Philippine Deposit Insurance Corporation (1)

March 18, 2011 FIRB RESOLUTION NO. 005-11 SUBJECT MATTER : Philippine Deposit Insurance Corporation (1) WHEREAS, the Philippine Deposit Insurance Corporation's (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 charter was amended by Republic Act (RA) No. 9576 (April 29, 2009) for the purpose of promoting and safeguarding the interest of the depositing public by way of institutional and financial strengthening of the PDIC as a regulatory agency exercising governmental functions with 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, in recognition of the PDIC's institutional and financial strengthening reform package, 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 FOUR BILLION SEVEN HUNDRED FIVE MILLION EIGHT HUNDRED TWENTY TWO THOUSAND FIVE HUNDRED SIXTY EIGHT AND 13/100 PESOS (P4,705,822,568.13) only broken down as follows: Type of Tax Amount (in Pesos) Income Tax 1,000,000,000.00 Estimated 1st to 3rd Quarter Income Taxes for 2011 1,000,000,000.00 Value Added Tax (VAT) 1,597,853,536.75 December 2010 VAT 97,853,536.75 Estimated Monthly VAT for 2011 (January to November) 1,500,000,000.00 Final Tax on Interest Income from Investments 2,007,969,031.38 Final Withholding Tax for November and December, 2010 7,969,031.38 Estimated Final Withholding Tax for 2011 2,000,000,000.00 Other Taxes 100,000,000.00 Capital Gains Tax 70,000,000.00 Documentary Stamp Tax 30,000,000.00 TOTAL 4,705,822,568.13 ============== Provided, however, that this approval is without prejudice to further application for tax subsidy by the PDIC to cover the 4th quarter Minimum Corporate Income Tax (MCIT), Bureau of Internal Revenue (BIR) Income Tax and VAT Assessment for 2010 based on the actual BIR billings/assessment/tax returns: Provided, further, that: (a) the initial issuance of the corresponding Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of P518,585,243.87 only, broken down as follows: THSaEC Type of Tax Amount (in Pesos) Value Added Tax (VAT) 199,294,744.40 December 2010 97,853,536.75 January 2011 101,441,207.65 Final Withholding Tax (FWT) (Interest Earnings) 319,290,499.47 Development Bank of the Philippines (DBP) Option Savings and Special Deposit Accounts 3,261,188.29 November 2010 955,270.28 December 2010 1,061,437.18 January 2011 1,244,480.83 Land Bank of the Philippines (LBP) High Yield and Special Deposit Account 8,464,057.65 November 2010 3,053,004.09 December 2010 2,899,319.83 January 2011 2,511,733.73 Bureau of Treasury (BTr) Security Holdings 307,565,253.53 January 2011 187,628,998.21 February 2011 119,936,255.32 Grand Total 518,585,243.87 =========== and (b) the subsequent CES shall be issued upon the submission by the PDIC to the FIRB of its actual tax liability based on the assessment of the BIR: Provided, finally, that such availment shall be in accordance with the terms and conditions of Section 13 of RA No. 10147 or the 2011 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. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CRISTINO L. PANLILIO 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.) DANTE V. SY Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB