Board of Investments

October 15, 2021 FIRB RESOLUTION NO. 24-21 WHEREAS , Rule 23, Section 2 of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act implementing rules and regulations (IRR) authorizes the concerned Investment Promotion Agency (IPA), upon the approval of the Fiscal Incentives Review Board (FIRB), to implement temporary measures to support the recovery of registered business enterprises (RBEs) from any exceptional circumstances and strengthen the nation's capability for similar circumstances in the future; Provided , That the temporary measures shall cover a specific time period and only be limited to the incentives duly approved by the concerned IPA or the FIRB, as the case may be, under the RBEs' terms and conditions. WHEREAS , Rule 23, Section 3 of the CREATE Act IRR provides that the temporary measures may cover any of the following: a. Suspension of the export requirement; b. Deferment of the income tax incentive availment period; c. Movement of the start of commercial operations with full entitlement to incentives under the terms and conditions of the registered project or activity; or d. Adoption of any other measure as may be reasonable to recover from such circumstances, subject to FIRB approval upon the recommendation of the IPA. WHEREAS , the FIRB noted several exceptional circumstances in the country that affect RBEs, such as COVID-19, African Swine Fever, and the Taal Volcano eruption. WHEREAS , the Board of Investments (BOI) is requesting the approval of the FIRB for it to implement temporary measures for exceptional circumstances, particularly by reason of the COVID-19 pandemic, African Swine Fever, and Taal Volcano eruption, under Rule 23 of the CREATE Act IRR. NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED , That , the request of the BOI to implement temporary measures by reasons of the COVID-19 pandemic, African Swine Fever, and Taal Volcano eruption, BE APPROVED . RESOLVED, FURTHER , That the BOI RBEs that are adversely affected by exceptional circumstances be allowed as follows: Particulars Temporary Measures For RBEs that have not been able to commence commercial operation for projects that are still on pre-operating stage Move the start of commercial operation and income tax holiday (ITH) incentive reckoning date corresponding to the duration that the RBE pre-operation activities have been affected or disrupted. For RBEs that continued or suspended operations and whose profitability are adversely affected Defer their ITH incentive entitlement corresponding to the duration that the RBE operation has been affected or disrupted. Provided, That the RBEs shall pay the income tax due for the taxable year covered by the deferment period. Provided, further, That the BOI's authority to act under Rule 23 of the CREATE Act IRR shall be effective only until any of the exceptional circumstances covered herein has ended or ceased to exist. RESOLVED, FINALLY , That the BOI shall submit to the FIRB a report related to the implementation of temporary measures under this Resolution within fifteen (15) days following the close of each quarter in a calendar year. 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 15 October 2021 where a quorum was present. (SGD.) TINA ROSE MARIE L. CANDA Officer-in-Charge and Undersecretary of Budget and Management (SGD.) KARL KENDRICK T. CHUA Socioeconomic Planning Secretary (SGD.) RAMON M. LOPEZ Co-Chairperson and Secretary of Trade and Industry (SGD.) MICHAEL P. ONG Senior Deputy Executive Secretary (SGD.) CARLOS G. DOMINGUEZ Chairperson and Secretary of Finance