Millennium Challenge Account-Philippines (MCA-P)

February 25, 2013 FIRB RESOLUTION NO. 002-13 SUBJECT MATTER : Millennium Challenge Account-Philippines (MCA-P) WHEREAS, the Millennium Challenge Corporation (MCC) has for its mission, the reduction of global poverty through the promotion of sustainable economic growth; ACcISa 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 (December 15, 2009), as amended by EO No. 48 (July 5, 2011); WHEREAS, the MCA-P was designated by the Government as the entity mandated to implement the Compact Program; 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) (May 9, 2011) among and between the Government, MCA-P and MCC which 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 PhP420,746,707.51 for 2013; 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 Four Hundred Twenty Million Seven Hundred Forty Six Thousand Seven Hundred Seven Pesos and 51/100 (PhP420,746,707.51) , with the following breakdown: EHSADc Particulars Total Projected Value-Added Income Tax Total Tax Cash Tax (VAT) (on covered Subsidy Requirement vendors) Revenue Administration 516,952,600.00 62,034,312.00 - 62,034,312.00 Reform Project (RARP) Secondary National 2,529,083,469.47 307,814,231.79 7,955,143.33 315,769,375.12 Road Development Program (SNRDP) Monitoring and Evaluation 77,182,500.00 9,261,900.00 2,050,000.00 11,311,900.00 Program Management and 115,204,032.86 23,539,043.62 8,092,076.77 31,631,120.39 Oversight Total 3,238,422,602.33 402,649,487.41 18,097,220.10 420,746,707.51 ============= =========== ========== =========== Provided, however , that the corresponding CES shall be issued covering the amount of PhP420,746,707.51 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. 10352 (2013 General Appropriations Act), the Rules and Regulations to Implement the Subsidy Provision Under Executive Order No. 93, and Revenue Regulations No. 12-2010. (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.) RAMON G. CUYCO 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