Philippine Deposit Insurance Corporation (2)

November 23, 2012 FIRB RESOLUTION NO. 012-12 SUBJECT MATTER : Philippine Deposit Insurance Corporation (2) WHEREAS, the Philippine Deposit Insurance Corporation's (PDIC) primary mandate is to implement a deposit insurance system for the protection of bank deposits; HCETDS 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 recognition of the PDIC's institutional and financial strengthening reform package, R.A. 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; WHEREAS, the PDIC was granted tax subsidy for 2012 in the amount of PhP5,000,000,000.00 only per FIRB Resolution No. 4-12; WHEREAS, the PDIC is requesting the realignment of PhP100 million covering its Value-Added Tax (VAT) subsidy for 2011 previously granted under FIRB Resolution No. 4-12, to cover instead the deficiency basic income tax (IT) for 2011; WHEREAS, there is a need to ensure the efficient utilization of the balance of the tax subsidy earlier granted to the PDIC under FIRB Resolution No. 4-12; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to allow the PDIC to realign the tax subsidy previously granted under FIRB Resolution No. 4-12 as follows: Type of Tax Amount (In Pesos) IT 1,600,000,000.00 IT for the 4th quarter of 2011 354,309,297.50 Estimated deficiency IT for 2011 1,045,690,702.50 Estimated 1st to 3rd quarter IT for 2012 200,000,000.00 VAT 1,500,000,000.00 December 2011 VAT 122,109,527.77 Estimated monthly VAT for 1,377,890,472.23 2012 (January to November) Final Withholding Tax (FWT) on interest 1,850,000,000.00 income from investments FWT for December, 2011 5,779,064.83 Estimated FWT for 2012 1,844,220,935.17 Other Taxes 50,000,000.00 Capital Gains Tax (CGT) 20,000,000.00 Documentary Stamp Tax (DST) 30,000,000.00 Total 5,000,000,000.00 ============= Provided, however , that such availment shall be in accordance with the terms and conditions of Section 13 of RA No. 10155 or the 2012 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. CTIDcA (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.) MARISSA O. CABREROS Assistant 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