Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

389
H.B.No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

The Aurora Pacific Economic Zone and Freeport Authority (APECO) is a goverment
owned and controlled corporation (GOCC) that is expected to generate revenues out of its
management and operation of the ecozone and free port. Thus, the APECO, like other GOCCs,
should be subject to taxes based on the principles of tax equity and neutrality, and financial and
operational self-sufficiency in the public corporate sector. This is especially true since it pays
dividends to the national government, being a recipient of capital infusions from the National
Government.

Realizing, however, the need to pour in resources in order to develop the zone, |
respectfully propose that 100% of the share of the National Government from the gross income
tax (3%) be appropriated to the APECO for ten (10) years for infrastructure development
purposes. A special trust fund shall be created in the Treasury for the purpose, and revenues
shall be remitted first to.the National Government but shall specifically accrue to this trust fund
for the stated special purpose. In this manner, the zone is assured for funding support
National Government while National Government is able to record tax revenues without
impacting on its tax effort.

For these reasons, | earnestly seek the approval of this bill

LAs a

JUAN EDGARDO “SONNY” M, ANGARA
Representative
Lone District, Province of Aurora



FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

H.

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
AMENDING REPUBLIC ACT NO. 9490, AS AMENDED BY REPUBLIC ACT NO.
10083, OTHERWISE KNOWN AS “AURORA PACIFIC ECONOMIC ZONE AND
FREEPORT ACT OF 2010”

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

SECTION 1. Section 5 (C) of Republic Act No, 9490, as amended by Republic Act No.
10083 shall be amended to read as follows:

“SEC. 5. Incentives to Registered Enterprises. — The Aurora Pacific
Economic Zone and Freeport Authority (APECO) may administer the following

incentives to the registered enterprises located therein to the extent of the
activity/project

Xxx

(C) Imposition of a tax rate of five percent (5%) on Gross Income Eamed
(GIE). — Except for real property tax on land, no local and national taxes as
prescribed under Republic Act No. 8424, also known as “The National intemal
Revenue Code of 1997, as Amended” such as income tax, excise tax and
franchise taxes, shall be imposed on registered enterprises operating within the
Aurora Ecozone. In lieu thereof, five percent (5%) of the gross income earned
shall be paid as follows:

(a) Three percent (3%) to the national government;

(b) One percent (1%) shall be remitted by the business establishments in
equal shares to the respective treasurer's office of the province and
the municipality where the enterprise is located; and

(©) One percent (1%) shall be remitted by the registered enterprises to
the APECO.

All persons and service establishments in the Aurora Ecozone shall be
subject to national and local taxes under the National Internal Revenue Code of
41997, as amended, and the Local Government Code, PROVIDED, THAT FROM
THE SHARES OF THE NATIONAL GOVERNMENT FROM THE FIVE
PERCENT (5%) TAX, ONE HUNDRED PERCENT (100%) SHALL BE
APPROPRIATED OVER A TEN-YEAR PERIOD TO AN INFRASTRUCTURE


DEVELOPMENT TRUST FUND TO BE CREATED BY THE BUREAU OF THE
TREASURY FOR THE PURPOSE OF FINANCING THE INFRASTRUCTURE
REQUIREMENTS OF THE AURORA PACIFIC ECONOMIC ZONE AND
FREEPORT.”

SEC. 2. Section 12-A of Republic Act No, 9490, as introduced by Republic Act No.
10083 shall be deleted. Thereafter, the existing Section 12-B of Republic Act No, 9490, as
introduced by Republic Act No. 10083, shall be re-numbered as Section 12-A.

SEC. 3. Effectivity. This Act shall take effect immediately after its publication in a
national newspaper of general circulation. This publication shall not be later than seven (7) days
after the approval hereof

Approved,