Bases Conversion and Development Authority

May 24, 2005 FIRB RESOLUTION NO. 003-05 WHEREAS, Section 14(c) of Republic Act No. 9336 otherwise known as the 2005 General Appropriations Act provides that tax subsidies granted by the FIRB to government owned and/or controlled corporations (GOCCs), in accordance with EO No. 93, as amended, including those for tax obligations assumed by GOCCs pursuant to a valid agreement are deemed automatically appropriated; WHEREAS, the Bases Conversion and Development Authority (BCDA), a GOCC under the Office of the President, is implementing the Subic-Clark-Tarlac Expressway Project (SCTEP), pursuant to a special yen loan from the Japan Bank for International Cooperation and Exchange of Notes between the Philippine Government and the Government of Japan; WHEREAS, Item 8(2) of the Exchange of Notes signed on September 13, 2001 provides that the Philippine Government shall assume the taxes imposed in the Philippines corresponding to the SCTEP; WHEREAS, the BCDA does not have the financial capacity to assume the taxes arising from the SCTEP; EAcIST WHEREAS, the SCTEP is expected to provide an easy access to the international container port facility in Subic and the international cargo/passenger airport facility in Clark and boost the growth and development of Central Luzon; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the FIRB, pursuant to Section 14(c) of Republic Act No. 9336, shall consider the grant of tax subsidy to the BCDA relative to the SCTEP, for the period 2005-2008: Provided, That said subsidy shall be granted on an annual basis; Provided, further That it shall be limited only to taxes and duties for the year 2005 in the amount of Eight Hundred Seven Million Six Hundred Forty Four Thousand One Hundred Ninety Five And 67/100 Pesos (P807,644,195.67) broken down as follows: Main Contractors Taxes and Duties Kajima Hazama Pacific TOTAL Corporation, Corporation, Consultants Obayashi Taisei International, Corporation, JFE Corporation and Katahira & Engineering Nippon Steel Engineers Corporation and Corporation International, Mitsubishi Heavy Joint Venture and Nippon Industries, Ltd., Koei Co., Ltd. Joint Venture Joint Venture Value Added Tax P170,833,737.63 P203,560,935.03 P10,013,800.07 P384,408,472.73 (VAT) on Local Portion VAT on Imported P80,018,760.00 P95,330,100.00 - P175,348,860.00 Portion Import Duties P50,311,795.00 P99,063,400.00 - P149,375,195.00 Excise Taxes - P10,565,710.00 - P10,565,710.00 Creditable P11,746,349.56 P4,322,705.57 P11,778,720.00 P27,847,775.13 Withholding Tax of Japanese Compensation Income Income Tax P39,605,527.72 P17,666,429.27 - P57,271,956.99 Withholding Tax - - P2,826,225.82 P2,826,225.82 TOTAL P352,516,169.91 P430,509,279.87 P24,618,745.89 P807,644,195.67 ========== ========== ========== ========== Provided , furthermore That the amount herein granted is without prejudice to adjustment in case there is a change in the tax rates upon which the computation are based or there is an increase or decrease in the cost of purchase or importation of materials, services, or equipment needed in the implementation of the SCTEP. Provided, finally , That for purposes of tax subsidy availment, the BCDA shall submit to the FIRB the certified list of local suppliers and/or contractors/subcontractors involved in the SCTEP. aHTCIc (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Assistant Director-General National Economic and Development Authority Concurring with Dir. Cuyco vis-a-vis - BIR (SGD.) JOSE MARIO C. BUAG Deputy Director Bureau of Internal Revenue Provided that the amount involved shall be considered as collection of the RCA in the light of the Attrition Act (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director National Tax Research Center (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB Noted By: (SGD.) EMMANUEL P. BONOAN Undersecretary of Finance Chairman, FIRB Technical Committee