Source: https://www.digest.ph/laws/an-act-constituting-an-independent-presidential-electoral-tribunal-to-try-hear-and-decide-election-contests-in-the-office-of-president-and-vice-president-of-the-9
Timestamp: 2020-08-10 11:21:42
Document Index: 581185146

Matched Legal Cases: ['Art. 30', 'Art. 39', 'Art. 45', 'Art. 48', 'Art. 48', 'Art. 48', 'Art. 62', 'Art. 77']

Section 2. Declaration of Investment Policy. ? It is the policy of the State to encourage private domestic and foreign investments in industry, agriculture, mining and other sectors of the economy which shall: provide significant employment opportunities relative to the amount of the capital being invested; increase productivity of the land, minerals, forestry, aquatic and other resources of the country, and improve utilization of the products thereof; improve technical skills of the people employed in the enterprise; provide a foundation for the future development of the economy; meet the tests of international competitiveness; accelerate development of less developed regions of the country; and result in increased volume and value of exports for the economy.
"Art. 30. Criteria in Investment Priority Determination. ? No economic activity shall be included in the Investment Priorities Plan unless it is shown to be economically, technically and financially sound after thorough investigation and analysis by the Board.
"Art. 39. Several Applicants for a Preferred Area. ? Where several applicants are qualified for registration with the Board but the total of their proposed combined production capacities exceeds the available measured capacity of the preferred area of investments in which they are proposing to engage or of the identical or substantially identical products or commodities they propose to produce, the Board shall approve and register only those that can be accommodated within the available measured capacity and are better suited to achieve the objectives of the Code, primarily basing its choice on the economic rates of return of the competing projects. When the economic rates of return of the projects are equal or the differences therein are insubstantial, the Board shall base its choice on the following criteria:
"Art. 45. Incentives to Registered Domestic Producers. ? All registered domestic producers may be granted the following incentives to the extent that it will engage in new or expanded production capacity in preferred area of investment:
"(a) Tax and Duty Exemption on Imported Capital Equipment. ? Within five (5) years from the date of registration, importations of machinery and equipment and accompanying spare parts shall be exempt to the extent of fifty percent (50%) in case of non-pioneer domestic producer, or one hundred percent (100%) in case of pioneer producer, of the tariff duties and compensating tax payable thereon: Provided, That the amount of such tax and duty exemptions shall be deducted from the amount of the tax credits available to the registered domestic producer under paragraphs (c) and (f) hereof in relation to paragraph (d) of Article 48: Provided, however, That in the event the tax credits on net value earned and on net local content computed on a yearly basis for five (5) years from the date of commercial operation are not sufficient to pay yearly 20% of the taxes and duties on the equipment and spare parts, the domestic producer shall be required to pay the difference for that particular year. This payment may be deferred to the succeeding year only, subject to the payment of interest. The importation of machinery and equipment and accompanying spare parts shall comply with the following conditions:
"(b) Tax Credit on Domestic Capital Equipment. ? A tax credit equivalent to the value of the compensating taxes and customs duties that would have been waived on the machinery, equipment and spare parts, had these items been imported shall be given to the registered domestic producer which purchases machinery, equipment and spare parts from a domestic manufacturer: Provided, That the amount of the tax credit granted pursuant thereto shall be deducted from the amount of the tax credits available to the registered domestic producer under paragraphs (c) and (f) hereof in relation to paragraph (d) of Article 48: Provided, however, That in the event the tax credits on net value earned and on net local content computed on a yearly basis for five (5) years from the date of commercial operation are not sufficient to pay yearly 20% of the taxes and duties on the equipment and spare parts, the domestic producer shall be required to pay the difference for that particular year as provided in the immediately preceding article: and Provided, finally, (1) That the said equipment, machinery and spare parts are reasonably needed and will be used exclusively by the registered domestic producer in the manufacture of its products, unless prior approval of the Board is secured for the part-time utilization of said equipment in a non-registered activity to maximise usage thereof; (2) that the equipment would have qualified for tax and duty-free importation under paragraph (a) hereof; (3) that the approval of the Board was obtained by the registered domestic producer; and (4) that the purchase is made within five (5) years from the date of registration of the registered domestic producer. If the registered domestic producer sells, transfers or disposes of these machinery, equipment and spare parts, the provisions in the preceding paragraph for such disposition shall apply.
"(c) Tax credit on net value earned. ? For the first five (5) years of commercial operation, all registered domestic producers shall be entitled to a tax credit equivalent to five percent (5%) of net value earned. Those engaged in pioneer projects shall be entitled to this incentive to the extent of ten percent (10%) of net value earned over the same period or coterminous with the remaining period of availment of the registrant who first starts commercial operation in case there are several registered pioneer enterprises in the same activity, regardless of their respective dates of registration. For purposes of calculation of the tax credit, "net value earned" shall mean value of sales less cost of raw materials and components, supplies and utilities and depreciation of capital equipment. For raw materials and components which are produced by the registered enterprise, allocated costs may be determined by the Board. asia dc
"(d) Net Operating Loss Carry-Over. ? A net operating loss inclusive of financial charges of the registered activity incurred in any of the first ten (10) years of operation may be carried over as a deduction from taxable income from registered activities for the six (6) years immediately following the year of such loss. The entire amount of the loss shall be carried over to the first of the six (6) taxable years following the loss, and any portion of such loss which exceeds the taxable income of such first year shall be deducted in like manner from the taxable income of the next remaining five (5) years.
"(e) Tax Credit for Withholding Tax on Interest. ? A tax credit for taxes withheld on interest payments on foreign loans entered into within the first 5 years of registration or commercial operation shall be given a registered pioneer enterprise when (1) no such credit is available to the original lender-remittee in his country; and (2) the registered pioneer enterprise has assumed the liability for payment of the tax due from the lender-remittee.
"(f) Special Incentives for Exports. ? To the extent that a domestic producer is engaged directly or indirectly in the export of a portion of its production, it shall be entitled to the incentives granted under paragraphs (d) and (i) of Article 48, in case of direct exporters and Article 48-B (1), in case of indirect exporters. The repayment of the taxes and duties waived on imported machinery and equipment as required in the first provisos of paragraphs (a) and (b) hereof shall be proportionately reduced based on the percentages of exports to domestic sales.
"(g) Employment of Foreign National. ? Subject to the provisions of Section 29 of Commonwealth Act Numbered 613, as amended, a registered domestic producer may employ foreign nationals in supervisory, technical or advisory positions for a period not exceeding five (5) years from its registration, extendible for limited periods at the discretion of the Board: Provided, however, That when the majority of the capital stock of a pioneer registered domestic producer is owned by foreign investors, the positions of president, treasurer and general manager or their equivalents may be retained by foreign nationals beyond the period set forth herein.
"(h) Anti-Dumping Protection. ? Upon recommendation of the Board, made after notice and hearing, the President shall issue a directive banning for a limited period the importation of goods or commodities which unfairly compete with those produced by registered domestic producers: Provided, (1) That the Board certifies to the satisfactory quality of the goods or commodities produced or manufactured by the registered domestic producers; and (2) that the producers agree not to increase the price of these goods or commodities during this period unless, for good cause, the Board allows such an increase.
"(i) Protection from Government Competition. ? No agency or instrumentality of the government shall import or allow the importation, tax and duty-free, of products or items that are being produced or manufactured by registered domestic producers, except when the President determines that the national interest so requires or when international commitments require international competitive bidding.
"(j) Protection of Patents and other Proprietary Rights. ? Patents, trademarks, copyrights, trade names and other proprietary rights registered with appropriate agencies of the Government of the Philippines are protected from infringement.
"(k) Post-operative Tariff Protection. ? Upon recommendation of the Board, after consultation with the Tariff Commission or the National Economic and Development Authority, the President may issue a certification that a pioneer industry shall be entitled to post-operative tariff protection for a specified period of time to be stated therein and to such an extent that the total duty does not exceed fifty percent (50%) of the dutiable value of imported items similar to those manufactured or produced by a pioneer enterprise. Said tariff shall take effect automatically upon certification by the Board that the pioneer enterprise is operating on a commercial scale."
"(a) Incentives for Energy-Saving Projects. ? Any project for the installation of equipment accredited as an energy-saving device by the Board accordingly included in the Investment Priorities Plan shall be considered as replacement investment and shall be granted the incentives provided in paragraphs (a) and (b) of Article 45 without repayment of the taxes and duties waived on the importation of machinery and equipment and accompanying spare parts or of the tax credit in case of purchase of domestic machinery, equipment or spare parts.
"(b) Incentives for Industry Rationalization Programs. ? Whenever a rationalization program for an industry is carried out pursuant to the Investment Priorities Plan or involves a new or expanded production capacity of a project under the program, the industry or project may be granted all the incentives provided in Article 45 of this Code. However, if the rationalization program involves replacement investment, it shall be entitled only to the incentives mentioned in paragraphs (a) and (b) of the said Article without repayment.
"(c) Special Incentive for Investment in National Development Fund. ? If an investment is made in national development fund certificates issued under Executive Order Numbered 842, in lieu of direct investment in registered pioneer enterprises as provided in subparagraph (a), Article 44 of this Code, an investment allowance shall be allowed from taxable income but not to exceed ten percent (10%) thereof: Provided, That if the certificates are transferred or redeemed by the fund upon the request of the investors within three years, the taxpayer shall lose the benefit of this deduction and his income tax liability shall be recomputed and he shall pay whatever additional sum be due plus interest thereon within thirty (30) days from the date of the redemption."
"Art. 48. Incentives for Registered New or Expanding Export Producers. ? All registered export producers, whether pioneer or non-pioneer, shall be granted the following incentives to the extent engaged in new capacity or expansion of capacity in a preferred area of investment:
"(a) Tax and Duty Exemption on Imported Capital Equipment. ? Full tax and duty exemption on imported capital equipment under the same conditions set forth in subparagraph (a), Article 45 except that the amount of such exemption shall not be deducted from the tax credits available to the registered export producer under paragraphs (c) and (d) hereof: Provided, That at least fifty percent (50%) of such higher percentage as may be required by the Board is exported or sold to a registered export under that subsequently exports said products. For the first five (5) years of commercial operation, in any year in which this export commitment is not complied with, Twenty percent (20%) of the value of exemption shall be deducted from the value of the tax credits due in that year under paragraphs (c) and (d) hereof: Provided, further, That if the tax credit is not sufficient, the penalty hereinabove provided for failure to comply with the export commitment shall be paid in cash or deferred for the succeeding year only subject to the payment of interest.
"(b) Tax Credit on Domestic Capital Equipment. ? A tax credit equivalent to the value of the compensating taxes and customs duties that would have been waived on the machinery, equipment and spare parts had these items been imported shall be given to registered export producers under the same conditions set forth in subparagraph (b), Article 45 except that the amount of such tax credit shall not be deducted from the tax credits that may be available to registered export producers under paragraphs (c) and (d) hereof, subject to the same proviso in paragraph (a).
"(c) Tax Credit on Net Value Earned. ? For the same period and at the same rates provided for in subparagraph (c), Article 45, a tax credit on net value earned shall be granted to registered export producers.
"(d) Tax Credit on Net Local Content of Exports. ? For the first five (5) years of commercial operation or registration, all registered new or expanding export producers shall be entitled to a tax credit equivalent to ten percent (10%) of net local content without prejudice to the further enjoyment of the incentive for another period of five (5) years immediately following the tax credit to be computed on the basis of the increment in the real terms over the average net local content for the immediately preceding three years of enjoyment of this incentive. For purposes of calculation for the tax credit, "net local content" shall mean value of export sales less depreciation of capital equipment and the value of imported raw materials and supplies and indigenous commodities which the Board may exclude if they are not anyway available under clearly more favorable terms in the international market.
"(e) Net Operating Loss Carry-Over. ? A net operating loss carry-over under the same conditions and for the same period and produce provided in subparagraph (d), Article 45 shall be granted to registered export producers.
"(f) Tax Credit on Withholding Tax on Interest. ? Under the same conditions in subparagraph (e), Article 45, a tax credit for withholding tax on interest payments on foreign loans shall be granted to registered export producers.
"(g) Employment of Foreign National. ? Under the same conditions and requirements and for the same period as well as categories of positions in subparagraph (g), Article 45, registered export producers may employ foreign nationals.
"(h) Exemption from Export Tax, Duty, Impost and Fee. ? The provisions of law to the contrary notwithstanding, exports by a registered export producer of its non-traditional registered export products shall be exempted from any export, tax, duty, impost and fee, including wharfage fee.
"(i) Tax Credit for Taxes and Duties on Raw Materials. ? Every registered export producer shall enjoy a tax credit equivalent to the sales, compensating and specific taxes and duties paid on the supplies, raw materials and semi-manufactured products used in the manufacture, processing or production of its export products and forming part thereof, exported directly by the registered export producer or sold to an export trader who subsequently exports said product: Provided, however, That where the cost of certain supplies or raw materials constitutes at least forty percent (40%) of the cost of production of the registered export product, tax credit on sales, specific taxes and duties paid thereon may also be granted even if they do not form part of the registered export product: and Provided, further, That the taxes on the supplies, raw materials and semi-manufactured products domestically purchased are indicated as a separate item in the sales invoice.
"(j) Other Incentives. ? In addition to the foregoing incentives, registered export producers shall be extended the following: casia
"Art. 48-A. Incentives to Registered Existing Export Producers. ? Registered existing export producers shall be granted the following incentives:
"a) Tax Credit on Net Local Content. ? For five (5) years from date of registration, a tax credit equivalent to ten percent (10%) of net local of exports as defined in subparagraph (d) of Article 48 shall be granted to an existing registered export producer without prejudice to the availment of this incentive for an additional period of five (5) years: Provided, That the net local content shall be based on the increment in real terms over the average export sales during the three year period immediately preceding the date of registration. For the additional five (5) years of the tax credit shall be based on the increment in real terms over the average net local content earned during the immediately preceding three years of enjoyment of this incentive.
"b) Exemption from Export Tax, Duty, Impost and Fee. ? Registered existing export producers shall be entitled to exemption from export tax, duty, impost and fee as provided for in subparagraph (h) of Article 48.
"c) Tax Credit for Tax and Duties on Raw Materials. ? The special tax credit for sales, compensating and specific taxes and duties on supplies, raw materials and semi-manufactured products used in the manufacture, processing and production of export products shall be issued to a registered existing export producer under the same condition or requirement provided in subparagraph (i) of Article 48.
"Art. 48-B. Incentives to Registered Indirect Export Producers. ? Registered indirect export producers shall be granted the following incentives: (1) special tax credits for taxes and duties on supplies, raw materials and semi-manufactured products used in indirect export as provided in paragraph (c) of the immediately preceding Article; and (2) a tax credit of 5% of net value earned as defined in subparagraph (c), Article 45 but limited to that associated to the production of indirect exports: Provided, That the net value earned shall be based on the increment in real terms over the average export sales during the three-year period immediately preceding the availment of incentives: Provided further, That a producer who sells to another producer who uses such product as input of his own product which is subsequently sold as an input of another export producer is entitled to the incentives hereunder."
"Art. 62. No Entitlement Under Other Investment Laws. ? An enterprise registered under this Code, as amended, shall not be entitled to fiscal incentives granted under other incentive laws."
"Art. 77. Confidentiality of Applications. ? All applications filed under Book One and Book Two of this Code shall be confidential and shall not be disclosed to any person, except with the consent of the applicant or on orders of a court of competent jurisdiction."
1) Section 53, P.D. 463 (Mineral Resources Development Decree);
2) Section 1, P.D. 666 (Shipbuilding and Ship Repair Industry);
3) Section 6, P.D. 1101 (Radioactive Minerals);