS SORSOGON FOUNDATION, INC., A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
FOR RELIGIOUS, EDUCATIONAL AND COMMERCIAL PURPOSES,
RADIO AND TELEVISION BROADCASTING STATIONS WITHIN THE
PHILIPPINES AND FOR OTHER PURPOSES” IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 8. Tax provisions. —The grantee, its successors or assigns
shall be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto. the grantee, its
successors or assigns shall pay a franchise tax equivalent to three percent (3%) of
all gross receipts of the radia/television business transacted under this franchise
by the grantee, its successors or assigns and-the-said-pereemage-shall-be-in-tiew


xxxiii.

successors-or-assigns-shall-continue-to-be-hable-forincome-taxes-payable-under
erate Seep gente ng any se geome eu ra
the-amendment-or- repeat -shalt-he-applicablethereto-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVEUNE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

XXX"

SECTION S$ OF REPUBLIC ACT NO. 8120 ENTITLED “AN ACT
GRANTING THE ANDRES BONIFACIO COLLEGE BROADCASTING
SYSTEM, INCA FRANCHISE TO CONSTRUCT, MAINTAIN AND
OPERATE RADIO BROADCASTING STATIONS AND STATIONS FOR
TELEVISION IN THE ISLAND OF MINDANAO FOR EDUCATIONAL,
CULTURAL, AND COMMERCIAL PURPOSES” IS HEREBY AMENDED
TO READ AS FOLLOWS:

“Section 5, The grantee shall be liable to pay the same taxes unless
exempted therefrom, on its real estate, building, and personal property, exclusive
of the franchise, as other persons or corporations are now or hereafter may be
required by law to pay. In addition thereto, the grantee, its successors or assigns,
shall pay a franchise tax equivalent to three percent (3%) of all gross receipts of
the radiotelevision business transacted under this franchise by the grantee, its
successors or assigns, ane-the-said percentage -sheall-be-in-Hiew of all-taxes-on-this

orrepeal-shall-he-applieable-therete-AND ALL APPLICABLE TAXES UNDER
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR

‘REVENUES EARNED FROM ALL ACTIVITIES.
XxX"

SECTION 8 OF REPUBLIC ACT NO. 8121 ENTITLED “AN ACT
GRANTING THE MS. NETWORK MANAGEMENT, INC. A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
FOR COMMERCIAL PURPOSES, RADIO BROADCASTING STATIONS
IN THE PHILIPPINES AND FOR OTHER PURPOSES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8, Tax provisions. —The grantee, its successors or assigns,
shall be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafier may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent to three percent (3%)
of all gross receipts of the radio business transacted under this franchise by the

8


Scovaweune

on)
12
13

15
16
7
18
19
20
a
2
23
24
pry
26
a
28
29

31
32
33
M
35

37
39
a
42

43

45

xxxvi.

: mednuouiedaire
onder-o72-unless the latter enactment-is-amensed-ot-repealed in-whick-case

grantee, its successors or assigns, and-the-said- percentage shall-he-tn-tiew-of all
mA miata

“AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

» SECTION 7 OF REPUBLIC ACT NO. 8123 ENTITLED “AN ACT

GRANTING THE ROYAL BROADCASTING CORPORATION. A
FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN FOR
COMMERCIAL PURPOSES, RADIO AND TELEVISION
BROADCASTING STATIONS IN THE PHILIPPINES AND FOR OTHER
PURPOSES” IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 7. Tax Provisions, —the grantee, its successors or assigns, shall
be liable 10 pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by the law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent to three percent (3%)
of all gross receipts of the radio/television business transacted under this
franchise by the sramiee is successors or assigns .

een 5
of Bxcoutive-Oreder No 72-unless-the-tatter-enaciment-is-amended-or repeated in
IND ALL
APPLICABLE TAXES UNDER THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES.

XXX"

SECTION 8 OF REPUBLIC ACT NO, 8128 ENTITLED “AN ACT
GRANTING. A FRANCHISE TO THE ORIENTAL MINDORO
MANAGEMENT RESOURCES CORPORATION (OMARCO) TO
CONSTRUCT, INSTALL, ESTABLISH, OPERATE, MANAGE AND
MAINTAIN A NETWORK OF RADIO AND TELEVISION STATIONS
ANYWHERE IN THE PHILIPPINES, AND FOR OTHER PURPOSES” IS
HEREBY AMENDED TO READ AS FOLLOWS:

“Section 8. Tax Provisions. — The grantee, its successors or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal


property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall be levied, assessed and collected a value-added tax
equivalent 10 ten—percent—H10%)TWELVE PERCENT (12%) of all gross
receipts of the radio/television business transacted under this franchise by the
grantee, its successors or assigns. and -the-said-percemage-shall-be-in-tiew-of all

pers? nanencior ives si ete Sills es meres .
Order No 2-nless-the-latter enactment =-amended-or-repected in hich ease

the-amendment-orrepeat shall be-applicabletherete-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

ax"

xxxvii. SECTION 8 OF REPUBLIC ACT NO. 8132 ENTITLED “AN ACT

GRANTING JOSE M. LUISON AND SONS, INC., A FRANCHISE TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR
COMMERCIAL PURPOSES RADIO AND TELEVISION
BROADCASTING STATIONS IN THE PHILIPPINES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section. 8. Tax Provisions. — The grantee, its successors or assigns,
shall be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by the law to pay. In addition thereto, the grantee, its
successors or assigns, shalll pay a franchise tax equivalent to three percent (3%)
of all gross receipts of the radio/television business transacted under this
Sranchise by the grantee, its successors or assigns, and-the-said-percemage-shall
ein tiete-of alt tanes-om this franchise on earnings thereed—prewided trate

Shettttee ts strcceenenns sam ctestet— sited cesrttinneve tee the thet hte for interne Fases

‘i aia arak ates Seotion 2
tot bacetttve reer Mer 2 tenth the tentten cneetment ts cemented ot reprced 4
Wwhieh-case the amendmentorreped! shall he applicable therete—AND ALL
APPLICABLE TAXES UNDER THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED, FOR REVENUES EARNED FROM ALL
ACTIVITIES”.

xxxviii, SECTION 7 OF REPUBLIC ACT NO. 8144 ENTITLED “AN ACT

GRANTING THE AZIMUTH BROADCASTING CORPORATION
OFFRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN FOR
COMMERCIAL PURPOSES RADIO AND TELEVISION
BROADCASTING STATIONS IN THE PHILIPPINES” IS HEREBY
AMENDED TO READ AS FOLLOWS:


euaneune

n
2
13
14
15
16
17
18
19
20
2
2
23
24

26
7

31
32
33

35
36
37

39
40

RQ
43

45

xxxix.

“Section 7. Tax Provisions. — The grantee, its successor or assigns, shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent to three percent (3%)
of all the gross receipts of the radio/television business transacted under this
franchise by the grantee, its successor or assigns,

be-t-Hiew of all taxes-on-this-franchise-orcumings percentage chall-betn-Hewof
ae eee SF ee heel shoei pace tiverrcaded
Sempre rnaaee cr Saanserachoa ted oleae ee
Order No? siless the tatter-enaciment-is-anended or repealed —in-which ease
the-amendment-or- repeat shall-he-applicable-therete-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

XxX”

SECTION 8 OF REPUBLIC ACT NO. 8145 ENTITLED “AN ACT
GRANTING THE RADYO PILIPINO CORPORATION AFRANCHISE
TO CONSTRUCT, INSTALL, OPERATE AND = MAINTAIN
COMMERCIAL RADIO AND TELEVISION BROADCASTING
STATIONS, SATELLITE AND CABLE STATIONS IN THE
PHILIPPINES” IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 8. Tax Provisions. — The grantee, its successor or assigns
shall be liable to pay the same taxes on their real estate, buildings, and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafler may be required by law to pay, In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three percent (3%) of
all gross receipts of the radio/television business transacted under franchise by
the grantee, its successor or assign, ad-the-said-pereantage-shall-be-in-tiew of al

snecessons-om assigns shall comtinue-to-he Hable-for-income-taxes-pavable-sunder
tile tof the national_intemal-revenue-code-pursuant-to-Seetion-2-of- Exceutive
Order No-2-unkess-the-tatter-enactment-is-amended-or-repeaied~in-which-ease
the-amendment-or-repeal-shall-be-applicable-thereto-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

XXX"
SECTION 14 OF REPUBLIC ACT NO. 8147 ENTITLED “AN ACT
GRANTING THE SOUTHERN BROADCASTING NETWORK

AFRANCHISE TO CONSTRUCT, MAINTAIN, ESTABLISH AND
OPERATECOMMERCIAL RADIO/TELEVISION BROADCASTING

6


ali,

xiii.

STATIONS, IN THE PHILIPPINES” IS HEREBY AMENDED TO READ
AS FOLLOWS:

“Section 14. (a) The grantee shall be liable to pay the same taxes on its
real estate, buildings and personal property, exclusive of this franchise, as other
persons or corporations are now or hereafter may be required by law to pay. (8)
the grantee shall further pay to the
COMMISSIONER OF INTERNAL REVENUE each year, within ten (10)
days afier the audit and approval of the accounts as prescribed by this act, three
percent (3%) of all the gross receipts from the business transacted under this
franchise by the said grantee, -except-payment-of-the-tases-memtioned-in-the

fees—IN ADDITION TO ALL APPLICABLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.”

SECTION 8 OF REPUBLIC ACT NO. 8149 ENTITLED “AN ACT
GRANTING THE TAGBILARAN BROADCASTING SYSTEM
AFRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND
MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS,
IN THE VISAYAS REGION, AND FOR OTHER PURPOSES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8. Tax Provisions. ~ The grantee, its successors or assigns, shall
be liable 10 pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successor or assigns, shall be levied, assessed and collected a value-added tax
equivalent to tenpereentfH%)—-TWELVE PERCENT (12%) of all gross
receipts of the radiovtelevision business transacted under this franchise by the
grantee, its successor assigns,

fous: é able fort See
the-national-imemealrevenue-code-AND ALL APPLICABLE TAXES UNDER
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

XXX"

SECTION 8 OF REPUBLIC ACT NO. 8154 ENTITLED “AN ACT
GRANTING PRIME BROADCASTING NETWORK, INCORPORATED,
A FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN
STATIONS FOR RADIO AND TELEVISION IN THE PHILIPPINES” IS
HEREBY AMENDED TO READ AS FOLLOW:



ativ.

“Section 8. Tax Provisions. — The grantee, its successors or assigns shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other person or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall be levied, assessed and collected a franchise tax
equivalent 10 three percent (3%) on all gross receipts of the radio‘television
business transacted under this franchise by the grantee, its successors or assigns,

ere onetee ;
ewde. AND ALL APPLICABLE TAXES UNDER THE NATIONAL

INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES.

SECTION 4 OF REPUBLIC ACT NO. 8158 ENTITLED “AN ACT
EXTENDING THE FRANCHISE GRANTED TO JORGE D. BAYONA
UNDER REPUBLIC ACT NUMBERED FIFTY-SEVEN HUNDRED
EIGHTY-NINE, ASSIGNING IT IN FAVOR OF PBN BROADCASTING
NETWORK INC, AND RENEWING THE TERMTHEREOF FOR
ANOTHER TWENTY-FIVE (25) YEARS FROM THE DATE OF THE
EFFECTIVITY OF THIS ACT” IS HEREBY AMENDED TO READ AS.
FOLLOWS:

“Section 4. The grantee, its successors or assigns, shall be liable to pay
the same taxes on their real estate, buildings and personal property, exclusive of
this franchise, ax other persons or corporations which are now or hereafter may
be required by law to pay. In addition thereto, the grantee, its successor or
assigns, shall pay a franchise tax equivalem to three percent (3%) of all gross
receipts of the business transacted under this franchise by the gramee, its
successor or assigns,

Jable fort ri :

A ‘ je 5 Si rae Basten By

repeat-shelt-he-applicable-thereto—AND ALL APPLICABLE TAXES UNDER
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES.

XXX”

SECTION 8 OF REPUBLIC ACT NO. 8169 ENTITLED “AN ACT
GRANTING GV BROADCASTING SYSTEM, INC., A FRANCHISE TO
CONSTRUCT, INSTALL, MAINTAIN AND OPERATE FOR
COMMERCIAL PURPOSES RADIO BROADCASTING STATIONS IN

8


xiv.

THE ISLAND OF LUZON AND FOR OTHER PURPOSES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 8, Tax provisions. ~ the grantee, its successors or assigns, shall
be liable t0 pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are now or
hereafter may be required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay a franchise tax equivalent top three percent (3%)
of all gross receipts of the radio business transacted under this franchise by the
grantee, its successors or assigns, and-the-said-percentage-shall-be-in-tiew-of all
repaints ie Tanah gpa Pag termed yenieineaptrenesdi ud
soveetere or comet Sind aeirens te be Dahle for-teoene tutor peysbie : eee
peat Ss) ee ie ee repo
the-amondment-or-repel shell be applicable therete-AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.

SECTION 5 OF REPUBLIC ACT NO. 10926 ENTITLED“AN ACT
EXTENDING FOR TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO SMART COMMUNICATIONS, INC., (FORMERLY
SMART INFORMATION TECHNOLOGIES, INC.) AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 7294, ENTITLED, “AN ACT
GRANTING SMART INFORMATION TECHNOLOGIES INC, (SMART)
A FRANCHISE TO ESTABLISH, MAINTAIN, LEASE AND OPERATE
INTEGRATED TELECOMMUNICATIONS/COMPUTER/ELECTRONIC
SERVICES, AND STATIONS THROUGHOUT THE PHILIPPINES FOR
PUBLIC DOMESTIC AND INTERNATIONAL
TELECOMMUNICATIONS, AND FOR OTHER PURPOSES” IS HEREBY
AMENDED TO READ AS FOLLOWS:

“Section 5. Tax Provisions.— The grantee, its successors or assignees,
shall be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations which are
now or hereafter may be required by law to pay, except radio telecommunications
and electronic communications equipment, machinery and spare parts needed in
connection with the business of the grantee which shall be exempt from customs
duties, tariffs and other taxes, as well as those declared exempt in this section. In
addition thereto, the grantee, its successors or assignees, shall pay a value-added
tax on all gross receipts of the business transacted under this franchise by the
grantee, its successors or assignees, in the Philippines, itiew-ofanyand-aliaxes

é me ip ane caged eobeagtieasiog sone siete pari


BEESceyvaneune

14

16
7
18
19
20
2

23
24
25
26
27
28
29

31
32
33
34
35
36
37
38
39

41
42
43

45

xlvi.

z ‘ e ‘ é
repeat -shall-be-applieable-therete-AND ALL APPLICABLE TAXES UNDER
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
‘REVENUES EARNED FROM ALL ACTIVITIES.

SECTION 9 OF REPUBLIC ACT NO, 9511 ENTITLED “AN ACT
GRANTING THE NATIONAL GRID CORPORATION OF THE
PHILIPPINES A FRANCHISE TO ENGAGE IN THE BUSINESS OF
CONVEYING OR TRANSMITTING ELECTRICITY THROUGH HIGH
VOLTAGE BACK-BONE SYSTEMS OF INTERCONNECTED
TRANSMISSION LINES, SUBSTATIONS AND RELATED FACILITIES”
IS HEREBY AMENDED TO READ AS FOLLOWS:

“Section 9. Tax Provisions. - In consideration of the franchise and rights
hereby granted, the grantee, its suecessors or assigns, shall pay a franchise tax
equivalent to three percent (32) of all gross ss receipts derived bythe grantee from
ate under this franchise,

-", AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES.”

SECTION 13 OF PRESIDENTIAL DECREE 1869 - RESTORED PER
OFFICE OF THE PRESIDENT MEMORANDUM DATED AUGUST 24,
1995 CONSOLIDATING AND AMENDING PRESIDENTIAL DECREE
NOS. 1067-A, 1067-B, 1067-C, 1399 AND 1632 RELATIVE TO THE
FRANCHISE AND POWERS OF THE PHILIPPINE AMUSEMENT AND
GAMING CORPORATION (PAGCOR), IS HEREBY REPEALED, TO
WIT:

“SECTION 13. EXEMPTIONS. —

(1) CUSTOMS DUTIES, TAXES AND OTHER IMPOSTS ON
IMPORTATIONS. — ALL IMPORTATIONS OF EQUIPMENT,

6s


eyanewne

VEHICLES, AUTOMOBILES, BOATS, SHIPS, BARGES, AIRCRAFT
AND SUCH OTHER GAMBLING PARAPHERNALIA, INCLUDING
ACCESSORIES OR RELATED FACILITIES, FOR THE SOLE AND
EXCLUSIVE USE OF THE CASINOS, THE PROPER AND
EFFICIENT MANAGEMENT AND ADMINISTRATION THEREOF,
AND SUCH OTHER CLUBS, RECREATION OR AMUSEMENT
PLACES TO BE ESTABLISHED UNDER AND BY VIRTUE OF THIS
FRANCHISE SHALL BE EXEMPT FROM THE PAYMENT OF ALL
KINDS OF CUSTOMS DUTIES, TAXES AND OTHER IMPOSTS,
INCLUDING ALL KINDS OF FEES, LEVIES, OR CHARGES OF
ANY KIND OR NATURE, WHETHER NATIONAL OR LOCAL.

VESSELS AND/OR ACCESSORY FERRY BOATS IMPORTED OR
TO BE IMPORTED BY ANY CORPORATION HAVING EXISTING
CONTRACTUAL ARRANGEMENTS WITH THE CORPORATION,
FOR THE SOLE AND EXCLUSIVE USE OF THE CASINO OR TO
BE USED TO SERVICE THE OPERATIONS AND REQUIREMENTS
OF THE CASINO, SHALL LIKEWISE BE TOTALLY EXEMPT
FROM THE PAYMENT OF ALL CUSTOMS DUTIES, TAXES AND
OTHER IMPOSTS, INCLUDING ALL KINDS OF FEES, LEVIES,
ASSESSMENTS OR CHARGES OF ANY KIND OR NATURE,
WHETHER NATIONAL OR LOCAL.

(2) INCOME AND OTHER TAXES. — (A) FRANCHISE HOLDER:
NO TAX OF ANY KIND OR FORM, INCOME OR OTHERWISE, AS
WELL AS FEES, CHARGES OR LEVIES OF WHATEVER NATURE,
WHETHER NATIONAL OR LOCAL, SHALL BE ASSESSED AND
COLLECTED UNDER THIS FRANCHISE FROM THE
CORPORATION; NOR SHALL ANY FORM OF TAX OR CHARGE
ATTACH IN ANY WAY TO THE EARNINGS OF THE
CORPORATION, EXCEPT A FRANCHISE TAX OF FIVE (5%)
PERCENT OF THE GROSS REVENUE OR EARNINGS DERIVED
BY THE CORPORATION FROM ITS OPERATION UNDER THIS
FRANCHISE—SUCH TAX SHALL BE DUE AND PAYABLE
QUARTERLY TO THE NATIONAL GOVERNMENT AND SHALL BE
IN LIEU OF ALL KINDS OF TAXES, LEVIES, FEES OR
ASSESSMENTS OF ANY KIND, NATURE OR DESCRIPTION,
LEVIED, ESTABLISHED OR COLLECTED BY ANY MUNICIPAL,
PROVINCIAL, OR NATIONAL GOVERNMENT AUTHORITY.

(B) OTHERS: THE EXEMPTIONS HEREIN GRANTED FOR
EARNINGS DERIVED FROM THE OPERATIONS CONDUCTED
UNDER THE FRANCHISE SPECIFICALLY FROM THE PAYMENT
OF ANY TAX, INCOME OR OTHERWISE, AS WELL AS ANY FORM
OF CHARGES, FEES OR LEVIES, SHALL INURE TO THE
BENEFIT OF AND EXTEND TO  CORPORATION(S),
ASSOCIATION(S), AGENCY(IES), OR INDIVIDUAL(S) WITH


emvaousune

Ss

12
13
4
15
16
7
18
19
20
a
2
23
24
2s
26
7
28
29
30
31
32
33

35
36
37
38
39
40
a1
42
43

45
46

WHOM THE CORPORATION OR OPERATOR HAS ANY
CONTRACTUAL RELATIONSHIP IN CONNECTION WITH THE
OPERATIONS OF THE CASINO(S) AUTHORIZED TO BE
CONDUCTED UNDER THIS FRANCHISE AND TO THOSE
RECEIVING COMPENSATION OR OTHER REMUNERATION
FROM THE CORPORATION OR OPERATOR AS A RESULT OF
ESSENTIAL FACILITIES FURNISHED AND/OR TECHNICAL
SERVICES RENDERED TO THE CORPORATION OR OPERATOR.

THE FEE OR REMUNERATION OF FOREIGN ENTERTAINERS
CONTRACTED BY THE CORPORATION OR OPERATOR IN
PURSUANCE OF THIS PROVISION SHALL BE FREE OF ANY
TAX.

(3) DIVIDEND INCOMES — NOTWITHSTANDING ANY
PROVISION OF LAW TO THE CONTRARY, IN THE EVENT THE
CORPORATION SHOULD DECLARE A CASH DIVIDEND, THAT
PORTION OF THE DIVIDEND INCOME CORRESPONDING TO
THE PARTICIPATION OF THE PRIVATE SECTOR SHALL, AS AN
INCENTIVE TO THE BENEFICIARIES, BE SUBJECT ONLY TO A
FINAL INCOME TAX RATE OF TEN (10%) PERCENT IN LIEU OF
THE REGULAR INCOME TAX RATES. THE DIVIDEND INCOME
SHALL NOT IN SUCH CASE BE CONSIDERED AS PART OF
BENEFICIARIES’ TAXABLE INCOME; PROVIDED, HOWEVER,
THAT SUCH DIVIDEND INCOME SHALL BE TOTALLY
EXEMPTED FROM INCOME OR OTHER FORMS OF TAXES IF
INVESTED WITHIN SIX (6) MONTHS FROM THE DATE THE
DIVIDEND INCOME IS RECEIVED, IN THE FOLLOWING:

(A) OPERATION OF THE CASINO(S) OR INVESTMENTS IN ANY
AFFILIATE ACTIVITY THAT WILL ULTIMATELY REDOUND TO
THE BENEFIT OF THE CORPORATION OR ANY OTHER
CORPORATION WITH WHOM THE CORPORATION HAS ANY
EXISTING ARRANGEMENTS IN CONNECTION WITH OR
RELATED TO THE OPERATIONS OF THE CASINO(S);

(B) GOVERNMENT BONDS, SECURITIES, TREASURY NOTES, OR
DEBENTURES; OR

(9 BOI-REGISTERED OR EXPORT-ORIENTED
CORPORATIONS).
(4) UTILIZATION OF FOREIGN CURRENCIES. — THE

CORPORATION SHALL HAVE THE RIGHT AND AUTHORITY,
SOLELY AND EXCLUSIVELY IN CONNECTION WITH THE
OPERATIONS OF THE CASINO(S), TO PURCHASE, RECEIVE,
EXCHANGE AND DISBURSE FOREIGN EXCHANGE, SUBJECT
TO THE FOLLOWING TERMS AND CONDITIONS:


(A) A SPECIFIC AREA IN THE CASINO(S) OR GAMING PIT
SHALL BE PUT UP SOLELY EXCLUSIVELY FOR PLAYERS AND
PATRONS UTILIZING FOREIGN CURRENCIES;

(B) THE CORPORATION SHALL APPOINT AND DESIGNATE A
DULY ACCREDITED COMMERCIAL BANK AGENT OF THE
CENTRAL BANK, TO HANDLE, ADMINISTRATIVE AND MANAGE
THE USE OF FOREIGN CURRENCIES IN THE CASINO(S);

(CQ) THE CORPORATION SHALL PROVIDE AN OFFICE AT
CASINO(S) EXCLUSIVELY FOR THE EMPLOYEES OF THE
DESIGNATED BANK, AGENT OF THE CENTRAL BANK, WHERE
THE CORPORATION SHALL MAINTAIN A DOLLAR ACCOUNT
WHICH WILL BE UTILIZED EXCLUSIVELY FOR THE ABOVE
PURPOSE AND THE CASINO DOLLAR TREASURY EMPLOYEES;
(D) ONLY PERSONS WITH FOREIGN PASSPORTS OR
CERTIFICATES OF IDENTITY (FOR HONG KONG PATRON
ONLY) DULY ISSUED BY THE GOVERNMENT OR COUNTRY OF
THEIR RESIDENCE WILL BE ALLOWED TO PLAY IN THE
FOREIGN EXCHANGE GAMING PIT;

(E) ONLY FOREIGN EXCHANGE PRESCRIBE TO FORM PART OF
THE PHILIPPINE INTERNATIONAL RESERVE AND THE
FOLLOWING FOREIGN EXCHANGE CURRENCIES:
AUSTRALIAN DOLLAR, SINGAPORE DOLLAR, HONG KONG
DOLLAR, SHALL BE USED IN THIS GAMING PIT;

(F) THE DISBURSEMENT, ADMINISTRATION, MANAGEMENT
AND RECORDING OF FOREIGN EXCHANGE CURRENCIES
USED IN THE CASINO(S) SHALL BE CARRIED OUT IN
ACCORDANCE WITH EXISTING FOREIGN EXCHANGE
REGULATIONS; AND PERIODICAL REPORTS OF THE
TRANSACTIONS IN SUCH FOREIGN EXCHANGE CURRENCIES
BY THE CORPORATION SHALL BE DULY RECORDED AND
REPORTED TO THE CENTRAL BANK THRU THE DESIGNATED
AGENT BANK; AND

(G) THE CORPORATION SHALL ISSUE THE NECESSARY RULES
AND REGULATIONS FOR THE GUIDANCE AND INFORMATION
OF PLAYERS QUALIFIED TO PARTICIPATE IN THE FOREIGN
EXCHANGE GAMING PIT, IN ORDER TO MAKE CERTAIN THAT
THE TERMS AND CONDITIONS AS ABOVE SET FORTH ARE
STRICTLY COMPLIED WITH.”

alviii, SECTION 9 OF REPUBLIC ACT NO. 7953 ENTITLED “AN ACT
AMENDING RA 6632 ENTITLED, “AN ACT GRANTING THE
PHILIPPINE RACING ACT, INC., A FRANCHISE TO OPERATE AND
MAINTAIN A RACE TRACK FOR HORSE RACING IN THE PROVINCE
OF RIZAL, AND EXTENDING THE SAID FRANCHISE BY 25 YEARS
FROM THE EXPIRATION OF THE TERM THEREOF" IS
HEREBYAMENDED TO READ AS FOLLOWS:


xlix,

“Section 9. In consideration of the franchise and rights herein granted to
the Philippine Racing Club, Inc., the grantee shall pay into the National-Freasury
COMMISSIONER OF INTERNAL REVENUE a franchise tax equal to
twenty-five per centum (25%)of its gross earnings from the horse races
authorized to be held under this franchise which is equivalent to the eight and
one-half per centum (8 13%) of the total wager funds or gross receipts on the sale
of betting tickets during the racing days as mentioned in section 6 hereof, allotted
as follows: (a) National Government, five per centum (3%); the province or
city/municipality where the race track is located, five per centum (5%); (b)
Philippine Charity Sweepstakes Office, seven per centum (7%); (c) Philippine
Anti-Tuberculosis Society, six per centum (6%); and (d) White Cross, two per
centum (2%). The said tax shall be paid monthly

4 yeaa ity.

taxes—the—grantee—is-herehy-expressly-exempted, AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES SHALL
BE COLLECTED.”

SECTION 12 OF REPUBLIC ACT NO. 8407 ENTITLED “AN ACT
AMENDING RA 6631 ENTITLED, “AN ACT GRANTING MANILA
JOCKEY CLUB, INC., A FRANCHISE TO CONSTRUCT, OPERATE
AND MAINTAIN A RACE TRACK FOR HORSE RACING IN THE CITY
OF MANILA OR ANY PLACE WITHIN THE PROVINCES OF
BULACAN, CAVITE OR RIZAL AND EXTENDING THE SAID
FRANCHISE BY 25 YEARS FROM THE EXPIRATION OF THE TERM.
THEREOF” IS HEREBY FURTHER AMENDED TO READ AS
FOLLOWS:

“See. 12. Franchise Tax, — In consideration of the franchise, the grantee shall
pay into the National Treasury a franchise tax equal to twenty-five per centum
(25%) of its gross earnings from the horse races authorized to be held under this
franchise which is equivalent to the eight and one-half per centum (8%) of the
total wager fund or gross receipts on the sale of betting tickets during the racing
day as mentioned in section 8 hereof, allotted as follows:(a) five per centum (5%)
for the National Government; (b) five per centum (5%) for the province or
city/municipality where the racetrack is located;(c) seven per centum (7%) for the
‘municipal hospital where the racetrack is located;(d) six per centum (6%) for the
Philippine Anti-Tuberculasis Society; and(e) two per centum (2%) for the White
Cross. The said taxes shall be paid monthly, and-shall-be-in-tien-of any-and-al
eee of crney- kitted —nretttere ened desert prion tevied- except the tnevme tee established

cy


is-hereby-exprossly-exempied. AND ALL APPLICABLE TAXES UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED, FOR
REVENUES EARNED FROM ALL ACTIVITIES SHALL BE COLLECTED.

xX”

SECTION 9 OF REPUBLIC ACT NO. 8298 ENTITLED “AN ACT
AMENDING REPUBLIC ACT NUMBERED SEVENTY-NINE HUNDRED
SEVENTY-EIGHT, ENTITLED, “AN ACT GRANTING THE METRO
MANILA TURF CLUB, INC., A FRANCHISE TO CONSTRUCT,
OPERATE AND MAINTAIN A RACETRACK FOR HORSE RACING BP
THE CITY OF KALOOKAN” IS HEREBY FURTHER AMENDED TO
READ AS FOLLOWS:

“Section 9. In consideration of the franchise and rights herein granted, the
grantee shall pay to the National Treasury a franchise tax equal to twenty-five
percent (25%) of its gross earnings, which is equivalent to the commissions/fees
earned by the grantee out of total wage funds, allotted as follows:(a) three
percent (3%) to the National Government; (b) five percent (5%) 10 the City of
Kalookan, or if the racetrack is located elsewhere, then to such city or
municipality where itis located:(c) five percent (5%) to the public health workers
under the Magna Carta for Public Health Workers and three percent (3%) to the
cardiovascular program of the Department of Health;(d) five percent (5%) to the
Philippine Anti-Tuberculasis Society;(e) two percent (2%) to the White Cross;

and{) two percent (2%) to the Water For Life program of the Department of
Health. The said tax shall be paid guar and shall bet tiew-of-any-and-all

£ - Lh .
feawes—the—grantec—is—hereby—expressiy—exempted “AND ALL APPLICABLE
TAXES UNDER THE NATIONAL INTERNAL REVENUE CODE, AS

AMENDED, FOR REVENUES EARNED FROM ALL ACTIVITIES SHALL
BE COLLECTED.”

SECTION 12 OF REPUBLIC ACT NO, 8446 ENTITLED “AN ACT
GRANTING THE FIL-ASIA RACING CLUB A FRANCHISE TO
CONSTRUCT, OPERATE AND MAINTAIN A RACETRACK FOR
HORSE RACING IN RIZAL OR TARLAC, OR PAMPANGA OR
BATANGAS OR QUEZON CITY,” IS HEREBY AMENDED TO READ AS
FOLLOWS:

“Section 12. Franchise Tax. —In consideration of the franchise, the grantee shall
pay into the National Treasury a franchise tax equal to twenty-five percentum
(25%) of its gross earnings from the horse races authorized to be held under this
Franchise which is equivalem to the eight and one-half percentum (843 %) of the
total wager fund or gross receipt on the sale of betting tickets during the racing


day as mentioned in section 8 hereof, allotted as follows: (a) three percentum
(3%) for the National Government; (b) five percentum (5%) for the province or
city/municipality where the racetrack is located: (c) five percentum (3%) for the
benefit of public health workers of the Department of Health (DOH); (d) five
percentum (5%) for the cardiovascular program of the DOH; (e) five percentum
(5%) for the Philippine Anti-Tuberculosis Society; and (f) two percentum (2%) for
the “Water of Life" project of the Department of Health. The said taxes shall be
paid monthly, amed-shell-be-in-Hew-of amy-ane-all-teees-of amy-hind-nature-cd

exempied—AND ALL APPLICABLE TAXES UNDER THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, FOR REVENUES EARNED
FROM ALL ACTIVITIES SHALL BE COLLECTED.

XXX"

SEC. 306. REPEALING CLAUSE, — A. THE FOLLOWING PROVISIONS
PROVIDING FOR INCENTIVES ARE HEREBY REPEALED ACCORDINGLY:

i, SEC 5 REPUBLIC ACT NO. 9379 ENTITLED, “AN ACT DEFINING
HANDLINE FISHING, PROVIDING EFFECTIVE REGULATIONS
‘THEREFOR AND FOR OTHER PURPOSES;”

ii, SECTION 16 (LAST SENTENCE) OF REPUBLIC ACT NO. 10601
ENTITLED, “AN ACT PROMOTING AGRICULTURAL AND
FISHERIES MECHANIZATION DEVELOPMENT IN THE COUNTRY;"

iii, SECTION 32 OF REPUBLIC ACT NO. 10684 ENTITLED, “AN ACT TO
PREVENT, DETER AND ELIMINATE ILLEGAL, UNREPORTED AND
UNREGULATED FISHING, AMENDING REPUBLIC ACT NO. 8550,
OTHERWISE KNOWN AS THE PHILIPPINE FISHERIES CODE OF
1998, AND FOR OTHER PURPOSES;

iv. SECTION 14 (B) OF REPUBLIC ACT NO. 7308 ENTITLED, “AN ACT TO
PROMOTE AND DEVELOP THE SEED INDUSTRY IN THE
PHILIPPINES AND CREATE A NATIONAL SEED INDUSTRY
COUNCIL AND FOR OTHER PURPOSES (SEED INDUSTRY
DEVELOPMENT ACT OF 1992);”

y. SECTION 18 (ND AND 3RD PARAGRAPH) OF REPUBLIC ACT NO.
7884 ENTITLED, “AN ACT CREATING THE NATIONAL DAIRY
AUTHORITY TO ACCELERATE THE DEVELOPMENT OF THE
DAIRY INDUSTRY IN THE PHILIPPINES, PROVIDING FOR A DAIRY
DEVELOPMENT FUND, AND FOR OTHER PURPOSES;”


vi. SECTION 9 (E), (F) (D, (J) REPUBLIC ACT NO. 7900 ENTITLED, “AN
ACT TO PROMOTE THE PRODUCTION, PROCESSING, MARKETING,
AND DISTRIBUTION OF HIGH VALUE CROPS, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES;”

vii. CHAPTER I, ARTICLE II, SEC, 35 (B), (C) AND (D) OF REPUBLIC ACT
NO. 8550, ENTITLED “AN ACT PROVIDING FOR THE
DEVELOPMENT, MANAGEMENT AND CONSERVATION OF THE
FISHERIES AND AQUATIC RESOURCES, INTEGRATING ALL LAWS
PERTINENT THERETO, AND FOR OTHER PURPOSES (THE
PHILIPPINE FISHERIES CODE OF 1998);"

vii

i. SECTION 24 (A) (E) (F) OF REPUBLIC ACT NO. 10068 ENTITLED, “AN
ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION OF
ORGANIC AGRICULTURE IN THE PHILIPPINES AND FOR OTHER
PURPOSES;”

ix. SECTION 37 OF REPUBLIC ACT NO. 6848 ENTITLED, “AN ACT
PROVIDING FOR THE 1989 CHARTER OF THE AL-AMANAH
ISLAMIC INVESTMENT BANK OF THE PHILIPPINES, AUTHORIZING
ITS CONDUCT OF ISLAMIC BANKING BUSINESS, AND REPEALING
FOR THIS PURPOSE PRESIDENTIAL DECREE NUMBERED TWO
HUNDRED AND SIXTY-FOUR AS AMENDED BY PRESIDENTIAL
DECREE NUMBERED FIVE HUNDRED AND FORTY-TWO
(CREATING THE PHILIPPINE AMANAH BANK);"

x. SECTION 17 OF REPUBLIC ACT NO, 7906 ENTITLED, “AN ACT
PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND
OPERATIONS OF THRIFT BANKS, AND FOR OTHER PURPOSES;”

SECTION 15 OF REPUBLIC ACT NO. 7353 ENTITLED, “AN ACT
PROVIDING FOR THE CREATION, ORGANIZATION AND
OPERATION OF RURAL BANKS, AND FOR OTHER PURPOSES
(RURAL BANK ACT OF 1992);”

xii, TITLE Il, ARTICLE 39 (A), (B), (C), (D), (E), (G), (1), (4), (K), (M) AND
(N); TITLE IV, AND BOOK VI, ARTICLES 77 AND 78 AND ARTICLE
81 OF EXECUTIVE ORDER NO. 226, SERIES OF 1987 ENTITLED,
“THE OMNIBUS INVESTMENTS CODE OF 1987;"

xiii, SECTION 1 OF REPUBLIC ACT NO. 7918 ENTITLED, “AN ACT
AMENDING ARTICLE 39, TITLE Il OF EXECUTIVE ORDER NO.
226, OTHERWISE KNOWN AS THE OMNIBUS INVESTMENTS CODE
OF 1987, AS AMENDED, AND FOR OTHER PURPOSES;”



xiv,

xvi,

ARTICLES 62, 63, 64, 65, 66, 67 AND 69 OF REPUBLIC ACT NO. 8756
ENTITLED, “AN ACT PROVIDING FOR THE TERMS, CONDITIONS
AND LICENSING REQUIREMENTS OF REGIONAL OR AREA
HEADQUARTERS, REGIONAL OPERATING HEADQUARTERS,
REGIONAL WAREHOUSES OF MULTINATIONAL COMPANIES
AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF
EXECUTIVE ORDER NO. 226, OTHERWISE KNOWN AS THE
OMNIBUS INVESTMENT CODE OF 1987;”

. EXECUTIVE ORDER NO. 22 SERIES OF 2017 AMENDING EO 70

SERIES OF 2012 528, SERIES OF 2006 AND 313, SERIES OF 2004
ENTITLED, “REDUCING THE RATES OF DUTY ON CAPITAL
EQUIPMENT, SPARE PARTS AND ACCESSORIES IMPORTED BY
BOI-REGISTERED NEW AND EXPANDING ENTERPRISES”;

SECTION 12 OF REPUBLIC ACT NO. 8047 ENTITLED, “AN ACT
PROVIDING FOR THE DEVELOPMENT OF THE BOOK
PUBLISHING INDUSTRY THROUGH THE FORMULATION AND
IMPLEMENTATION OF A NATIONAL BOOK POLICY AND A
NATIONAL BOOK DEVELOPMENT PLAN;”

xvii. SECTION 17 (1) TO (8) AND SECTION 18 (A), (B), (C) AND (F)OF

xix.

PRESIDENTIAL DECREE NO. 66 ENTITLED “CREATING THE
EXPORT PROCESSING ZONE AUTHORITY AND REVISING
REPUBLIC ACT NO, 5490;”

SECTION 4 (E) AND (F) OF REPUBLIC ACT NO. 7903 ENTITLED “AN
ACT CREATING SPECIAL ECONOMIC ZONE AND FREE PORT IN
THE CITY OF ZAMBOANGA AND ESTABLISHING FOR THIS
PURPOSE THE ZAMBOANGA CITY SPECIAL ECONOMIC ZONE
AUTHORITY, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES (ZAMBOANGA CITY SPECIAL ECONOMIC
ZONE ACT OF 1995);”

SECTION 4 (B) (C) OF REPUBLIC ACT NO. 7922, ENTITLED, AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE PORT IN
‘THE MUNICIPALITY OF SANTA ANA AND THE NEIGHBORING
ISLANDS IN THE MUNICIPALITY OF APARRI, PROVINCE OF
CAGAYAN PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES;”

SECTION 4 OF REPUBLIC ACT NO. 8748 ENTITLED “AN ACT

AMENDING REPUBLIC ACT NO. 7916, OTHERWISE KNOWN AS
‘THE SPECIAL ECONOMIC ZONE ACT OF 1995";

2B


xxi, SECTIONS 23 AND 24 OF REPUBLIC ACT NO. 7916 ENTITLED, “AN
ACT PROVIDING FOR THE LEGAL FRAMEWORK AND
MECHANISMS FOR THE CREATION, OPERATION,
ADMINISTRATION, AND COORDINATION OF SPECIAL
ECONOMIC ZONES IN THE PHILIPPINES, CREATING FOR THE
PURPOSE THE PHILIPPINE ECONOMIC ZONE AUTHORITY
(PEZA), AND FOR OTHER PURPOSES (THE SPECIAL ECONOMIC
ZONE ACT OF 1995);”

xxii, SECTION | AND SECTIONS 2, 3, 4, 5 AND 7 OF REPUBLIC ACT NO.
9400 ENTITLED, “AN ACT AMENDING REPUBLIC ACT NO. 7227, AS
AMENDED, OTHERWISE KNOWN AS THE BASES CONVERSION
AND DEVELOPMENT ACT OF 1982, AND FOR OTHER PURPOSES;”

ii.SECTION 1 OF EXECUTIVE ORDER NO. 619 ENTITLED,
“CREATING AND DESIGNATING SPECIAL ECONOMIC ZONES
PURSUANT TO REPUBLIC ACT NO. 7916, AS AMENDED BY
REPUBLIC ACT NO. 8784, IN RELATION TO REPUBLIC ACT NO.
7227, AS AMENDED BY REPUBLIC ACT NO, 9400, INSIDE THE
CLARK FREEPORT ZONE;”

xxiv, SECTIONS §, 6, 7(LAST PARAGRAPH), 8 AND 9 OF REPUBLIC ACT
NO. 9490, ENTITLED, AN ACT ESTABLISHING THE AURORA
SPECIAL ECONOMIC ZONE IN THE PROVINCE OF AURORA,
CREATING FOR THE PURPOSE THE AURORA SPECIAL
ECONOMIC ZONE AUTHORITY, APPROPRIATING — FUNDS
THEREFOR AND FOR OTHER PURPOSES; SECTIONS 3 (E) (F) (H)
AND 40F R.A. NO, 10083, ENTITLED, “AN ACT AMENDING
REPUBLIC ACT NO. 9490;”

xxv. SECTIONS 5, 6 AND 10 OF REPUBLIC ACT NO, 9728 ENTITLED
“AN ACT CONVERTING THE BATAAN ECONOMIC ZONE
LOCATED IN THE MUNICIPALITY OF MARIVELES, PROVINCE
OF BATAAN, INTO THE FREEPORT AREA OF BATAAN (FAB),
CREATING FOR THIS PURPOSE THE AUTHORITY OF THE
FREEPORT AREA OF BATAAN (AFAB), APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES (FREEPORT AREA OF
BATAAN (FAB) ACT OF 2009);”

xxvi, SECTIONS 12, 21 AND 22 OF PRESIDENTIAL DECREE NO. 87
RESTORED BY FIRB RESOLUTION 19-87 AMENDING
PRESIDENTIAL DECREE 8 ISSUED ON OCTOBER 2, 1972, AND
PROMULGATING AN AMENDED ACT TO PROMOTE THE
DISCOVERY AND PRODUCTION OF INDIGENEOUS PETROLEUM
AND APPROPRIATE FUNDS THEREFOR (OIL EXPLORATION
AND DEVELOPMENT ACT);

”


Cevaueune

a0]
12
13
14
15
16
17
18
19
20
2
23
24
2s
26
27
28
29
30
31
32
33

35
36
37
38
39
40
4i
42
43

45

xxvii.

xxviii,

xxix,

xxxi.

xxii,

xxxiii,

xxxiv,

PRESIDENTIAL DECREE NO, 529 (RESTORED BY FIRB
RESOLUTION 19-87) ENTITLED “GRANTING TO PETROLEUM
EXPLORATION CONCESSIONAIRES UNDER THE PETROLEUM
ACT OF 1949 EXEMPTION FROM CUSTOMS DUTY AND
COMPENSATING TAX ON IMPORTATIONS OF MACHINERY AND
EQUIPMENT, SPARE PARTS AND MATERIALS REQUIRED FOR
THEIR EXPLORATION OPERATIONS;

SECTION 16 (A), (B) AND (C) AND SECTION 17 (A) TO (E) OF
PRESIDENTIAL DECREE NO. 972 ENTITLED, “PROMULGATING
AN ACT TO PROMOTE AN ACCELERATED EXPLORATION,
DEVELOPME! EXPLOITATION, — PRODUCTION AND
UTILIZATION OF COAL (THE COAL DEVELOPMENT ACT OF
1976);”

SECTION 4(A) AND (D) OF PRESIDENTIAL DECREE NO. 1442
RESTORED BY FIRB RESOLUTION 19-87, ENTITLED, “AN ACT TO
PROMOTE THE EXPLORATION AND DEVELOPMENT OF
GEOTHERMAL RESOURCES;”

SECTION 10 (1) TO (6) OF REPUBLIC ACT NO. 7156 ENTITLED
“AN ACT GRANTING INCENTIVES TO MINI-HYDRO ELECTRIC
POWER DEVELOPERS AND FOR OTHER PURPOSES” (MINI-
HYDROELECTRIC INCENTIVE ACT);”

SECTION 9 OF REPUBLIC ACT NO. 8479 ENTITLED “AN ACT
DEREGULATING THE DOWNSTREAM OIL INDUSTRY, AND FOR
OTHER PURPOSES (DOWNSTREAM OIL INDUSTRY
DEREGULATION ACT OF 1998);”

SECTION 6, FIFTH PARAGRAPH OF REPUBLIC ACT NO. 9136

ENTITLED, “AN ACT ORDAINING REFORM IN THE ELECTRIC
POWER INDUSTRY, AMENDING FOR THE PURPOSE CERTAIN
LAWS AND FOR OTHER PURPOSES (ELECTRIC POWER
INDUSTRY REFORM ACT OF 2001);”

CHAPTER VII, SECTIONS 15, 19, 21, 22 AND 23 OF REPUBLIC ACT
NO. 9513 ENTITLED, “AN ACT PROMOTING THE
DEVELOPMENT, UTILIZATION AND COMMERCIALIZATION OF
RENEWABLE ENERGY RESOURCES AND FOR OTHER
PURPOSES;”

SECTION 6 (A) (B) OF REPUBLIC ACT NO. 9367 ENTITLED, “AN
ACT TO DIRECT THE USE OF BIOFUELS, ESTABLISHING FOR

1s


THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING
FUNDS THEREFORE, AND FOR OTHER PURPOSES;”

xxxv. SECTIONS 36 (E) AND (F) OF PRESIDENTIAL DECREE NO. 705
ENTITLED, “REVISING PD NO. 389, OTHERWISE KNOWN AS THE
FORESTRY REFORM CODE OF THE PHILIPPINES (REVISED
FORESTRY CODE OF THE PHILIPPINES);”

xxxvi. SECTION (B) (1) (C) OF REPUBLIC ACT NO. 9003 ENTITLED, “AN
ACT PROVIDING FOR AN ECOLOGICAL SOLID WASTE
MANAGEMENT PROGRAM, CREATING THE NECESSARY
INSTITUTIONAL MECHANISMS AND INCENTIVES, DECLARING
CERTAIN ACTS PROHIBITED AND PROVIDING PENALTIES,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES;*

xxxvii. SECTION 26 A (1) (3) OF REPUBLIC ACT NO. 9275 ENTITLED, “AN
ACT PROVIDING FOR COMPREHENSIVE WATER QUALITY
MANAGEMENT AND FOR OTHER PURPOSES (PHILIPPINE
CLEAN WATER ACT OF 2004);”

xxxviii, | SECTIONS 16 AND 17 OF REPUBLIC ACT NO, 7844 ENTITLED,
“AN ACT TO DEVELOP EXPORTS AS A KEY TOWARDS THE
ACHIEVEMENT OF THE NATIONAL GOALS TOWARDS THE
YEAR 2000 (EXPORT DEVELOPMENT ACT OF 1994);”

xxxix. SECTION 13 OF REPUBLIC ACT NO. 10817 ENTITLED, “AN ACT
INSTITUTING THE PHILIPPINE HALAL EXPORT DEVELOPMENT
AND PROMOTION PROGRAM, CREATING FOR THE PURPOSE
THE PHILIPPINE HALAL EXPORT DEVELOPMENT AND
PROMOTION BOARD, AND FOR OTHER PURPOSES;”

xl. SECTION 14 OF REPUBLIC ACT NO. 8423 ENTITLED, “AN ACT
CREATING THE PHILIPPINE INSTITUTE OF TRADITIONAL AND
ALTERNATIVE HEALTH CARE (PITAHC) TO ACCELERATE THE
DEVELOPMENT OF TRADITIONAL AND ALTERNATIVE HEALTH
CARE IN THE PHILIPPINES, PROVIDING FOR A TRADITIONAL
AND ALTERNATIVE HEALTH CARE DEVELOPMENT FUND AND
FOR OTHER PURPOSES;”

xli, SECTION 20 (D) (1) TO (5) OF REPUBLIC ACT NO. 10884
ENTITLED, “AN ACT STRENGTHENING THE BALANCED
HOUSING DEVELOPMENT PROGRAM, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7279, AS AMENDED, OTHERWISE
KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF
1992;”


Secwsaweun—

"
12
13
4
1s

7
18
19
20
21

23
24

26
27
28
29
30
3
32
33

35
36
37
38
39
40
4l
2
a3

45

alii,

xiii.

aliv.

xiv,

xvi,

xlvii.

xlviii.

SECTION 10 OF REPUBLIC ACT NO, 7718 ENTITLED, “AN ACT
AMENDING CERTAIN SECTIONS OF RA 6957*, ENTITLED “AN
ACT AUTHORIZING THE FINANCING, CONSTRUCTION,
OPERATION AND MAINTENANCE OF INFRASTRUCTURE
PROJECTS BY THE PRIVATE SECTOR, AND FOR OTHER
PURPOSES;”

SECTION 6 (C) (D) (F) SECTIONS 7, 8 OF REPUBLIC ACT NO. 7103
ENTITLED, “AN ACT TO STRENGTHEN THE IRON AND STEEL
INDUSTRY AND PROMOTE PHILIPPINE INDUSTRIALIZATION
AND FOR OTHER PURPOSES;”

SECTION 3 (A) TO (D) AND (H) OF REPUBLIC ACT NO. 8502
ENTITLED, “AN ACT TO PROMOTE THE DEVELOPMENT OF
THE JEWELRY MANUFACTURING INDUSTRY, PROVIDING
INCENTIVES THEREFOR AND FOR OTHER PURPOSES
(JEWELRY INDUSTRY DEVELOPMENT ACT OF 1998);”

SECTION § (A) (B) OF REPUBLIC ACT NO, 10771 ENTITLED, “AN
ACT PROMOTING THE CREATION OF GREEN JOBS, GRANTING
INCENTIVES AND APPROPRIATING FUNDS THEREFOR;”

SECTION 9 (H) (10) OF REPUBLIC ACT NO. 9501 ENTITLED,
“PROMOTING ENTREPRENEURSHIP) BY STRENGTHEN!
DEVELOPMENT AND ASSISTANCE PROGRAMS TO MICRO,
SMALL AND MEDIUM SCALE ENTERPRISES AMENDING RA
6977, OTHERWISE KNOWN AS THE MAGNA CARTA FOR SMALL
ENTERPRISES;”

SECTION 7 OF REPUBLIC ACT NO. 9178 ENTITLED, “AN ACT TO
PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO
BUSINESS ENTERPRISES (BMBES), PROVIDING INCENTIVES
AND BENEFITS THEREFOR, AND FOR OTHER PURPOSES;

CHAPTER XV, SECTION 83; CHAPTER XVI, SECTIONS 90, 91, 92,
93 OF REPUBLIC ACT NO. 7942, ENTITLED, “AN ACT
INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES
EXPLORATION, DEVELOPMENT, UTILIZATION AND
CONSERVATION (PHILIPPINE MINING ACT OF 1995);”

CHAPTER Il, SECTION 4 AND CHAPTER VIII, SECTION 19 OF
REPUBLIC ACT NO. 9295 ENTITLED, “AN ACT PROMOTING THE
DEVELOPMENT OF PHILIPPINE DOMESTIC SHIPPING,
SHIPBUILDING, SHIP REPAIR AND SHIP BREAKING, ORDAINI
REFORMS IN GOVERNMENT POLICIES TOWARDS SHIPPING IN

7


ti.

lili,

liv.

Wi.

‘THE PHILIPPINES AND FOR OTHER PURPOSES (DOMESTIC
SHIPPING DEVELOPMENT ACT OF 2004);”

SECTION 6 OF REPUBLIC ACT NO. 7471, AS AMENDED,
ENTITLED, “AN ACT TO PROMOTE THE DEVELOPMENT OF
PHILIPPINE OVERSEAS SHIPPING (PHILIPPINE OVERSEAS
SHIPPING DEVELOPMENT ACT);

SUBCHAPTER Y-A, SECTION 86 AND SECTION 88 OF REPUBLIC
ACT NO. 9593 ENTITLED, “AN ACT DECLARING A NATIONAL
POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT,
EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT,
AND STRENGTHENING THE DEPARTMENT OF TOURISM AND
ITS) ATTACHED AGENCIES TO — EFFECTIVELY AND
EFFICIENTLY IMPLEMENT THAT POLICY, AND
APPROPRIATING FUNDS THEREFOR (THE TOURISM ACT OF
2009):”

SECTION 8 (LAST 2 SENTENCES/PARAGRAPHS) OF REPUBLIC
ACT NO, 10816 ENTITLED, “AN ACT PROVIDING FOR THE
DEVELOPMENT AND PROMOTION OF FARM TOURISM IN THE
PHILIPPINES;”

SECTION 8 OF PRESIDENTIAL DECREE 1491- AMENDING
SECTION 8 OF PRESIDENTIAL DECREE NO. 538 (PHILIPPINE
VETERANS INVESTMENT DEVELOPMENT CORPORATION);”

SECTIONS 8, 9 AND 2'XY SENTENCE OF THE 1°' PARAGRAPH
2’ PARAGRAPH OF SECTION 10 OF PRESIDENTIAL DECREE
$38 ENTITLED, “CREATING AND ESTABLISHING THE PHIVIDEC
INDUSTRIAL AUTHORITY AND MAKING IT A SUBSIDIARY
AGENCY OF THE PHILIPPINE VETERANS DEVELOPMENT
CORPORATION, DEFINING ITS POWERS, FUNCTIONS AND
RESPONSIBILITIES, AND FOR OTHER PURPOSES;”

» SECTION 1 (1.1) OF EXECUTIVE ORDER NO. 97-A S, 1993

ENTITLED, “FURTHER CLARIFYING THE TAX AND DUTY-FREE
PRIVILEGE WITHIN THE SUBIC SPECIAL ECONOMIC AND FREE
PORT ZONE;”

SECTION 12(C) OF REPUBLIC ACT NO, 7227 ENTITLED, “AN ACT
ACCELERATING THE CONVERSION OF MILITARY
RESERVATIONS INTO OTHER PRODUCTIVE USES, CREATING
THE BASES CONVERSION AND DEVELOPMENT AUTHORITY
FOR THIS PURPOSE, PROVIDING FUNDS THEREFOR AND FOR
OTHER PURPOSES;”


Wii, SECTIONS 4{F) AND SECTION 5(C\K) OF REPUBLIC ACT NO.
10083 ENTITLED, “AN ACT AMENDING REPUBLIC ACT NO. 9490,
OTHERWISE KNOWN AS THE AURORA SPECIAL ECONOMIC
ZONE ACT OF 2007;”

Will, SECTION 5 OF EXECUTIVE ORDER NO, 290 ENTITLED,
“IMPLEMENTING THE NATURAL GAS VEHICLE PROGRAM FOR
PUBLIC TRANSPORT;”

lix. SECTION 18 OF REPUBLIC ACT NO. 6847 ENTITLED, “AN ACT
CREATING AND ESTABLISHING THE PHILIPPINE SPORTS
COMMISSION, DEFINING [TS POWERS, FUNCTIONS, AND
RESPONSIBILITIES, APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES;”

B. THE PROVISIONS ON INVESTMENT PRIORITY PLAN (IPP) UNDER ART.
26, CHAPTER | AND CHAPTER Il OF EXECUTIVE ORDER NO. 226, SERIES OF
1987 ENTITLED, THE “OMNIBUS INVESTMENTS CODE OF 1987, ARE HEREBY
REPEALED.

C, CHAPTER Ill ARTICLE 32 OF EXECUTIVE ORDER NO, 226, SERIES OF
1987 ENTITLED, THE “OMNIBUS INVESTMENTS CODE OF 1987;” ARE HEREBY
REPEALED.

D. SECTION 1 (6) AND SECTION 2 OF PRESIDENTIAL DECREE NO. 776,
ENTITLED “MODIFYING ALL LAWS, ACTS DECREES, ORDERS AND
ORDINANCES GRANTING SUBSIDIES, EXEMPTIONS FROM TAXES, DUTIES,
FEES IMPOSTS AND OTHER CHARGES UNDER CERTAIN EXCEPTIONS AND
CREATING A FISCAL INCENTIVES BOARD. AUGUST 24, 1975;" ARE HEREBY
REPEALED.

E. SECTION 2 OF PRESIDENTIAL DECREE NO. 1931, S. 1984 ENTITLED,
“DIRECTING THE RATIONALIZATION OF DUTY AND TAX EXEMPTION
PRIVILEGES GRANTED TO GOVERNMENT-OWNED AND CONTROLLED
CORPORATIONS AND ALL OTHER UNITS OF GOVERNMENT;” ARE HEREBY
REPEALED.

F. SECTION 1 (C), (D) EXECUTIVE ORDER . 93, SERIES OF 1986
ENTITLED, “WITHDRAWING ALL TAX AND DUTY INCENTIVES, SUBJECT TO
CERTAIN EXCEPTIONS, EXPANDING THE POWERS OF THE FISCAL
INCENTIVES BOARD AND FOR OTHER PURPOSES;” ARE HEREBY REPEALED.

G. MEMORANDUM ORDER NO. 23, S, 1986 ENTITLED, “EXPANDING THE
MEMBERSHIP OF THE FISCAL INCENTIVES REVIEW BOARD ARE HEREBY
REPEALED.


BEBRE Seaiaueune

H. SECTION 1 (A) AND (B) OF PRESIDENTIAL DECREE NO. 1955,
ENTITLED, “WITHDRAWING, SUBJECT TO CERTAIN CONDITIONS, THE DUTY
AND TAX PRIVILEGES GRANTED TO PRIVATE BUSINESS ENTERPRISES
AND/OR PERSONS ENGAGED IN ANY ECONOMIC ACTIVITY AND FOR OTHER
PURPOSES” ARE HEREBY REPEALED.

SEC. 15. Repealing Clause. - All other laws, decrees, executive orders, rules and
regulations, or parts thereof which are contrary to or inconsistent with this Code are hereby
repealed, amended or modified accordingly.

SEC. 16. Separability Clause. — If any clause, sentence, paragraph, or part of this Code
shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not
affect, impair, or invalidate the remainder of said Code, but shall be confined in its operation
to the clause, sentence, paragraph, or part thereof directly involved in the controversy.

SEC. 17. Effectivity. This Act shall take effect on January 1, 2019 or fifteen (15) days
following its publication in the Official Gazeue or in a newspaper of general circulation,
whichever is earlier.

Approved,