Rationalization of IPA Fees

August 4, 2022 FIRB RESOLUTION NO. 025-22 WHEREAS , Section 297 (A) of the National Internal Revenue Code (NIRC) of 1997, as amended by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, provides for the expanded functions of the Fiscal Incentives Review Board (FIRB) to exercise policy-making and oversight functions on the administration and grant of tax incentives by the Investment Promotion Agencies (IPAs); WHEREAS , IPAs should have a rationale, basis, and metric in setting the rates of application fees, especially considering the circumstances surrounding the imposition of the amount may be unique to each agency; WHEREAS , for Regional Board of Investments-Autonomous Region in Muslin Mindanao (RBOI-BARMM), Authority of the Freeport Area of Bataan (AFAB), Subic Bay Metropolitan Authority (SBMA), Zamboanga City Special Economic Zone Authority (ZCSEZA), Philippine Economic Zone Authority (PEZA), Poro Point Management Corporation (PPMC), and Cagayan Economic Zone Authority (CEZA), the application fees for New Projects ranges from P1,520 to P10,000; WHEREAS , for Clark Development Authority (CDC), CEZA, and SBMA, the application fee for Philippine Offshore Gaming Operators (POGOs) Support/Service Providers ranges from US$10,000 to US$50,000; WHEREAS , there is a need to harmonize and rationalize the fees of all IPAs taking into account, among others, the direct costs of rendering the service based on appropriation or approved budget and the potential socioeconomic impact of the rates on the well-being of their stakeholders; WHEREAS , this harmonization is in line with Administrative Order No. 31, s.2012 issued by the Office of the President, which is directed towards the rationalization of fees and mandates that the imposition of fees and charges of the government should be primarily for cost recovery, and should strike a balance between recovering the cost of services and the socioeconomic impact of the imposition; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED , that the FIRB Secretariat be allowed to continue with the harmonization and rationalization of the fees being collected by IPAs; RESOLVED, FURTHER , that the Secretariat be authorized to require IPAs to submit relevant data and information to effectively carry out this undertaking; RESOLVED, FINALLY , that regular consultations with the IPAs will be conducted with their views and suggestions considered to ensure that their schedules of fees are uniform and equitable for all stakeholders. CAacTH This Resolution may be signed in any number of counterparts, each of which when duly executed and sent by facsimile or electronic transmission to the Secretariat, shall be valid and effectual as if executed as an original, but all the counterparts (including those sent by way of facsimile or electronic transmission) shall together constitute one and the same document. Adopted by the Board in its meeting on 4 August 2022, where a quorum was present. (SGD.) AMENAH F. PANGANDAMAN Secretary of Budget and Management (SGD.) ARSENIO M. BALISACAN Secretary of National Economic and Development Authority VICTOR D. RODRIGUEZ Executive Secretary (SGD.) ALFREDO E. PASCUAL Co-Chairperson and Secretary of Trade and Industry (SGD.) BENJAMIN E. DIOKNO Chairperson and Secretary of Finance