Millennium Challenge Account-Philippines (1)

March 5, 2012 FIRB RESOLUTION NO. 002-12 SUBJECT MATTER : Millennium Challenge Account-Philippines (1) WHEREAS, the Millennium Challenge Corporation (MCC) has for its mission, the reduction of global poverty through the promotion of sustainable economic growth; WHEREAS, the United States of America, acting through the MCC, and the Republic of the Philippines, acting through the Philippine Government (herein referred to as Government), entered into a Millennium Challenge Compact (herein referred to as the Compact) on September 23, 2010 for the grant of MCC assistance amounting to US$434 million to facilitate poverty reduction through economic growth in the Philippines; WHEREAS, the Millennium Challenge Account-Philippines, Inc. (MCA-P) is a non-stock government corporation registered with the Securities and Exchange Commission (SEC) pursuant to Executive Order (EO) No. 849 dated December 15, 2009, as amended by EO No. 48 dated July 5, 2011; WHEREAS, the MCA-P was designated by the Government as the entity mandated to implement the Compact Program; DHaECI WHEREAS, Section 17 of EO No. 849 and Article 2, Section 2.8 of the Compact Program provide that the Government shall assume all taxes, duties and other fiscal levies which may be imposed in the Republic of the Philippines, including any taxes, duties and other fiscal levies imposed by local government units on MCA-P, other parties involved in the development and implementation of the Compact, and transactions related to the development and implementation of the Compact except for taxes imposed on income, profits or gross receipts of natural persons who are citizens or permanent residents of the Philippines and legal persons organized under Philippine laws and Section 2.4 of the Program Implementation Agreement (PIA) dated May 9, 2011 among and between the Government, MCA-P and MCC provides that the Government agrees to assume from its national funds any taxes imposed on or in respect of the Compact Program; WHEREAS, the MCA-P has requested tax subsidy in the amount of PhP117,870,771.60 be issued for calendar year 2012; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application of the MCA-P for tax subsidy in the amount of One Hundred Seventeen Million Eight Hundred Seventy Thousand Seven Hundred Seventy One Pesos and 60/100 (PhP117,870,771.60) , with the following breakdown: Type of Tax Amount (in Pesos) 1. VAT 113,627,013.48 2. Income Tax 4,243,758.12 _____________ Total 117,870,771.60 ============= Provided, however, that the corresponding CES shall be issued covering the amount of PhP117,870,771.60 only: Provided, further, that for purposes of tax subsidy availment, the MCA-P shall submit to the FIRB the certified list of contractors involved in the Compact Program: Provided, finally, that such tax subsidy availment shall be in accordance with the terms and conditions of Section 13 of Republic Act No. 10155 (otherwise known as the 2012 General Appropriations Act), the Rules and Regulations to Implement the Subsidy Provision Under Executive Order No. 93, and Revenue Regulations No. 12-2010. EHTSCD (SGD.) CRISTINO L. PANLILIO Undersecretary Department of Trade and Industry (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Assistant Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB