SBCorp

July 1, 2021 FISCAL INCENTIVES REVIEW BOARD RESOLUTION NO. 15-21 SUBJECT MATTER : SBCorp WHEREAS , the FIRB Resolution No. 3-21 granting to the Small Business Corporation (SBCorp) a tax subsidy in the amount of Eighty Million Four Hundred Twenty-Six Thousand and Forty-Four Pesos (P80,426,044.00) to cover its documentary stamp tax (DST) liability for the issuance of certificate of stock on the subscription of the National Government was completely signed by the designated officials of the FIRB on April 8, 2021; WHEREAS , Republic Act (RA) No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises Act" or CREATE, was passed into law on March 26, 2021 and became effective on April 11, 2021; WHEREAS , Section 297 (C) of the National Internal Revenue Code (NIRC) of 1997, as amended by RA 11534, vested the FIRB with powers to approve applications for tax subsidy of government-owned and/or -controlled corporations, government instrumentalities, government commissaries, and state universities and colleges; WHEREAS , Section 298 of the NIRC of 1997, as amended by RA 11534, authorizes the FIRB to assign functions that may be performed by its Technical Committee; WHEREAS , the FIRB, in its second Board meeting on June 2, 2021, approved and adopted the Resolution endorsed by the FIRB Secretariat to assign to the following select members of the FIRB Technical Committee the authority to decide on tax subsidy applications in order to ensure its speedy processing: a. Undersecretary of Finance, as the Chairperson; b. Undersecretary of Trade and Industry and Board of Investment Managing Head, or Assistant Secretary of Trade and Industry, as member; c. Undersecretary or Assistant Secretary of Budget and Management, as member; d. National Economic and Development Authority Deputy or Assistant Director General, as member; e. Commissioner or Deputy Commissioner of Internal Revenue, as member; and f. Commissioner or Deputy Commissioner of Customs, as member. acEHCD WHEREAS , Section 15 (c) of RA 11518, or the 2021 General Appropriations Act (GAA), reiterates the authority of the FIRB to grant tax subsidies; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED , to repeal FIRB Resolution No. 3-21 due to the change in the structure and composition of the FIRB upon the effectivity of the CREATE Act. RESOLVED FURTHER , to grant tax subsidy to the SBCorp in the amount of EIGHTY MILLION FOUR HUNDRED TWENTY-SIX THOUSAND AND FORTY-FOUR PESOS (P80,426,044.00) only, to cover its DST liability for the issuance of certificate of stock on the subscription of the National Government. Provided , that the corresponding Certificate of Entitlement to Subsidy shall be issued upon the submission by the SBCorp to the FIRB Secretariat of its actual tax liability based on the assessments/tax returns issued by the Bureau of Internal Revenue: Provided further , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of RA 11518, or the 2021 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 No. 93. (SGD.) ANTONETTE C. TIONKO Undersecretary Department of Finance (SGD.) ROLANDO U. TOLEDO OIC-Undersecretary Department of Budget and Management (SGD.) RAFAELITA M. ALDABA Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Undersecretary National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner Bureau of Internal Revenue (SGD.) ATTY. VENER S. BAQUIRAN Deputy Commissioner Bureau of Customs