Philippine Deposit Insurance Corporation (1)

April 16, 2012 FIRB RESOLUTION NO . 004-12 SUBJECT MATTER : Philippine Deposit Insurance Corporation (1) WHEREAS, the Philippine Deposit Insurance Corporation (PDIC) is a government instrumentality primarily mandated to provide a deposit insurance system for the depositing public to help promote public confidence and economic stability; WHEREAS, the PDIC, as a regulatory agency, exercises governmental functions with the responsibility to provide safeguards against risks of bank failures; WHEREAS, in strengthening the deposit insurance system, the State declared it as a policy to preserve and maintain at all times the Deposit Insurance Fund (DIF) of the PDIC; WHEREAS, RA No. 9576 provides that all tax obligations of the PDIC shall be chargeable to the tax expenditure fund (TEF) in the annual General Appropriations Act (GAA) for a period of five (5) years reckoned from the date of effectivity of the Act on June 1, 2009; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PDIC in the amount of FIVE BILLION PESOS (PhP5,000,000,000.00) only, broken down as follows: HDAaIS Type of Tax Amount (in PhP) Income Tax (IT) 1,500,000,000.00 IT for the 4th quarter of 2011 354,309,297.50 Estimated deficiency IT for 2011 945,690,702.50 Estimated 1st to 3rd quarter IT for 2012 200,000,000.00 Value-Added Tax (VAT) 1,600,000,000.00 December 2011 VAT 122,109,527.77 Estimated deficiency VAT for 2011 100,000,000.00 Estimated monthly VAT for 1,377,890,472.23 2012 (January to November) Final Withholding Tax (FWT) on interest 1,850,000,000.00 income from investments FWT for December, 2011 5,779,064.83 Estimated FWT for 2012 1,844,220,935.17 Other Taxes 50,000,000.00 Capital Gains Tax (CGT) 20,000,000.00 Documentary Stamp Tax (DST) 30,000,000.00 TOTAL 5,000,000,000.00 ============= Provided, that: (a) the initial issuance of the corresponding certificate of entitlement to subsidy (CES) shall be limited to the amount of PhP648,847,391.79 only, representing VAT with actual Bureau of Internal Revenue (BIR) billings/assessments/tax returns and FWT on interest earnings and security holdings as covered by a certification of tax withheld from concerned banks and the Bureau of the Treasury (BTr), respectively, broken down as follows: Type of Tax Amount (in PhP) VAT 341,880,399.38 FWT (interest earnings and security holdings) 306,966,992.41 Development Bank of the Philippines (DBP) 7,847,582.59 Land Bank of the Philippines (LBP) 12,413,712.65 BTr 286,705,697.17 Total 648,847,391.79 ============ and; (b) the subsequent CES shall be issued upon the submission by the PDIC to the FIRB of its actual tax liability based on BIR billings/assessments/tax returns and/or certificate of tax withheld from concerned banks and the BTr: Provided, finally, that such availment shall be in accordance with the terms and conditions of Section 13 of RA No. 10155 or the 2012 GAA, 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 (EO) No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Assistant Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB