Millennium Challenge Account-Philippines (MCA-P)

May 23, 2014 FIRB RESOLUTION NO. 003-14 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; WHEREAS, the United States of America, acting through the MCC, and the Government of Republic of the Philippines (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 PhP150,998,461.64 for 2014; 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 Fifty Million Nine Hundred Ninety Eight Thousand Four Hundred Sixty One Pesos and 64/100 (PhP150,998,461.64) to cover the payment of twelve percent (12%) Value-added tax. The corresponding Certificate of Entitlement to Subsidy (CES) shall be issued covering the approved amount of PhP150,998,461.64: Provided, 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 15 of Republic Act No. 10633 (2014 General Appropriations Act), the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93, and Revenue Regulations No. 12-2010. CTHaSD (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.) ALEXIS F. MEDINA Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB