BCDA (2)

June 29, 2006 FIRB RESOLUTION NO. 004-06 SUBJECT : BCDA (2) WHEREAS, Section 14(c) of Republic Act No. 9336 otherwise known as the 2005 General Appropriations Act, as reenacted, 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; 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, to approve the application for tax subsidy of the BCDA relative to the SCTEP for the year 2006 in the amount of Three Billion Three Hundred Eleven Million Two Hundred Seventy Three Thousand Six Hundred Sixty Three and 28/100 Pesos (P3,311,273,663.28) only, broken down as follows: Main Contractors Taxes and Duties Kajima Hazama Pacific TOTAL Corporation, Corporation, Taisei Consultants Obayashi Corporation and International, Corporation, JFE Nippon Steel Katahira & Engineering Corporation Engineers Corporation and (HTN) Joint International, and Mitsubishi Heavy Venture Nippon Koei Co., Industries, Ltd., Ltd. (JV (KOJM) Joint Consultants) Venture Value Added Tax P1,187,000,000.00 P762,572,234.88 P1,090,344.05 P1,950,662,578.93 (VAT) on Local Portion VAT on Imported P503,890,501.08 P163,838,112.77 - P667,728,613.85 Portion Import Duties P269,765,758.42 P81,667,051.05 - P351,432,809.47 Excise Taxes P4,167,068.81 P6,961,823.10 - P11,128,891.91 Creditable P36,815,268.49 P7,585,000.00 - P44,400,268.49 Withholding Tax of Japanese Compensation Income Income Tax P108,845,773.42 P169,346,097.14 - P278,191,870.56 Withholding Tax - - P7,728,630.07 P7,728,630.07 TOTAL P2,110,484,370.22 P1,191,970,318.94 P8,818,974.12 P3,311,273,663.28 =========== =========== ======== =========== Provided , That the amount herein granted is without prejudice to adjustment in case there is a change in the tax rates upon which the computations 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, 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 2005 General Appropriations Act, as reenacted, 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. DHSACT (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) ROBERTO B. TAN Undersecretary Alternate Presiding Officer - FIRB