Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

1017

HOUSE BILL NO.

Introduced by Hon. Jerry P. Treiias

EXPLANATORY NOTE

‘The Cities Development Initiative for Asia (CDIA) is an established Asia-wide regional
technical assistance partnership facility supported by the Asian Development Bank, the Swedish
SIDA, and the respective Governments of Germany, Austria, Singapore, and Spain. It is the
intent of CDIA to solicit sustainable support from the countries of the Asian region

The Initiative provides assistance to medium-sized Asian cities to bridge the gap between
their development plans and implementation of their infrastructure investments. CDIA uses a
demand-driven approach to support the identification and development of urban investment
projects in the framework of existing city development plants, emphasizing environmental
sustainability, pro-poor development, climate change, and good governance. In view of the
laudable goals of the Initiative, the Republic of the Philippines has agreed to host the CDIA
headquarters in Manila, and to be a member of its Governing Council.

Considering the non-profit nature of the Initiative, it is prudent to exempt CDIA from
taxation in the Philippines, The present form of this bill, as filed, is the approved version of the
original bill as amended by the House Committee on Ways and Means per Committee Report
No. 671, This bill was approved on third reading by the House of Representatives as House Bill
No. 4270,

In view of the foregoing, the approval of this bill is highly encourage:

JERRY #. TRENAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1017

Introduced by Hon, Jerry P. Trefias

AN ACT TO EXEMPT THE CITIES DEVELOPMENT INITIATIVE FOR ASIA OR ITS
SUCCESSORS FROM THE PAYMENT OF GIFT, FRANCHISE, SPECIFIC,
PERCENTAGE, REAL PROPERTY, EXCHANGE, IMPORT, EXPORT, AND OTHER
‘TAXES, AND THE MEMBERS OF ITS SCIENTIFIC AND TECHNICAL STAFF FROM
PAYMENT OF INCOME AND VALUE ADDED TAX.

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

Section 1. The Cities Development Initiative for Asia (CDIA) is an established Asia-wide
regional technical assistance partnership facility supported by the Asian Development Bank, and
several of its Member Countries’ Governments for the purpose of providing assistance to Asian
countries, specifically medium-sized cities located in urban provinces, to bridge the gap between

their development plans and the implementation of their infrastructure investments,

Section 2. The provisions of existing laws or ordinance notwithstanding, the Cities
Development Initiative for Asia, or its successors, shall be exempt from payment of gift,
franchise, specific, percentage, real property, exchange, import, export, and other taxes provided

under existing laws and ordinances. This exemption shall extend to goods imported and owned


by the Cities Development Initiative for Asia to be leased or used by non-Filipino members of its
staff.

Section 3. All gifts, bequests, donations, and contributions given to the CDIA from any
source whatsoever, or which it may grant to any individual or nonprofit organization for
educational or scientific purpose, shall be exempt from payment of the taxes imposed under Title
IIL of the National Internal Revenue Code. All gifts, contributions, and donations to the CDIA
shall be considered allowable deductions for purposes of determining the income tax of the

donor,

Section 4, Non-Filipino citizens on the technical staff and scientific staff of the CDIA
shall be exempt from the payment of income tax on salaries and stipends in dollars received
solely and by reason of service rendered to the CDIA

Section 5. Separability Clause. — If any part, section or provision of this Act is held
invalid or unconstitutional, other provisions not affected thereby shall remain in full force and
effect,

Section 6. Repealing Clause. ~ All laws, decrees, orders, rules and regulations or other
issuances inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly

Section 7. Lffectivity. ~ This Act shall take effect fifteen (1'5) days after publication in the

Official Gazette or in two (2) national newspapers of general circulation,

Approved,