FIRB Resolution No. 2-21

February 26, 2021 FISCAL INCENTIVES REVIEW BOARD RESOLUTION NO. 2-21 WHEREAS, the University of the Philippines (UP) is mandated to serve as a research university in various fields of expertise by conducting applied research and development and contributing to the dissemination and application of knowledge; WHEREAS, the Cordillera Textile (CordiTex) Project is a multi-disciplinary research that combines different approaches in the social and natural sciences in analyzing traditional textiles, and how they are transformed in the contemporary period; WHEREAS, the long-term goal of the CordiTex Project is to design concrete scientific protocols to improve product quality in the hope of producing textiles from locally available indigenous materials with the use of new technology that can preserve textile tradition; WHEREAS, the Project was funded as follows: Phases 1 and 2 (2016-2018), by the UP Emerging Interdisciplinary Research; Phase 3 (2019), through the support of the Office of Senator Loren Legarda; and Phase 4 (2020), by the Office of the UP-Diliman Chancellor Research Grant; WHEREAS, the current phase of the Project covers the digitization of the extant textiles through the use of a digital loom in order to preserve the traditional textiles in Northern Luzon; WHEREAS, to implement the current phase of the Project, the procurement of two units of Thread Controller 2 (TC2) digital looms and accessories from Tronrud Engineering AS in Honefoss, Norway is necessary; WHEREAS, the UP was previously exempted from the payment of customs duties and taxes on its importation under Republic Act (RA) No. 9500, otherwise known as "An Act to Strengthen the University of the Philippines as the National University"; WHEREAS, Section 86 (cc) of RA 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN)" law, repealed Section 25 (d) of RA 9500, insofar as the zero percent value-added tax (VAT) rate for all transactions of the UP subject to the said tax is concerned; CAIHTE WHEREAS, RA 10963 also provides that the VAT obligations of state universities and colleges, the VAT exemption of which has been repealed under the Act, shall be chargeable to the Tax Expenditure Fund provided for in the annual General Appropriations Act (GAA); NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the UP in the amount of Seven Hundred Four Thousand Seven Hundred Eighty-Seven and 35/100 (P704,787.35) only, covering the VAT obligations on the importation of two units of TC2 digital looms and accessories, computed as follows: Particulars Amount/Rate Dutiable Value in Euro 102,094.00 Exchange Rate (1 EUR to PhP) 57.5205 Dutiable Value in PhP 5,872,497.93 Brokerage Fee 700.00 Customs Documentary Stamp 30.00 VAT Base 5,873,227.93 VAT Rate 12.00% VAT Payable 704,787.35 Provided , that the Certificate of Entitlement to Subsidy (CES) shall be issued only upon submission by the UP to the FIRB of the required billings/Statement of Accounts pertaining to the said importation. 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.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) MARLENE LUCERO-CALUBAG Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB