University of the Philippines

June 3, 2019 FIRB RESOLUTION NO. 002-19 SUBJECT MATTER : University of the Philippines WHEREAS, the University of the Philippines (UP) is mandated to serve as a research university in various fields of expertise by conducting applied research and development and contributing to the dissemination and application of knowledge; WHEREAS, the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development Department of Science and Technology (PCAARRD DOST) leads the development of the ongoing project entitled "Kuroshio Current Observing System in the Philippines (KOSPhi)"; WHEREAS, the significant byproduct of this project will be the real time dissemination of tracked and detected targets such as ship movements as well as surface current maps to aid those with a need for this information, such as maritime safety, search and rescue operations, weather forecasting, maritime enforcement, oceanographic research; WHEREAS, this project involves the procurement of two (2) units of High Frequency Oceanographic Doppler Radar which will be used to measure ocean currents at the surface of the seas; WHEREAS, no additional cost for taxes and duties were considered at that time cognizant of the fact the UP is exempted from the payment of custom duties and taxes on its importation under Republic Act (RA) 9500, otherwise known as "An Act to Strengthen the University of the Philippines as the National University"; WHEREAS, Section 86 of RA 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law repealed Section 25 (b) and (c) of RA 9500, insofar as value added tax (VAT) exemption is concerned; WHEREAS, RA 10963 also provides that VAT obligations of state universities and colleges whose VAT exemption has been repealed under this Act shall be chargeable to the Tax Expenditure Fund (TEF) provided for in the Annual General Appropriations Act; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the UP in the amount of Six Hundred Thirty Two Thousand Three Hundred Thirty and 49/100 Pesos (PhP632,330.49) only, covering the VAT obligations on the importation of two units of High Frequency Oceanographic Doppler Radar, broken down as follows: Particulars Amount Taxable Value of Importation 5,256,520.13 Brokerage Fee 11,620.65 Documentary Stamp 280.00 Other charges 1,000.00 TOTAL VAT BASE 5,269,420.78 x 12% TOTAL PAYABLE VAT 632,330.49 Provided , that an initial Certificate of Entitlement to Subsidy (CES) shall be issued only upon submission by the UP to the FIRB of the required billings/SOAs pertaining to the said importation. Provided further , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of Republic Act 11260 or the 2019 General Appropriations Act, 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 No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Deputy Director-General National Economic and Development Authority (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) DONALDO M. BOO OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB