Home Development Mutual Fund (1)

June 23, 2009 FIRB RESOLUTION NO. 008-09 SUBJECT MATTER : Home Development Mutual Fund (1) WHEREAS, the Home Development Mutual Fund (HDMF) was primarily created as a socialized savings program for the benefit of low- and middle-income earners and that there is a need to put it at par with other socialized savings programs operated by the Government Service Insurance System and the Social Security System, both of which enjoy outright tax exemption privileges; WHEREAS, the HDMF is in the forefront of the shelter financing program of the government through its provision of affordable loan packages and institutional loans; WHEREAS, the HDMF is mandated to pay guaranteed dividends to its members at an annual fixed rate of seventy percent (70%) of its annual net income; DTEcSa WHEREAS, the payment of the income tax liability of the HDMF on its 2009 net income out of its own resources would have adverse effects on its capability to continuously offer lower interest rates on its various loan programs as well as on the sustenance of its support to the National Shelter Program of the government and impair the dividends to be declared in favor of its members; WHEREAS, HDMF pays its income tax on a quarterly basis with the last quarter return being the adjustment return that will reflect its final income tax liability for the taxable year; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED to grant tax subsidy to the HDMF in the amount of TWO BILLION SEVEN HUNDRED SIXTY FIVE MILLION EIGHT HUNDRED TWENTY SIX THOUSAND FIVE HUNDRED SIXTY FOUR AND 03/100 (P2,765,826,564.03) only to cover its 2009 income tax liability: Provided, however, that: (a) the initial issuance of the corresponding Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of P678,995,217.50 only, representing the first quarter income tax liability; and (b) the subsequent CES shall be issued upon the submission by the HDMF to the FIRB of its actual income tax liability per quarter as reflected in its quarterly income tax return: Provided further, That the grant of such tax subsidy shall be in accordance with the terms and conditions of Section 13 of the 2009 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Tax Subsidy Provisions Under Executive Order No. 93. caADSE (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) REYNALDO V. UMALI Deputy Commissioner Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB