THIRTEENTH CONGRESS OF THE 
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Second Regular Session 
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REPUBLIC OF THE PHILIPPINES 
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SENATE 
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SBNO. 2259 '':. 
(In substitution of H.B. No. 4900) 
Prepared by the Committees on Ways and Means and on Government Corporations and 
Public Enterprises with Senators Recto and Gordon as authors thereof 
AN ACT 
LIABILITIES, INCLUSIVE OF FEES, FINES, PENALTIES, INTERESTS AND 
OTHER ADDITIONS THERETO, INCURRED BY CERTAIN BUSINESS 
ENTERPRISES OPERATING WITHIN THE SPECIAL ECONOMIC ZONES 
AND FREEPORTS CREATED UNDER E-CUTIVE 
ORDER NO. 80, SERIES 
OF 1993; PROCLAMATION NO. 216, SERIES OF 1993; PROCLAMATION NO. 
420, SERIES OF 1994; AND PROCLAMATION NO. 984, SERIES OF 1997, 
PURSUANT TO SECTION 15 OF REPUBLIC ACT NO. 7227, AS AMENDED, 
AND FOR OTHER PURPOSES 
DECLARING A ONE-TIME AMNESTY ON CERTAIN TAX AND DUTY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Grant of Taw Amnesty. - Registered business enterprises engaged in 
export-oriented and tourism-related activities operating prior to the effectivity of this Act 
within the special economic zones and freeports created pursuant to Section 15 of RA 
7227, as amended, such as the Clark Special Economic Zone created under Executive 
Order No. 80, series of 1993; Poro Point Special Economic and Freeport Zone created 
under Proclamation No. 216, series of 1993; John Hay Special Economic Zone created 
under Proclamation No. 420, series of 1994; and Morong Special Economic Zone created 
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under Proclamation No. 984, series of 1997, may avail themselves of the benefits of tax 
amnesty herein granted on all applicable tax and duty liabilities, inclusive of fines, 
penalties, interests and other additions thereto, incurred by them or that might have 
accrued to them due to the rulings of the Supreme Court in the cases of John Hay 
People's Coalition v. Lim, et al., G.R. No. 119775 dated 23 October 2003 and Coconut 
Oil Rejinevs Association, Inc. v. Torres, et al., G.R. No. 132527 dated 29 July 2005, by 


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filing a notice and retum in such form as shall be prescribed by the Commissioner of 
Internal Revenue and the Commissioner of Customs and thereafter, by paying an amnesty 
tax of Twenty-five pesos (P25.00) within six (6) months from the effectivity of this 
Act: Provided, That the applicable tax and duty liabilities to be covered by the tax 
amnesty shall refer only to the difference between (i) all national and local tax 
impositions under relevant tax laws, rules and regulations and (ii) the five percent (5%) 
tax on gross income earned by said registered business enterprises engaged in export- 
oriented and tourism-related activities as determined under relevant revenue regulations 
of the Bureau of Internal Revenue and memorandum circulars of the Bureau of Customs 
during the period covered: Provided, however, That the coverage of the tax amnesty 
herein granted shall not include the applicable taxes and duties on articles, raw materials, 
capital goods, equipment and consumer items removed from the special economic zone 
and freeport and entered in the custcims temtory of the Philippines for local or domestic 
sale, which shall be subject to the usual taxes and duties prescribed in the National 
Internal Revenne Code (NIRC) of 1997, as amended, and the Tariff and Customs Code of 
the Philippines, as amended. 
SEC. 2. Immunities and Privileges. - Those who have availed themselves of the 
tax amnesty and have fully complied with all its conditions shall be relieved of any civil, 
criminal and/or administrative liabilities arising from or incident to the non-payment of 
taxes, duties and other charges covered by the tax amnesty granted under Section 1 
herein. 
SEC. 3. Implementing Rules and Regulations. - The Deparhnent of Finance, in 
coordination with the Bureau of Internal Revenue and the Bureau of Customs, and in 
consultation with the Bases Conversion and Development Authority, the Clark 
Development Corporation, the John Hay Management Corporation, the Poro Point 
Management Corporation, and the Bataan Technology Park, Inc., shall promulgate and 
publish the necessary rules and regulations for the effective implementation of this Act 
within two (2) months from the date of effectivity of this Act. 
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SEC. 4. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect. 
SEC. 5. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in any two (2) newspapers of general circulation, 
whichever comes earlier. 
Approved, 
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