Philippine Deposit Insurance Corporation (1)

April 19, 2013 FIRB RESOLUTION NO. 004-13 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 FOUR HUNDRED MILLION PESOS (PhP5,400,000,000.00) only, broken down as follows: Type of Tax Amount (in PhP) Income Tax (IT) 2,250,000,000.00 IT for the 4th quarter of 2012 820,000,000.00 Estimated deficiency IT for 2012 1,200,000,000.00 Estimated 1st to 3rd quarter IT for 2013 230,000,000.00 Value-Added Tax (VAT) 1,500,000,000.00 December 2012 VAT 120,764,755.22 Estimated VAT for 2013 (January to November) 1,379,235,244.78 Final Withholding Tax (FWT) on 1,600,000,000.00 Interest Income from Investments FWT for December 2012 52,877,190.39 Estimated FWT for 2013 1,547,122,809.61 Other Taxes 50,000,000.00 Capital gains tax (CGT) 30,000,000.00 Documentary stamp tax (DST) 20,000,000.00 Total 5,400,000,000.00 ============= Provided, that: (a) the initial issuance of the corresponding Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of PhP1,666,493,413.23 only, representing IT, 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: TIcAaH Type of Tax Amount (in PhP) IT (4th Quarter 2012) 818,899,763.55 VAT 348,972,176.96 December 2012 120,764,755.22 January 2013 111,835,231.05 February 2013 116,372,190.69 FWT on Interest Income 498,621,472.72 Bureau of Treasury 491,978,876.18 Development Bank of the Philippines 1,514,233.56 Land Bank of the Philippines 5,128,362.98 Total 1,666,493,413.23 ============ 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. 10352 or the 2013 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 signed by representative 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.) RAMON G. CUYCO Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB