Bases Conversion and Development Authority (BCDA) (1)

June 7, 2007 FIRB RESOLUTION NO. 003-07 SUBJECT MATTER : Bases Conversion and Development Authority (BCDA) (1) WHEREAS, Section 14 (c) of Republic Act No. 9401 otherwise known as the 2007 General Appropriations Act, provides that tax subsidies granted by the FIRB to government owned and/or controlled corporations (GOCCs), in accordance with E.O. No. 93, as amended, including those for tax obligations assumed by GOCCs pursuant to a valid agreement are deemed automatically appropriated; EHCaDS 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; aTDcAH WHEREAS, the BCDA does not have the financial capacity to assume the taxes arising from the SCTEP; WHEREAS, the SCTEP is expected to provide 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; HTaSEA NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the BCDA relative to the SCTEP for the year 2007 in the amount of THREE BILLION SIX HUNDRED FIFTY FOUR MILLION NINE HUNDRED SEVENTY ONE THOUSAND NINE HUNDRED SEVENTY THREE PESOS (P3,654,971,973.00) only, broken down as follows: Taxes and Duties KOJM Joint HTN Joint JV Consultant Total Venture Venture Value Added Tax (VAT) - Local Portion P1,222,309,445.86 P1,029,393,129.81 P47,964,439.77 P2,299,667,015.44 Custom Duties and Taxes 713,699,029.24 112,018,679.88 825,717,709.12 Import Duties 361,690,690.00 46,656,728.12 408,347,418.12 VAT on Imported Portion 352,008,339.24 65,361,951.76 417,370,291.00 Excise Taxes 4,430,160.00 6,720,000.00 11,150,160.00 Creditable Withholding Tax (CWT) of Japanese Compensation Income 59,599,554.00 18,624,600.00 10,000,000.00 88,224,154.00 Income Tax 218,897,942.25 211,314,992.19 430,212,934.44 Total Taxes and Duties P2,218,936,131.35 P1,378,071,401.88 P57,964,439.77 P3,654,971,973.00 =============== =============== ============= =============== Provided, That the amount herein granted is without prejudice to adjustment in case there is a change in the tax rates used in the computations 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, further, 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: Provided, finally, That such availment shall be in accordance with the terms and conditions of Section 14 of the 2007 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. cTaDHS (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) ANGELITO G. URSABIA Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary Presiding Officer FIRB