RepublicofthePhilippines
HousE OF REPRESENTATrvEs
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOuieBii`iNO.   4994
EE!PVF98202r;;3:
Introduced by Representative Gabriel H. Bordado, Jr.
EXPIANATORY NOTE
Innovations that result in educational, scientific and technological, or economic
expansion  are  indispensable  in  nation-building.   But  before  these  innovations  can
materialize and  can  have a  profound  impact on  society,  a  great deal  of resources,
research,  funding,  and  time are  needed.  It  is  because of the disparity  between  the
investment needed and the profits or returns yielded that private sectors are seldom
enticed to bank on such innovations.
This   bill   wishes   to   encourage   more   organizations   to   take   part   in   the
development and innovations in various fields.  This Act, which had  been filed during
the   17th  Congress  by   Rep.   SalvadQr  BelarQ,   seeks  to  provide  tax  incentives  to
corporations,  partnerships,  organizations,  and other judicial entities that would invest
in basic research and that would introduce efficient innovations.
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Republic of the Philippines
HOUSE OF REPRESENTAITVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
•`     ''     ,\    a
House Bill No.
4994
Introduced by Representative Gabriel H. Bordado, Jr.
AN ACT GRANTING TAX INCENTIVES FOR RESEARCH ACTIVITIES
AND FOR OTHHR PURPOSES
Be  it enacted  by the  Senate and the  House of Representatives  of the
Philippines in Congress assembled:
SECTION 1. Short Title. This Act shall be known as the "Research Incentives Act of
2022"
SEC. 2. Declaration of State Policy - The State recognizes the indispensable role of
science and technology in a globalized world. Thus, investments in research, science
and technology should be encouraged and deserve reasonable state intervention.
SEC. 3. Expenses for research shall henceforth be deemed as deductions from gross
income  within   the   contemplation   of  the   National   Internal   Revenue   Code.   Such
expenses for research shall include, among others, that for research grants to faculty
members  of universities  conducting  independent  research  or commissioned  by  the
private sector for business purposes.
SEC. 4. All entities doing business in the Philippines in the field of research or those
that use new technQIQgy or research-based business activities shall be exempt frcm
the  payment  of  income  tax  for  a  period  of  two  (2)  years  from  the  time  of  the
commencement of their research or technology-based business.
SEC.   5.   The   Department  of  Science   and   Technology   (DOST),   Department   of
Education  (DepEd)  and  the  Bureau  of Internal  Revenue  (BIR)  shall  be tasked  with
formulating the rules and regulations necessary to implement this Act.
SEC. 6. The funds necessary to carry out the provision of this Act shall be included in
the  General  Appropriation  Act  of  the  year  following  its  enactment  into  law  and
thereafter.


SEC. 7. All laws, orders, issuances rules and regulations or parts thereof inconsistent
with any provisions Of this Act are hereby repealed, modified Qr amended accordingly.
SEC, 8. This Act shall  take  effect fifteen  (15)  days from  complete  publication  in  the
Official Gazette or in a newspaper of general circulation.
Approved,