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THIRTEENTH CONGRESS OF THE 
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Third Regular Session 
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6 JUL 24 mi 37 
REPLIBLIC OF THE P ” P M S  
) 
S E N A T E  
S.B. No. 
(In substitution of FIB 3295, taking into consideration SBNos. 513,798, 1104,1328, 
1332, and 1839) 
Prepared by the Committee with Senators Villar, Dnlon, Recto, Flavier, Pangilina and 
Gordon as authors thereof. 
AN ACT 
FISCAL INCENTIVES, AND FOR OTHER PURPOSES 
HARMONIZING THE GRANT AND ADMINISTRATION OF FISCAL AND NON- 
Be it enacted by the Senate and House of Representatives of the PhilQpines in 
Congress assembled: 
PRELIMINARY TITLE 
TITLE AND DECLARATION OF POLICY 
SECTION 1. Title. - This Act shall be known as “The Consolidated Investments 
aid Incentives Code of the Philippines”. 
SEC. 2. Declaration of Investment Policies. - The national economy shall be 
devefoped so as to enhance its competitiveness in the global economy and encourage 
investments that proldote countrywide development, generate employment and foreign 
exchange. Accordingly, the following are declared policies of the State: 
(1) The State shall pursue a market responsive investment regime and to that end 
shall ensure that the incentives shall promote substantial social and economic spillovers, 
equitable development acrosS income classes and across provinces, are fiscally 
sustainable, fmancially and economically justifiable, and are consistent with international 
treaties. The State shall therefore provide the means for ascertaining that these objectives 
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(2) The State shall grant the necessary incentives that encourage long-term and 
recurrent investgent, are simple to administer, are time-bound and whose performance 
and outcomes are easily verifiable. 
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(3) The State shall devote resources to monitoring enterprises benefiting from 
incentives, and shall vigorously prosecute abuses. The State shall also closely monitor the 
level of tax expenditures arising .from the provision of incentives and shall ensure that 
concerned government agencies are well-informed of these developments. 
(4) In the granting of fiscal incentives, the State will make efforts to ascertain that 
the incentives are not redundant: that the investments they benefit require ana are truly 
motivated by the incentives or that the incentives, as much as possible, are not given to 
investors who would have made the investments even in the absence of incentives. 
(5) The State shall vigorously promote investments in basic inf?astructure such as, 
but not limited to power, roads, airports, water ports and housing. 
(6) The State recognizes that industrial peace is essential to attracting investments. 
(7) The State shall undertake investment promotion activities. 
TITLE I 
DEFINITION OF TERMS 
SEC. 3. Definition of Terms. -As used herein, the following shall mean: 
(a) “PLPA” is the Philippine Investment Promotion Administration created under this Act. 
(b) “Investment Promotion Agencies (IPAs)” shall include the Philippine Investment 
Promotion Administration (PIPA), Bases Conversion and Development Authority 
PCDA), Subic Bay Metropolitan Authority (SBMA), Clark Development 
Corporation (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), and PHNlDEC Industrial Authority (PIA). 
(c) “Registered enterprise” is 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 any of the PAS, in accordance with this 
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Act: Provided, however, That the term “registered enterprise” shall not include 
commercial b a s ,  savings and mdrtgage banks, rural banks, savings and loan 
associations, building and loan associations, developmental banks, trust 
companies, investment banks, finance companies, brokers and dealers in 
securities, consumers cooperatives and credit unions, and other business 
organizations whose prhcipal purpose or principal source of income is to receive 
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deposits, lend or borrow money, buy Ad sell or otherwise deal, trade or invest in 
common or preferred stocks, debentures, bonds or other marketable instruments 
generally recognized as securities, or discharge other similar intermediary, trust or 
fiduciary functions. 
(d) “Gross income earned” is the gross sales or gross revenues derived by the registered 
enterprise from its registered business activity net of sales discounts, sales returns 
and allowances minus cost of sales or direct costs but before any deductions for 
administrative, marketing, selling, operating expenses or incidental losses during 
a given taxable year. 
(e) “Export sales” is the sales values andlor revenues paid for in freely convertible 
foreign currency, determined from invoices, bills of lading, inward letters of 
credit, landing certificates, or other commercial documents, by a registered 
enterprise of its (1) products shipped out of the country and sold in the temtory of 
another country or (2) services rendered to clients abroad such as but not limited 
to information technology (IT) activities, application and/or installation of 
technology and systems in the project sites, including but not limited to the fields 
of engineering and construction design and other similar activities which may be 
approved ‘by the Board, excluding mere deployment of people or individual 
practice of profession abroad; or (3) logistics, repair and maintenance, and other 
similar services rendered to international airlinedshipping lineshilitary aircraft 
or seacraft even if rendered locally. 
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(0 “Tax refimd” is any refund against taxes andlor duties equal to those actually paid by a 
registered export enterprise and to be released by PIPA as provided for under 
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Section 17 of this Act. 
(g) “information Technology Activities” are activities which involve the use of any IT 
software andor system for value addition, IT, being the collective term for 
various technologies involved in processing and transmitting information which 
include computing, multimedia, telecommunications, microelectronics and their 
interdependencies, including the convergence of various information-based, 
broadcast and mass media communication technologies. 
(h) An “export enterprise” is a registered enterprise which is a manufacturer, processor 
or semke provider and whose export sale of its products or services is at least 
seventy percent (70%) of its output. 
(i) A “domestic enterprise” is a registered enterprise whose export.sales is less than 
seventy percent (70%) of its output, and is located in the thirty (30) poorest 
provinces as determined by the Department of Finance @OF): Provided, That 
such domestic enterprise has a minimum investment of Five hundred million 
pesos (P500,000,000) or can provide a minimum employment of two hundred 
(200) jobs: Provided, jkrther, That existing enterprises already located in the 
thirty (30) poorest provinces as determined by the DOF before the effectivity of 
this Act and have satisfied the minimum investment of Five hundred million 
pesos (P500,000,000) or minimum employment of two hundred (200) jobs are 
qualified to register and avail of the incentives provided in this Act, 
6) “Capital Equipment” refers to machinery, spare parts, tools and dies, or those required 
for pollution abatement and control, cleaner production and water reduction. 
(k) “Source documents” are input materials and documents reasonably needed by IT and 
IT-enabled industries such as, but not limited to, books, directories, magazines, 
newspapers, brochures, pamphlets, medical records/files, legal records/files, 
inskction materials, drawings/blueprints/outlines. 
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(I) “Processing” is converting raw materials into marketable form through physical, 
mechanical, chemical, electrical, biochemich, biological or other means, or by a 
special treatment or a series of actions, such as slaughtering, milling, pasteurizing, 
drymg 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. 
(m) “Industrial Estate (IE)” refers to a tract of land subdivided and developed according 
to a comprehensive plan under a unified continuous management and with 
provisions for basic inf7astnxctm-e and utilities, with or without pre-built standard 
factory buildings and community facilities for the use of a community of 
industries. 
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(n) “Export Processing Zone (EPZ)” refers to a specialized industrial estate and 
predominantly oriented to export production. 
(0) “Special Economic Zones (SEZ)” hereinafter referred to as ecozones, are selected 
areas with highly developed or which have the potential to be developed into 
ago-industrial,’ industrial, information techology, tourist/recreationaI centers. 
An ecozone may contain any or all of the following: 
industrial estates (IEs), 
export processing zones (EPZs), IT parks and centers, and tourism estates. 
“Tourism Estate” is a tract of land with defined boundaries, suitable for 
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development into an integrated resort complex, with prescribed carrying 
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capacities, of tourist facilities and activities, such as, but not limited to, sport and 
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recreation centers, accommodations, convention and cultural facilities, food and 
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beverage outlets, commercial establishments and other special interest and 
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attraction activities/establishments, and provided with roads, water supply 
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facilities, power distribution facilities, drainage and sewage systems, and other 
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necessary infrastructures and facilities. A tourism estate shall be under unified 
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and continuous management, and can either be a component of an ecozone or the 
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whole ecozone itself. 
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(4) “Freeport” is an isolated and policed area adjacent to a port of entry as defined by 
Section 3519 of the Tariff and Customs Code, which shall be operated and 
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managed as a separate customs territory to ensure free flow or movement of 
goods, except those expressIy 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 
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. subject to import duties and taxes. 
TITLE 11 
CREATION OF THE PHILIPPINE INVESTMENT PROMOTION 
ADMINISTRATION (PIPA) 
SEC. 4. Creation of The Philippine Investment Promotion Administration (PIPA) 
The Board of Investments POI) created under Executive Order No. 226, Series of 1987, 
as amended, and the Philippine Economic Zone Authority CpEZA) created under 
Republic Act No. 7916, as amended, are hereby merged, renamed, and reorganized as the 
Philippine Investment Promotion Administration (PIPA), attached to the Department of 
Trade and Industry @TI), and which shall implement the provisions of this Act except as 
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otherwise provided herein. The unexpended appropriations, assets and properties of BO1 
and the assets and properties of PEZA are hereby transferred to PIPA. 
The personnel of PEZA and BO1 shall be absorbed by PPA or DTI. For this 
purpose, the Board shall determine the personnel to be absorbed by PIPA. Those who 
will not be absorbed due to either the inability to meet the qualification standards and 
selection criteria or the non-existence of a suitable position in PIPA or DTI shall be 
deemed separated from the service: Provided, That those who will not be absorbed by 
PIPA or DTI, including those who will opt to retire from government service shall be 
entitled to all gratuities and benefits under existing laws. 
Existing Conventions or Agreements for the Avoidance of Double Taxation and the 
Prevention of Fiscal Evasion with Respect to Taxes on Income (income tax treaties) that 
grant reduced income tax rates on dividends, interests and royalties paid by BOI- 
registered enterprises 'to foreign persons shall, d e r  the merger of BO1 and PEZA by 
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virtue o f  this Act, continue to grant the reduced rates to foreign persons until the 
expiration of the enterprises' registration certificates with BO1 and after such enterprises 
registered with PIPA. 
SEC. 5. Genercal Powers and Functions of the Administration. - PPA shall have 
the following powers and fimctions: 
I. To establish, operate, administer, manage and develop the ecozones and freeports 
according to the principles and provisions set forth in this Act; 
2. To register, regulate and supervise the enterprises in the ecozones and freeports in 
an efficient and decentralized manner; 
3. To register, regulate and supervise qualified enterprises outside the ecozones and 
freeports; 
4. To coordinate with local government units and exercise general supervision over 
the development, plans, activities and operations of ecozones, industrial estates, 
export processing zones, free trade zones, and the like; 
5. To regulate and undertake the establishment, operation and maintenance of 
utilities, oqer services and infrastructure in the ecozones, such as heat, light and 
power, water supply, telecommunications, transport, toll roads and bridges, port 
services, and others, and to fix just, reasonable and competitive rates, charges, 
and fees therefor: Provided, That the appropriate government regulatory agencies 
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shall regulate the operation, maintenance and services o f  utilities such as heat, 
light, power, water supply, telecommunications, transport, toll roads and bridges, 
port services, and others based inside the ecozones insofar as such services are 
rendered outside the ecozones. 
To construct, acquire, own, lease, operate and maintain on its own or through 
contract, hchise, license, bulk purchase from the private sector and build- 
operate-transfer scheme or joint venture, adequate facilities and infi-astructure, 
such as light and power systems,' water supply and distribution systems, 
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telecommunication and transportation, buildings, structures, warehouses, roads, 
bridges, ports and other facilities for the operation and development of the 
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ecozones and freeports, in coordination with the local government units 
concerned and appropriate agencies,; 
7. To create, operate andor contract to operate such agencies and functional units or 
offices and or subsidiaries of PPA on its own or jointly with any private 
individual or entity as it may deem necessary and provide funds therefor; 
8. To adopt, alter and use a corporate seal; make contracts, lease, own or otherwise 
dispose of personal and real property; sue and be sued; and otherwise carry out its 
duties and functions as provided for in this Act; 
9. To coordinate the formulation and preparation of the development plans of the 
qualified enterprises; 
10. To formulate and implement industrial development plans and programs; 
11. To formulate and coordinate investments promotion activities; 
12. To establish an investments one-stop-action-center; 
13. To formulate positions and strategies on bilateral, regional or multilateral 
investments agreements or arrangements; 
14. To coordinate with the National Economic and Development Authority, 
Department of Trade and Industry, Department of Science and Technology, and 
the local government units and appropriate government agencies for policy and 
program formulation and implementation; and 
15.To monitor and evaluate the development and requirements of registered 
enterprises and recommend to the local government units or other appropriate 
authorities the locatiori, incentives, basic services, utilities and infrastructure 
required or to be made available for said enterprises. 
SEC. 6. n e  Board. - PIPA shall be governed by a Board created under this Act, 
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hereinafter referred to as the "Board". 
SEC. I .  Compbsition of the Board: - The Board shall be composed of thirteen 
(13) members as follows: the Secretary of the Department of Trade and Industry @TI) 
as Chairman; the Director-General of PIPA as Vice-chairman; an undersecretary of the 
Department of Finance @OF), Department of Labor and Employment (DOLE), 
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Department of Envirhnent and Natural Resources (DENR), Department of Public 
Works and Highways (DPWH), Department of Science and Technology (DOST), and 
Department of Energy (DOE); the Deputy Director-General of the National Economic 
and Development Authority (NEDA); the Commissioner of Bureau of Internal Revenue 
@a); 
the Commissioner of Bureau of Customs (BOC); one (I) representative f?om the 
labor sector; and one (1) representative from the investorshusiness sector. 
The 
representatives from the labor and investorshusiness sectors shall be appointed by the 
President from the nominees of their respective sectors and from among the enterprises 
registered with PIPA. In case of the unavailability of the Secretary of DTI to attend a 
particular Board meeting, the Director-General of PIPA shall act as chairman. 
SEC. 8. Powers and Duties ofthe Board. -The Board shall be responsible for the 
regulation and promotion of investments. It shall meet as oRen as necessary. Notice of 
regular and special meetings shall be given to all members of the Board. The presence of 
seven (7) members of the Board shall constitute a quorum and the affirmative vote of 
seven (7) members of the Board in a meeting validly held shall be necessary to exercise 
its powers and perform its duties, which shall include but not be limited to the following: 
(1) Set the general policies on the establishment and operations of the ecozones, 
industrial estates, export processing zones, free trade zones, and the like; 
(2) Promulgate rules and regulations to implement the purposes of this Act and such 
other laws as the Board i s  mandatedto implement; 
(3) Formulate investment promotion policies under a ‘one country approach’; 
(4) Approve, deny, suspend, revoke applications for registration with the Board, 
imposing terms and conditions as it may deem necessary to promote the purposes 
of this Act, including the refund and forfeiture of incentives when appropriate, 
restricting availment of incentives not needed by the project as determined by the 
Board, requiring performance bonds from PIPA-accredited bonding companies, 
and payment of application, registration, publication and other fees when 
warranted; 
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(5) Decide controversies arising from the implementation of this Act that may arise, 
within thirty (30) days after the controversy has been submitted for decision: 
Provided, That the investor or the registered enterprise may appeal the decision 
for registration by the Board within thirty (30) days from receipt thereof to the 
President. The Board shall have the power to subpoena witnesses, administer 
oaths, and compel the production of books, papers, and other evidence, and to cite 
for contempt ahy persodorganization that fails to comply with the aforestated 
processes: Provided, further, That the Board may grant immunity from 
prosecution to any person whose testimony or documents or other evidence is 
necessary or relevant to the case; 
(fj) Cancel the registration or suspend the incentives of a registered enterprise and/or 
require refund of incentives as well as interests and monetary penalties. The 
Board shall recommend to the appropriate bureau of DOF to levy properties of the 
registered enterprise for grave failure to comply with the substantive terms and 
conditions of registration: Provided, That the registration of an enterprise whose 
project timetable for implementation, as approved by the Board, shall be 
considered automatically cancelled if it is delayed by one year, unless otherwise 
reinstated as a registered enterprise by the Boar& 
(7) Determine the organizational structure of PIPA taking into account Section 12 of 
this Act; appoint, discipline or remove its personnel consistent with the provisions 
of civil service laws, d e s  and regulations; 
(8) Monitor and coordinate investment promotion activities of all PAS; 
(9) Formulate position for bilateral, regional or multilateral investments and 
investment-related trade agreements and/or arrangements; 
(10) Formulate industrial programs on economic development including those 
relating to the implementation of international trade, investments and trade, and 
investment-related environmental agreements and protocols; 
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(1 1) Formulate industry and sectoral development programs, the National Plan for 
Investment Promotions (NPIP) and gather and compile data required for the 
effective implementation of this act; 
(12) Recommend. to the President, subject to constitutional limitations and other 
nationalization laws, the suspension of the nationality requirement provided for in 
this Act in cases involving bilateral or regional investments or trading agreements 
of the Philippines with other countries or when the existing laws of another 
country where the investor comes from provides no nationality restrictions for 
Filipino investors or provides for reciprocal nationality accommodations; 
(13) Establish offices in the Philippines and abroad, as needed; 
(14) Within four (4) months after the close of the fiscal year, submit an annual report 
to the President and Congress on the Board’s administration of this Act, including 
recommendations on investment policies; 
(15) Formulate policies that wiII stimulate investments in the most poverty-stricken 
areas of the country, and reduce regional and social inequality; 
(16) Enter into agreements with other agencies for the simplification o f  systems and 
procedures involved in the promotion of investments, operation of economic 
zones and registered enterprises, and other activities necessary for the effective 
implementation of this Act; and 
(17) In general, exercise all powers necessary or incidental to attain the purposes of 
this Act and other laws vesting additional functions on the Board. 
SEC. 9. Powers and Duties of the Chairman. - The Chairman shall have the 
following powers and duties: 
(1) Preside over the meetings of the Boar4 
(2) Sign annual and special reports to the President and Congress; 
(3) Act as liaison between investors seeking joint venture arrangements; 
(4) Recommend to the Board policies and measures necessary to carry out the 
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(5) Generally exercise other powers and perform other duties as may be directed by 
the Board. 
SEC. 10. The Director-General. - PIPA shall have a Director-General with the 
rank of a department. undersecretary who. shall be appointed by the President. The 
Director-General shall be at'least forty (40) years of age, of proven probity and integrity, 
and a degree holder in any of the following fields: economics, business, public 
administration, law, management or their equivalent, and with at least ten (10) years of 
relevant working experience. preferably in the field of management or public 
administration. 
The Director-General shall be assisted by six (6) Deputy Directors-General each for 
policy and planning, administration, operations, investment promotion, industry 
development, and Investments One-Stop-Action-Center (OSAC), who shall be appointed 
by the Board, upon the recommendation of the Director-General. The Deputy Directors- 
General shall be at least thirty-five (35) years old, with proven probity and integrity, and 
a degree holder .in any of the following fields: economics, business, public 
administration, law, management or their equivalent. 
SEC. 11. Powers and Duties of the Director-General - The Director-General 
shall have the following powers and duties: 
(1) Execute allacts of administration; 
(2) Prepare and iecommend to the Board the staffing pattern and personnel 
complement of PPA and establish regional offices, when necessary, subject to 
the approval of the Board. 
(3) Prepare the agenda for the meetings of the Board and submit for its consideration 
and approval the policies and measures which the Chairman deems necessary and 
proper to carry out the provisions of this Act; 
(4) Preside over the meetings of the Board in the absence of the Chairman; 
(5) Assist registered enterprises and prospective investors to expedite processing of 
papers required by all government offices, agencies, instrumentalities and 


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financial institutions; and in addition he shall have the following specific powers 
and responsibilities: 
(A) To safeguard all the lands, buildings, records, monies, credits and 
other properties and rights of the ecozones under their jurisdictions; 
(B) To ensure that all revenues of the ecozones are collected and applied 
in accordance with its budget; 
(C) To ensure that the bvestors/fms and employees of the ecozones are 
properly discharging theL respective duties; 
@) To give such information and recommend such measures to the Board, 
as he shall deem advantageous to the ecozone; 
Q To submit to the Board the ongoing and proposed projects, work and 
financial program, annual budget of receipts, and expenditures of the ecozones; 
(F) To represent the administration in all its business matters and sign on 
its behalf after approval of the Board, all its bonds, borrowings, contracts, 
agreements and obligations made in accordance with this Act; 
(G) To acquire jurisdiction, as he may deem proper, over the protests, 
complaints, and claimq’bf the residents and enterprises in the ecozone concerning 
administrative mattery; 
(H) To recommend to the Board the grant, approval, refusal, amendment 
or termination of franchises, licenses, permits, contracts, and agreements within 
the ecozones in accordance with the policies set by the Board, 
(I) To require owners of houses, buildings or other structures constructed 
without ‘the necessary permit whether constructed on public or private lands, to 
remove or demolish such houses, buildings, structures within sixty (60) days after 
notice and upon failure of such owner to remove or demolish such houses, 
building or stqcture within said period. The Director-General or his .authorized 
representative may summarily cause their removal or demolition at the expense of 
the oher, any existing law, decree, executive order and other issuances or part 
thereof to the contrary notwithstanding; 
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(J) To take such emergency measures as may be necessary to avoid fires, 
floods, and mitigate the effects of storms and other natural or public calamities; 
(K) To prepare and make out plans for the physical and economic 
development of the economic zone, including zoning and land subdivision, and 
issue such rules and regulations which shall be submitted to the Board for its 
approval, and 
Q To perform such other duties and exercise such powers as may be 
prescribed by the Board, and to implement policies, rules and regulations set by 
the Board. 
SEC. 12. Appointment of Personnel. - The Board shall provide for an 
organization of officers and employees of PIPA, and upon recommendation of the 
Director-General, appoint and fix the remunerations and other emoluments: Provided, 
That the Board shall have exclusive and final authority to promote, transfer, assign or 
reassign officers and other personnel subject to civil service laws, rules and regulations. 
All positions in PIPA shall be governed by a compensation and position 
classification system and qualification standards approved by the Board based on a 
comprehensive job ahalysis and audit of actual duties and responsibilities. 
The 
compensation plan shall be comparable with the prevailing compensation plans in the 
SBMA, CDC, BCDA and the private sector, and shall be subject to periodic review by 
the Board no more than once every two (2) years without prejudice to yearly merit 
reviews or increases based on productivity and profitability. PIPA shall therefore be 
exempt from existing laws, rules and regulations on compensation and position 
classification standards. It shall endeavor to make its system conform as closely as 
possible with the principles under Republic Act No. 6758, otherwise known as the Salary 
Standardization Law. 
TITLE KI 
INCENTNES TO REGISTERED ENTERPRISES 
SEC. 13. Quelified Enterprises. - The followkg may register with PIPA to avail 
of the incentives provided in this Act: 
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(a) export enterprises; or 
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(b) domestic enterprises 
SEC. 14. Incentives to Registered Export Enterprises. - PPA shall make the 
foIlowing incentives available to registered export enterprises: 
(a) Reduced Tax Rates. - Imposition of a preferential tax rate of fifteen percent (15%) of 
taxable income as defined under Section 31 of the National Internal Revenue 
Code of 1997, as amended. 
(b) Net Opemthg Loss Carryover (NOLCO) - The net operating loss of the registered 
export enterprise during the first five (5) years from start of commercial operation 
which had not been previously offset as deduction from gross income shall be 
carried over as a deduction from gross income for the next ten (10) years 
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immediately following the year of such loss: Provided, That after the availment 
of NOLCO of registered export enterprises. under this provision, the pertinent 
provisions under the National Intemal Revenue Code of 1997, as amended, shall 
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amended. 
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(c) Accelerated Depreciation. - Accelerated depreciation of plant, machinery, and 
equipment that are reasonably needed and actually used for the production and 
transport of goods and services may be depreciated using a rate not exceeding 
twice the rate which would have been used had the annual allowance been 
computed in accordance with the rules and regulations prescribed by the Secretary 
of Finance and the provisions of the National Internal Revenue Code of 1997, as 
(d) Capital Equipment Incentives. - Importations of capital equipment, including 
consignment thereof by registered export enterprises upon the effectivity of this 
Act, shall be exempt from customs duties: Provided, That the importation thereof, 
shall be used exclusively by the registered export enterprise in its registered 
activity. Iffhe capital equipment shall be used by the registered export enterprise 
other than for its registered activity, the availment of incentives under this 
paragraph shall be subject to the rules and regulations to be promulgated by PPA: 
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Provided, further, That for export enterprises, value-added tax paid on imported 
capital equipment shall be refunded upon proof of exportation of their products 
under the mechanism and guidelines provided in Section 17 of this Act. 
(e) Raw Material Incentives. -Every registered export enterprise shall be entitled to duty- 
free importation of raw materials which are used in the manufacture, processing 
as defined in Section 3 of this Act, or production of its export products: Provided, 
That value-added tax shall be refunded upon presentation of proof of exportation 
of their products under the mechanism provided in Section 17 of this Act. 
(0 Duty-free importation of source documents by IT registered export enterprises. 
(g) Exemption from Wharfage Dues. - The provisions of law to the contrary 
notwithstanding, exports by a registered export enterprise shall be exempted from 
wharfage dues. 
(h) Registered export enterprises shall have an option between the preferential tax rate of 
fifteen percent q15%) as provided in Section 14 (a) of this Act, or the five percent 
(5%) of the gross income earned in lieu of all national and local taxes, except 
value-added tax (VAT) and real pmperty tax on land. Once a registered export 
enterprise has made an option provided in this paragraph, such option shall be 
irrevocable for the duration of its registration. 
The five percent (5%) of the gross income earned by registered export 
enterprises shall be paid and remitted as follows: 
1. Sixty percent (60%) to the National Government; and 
2. Forty percent (40%) to the treasurer's office of the municipality or city where 
the enterprise is located. 
(i) Employment of Foreign Nationals. - Subject to the provisions of Section 29 of 
Commonwealth Act No. 613, as amended, a registered export enterprise may 
employ foreign nationals in supervisory, technical or advisory positions for a 
period not exceeding five (5) years from its registration, extendible for limited 
periods at the discretion of the Board: Provided, however, That when the 
majority of the capital stock of a registered enterprise is owned by foreign 
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investors, the positions of president, treasurer and general manager of their 
equivalents may be retained by foreign nationals beyond the period set forth 
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incentive, their spouses and unmarried children under twenty-one (21) years of 
age, who are not excluded by Section 29 of Commonwealth Act No. 613, as 
amended, shall be permitted to enter and reside in the Philippines during the 
period of employment of such foreign nationals. 
A registered export enterprise shall train Filipinos as understudies o f  
foreign nationals in administrative, supervisory and technical skills and shall 
submit annual reports on such training to the Board Provided, That employment 
of foreign nationals hired by registered export enterprises in a supervisory, 
technical or advisory capacity shall not exceed five percent (5%) of its workforce 
without the express authorization of the Secretary of DOLE. 
SEC. 15. Incentives to Registered Domestic Enterprises. 
(a) Reduced Tax Rates. - Imposition of a preferential tax rate of fifteen percent (15%) of 
taxable income as defined under Section 31 of the National. Internal Revenue 
Code of 1997, as amended. 
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(b) Net Operating Loss Canyover (NOLCO) - The net operating loss of the rpgistered 
domestic enterprise during the first five (5) years from start of commercial 
operation which had not been previously offset as deduction from gross income 
shall be carried over as a deduction &om gross income for the next five (5) years 
immediately following the year of such loss: Provided, That after the availment 
of NOLCO of registered domestic enterprises under this provision, the pertinent 
provisions under the National Internal Revenue Code of 1997, as amended, shall 
apply. 
(c) Accelerated Depreciation. - Accelerated depreciation of plant, machinery, and 
equipment that, are reasonably needed and actually used for the production and 
transport of goods and services may be depreciated using a rate not exceeding 
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twice the rate which would have been used had the annual allowance been 
computed in accordance with the rules’and regulations prescribed by the Secretary 
of Fmmce and.the provisions of the National Internal Revenue Code of 1997, as 
amended. 
Except as otherwise provided in Sections 14 and 15 of this Act, no other fiscal 
incentives shall be granted by PIPA. PlPA shall equip itself with sufficient personnel to 
ensure that: (1) investments acquiring incentives under this Act abide by the strict 
investment location or employment conditions stipulated in Section 3(i) of this Act; and 
(2) friolators will be meted appropriate penalties. 
SEC. 16. Incentives to Investors. 
(a) A foreign national who invests an amount of at least US$150,000 either in 
cash andor equipment, in a registered enterprise shall be entitled to an Investor’s Visa: 
Provided, That: 
(1) He is at least eighteen (18) years of age; 
(2) He has not been convicted of a crime involving moral turpitude; 
(3) He is not afflicted with any loathsome, dangerous or contagious disease; 
(4) He has not been institutionalized for any mental disorder or disability; 
Provided, further, That as a holder of the Investor’s Visa, an alien shall be entitled 
to reside in the Philippines while his investment subsists. For this purpose, he should 
submit an annual report, in the form duly prescribed by the Board for the purpose, to 
prove that he has maintained his investment in the country. Should said alien withdraw 
his investments &om the Philippines, then the Investor’s Visa issued to him shall 
automatically expire. 
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@) Foreign persons receiving dividends, interests and royalties from BOI- 
registered enterprises subject to reduced income tax rates under existing income tax 
treaties, shall after the merger of BO1 and PEZA by this Act, be entitled to the reduced 
rates until the expiratidn of the enterprises’ registration certificates with the BO1 and after 
such enterprises registered with PIPA. Provided, That a favorable ruling is secured from 
the BIR for this purpose. 
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SEC. 17. Rejind of Value Added Ti PAT) Paid on Importation of: Goods. - In 
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order to facilitate the immediate processing, clearance and release of VAT refunds as 
provided in this Act, a Trust Liability Account (TLA) is hereby authorized to be 
established in the Bureau of Treasury (BTr). All VAT payments on the importation of 
registered export enterprises of capital equipment and raw materials shall be deposited in 
the TLA for the purpose of funding valid VAT refund claims. The claims for VAT 
refunds shall be made by the registered export enterprise to PPA which, in turn, will 
process, approve and release the VAT refund. 
The VAT paid on imported capital equipment may be refunded provided that the 
capital equipment is being used by the registered export enterprise pursuant to its 
registered activity. 
The amount of VAT refund on a particular shipment of raw materials shall be 
equivalent to the proportion of raw materials used in the production of the exported goods 
to the total raw materials imported multiplied by the amount of VAT paid on such 
importation. No claim for refund shall be allowed on VAT paid on raw materials which 
are not or no longer intended to be used in the registered export activity. 
A registered export enterprise shatl, file a claim for VAT %fund within two (2) 
years after the payment was made. All amounts paid but no longer allowed for refund 
shall immediatety accrue to the general f h c l  of the National Government. 
All applications for VAT refund shall be processed and acted upon within thirty 
(30) days after submission of complete documents. The refund shall be in a form of cash 
or managers/cashiers check payable to the registered export enterprise. 
In cases of dispute under the VAT refund mechanism provided in this section, the 
pertinent provisions of the National Internal Revenue Code of 1997, as amended, shall 
apply. 
The Implementing Rules and Regulations for this Section shall be formulated by 
PIPA DOF, SIR, BOC, BTr and the Department of Budget and Management @BM), 
subject to the approval of the Board. 
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TITLE iV 
REGISTRATION OF ENTERPRISES 
SEC. 18. Q~iali@atiom of a Registered Enterprise. - Other than the qualifications 
specified under Section 3@) and (i) of this Act, an applicant must also satisfy the 
following conditions to be registered and avail ofthe incentives provided in this Act: 
(a) He is a citizen of the Philippines, in case the applicant i s  a natural person, or in case of 
a corporation or partnership or any other association, regardless of nationality, 
organized and/or registered and existing under Philippine laws or Philippine 
branch of a foreign corporation and it must comply with all the qualifications 
provided under this Act: Provided, however, That for purposes of this Act and any 
law to the contrary notwithstwding, a natural-born ASEAN citizen or a 
corporation effectively controlled Liy ASEAN citizens shall be considered as a 
Philippine investor; Provided, further, That the investment is made in an activity 
where the Constitution does not specifically require Filipino participation; 
@) That the activity it will engage in is not within the activities reserved by the' 
Constitution td Philippine citizens or corporations owned and controlled by 
Philippine cihiens; and 
(c) That if the applicant is engaged or proposes to engage in undertakings or activities 
other than the registered activities, it shall install an accounting system adequate 
to identify the investments, revenues, costs, and profits or losses of each 
registered activity undertaken by the enterprise separately fiom the aggregate 
investment, revenues, costs and profits or losses of the whole enterprise, or to 
establish a separate corporation for each registered activity if PIPA should so 
require to facilitate proper implementation of this Act. 
(d) That if the applicant is already registered in any other PAS, such registration shall 
ipso fucto be cancelled upon registration with PIPA. 
SEC. 19. Application. - Applications shall be filed with PIPA and recorded in a 
registration book. The date appearing therein and stamped on the application shall be 
considered the date of official acceptance. In the event that an enterprise shall transfer to 
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another P A  or government assets enjoying incentives will be privatized, only the 
remaining nnutilized incentives shall be enjoyed by the enterprise or the ' transferee, 
vendee or assignee of the government corporation. All applications and their supporting 
documents filed under this Act shall be confidential and shall not be discIosed to any 
person except with the consent of the applicant or upon an order of a court of competent 
jurisdiction. 
SEC. 20. Criteria Evaluation of Application. - The following criteria will be 
considered in the evaluation of applications for registration: 
(a) Impact of the activity on the overall economy and fiscal sustainability; 
(b) Overall viability of the activity; 
(c) Extent to which investment incentives are redundant; 
(d) The extent of employment and slcills and foreign exchange generation; 
(e) The extent to which technological advances are applied and adapted to local 
conditions; 
(f) Extent to which the output of the applicant supports national export objectives; 
(g) Extent to which incentives contribute to the reduction of poverty and 
inequality; and 
(h) The extent to which incentives promote investments that help improve the 
quality of the environment. 
SEC. 21. Approval and Registration Procedures. - The Board shall adopt rules 
and regulations to facilitate action on applications filed with it; prescribe other criteria it 
may deem necessary for the evaluation of applications; devise standard forms for the use 
of applicants and delegate to the regional offices of the PJPA the authority to receive and 
process applications for enterprises to be located in their respective regions. Applications 
filed shall be considered automatically approved if not acted upon by the Board within 
fifteen (15) working days from official acceptance thereof Deferment by the Board shall 
be considered as an official action: Provided, however, That the Board may defer action 
on a specific application not more than twice and Provzded $nu&, That the Board shall 
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TITLE V 
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act upon the application within ten (10) working days from compliance with the cause of 
BASIC RIGHTS AND GUARANTEES OF REGISTERED ENTERPRISES 
SEC. 22. Protaction of Investments. - All investors and registered enterprises are 
entitled to the basic rights and guarantees provided in the Constitution. Among other 
rights recognized by the Government of the Philippines are the following: 
(a) Repatriation of Investments. - In the case of foreign investments, the right to 
repatriate the entire proceeds of the liquidation of the investment in the currency in which 
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the investment was originally made and at the exchange rate prevailing at the time of 
repatriation, subject to the provisions of Section 74 of Republic Act No. 265, as amended. 
For investments made pursuant to Executive Order No. 32, series of 1986 and its 
implementing rules and regulations, remittability shall be as provided therein; 
(b) Remittance of Earnings. -In the case of foreign investments, the right to remit 
earnings fiom the investment in the currency in which the investment was originally 
made and at the exchange rate prevailing at the time of remittance, subject to the 
provisions of Section 74 of Republic Act No. 265, as amended; 
(c) Foreign Loans and Contracts. - The right to remit at the exchange rate 
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No. 265, as amended; 
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prevailing at the time of remittance such sums as may be necessary to meet the payments 
of interest and principal on foreign loans and foreign obligations arising from 
technological assistanc'e contracts, subject to the provisions of Section 74 of Republic Act 
(d) Freedom from Expropriation. - There shall be no expropriation by the 
govemment of the property represented by investments or of the property of the 
enterprise except for public use or in the interest of national welfare or defense and upon 
payment of just compensation. In such cases, foreign investors or enterprises shall have 
the right to remit sums received as compensation for the expropriated property in the 
currency in which the investment was originally made and at the exchange rate at the 
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time of remittance, subject to the provisions of Section 74 of Republic Act No. 265, as 
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amended; and 
(e) Requisition of Investment. - There shall be no requisition of the property 
represented by the investment or of the property of enterprises, except in the event of war 
or national emergency and only for the duration thereof. Just compensation shall be 
determined and paid either at the time of requisition or immediately after cessation of the 
state of war or national emergency. Payments received as compensation for the 
requisitioned property may be remitted in the currency in which the investment was 
originally made and at the exchange rate prevailing at the time of remittance, subject to 
the provisions of Section 74 of Republic Act No. 265, as amended. 
TITLE VI 
ADMINISTRATION OF INCENTIVES 
SEC. 23. Certificate of Registration. - A PIPA-registered enterprise shall be 
issued a certificate of registration under the seal of PIPA and the signature of its 
Director-General and/or such other officer or employee of PIPA as the Board may 
designate and empower for the purpose. The certificate shall be in such form and style as 
the Board may determine. 
SEC. 24. Yalidiily of Registration. - The certificate of registration issued under 
this Act shall be valid for a period of twenty (20) years from the start of commercial 
operation. 
SEC. 25. Extension of Period of’Availment. - The availment period of the 
incentives provided herein may be extended by PIPA, in the event that the registered 
enterprise has suffered operational force majeure that has impaired its viability, 
equivalent for the period thereto. 
SEC. 26. Duties and Responsibilities of Other IPAs. - The following are the 
duties and responsibilities of the other PAS &der this Act: 
(a) Adopt unjform and consistent procedures of administering incentives, 
monitoring the recipients and to coordinate efforts in this regard; 
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@) Adopt and implement systems and procedures affecting trade and customs 
policies in accordance with the requirements established by the DOF; 
(c) Submit data and information to PPA and DOF as required by any of these 
agencies to ascertain consistency of investments policies and incentives, including their 
implementation as provided in paragraph (a), and to ensure the proper implementation of 
systems and procedures affecting trade and customs policies as provided in paragraph (b); 
and 
(d) Perform all other duties and responsibilities as may be required by the 
President. 
SEC. 27. Administration, Implementhtion and Monitoring of Incentives. - The 
PAS shall be respqnsible for the administration and implementation of the incentives 
granted to their respective registered enterprises. The PAS shall submit to PIPA and DOF 
their respective annual tax expenditures based on the computed costs in terms of revenue 
foregone on the tax incentives granted to their registered enterprises. For proper 
monitoring, PIPA shall create a single database of all incentives provided by all PAS and 
all information thereto. Double entry accounting shall be done in recording all incentives 
granted by the government for transparency purposes. The DTI, DOF, NEDA and PAS 
shall meet regularly t6 monitor and review the investments and incentives granted and 
submit an annual report to the President and Congress. 
SEC. 28. Payment in PhiIippine Peso 01 Foreign Currencies. - PPA may receive 
Philippine peso or fkeely convertible foreign currencies as payment of application fees, 
fines and penalties. 
TITLE VII 
SPECIAL ECONOMIC ZONES (ECOZONES) 
SEC. 29. Establishment of Ecozonar. - The metes and bounds of each ecozone 
are to be delineated add more particularly described in a proclamation to be issued by the 
President of the Philippines, upon the recommendation of the Board in coordination with 
municipal and/or city council, the National Land Use Coordinating Committee andor the 
Regional Land Use Committee. 
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The ecozones shall be developed through any of the following schemes: 
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Private initiative; 
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initiative with the assistance of the national 
government; and 
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National Government initiative. 
Areas to be established as ecozones shall be subject to the evaluation and 
recommendation of the Board, based on a detailed feasibility and engineering study 
which must conform with the following criteria: 
(a) 
The proposed area must be identified as a regional growth center in the 
Medium-Term Philippine Development Plan (MTF’DP) or by the Regional Development 
Council; 
(b) 
The existence o f  required inhstructure in the proposed ecozone, such as 
roads, railways, telephones, ports, airports, etc., and the suitability and capacity of the 
proposed site to absorb such improvements; 
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The availability of water source and electric power supply for use of the 
ecozone; 
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the extent of vacant lands available for industrial and commercial 
development and future expansion of the ecozone as well as of lands adjacent to the 
ecozone available for development of residential areas for the ecozone employees; 
(e) 
The availability of skilled, semi-skilled and non-skilled trainable labor 
force in and around the ecozone; 
(f) 
The area must have a significant incremental advantage over the existing 
economic zones and its potential profitability can be established; 
(g) 
(h) 
The area must be strategically located; and 
The area must be situated where controls can easily be established to 
curtail smuggling activities. 
Other areas which do not meet the foregoing criteria may be established as 
ecozones: Provided, That the said area shall be developed only through local government 
and/or private sector initiative, and without any financial exposure on the part of the 
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National Government: Provided, further, That the area can be easily secured to curtail 
smuggling activities: Provided, $naZly, 
That after five (5) years, the area must have 
attained a substantial degree of development, the indicators of which shall be formulated 
by PIPA. 
SEC. 30. Ecozone to be a Decentralized Agro-Industrial, Industrial, 
Conimercial/Trading, Tourist, Investment and Financial Community. - Within the 
framework of the constitution, the interest of national sovereignty and territorial integrity 
of the Republic, the ecozone shall be developed, as much as possible, into a 
decentralized, self-reliant and self-sustaining industrial, comrnercidtrading, agro- 
industrial, tourist center with minimum government intervention, Each ecozone shall be 
provided with transportation, telecommunications, and other facilities needed to generate 
linkage with industries and employment opportunities for its own inhabitants and those of 
nearby towns and cities. 
SEC. 31. Defense and Security. - The defense of the ecozone and the security 
of its perimeter shall be the responsibility of the National Government in coordination 
with PIPA. Military forces sent by the National Government for the purpose of defense 
shall not interfere in the internal affairs in any of the ecazone and expenditure for these 
military forces shall be borne by the National Government. The PIPA may provide and 
establish the ecozones’ internal security and firefighthg forces. 
SEC. 32. Relationship of PIPA to Privately-Owned Industrial Estates. - 
Privately-owned industrial estates shall retain their autonomy and independence and shall 
be monitored by P P A  for the implementation of incentives. 
SEC. 33. Admhistration ofthe National Building Code Inside the Ecozones. 
The administration and enforcement of the provisons of PD No. 1096, the 
National Building Code of the Philippines (NBCP) in all ecozones and areas owned and 
administered by PIPA shall be vested in the Director-General or his duly authorized 
representative. He shall appoint such qualified personnel as may be necessary to act as 
building official who shall be charged with the duty of issuing building permits in the 
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different zones. All fees and dues collected by the building official under the NBCP shall 
accrue to PIPA. 
TITLE W I  
FINAL PROVISIONS 
SEC. 34. Protection of the Environment. - PIPA, in coordination with the 
appropriate agencies, shall take concrete and appropriate steps to enact the proper 
measures for the protection of the environment, and shall coordinate with the 
Environmental Management Bureau of DENR to avoid undue delay in the issuance of the 
required Environmental Compliance Certificate (ECC): Provided, however, That 
applications for environmental clearances, permits, and/or licenses of registered 
enterprises shall be acted upon by the appropriate government agency within one hundred 
twenty (120) days from date of official acceptance. In the event that the appropriate 
government agency failed to act within the aforementioned date, the application for the 
said environmental requirement shall be deemed complied with for purposes of operation 
of the registered enterprise: Provided, $nul&, That the Board may withdraw the 
certificate of registration issued to the enterprise should the appropriate government 
agency eventually deny the application. 
SEC. 35. Suspension and Folrfeiture of Incentives of Registered Enterprises, 
Refund and Penalties. - When there is probable cause to believe that the registered 
enterprise has violated its registration terms and conditions, the Board may suspend its 
availment of incentives after due notice and hearing. The Board may impose fines and 
penalties and/or forfeit the incentives granted to the registered enterprise whenever there 
are violations of the registration terms and conditions by the latter, without prejudice to 
the cancellation of the registration of said enterprise: Provided, however, That the Board 
may cancel or abate only the imposition of fines. In case o f  cancellation of the certificate 
of registration granted under this Act, the Board may, in appropriate cases, require the 
refund of incentives availed of and impose corresponding fines and penalties. 
Any enterprise which violates any provision of this Act, its implementing rules 
and regulations, the t e n s  and conditions of its registration or any lawful directive of the 
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Board, or in the availment of incentives, including all official reports required to be 
submitted to the Board, shall be subject to a fine not to exceed One million pesos 
(Pl,OOO,OOO) but without prejudice to the cancellation of its registration: Provided, That 
any willful commission of fraudulent misrepresentation in its application for registration 
or submission of reports or gross violation of this Act and its implementing rules and 
regulations, a fine of at least One million pesos (Pl,OOO,000) but not to exceed Ten 
million pesos (PlO,OOO,OOO) shall be imposed, in addition to other penalties that may be 
imposed by the Board. 
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The Board shall prepare a schedule of fines and penalties to be imposed on erring 
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registered enterprises depending on the Violation incurred, which may be reduced in 
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exceptional cases. Responsible officers of such enterprises, including duly appointed 
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external consultants-agents who knowingly commit, aid or abet the commission of any of 
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the acts mentioned above, shall be subject to a fine of not less than One hundred thousand 
14 ' pesos (p100,OOO) but not more than Three hundred thousand pesos (P300,OOO). 
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commission of the foregoing acts shall likewise be liable to a fine of not less than One 
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hundred thousand pesos (PlO0,OOO) but not more than Three hundred thousand pesos 
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(P300,000), in addition to any criminal and administrative penalties imposable under the 
Civil Service Law, Revised Penal Code, Republic Act No. 3019 (Anti-Graft And Corrupt 
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Practices Act), Republic Act No. 6713 (Code Of Conduct And Ethical Standards For 
PubIic Officials) and other applicable laws. If the oEender is a foreign national, the 
foregoing acts shall be grounds for his summary deportation in addition to the imposable 
fmes and penalties above. 
SEC. 36. Zmplementing Rules and Regulations (1RR))r - The DTI, PIPA, DOF, 
NEDA, BIR and BOC shall promulgate the implementing rules and regulations (IRR) 
within two (2) months from the effectivity of this Act. 
SEC. 37. Transitory Provisions. - The incentives already granted to enterprises 
registered with BOI, PEZA, other PAS and under existing investment laws shall continue 
to be legally binding in accordance with the terms and conditions stated in their 
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. respective registration certificates. Existing enterprises registered with BOI, PEZA and 
other PAS may opt to register with PIPA and be governed by the provisions of this Act 
prior to the expiration of their existing contracts. For activities or entities, whether 
government or private, whose tax andor duty exemptions or preferential treatment under 
special laws are Withdrawn or repealed by this Act, the pertinent provisions of the 
National lntemal Revenue Code of 1997, as amended; the Tariff and Customs Code, as 
amended; and the Local Government Code of 1991, shall apply. 
In addition, dividends, interests and royalties subject to reduced income tax rates 
under existing income tax treaties paid by BOI-registered enterprises to foreign persons 
shall, after the merger of BO1 and PEZA by virtue of this Act, be subject to the reduced 
rates until the expiration of the enterprises’ registration certificates with the BO1 and after 
such enterprises registered with PIPA: Provided, That a favorable ruling is secured from 
the BIR for this purpose. 
SEC. 38. Revenue Gains or Savingspom the Rationalization of Fiscal Incentives. 
Revenue gains or,savings from the implementation of this Act shall be utilized 
exclusively for the following purposes: fifty percent (50%) for infrastructure and fifty 
percent (50%) for education purposes. 
Such allocations shdI be segregated as separate trust funds by the National 
Treasury and shall be over and above the annual appropriations for similar purposes. 
SEC. 39. SeparabiZity Clause. - If any proviiion of this Act is declared invalid 
and unconstitutional, the other provisions which are not affected thereby shall remain in 
force and effect. 
SEC, 40. Repealing Clauses. - The following laws or provisions of laws are 
hereby repealed 
(1) Executive Order No. 226, series of 1987 - “Tfie Omnibus Investments Code of 1987”; 
(2) Republic Act No. 7888 - “An Act to Amend Article 7(13) of Executive Order No. 
226, otherwise known as the Omnibus Investment Code of 1987; 
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199s”; 
(3) Republic Act .No. 7916, otherwise known as the “Special Economic Zone Act of 
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(4) Republic Act No. 8748, otherwise known as “An Act Amending Republic Act No. 
7916”; 
(5) Presidential Decree No. 66 - “Creating the Export Processing Zone Authority and 
Revising Republic Act No. 5490”; 
(6) Presidential Decree No. 529 - “Granting to Petroleum Exploration Concessionaires 
under the Petroleum Act of 1949 Exemption fiom Customs Duty and Compensating 
Tax on Importations of Machinery and Equipment, Spare Parts and Materials 
Required for their Exploration Operations”; 
(7) Section 8(d) of Republic Act No. 5487, entitled “An Act to Regulate the Organization 
and Operation of Private Detective, Watchmen or Security Guard Agencies (The 
private Security Agency Law)”; 
(8) Subparagraph (a)(2) and last sentence of subparagraph (b) of Section 8 and Section 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 Republic Act No. 6038, and for Other Purposes; 
(9) Sections 8, 9 and 10 of Presidential Decree No. 538, entitled “Creating and 
Establishing the PHIVIDEC Industrial Authority and Making its Subsidiary Agency 
of the Philippine Veterans Investment Development Corporation Defining Its Powers, 
Functions and Responsibilities and for Other Purposes”; 
(10) Section 36(fj’ of Presidential Decree No. 705, otherwise known as the “Revised 
Forestry Code”; 
(11) Section 25 of Presidential Decree No. 857, entitled “Providing for the 
Reorganization of Port Administration and Operation Functions in the Philippines, 
Revising Presidential Decree No. 505 Dated July 11, 1974, Creating the Philippine 
Port Authority, by Substitution, and for Other Purposes”; 
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(12) Section 16 (a), @), and (c). and Section 17 (a), (b), (c), (d) and (e) of Presidential 
Decree No. 972, as amended, entitled “Promulgating an Act to Promote an 
Accelerated Exploration, Development, Exploitation, Production and Utilization of 
coal“; 
(13) First sentence of the second paragraph of Section IO of Presidential Decree No. 972, 
as amended by Presidential Decree No. 1174, entitled “Amending PD NO. 972, 
Otherwise ]Known as the Coal Development Act of 1976’2 
(14) Sections 2 and 3 of Presidential Decree No. 1362, entitled “Allowing Radio 
Broadcasting and Television Stations to Import Radio or Television Equipment, 
Spare Parts and Allied Technical and Program Maten‘als to be Used Exclusively in 
their Broadcast Operations Subject to Certain Conditions: 
(15) Section 4 of Presidential Decree No. 1442, entitled “An Act to Promote the 
Exploration and Development of Geothermal Resources”; 
(16) Sections 18, 19,20 and 21 of Republic Act No. 6847, entitled “An Act Creating and 
Establishinige Philippine Sports Commission, Defining its Pow&, Functions and 
Responsibilities Appropriating Funds Therefor, and for Other Purposes”; 
(17) Section IO (l), (2),’(3), (4), (5), and (6) of Republic Act No. 7156, entitled “An Act 
Granting Incentives to Mini-Hydro Electric Power Developers and For Other 
Purposes”; 
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(18) Title 9, Section 21 of Republic Act No. 7306, entitled “An Act Providing for the 
Establishment of the People’s Television Network, Inc., Defining Its Powers and 
Functions, Providing for Its Sources of Funding and For Other Purposes”; 
(19) Section 14 of Republic Act No. 7354, entitled “An Act Creating :the Philippine 
Postal Corporation, Defining Its Powers, Functions and Responsibilities, Providing 
for Regulation”; 
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(20) Last sentence of Section 17 of Republic Act No. 7820, entitled “An Act Creating the 
Partido Development Administration, Defining Its Powers and Functions, Providing 
Funds Therefor, anzl for Other Purposes”; 
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(21) Section 16 (a), (b), (c), (d), (e) and Section 17 of Republic Act No. 7844, otherwise 
known as the “Export Development Act of 1994”; 
(22) Sections 83, 90, 91, 92 and 93 of Republic Act No. 7942, otherwise known as the 
“Philippine Miniig Act of 1995”; 
(23) Section 18 of Republic Act No. 8044, entitled “An Act Creating the National Youth 
Commission, Establishing a National ‘Comprehensive and Youth Development, 
Appropriating Funds Therefor, and for Other Purposes”; 
(24) Section 8 of Republic Act No. 8436, entitled “An Act Authorizing the Commission 
on Elections to Use an Automated Election System in the May 11, 1998 National or 
L00d Elections and in Subsequent National or Local Electoral Exercises, Providing 
Funds Therefor’and for Other Purposes’’; 
(25) Section 9 of Republic Act No. 8479, otherwise known as the “Downstream Oil 
Deregulation Act of 1998”; 
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(26) Section 3 a), b), c), 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”; 
(27) Section 35 @), (c) and (d) of Republic Act No. 8550, otherwise known as the 
“Philippine Fisheries Code of 1998”; 
(28) Section 26 (A.1, A.l.l, A.1.2) of Republic Act No. 9275, entitled “The Philippine 
Clean Water Act‘of 2004”; 
(29) Section 1 of Republic Act No. 9281, entitled “An Act to Strengthen Agriculture and 
Fisheries Modernization in the Philippines by Extending the Effectivity of Tax 
Incentives and its Mandated Funding Support, Amending for this Purpose Sections 
109 and 112 ofRepublic ActNo. 8435”; 
(30) Section 3 of Republic Act No. 9290, entitled “An Act Promoting the Development 
of the Footwear, Leather Goods and Tannery Industries, Providing Incentives 
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Therefor and for Other Purposes” 
(31) Section 5 of Executive Order No. 80, Series of 1993 - “Authorizing the 
Establishment of the Clark Development Corporation as the Implementing Arm of the 
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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”; 
(32) Se,ction 5 of Proclamation 216, Series of 1993 - “Creating the Poro Point Special 
Economic Zone Pursuant to Republic Act No. 7227”; 
(33) Section 3 of Proclamation No. 420, Series of 1994 - “Creating and Designating a 
Portion of the Area Covered by the Former Camp John Hay Special Economic Zone 
Pursuant to Republic Act No. 7227”; 
(34) Section 6 of Proclamation 984, Series of 1997 - “Creating the Morong Special 
Economic Zone Pursuant to Republic Act No. 7227”; 
(35) Executive Order No. 313, series of 2004, as amended by Executive Order $28, 
Series of 2006 - ‘‘Modifying the Rates of Duty on Capital Equipment, Spare Parts and 
Accessories Imported by BOI-Registered New and Expanding Enterprises”; and 
(36) Section 7 of Republic Act No 9282, entitled “An Act Expanding the Jurisdiction of 
the Court of Tax Appeals (CTA), Elevating Its Rank to the Level of A Collegiate 
Court With Special Jurisdiction and Enlarging Its MembmGp, Amending for the 
Purpose Certain Sections of Republic Act No. 1125, as amended, Otherwise Known 
as the Law Creating the Court of Tax Appeals, &d for Other Purposes” is modified 
accordingly to include in its jurisdiction cases involving the decisions or actions of 
PIPA in its VAT refund mechanism; 
AD other laws, acts,, decrees, orders and issuances or provisions thereof 
inconsistent wih any of the provisions of this Act are hereby repealed or modified 
accordingly. 
SEC. 41. Efectivi@. - This Act shall take effect fifteen (15) days following its 
publication in a newspaper of general circulation in the Philippines. 
Approved. 
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