Philippine National Railways (PNR) (1)

September 24, 2015 FIRB RESOLUTION NO. 007-15 SUBJECT MATTER : Philippine National Railways (PNR) (1) WHEREAS, the Philippine National Railways (PNR) is a state-owned railway system, organized under the Department of Transportation and Communications (DOTC) as an attached government owned and/or controlled corporation (GOCC), and is also a part of the Strong Republic Transit System (SRTS) and the overall public transport system in the metropolis; WHEREAS, the PNR is mandated to link key cities within the Philippines, to serve as an instrument in national socio-economic development and as the backbone of all Metro Manila's regional rail services, which extend to the suburbs and provinces; WHEREAS, the PNR entered into an agreement with Yashima and Co., Ltd. for the donation of six (6) units of used railway Diesel Multiple Units (DMUs) from the Kanto Railway Co., Ltd.; WHEREAS, the Transfer Agreement with Yashima and Co., Ltd., signed on October 15, 2014 provides that the PNR requested the acquisition of six (6) DMUs from Kanto Railway Co., Ltd. at no cost to PNR except for some minor repairs and transportation costs; WHEREAS, the PNR does not have the financial capacity to assume the taxes arising from the donation of the Kanto Railway Co., Ltd. without further impairing its railway operations; WHEREAS, Section 14 of Republic Act (RA) 10651 otherwise known as the 2015 General Appropriations Act, provides that tax subsidies granted by the FIRB to 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; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the PNR in the amount of TWO MILLION NINE HUNDRED THIRTY FIVE THOUSAND EIGHT HUNDRED SEVENTY SEVEN (PhP2,935,877.00) only, broken down as follows: Amount Value-Added Tax (VAT) PhP2,363,826.00 Customs Duty 572,051.00 Total PhP2,935,877.00 ============== Provided , that the PNR is subject to the following conditions: (a) the Certificate of Entitlement to Subsidy (CES) shall be issued upon the submission by the PNR to the FIRB of the required billings and/or documents evidencing the importations, [six (6) shipments that have already arrived on April 19, 2015]; and (b) all materials and equipment for which tax subsidy is granted shall form part of the regular inventory of the PNR (in the case of materials and movable equipment) and/or be located in their designated project stations/operating areas (in the case of immovable equipment) as certified to by the resident Commission on Audit (COA) auditor of the PNR and its Project Station/Operating Area Manager, respectively: Provided, further , that such availment shall be in accordance with the terms and conditions of Section 14 of RA 10651 or the 2015 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 (EO) No. 93. aDSIHc (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) 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.) VICTOR PABLO C. TRINIDAD Legal Service Bureau of Customs September 29, 2015 (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary of Domestic Finance Group Presiding Officer-FIRB