SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodrigue? and
___ Representative Maximo B. Rodriguez, Jr.

House Bill No, 0937

EXPLANATORY NOTE

Transparency of investment and incentives data will provide the government with accurate
information and greater understanding in the development of industries and sectors. These
data are critical for policy making for the economic development of the country.

More particularly, investment and incentives statistics are essential in

(a) assessing the contributionimpact of investments to the socioeconomic development
of the country;

(b) planning and decision making in the government and private sector,

(c) formulating and adopting sound investment policies and programs; and

(4) monitoring investment flows and activities

Information should, therefore, be more readily available and should always be collected and
reported, There is a need to generate more adequate and more reliable investment statistics
that the various stakeholders can utilize for evidence-based strategies and relevant action
planning,

The proposed measure will provide for an effective transparency framework for tax
incentives for investments. It increases transparency and accountability but presents
potential levers to optimize the grant of incentives.

In view of the foregoing considered, utmost consideration and passage of the bill is eamestly

‘sought.
wns IGUEZ

MAXHAO B. RODRIGUEZ, JR.


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
Second Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

House Bill No. 5537

ANACT.
ESTABLISHING A SYSTEM OF TRANSPARENCY FOR INVESTMENTS AND
INCENTIVES

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

SECTION 1. Title. This Act shall be known as the “Fiscal Incentives Transparency Act’.

SECTION 2. Declaration of Policy, The State shall encourage investments and grant
incentives to qualified investments to spur economic development. Accordingly, the following
are the declared policies of the State

a. The State shall strengthen the database of investments statistics to aid in the
formulation of policies and development of programs to enhance the competitiveness of the
country in the global economy.

b. The State shall monitor the incentives expenditures vis-d-vis the investments infused
and employment generation, among others, arising from the provision of incentives to
ensure that the concerned government agencies record accurate and complete investments
and incentives data, To this end, transparency is required in order to manage the fiscal cost
and economic benefits arising from these qualified investment activities.

SECTION 3. Definition of Terms.

investment Promotions Agencies (IPAs) shall refer to government entities created by
law, executive order, decree or other issuance, in charge of promoting investments and/or
administering the operations of the different economic zones and freeports in accordance
with their respective charters. These include the Board of Investments (BO!), Philippine
Economic Zone Authority (PEZA), Bases Conversion Development Authority (BCDA), Subic
Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC), Poro Point
Management Corporation (PPMC), John Hay Management Corporation (JHMC), 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

SECTION 4. Establishment of a Comprehensive Database on Investments and Incentives
Statistics. The National Economic Development Authority (NEDA) shall establish a
comprehensive database on investments and incentives statistics that shall serve as
repository of all investments and incentives data by all IPAs.

SECTION 5. Submission of Investment Data and Information. All heads of the IPAs shall
submit to the NEDA, investment and incentive data and information that shalll include, list of


registered enterprises and their investment projects, aggregate actual investment cost,
actual employment, taxes, licenses, fees paid, export earnings and income tax incentives
granted on a sectoral basis.

The IPAs shall be responsible to evaluate and process investments and incentives
data before submission to the NEDA.

The responsible officers of the respective IPAs that fail to undertake their mandate
under this Act shall be held liable under applicable laws, such as Republic Act No. 3019,
otherwise known as “Anti-Graft And Corrupt Practices Act’ and Republic Act No. 6770,
otherwise known as "The Ombudsman Act of 1989",

SECTION 6, Time of Submission of Investment Data and Information. All heads of the IPAs
shall submit regularly to the NEDA, all required data within one hundred eighty (180) days
from filing of the ITR annually, or within a reasonable period, as may be determined, taking
into consideration the administrative processes involved in the evaluation and determination
of the incentives that may be granted.

SECTION 7. Regular Updating of the Database on Investment Statistics. The
comprehensive database on investment and incentives statistics shall be updated on a
regular basis by the NEDA, All heads of the IPAs are required to reflect and submit all
changes to the Investment data and information to the NEDA within fifteen (15) days after
the end of every quarter.

SECTION 8. Power to Penalize. The IPAs shall impose penalty upon its registered
enterprises that do not submit the necessary data required to complete the investment and
incentives statistics database. The penalty may include imposition of fines, suspension of
incentives and other penatties allowed under the charter of the IPAs.

All registered enterprises shall submit the required data from the date of registration,
incentives availment and for a period of five years from the last ITH availment.

SECTION 9. Submission of Investments and Incentives Data, The NEDA shall submit, within
thirty (30) days after the end of every calendar year an annual investments and incentives
data, to the President and to the Chairman of the Committee on Appropriations and Finance
of both houses of Congress.

The data shall include a comprehensive sectoral cost-benefit analysis on the income-
tax incentives granted vis-a-vis the benefits including actual investments, employment
generated, export earings, taxes, licenses, and fees paid, and other related data.

SECTION 10. Confidentiality of Information. The NEDA shall protect the confidentiality of the
data and information gathered treated as “confidential” by the IPAs. Any breach of
confidentiality or unauthorized disclosure of these data and information shall make the
responsible officials liable as provided in the laws.

SECTION 11. Implementing Rules and Regulations (IRR). - The BOI, in coordination with
other concemed government agencies, shall promulgate rules and regulations to implement
the intent and provisions of this Act within one hundred twenty (120) days from the effectivity
of this Act. Such rules and regulations shall take effect fifteen (15) days following its
publication in a newspaper of general circulation in the Philippines.

SECTION 12. Transitory Provision. — Until the IRR of this Act take effect, the present rules
and regulations under the old investments laws shall apply to the extent that they are not
inconsistent with the provisions of this Act.

SECTION 13. Separability Clause. - The provisions of this Act are hereby declared to be
‘separable and, in the event any of such provisions is declared unconstitutional, the other
provisions which are not affected thereby, shall remain in force and effect.


SECTION 14. Repealing Clause. - All laws, executive orders, presidential decrees,
proclamations, rules, regulations, issuances and enactments of parts thereof inconsistent
with this Act are hereby repealed or modified accordingly.

SECTION 15. Effectivity, - This Act shall take effect fifteen (1) days following its publication
in the Official Gazette or ina newspaper of general circulation, whichever is earlier.

Approved,