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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

HOUSE BILL No._ 4843

Introduced by Representative Jose “Jun” L. Ong, Jr.

EXPLANATORY NOTE

This bill seeks to grant income tax holiday to newly registered business
establishments in the Province of Northern Samar.

Northern Samar is one of the three provinces in Samar Island. It is part of
the Eastern Visayas region composed of 24 towns and 569 barangays, with the
Municipality of Catarman as its provincial capital.

Northern Samar is located in the disaster-prone area, where natural
calamities are always occurring. It is exposed to a range of natural hazards,
such as typhoons, storm surges, floods, landslides, liquefaction, earthquakes and
tsunamis. About 70% of the towns in the province are highly susceptible to
these natural hazards.

In 2013, Typhoon Yolanda brought so much devastation in the province.
But in December 2015, according to the post disaster assessment report of the
Office of Civil Defense, Typhoon Nona was the strongest typhoon to hit
Northern Samar in 34 years which affected 112,655 families and left a trail of
destruction estimated at P14.39 billion.

On 3 January 2019, Northern Samar was placed under a state of calamity
due to terrible floods brought about by Tropical Depression Usman affecting
more or less 185,902 persons.

On top of the hazards, Northern Samar also belongs to the top 20 poorest
provinces in the country as shown by the 2018 survey conducted by the
Philippine Statistics Authority.

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Presently, Northern Samar is plunged deeper into poverty not only because
of the floods brought about by Typhoon Usman but also of the low prices of
copra and infestation of coconut and abaca crops which are the main sources of
livelihood in the province.

With the constant risk of loss and devastation, only a few businessmen are
brave enough to invest or establish businesses in the province. These few
entrepreneurs are really struggling to maintain their businesses.

With all of the foregoing, this measure seeks to revitalize the economic and
business condition of the province and create employment for the residents of
Northern Samar.

Granting a tax holiday to newly registered business enterprises in Northern
Samar will encourage businessmen to invest and establish business enterprises,

which, in turn, shall create job opportunities for local residents, and improve the
economy of the province.

In view of the foregoing, the approval of this bill is highly recommended.

,
iE ise ONG, JR.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 4943

Introduced by Representative Jose “Jun” L. Ong, Jr.

AN ACT
GRANTING INCOME TAX HOLIDAY TO ALL NEWLY
ESTABLISHED BUSINESS ENTERPRISES IN THE PROVINCE OF
NORTHERN SAMAR

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

SECTION 1. This Act shall be known as the “Northern Samar Tax
Holiday Incentives Act.”

SEC. 2. It is hereby declared the policy of the State to promote
local employment and encourage business opportunities and economic growth
in the countryside by providing tax holiday incentives to newly established
businesses.

SEC. 3. For a period of five (5) years from the effectivity of this Act, all
newly registered business enterprises in the Province of Northern Samar shall be
exempt from income tax levied by the National Government.

The tax exemption may be extended for another five (5) years subject to

the following criteria:


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a) The business enterprise covered has suffered operational force
majeure that has impaired its viability;

b) The business enterprise has not fully enjoyed the income tax
holiday granted to it for reasons beyond its control; and

c) The operation of the business enterprise has been subjected to
unforeseen changes in government policies.

Newly registered business entity refers to any individual, partnership,
corporation, Philippine branch of a foreign corporation, or other entity newly
incorporated, organized and existing under Philippine laws.

SEC. 4. All business enterprises availing of the income tax holiday under
this Act are required to file an annual income tax incentives report on or before
the deadline for the filing of annual income tax returns under the National
Internal Revenue Code as amended.

The details of the tax incentives reports, as provided in the preceding
paragraph shall be provided in the implementing rules and regulations of this
Act.

SEC. 5. Within sixty (60) days from the effectivity of this Act, the
Secretary of Trade and Industry, in coordination with the Secretary of Finance
and the Governor of Norther Samar, shall promulgate the necessary rules and

regulations for the effective implementation of this Act.


SEC 6. All laws, decrees, orders, rules and regulations and other
issuances, or part thereof, which are inconsistent with the provisions of this Act
are hereby repealed or amended accordingly.

SEC. 7. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,