Philippine Deposit Insurance Corporation (1)

May 19, 2010 FIRB RESOLUTION NO. 007-10 SUBJECT MATTER : Philippine Deposit Insurance Corporation (1) WHEREAS, the Philippine Deposit Insurance Corporation's (PDIC) primary mandate is to implement a deposit insurance system for the protection of bank deposits; 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, the strengthening of the deposit insurance system will make it more flexible and responsive to the needs of the depositors while promoting secure and sound banking activities; 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 EIGHT BILLION FOUR HUNDRED ELEVEN MILLION FIVE HUNDRED THOUSAND PESOS (P8,411,500,000.00) only broken down as follows: ASETHC Type of Tax Amount (in Thousand Pesos) Income Tax 5,701,500 Estimated BIR Income Tax Assessment for 2009 3,201,500 Estimated 1st to 3rd Quarter Income Tax Assessment for 2010 2,500,000 Value-Added Tax (VAT) 1,100,000 Estimated BIR VAT Assessment for 2009 1,100,000 Final Tax on Interest Income from Investments 1,500,000 Other Taxes Capital Gains Tax and Documentary Stamp Tax 110,000 TOTAL 8,411,500 ======== Provided, however, that: (a) the initial issuance of the corresponding Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of P1,139,940,112.02 only, broken down as follows: Type of Tax Amount (in Pesos) Income Tax 624,383,640.02 Income Tax for taxable year 2009 624,383,640.02 Final Withholding Tax (FWT) (Interest Earnings) 515,556,472.00 Bureau of the Treasury (Government Securities Holdings) 511,065,031.91 January 2010 175,273,594.70 February 2010 142,933,951.18 March 2010 192,857,486.03 Land Bank of the Philippines 4,491,440.09 January 2010 (High Yield Savings Account) 1,532,168.29 February 2010 (High Yield Savings Account) 1,485,585.50 January-March 2010 (Special Deposit Account) 1,473,686.30 Total 1,139,940,112.02 ============ 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 Bureau of Internal Revenue (BIR): Provided, further, that such availment shall be in accordance with the terms and conditions of Section 14 of the 2010 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.) EDNA V. BARRIDA Director Bureau of Customs (SGD.) ELMER C. HERNANDEZ 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.) DANTE V. SY Executive Director National Tax Research Center Head, FIRB Secretariat Director Department of Budget and Management (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB