Philippine Deposit Insurance Corporation (1)

April 29, 2014 FIRB RESOLUTION NO. 001-14 SUBJECT MATTER : Philippine Deposit Insurance Corporation (1) WHEREAS, the Philippine Deposit Insurance Corporation (PDIC) is a government instrumentality primarily mandated to provide a deposit insurance system for the depositing public to help promote public confidence and economic stability; WHEREAS, the PDIC, as a regulatory agency, exercises governmental functions with the responsibility to provide safeguards against risks of bank failures; WHEREAS, in strengthening the deposit insurance system, the State declared it as a policy to preserve and maintain at all times the Deposit Insurance Fund (DIF) of the PDIC; WHEREAS, Republic Act (RA) No. 9576 provides that all tax obligations of the PDIC shall be chargeable to the tax expenditure fund (TEF) in the annual General Appropriations Act (GAA) for a period of five (5) years reckoned from the date of effectivity of the Act on June 1, 2009; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PDIC in the amount of THREE BILLION EIGHT HUNDRED TWENTY-FIVE MILLION PESOS (PhP3,825,000,000.00) only, broken down as follows: Type of Tax Amount (in PhP) Income Tax (IT) for the 4th Quarter of 2013; 2,200,000,000 estimated BIR assessment for 2013 and January to May 2014 and estimated quarterly income tax for 2014 Value-Added Tax (VAT) for the months of 800,000,000.00 December 2013 to May 2014 Final Withholding Tax (FWT) on Interest Income 800,000,000.00 from Investments for the months of December 2013 to May 2014 Other Taxes 25,000,000.00 Documentary Stamp Tax (DST) 10,000,000.00 Capital Gains Tax (CGT) 15,000,000.00 Total 3,825,000,000.00 ============= Provided, that; (a) the initial issuance of the corresponding Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of PhP1,161,732,672.09 only, representing VAT with actual Bureau of Internal Revenue (BIR) billings/assessments/tax returns and FWT on interest earnings and security holdings as covered by a certification of tax withheld from concerned banks and the Bureau of the Treasury (BTr), respectively, broken down as follows: DICcTa Type of Tax Amount (in PhP) Income Tax (4th Quarter 2013) 64,835,009.00 VAT (December 2013 to March 2014) 684,499,591.26 FWT on Interest Income 412,398,071.83 Bureau of Treasury 409,811,682.58 (December 2013 to March 2014) Development Bank of the Philippines 1,640,670.24 (December 2013 to February 2014) Land Bank of the Philippines 945,719.01 (December 2013 to February 2014) Total 1,161,732,672.09 ============= and; (b) the subsequent CES shall be issued upon the submission by the PDIC to the FIRB of its actual tax liability based on BIR billings/assessments/tax returns and/or certificate of tax withheld from concerned banks and the BTr: Provided, finally , that such availment shall be in accordance with the terms and conditions of Section 15 of RA No. 10633 or the 2014 GAA, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order (EO) No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) ALEXIS F. MEDINA Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB