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\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Executive Summary}{\fs22 \kerning2 \rtlch
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\loch \af0 {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
\langnp9 The Philippines House of Representatives has introduced a Bill,1 the
Digital Economy Taxation Act of 2020 (DETA 2020 Bill), which aims to subject the
value created in the digital economy to withholding/income tax and value-added tax
(VAT).}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
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{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9
Pursuant to the DETA 2020 Bill, digital or electronic goods, services rendered
electronically, digital advertising services, internet-based subscription services,
and transactions made on electronic commerce (e-commerce) platforms will be subject
to a 12% VAT. Network orchestrators and e-commerce platforms will be designated as
withholding agents for income tax and/or VAT purposes. Nonresidents providing
digital services will also be required to establish representative offices or
appoint resident agents to carry out business in the Philippines. The DETA 2020
Bill is subject to further deliberations in the Congress.}{\fs22 \kerning2
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\af4 \hich \af4 \loch \f4 \lang9 \langnp9 This Alert summarizes the key changes
proposed under the Digital Economy Taxation Act.}{\fs22 \kerning2 \rtlch \ltrch
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\dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\af4 \loch \f4 \lang9 \langnp9 Detailed discussion}{\fs22 \kerning2 \rtlch
\langnp9 Key changes}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
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\kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \rtlch
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Network orchestrators2 such
as ride-hailing companies, rental platforms and other persons that link customers
and service providers within a network system are required to withhold tax on the
income and/or revenue derived by its partners through membership in the network
orchestrator system.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Digital or electronic goods
and services rendered electronically3 in the course of trade or business are
subject to VAT.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Digital advertising
services,4 subscription-based services,5 and any services that can be delivered
through an information structure (such as the internet) are subject to VAT.}
\af4 \loch
\f4 \lang9 \langnp9 Network orchestrators for lease services, and e-commerce
platforms6 are designated as withholding agents of the seller for VAT purposes. VAT
amounts withheld should be remitted within 10 days following the end of the month
the withholding was made.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
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\fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Nonresidents that
render digital services,7 or act as network orchestrators and/or as e-commerce
platforms, must do so through a representative office or resident agent in the
Philippines. Revenues derived from these services will be considered revenues
generated by the representative office or resident agent for tax purposes.}
\af4 \loch \f4 \lang9 \langnp9 Other related measures}{\fs22 \kerning2 \rtlch
\langnp9 The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR)
are presently drafting regulations and designing a system to effectively collect
VAT on local and cross-border digital transactions. Meanwhile, for income tax
purposes, the DOF is monitoring developments in countries where digital services
taxes on online platforms have been imposed. The DOF has stated that it will review
and propose tax reforms to levy income tax on cross-border digital transactions
after international consensus has been reached on the taxation of the digital
economy.8}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
Implications}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 While under strict
quarantine measures as a result of COVID-19, e-commerce and online transaction
activity in the Philippines has shown resilience to the downturn, indicating that
the Philippine economy is continuing its shift towards digitalization. As the
Philippine Government identifies new or additional sources of revenue to fund the
country\uc1 \u8217 ?s increased government spending, there is an accelerated effort
to capture the value created through digital transactions; ease the burden on
individual taxpayers; and design innovative approaches to encourage tax
compliance.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 For additional information with respect to this Alert, please contact the
following:}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Ernst & Young Philippines (SGV & Co.),
Makati City}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Fabian K. Delos Santos}
\af4 \loch \f4 \lang9 \langnp9 Fidela T. Isip-Reyes}{\fs22 \kerning2 \rtlch
\langnp9 Ernst & Young LLP (United States), Philippines Tax Desk, New York}
\af4 \loch \f4 \lang9 \langnp9 Michelle C. Arias}{\fs22 \kerning2 \rtlch \ltrch
Ernst & Young LLP (United States), Asia Pacific Business Group, New York}{\fs22
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\hich \af0 \loch \af0 {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\f4 \lang9 \langnp9 Chris J. Finnerty}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
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\lang9 \langnp9 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\lang9 \langnp9 HYPERLINK https://www.ey.com/en_gl/tax-alerts/philippines-proposes-
law-for-taxation-of-the-digital-economy }}{\fldrslt {\fs22 \kerning2 \rtlch
\ltrch \dbch \af4 \hich \af4 \loch \af4 \lang9 \langnp9 }{\fs22 \kerning2 \rtlch
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9
https://www.ey.com/en_gl/tax-alerts/philippines-proposes-law-for-taxation-of-the-
digital-economy}}}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\af4 \lang9 \langnp9 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
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\loch \af0 {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 The CREATE Act is a time-bound and tailor-made set of corporate and tax
reforms to counter the effects of COVID-19 on the Philippines\uc1 \u8217 ?
economy.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 The Act reduces the financial burden on
foreign and domestic companies through various tax incentives.}{\fs22 \kerning2
\langnp9 Through the CREATE Act, the government hopes to increase the
country\uc1 \u8217 ?s investment appeal and better compete with its ASEAN
counterparts.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 The Corporate Recovery and Tax Incentives
for Enterprises Act (CREATE Act), was passed into law on March 26 this year. The
Act\uc1 \u8217 ?s purpose is to grant tax relief for companies in financial need,
provide transparent tax provisions, and further increase the competitiveness of the
Philippines. The Act is part of corporate fiscal reforms undertaken by the country
since 2019. The CREATE Act still needs to be officially published to take effect.}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 The CREATE Act was
previously named the Corporate Income Tax, and Incentives Rationalization Act
(CITIRA), which was then approved in September 2019. }{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 RELATED SERVICES}{\fs22 \kerning2
\langnp9 \tab }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\lang9 \langnp9 WE CAN HELP YOU ENTER THE PHILIPPINE MARKET}{\fs22 \kerning2 \rtlch
\langnp9 While the CITIRA Act reflected the desire to establish the country as an
attractive market for foreign investments, the CREATE Act, still with the same
objective, is rather a quick answer to the urgency of the economic situation in the
Philippines arising from the COVID-19 pandemic.}{\fs22 \kerning2 \rtlch \ltrch
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 The
call for such recalibrated legislation was made jointly by several business and
professional groups before the country\uc1 \u8217 ?s Congress in May 2020, when the
effects of the pandemic were already hitting the economies of Southeast Asia.
Specific requests were made regarding the taxation of companies and the granting of
tax perks.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 An
accelerated but time-bound implementation of market- boosting measures}{\fs22
\f4 \lang9 \langnp9 The law provides a wide range of provisions aimed at reducing
the COVID-19 burden on both foreign and domestic companies.}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Reduction in the corporate income tax
rate}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9
\par }\pard \plain \ql \li0 \ri0 \lisb0 \sa200 \lisa0 \sl276 \slmult1 \widctlpar
\af4 \loch \f4 \lang9 \langnp9 From July 2020 to 2022, foreign companies will be
eligible for a reduction in the corporate income tax (CIT) rate to 25 percent
compared to the regular rate of 30 percent \uc1 \u8212 ? the highest in ASEAN.
While the CITIRA Act provides a gradual reduction of CIT from 2020 to 2029, at a
rate of one percentage point per year, the CREATE Act opts for a five-percentage
point reduction once implemented. As a result, the CIT rate will remain at 25
percent until 2022. Domestic micro, small, and medium-sized companies will directly
benefit from a preferential rate of 20 percent (businesses with taxable income of
up to PHP5 million (US$103,318) and not exceeding PHP100 million (US$2,066,437).}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 From 2022 to 2027,
the 25 percent CIT will steadily decline by one percent per year, to finally reach
20 percent in 2027 for foreign companies.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\adjustright
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 It
should be noted that these preferential CIT rates will supersede all other national
and local taxes until the due date, as a \uc1 \u8216 ?one-stop shop\uc1 \u8217 ?
corporate tax system.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 The sunset provision}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 An additional two-
year \uc1 \u8216 ?sunset\uc1 \u8217 ? provision is granted to firms currently
registered with the Philippine Investment Promotion Agencies and paying the five
percent gross income earned (GIE) tax incentive. The sunset period has been
extended by two years. While the CITIRA Act provided a status quo of two to seven
years, the CREATE Act adds two years, maintaining the provision from four years up
to nine years.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 There are four levels to the sunset provision:}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Companies benefitting from the GIE tax
incentive for 10 years can benefit from a sunset period of four years;}{\fs22
\f4 \lang9 \langnp9 Companies benefiting from the GIE tax incentive for five to 10
years can benefit from a sunset period of five years;}{\fs22 \kerning2 \rtlch
\langnp9 For companies benefiting from the GIE tax incentive for less than five
years, will be granted a sunset period of seven years; and}{\fs22 \kerning2
\langnp9 A sunset period of nine years is guaranteed for industries or activities
that export their products or services and employ at least 10,000 people.}{\fs22
\f4 \lang9 \langnp9 RELATED SERVICES}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \tab }{\fs22
\kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 LEARN MORE
ABOUT TAX COMPLIANCE}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Companies are entitled to
the extension of the sunset period if they have been granted the six-year income
tax holiday (ITH) that has already come to an end.}{\fs22 \kerning2 \rtlch
\langnp9 It must be noted that it will not be possible to apply for an extended ITH
or an ITH renewal.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 Greater flexibility to grant incentives}{\fs22 \kerning2 \rtlch \ltrch
CREATE Act has attributed more powers to the President and the Fiscal Incentives
Review Board (FIRB), to facilitate the issuance of incentives.}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 The FIRB, a governmental agency dedicated
to incentive policy making and supervising tax breaks, has now the power to
recommend to the President the appropriate fiscal and non-fiscal incentives. These
powers are in line with the Strategic Investments Priority Plan, which aims to
attract high-value investments and boost job creation. The FIRB will make
recommendations for companies that add significant value to the economy, meaning
companies undertaking \uc1 \u8220 ?highly desirable projects\uc1 \u8221 ? or
\uc1 \u8220 ?very specific industrial activities\uc1 \u8221 ? (as specified by the
Department of Finance).}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 The President can then choose to approve and grant these incentives for
the activities mentioned above, which may last up to 40 years.}{\fs22 \kerning2
\loch \af0 {\fs22 \kerning2 \rtlch \ltrch
\dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \par }\pard \plain \ql \li0
\ri0 \lisb0 \sa200 \lisa0 \sl276 \slmult1 \widctlpar \aspalpha \aspnum \adjustright
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 By
giving such powers to the FIRB and the President, the CREATE Act provides a tool to
adopt measures that best fit the specific needs of both business activities and
government interests.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 Net operation loss carryover}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 An extended net
operating loss carryover (NOLCO) has been provided for registered projects or
activities during their first three years from the start of business activities.
The NOLCO can be carried over the following five years and will be deducted from
the business activity or the project\uc1 \u8217 ?s gross income during this period.
Thus, two additional years have been added to the previous three-year NOLCO granted
to non-large taxpayers.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 Forecast and desired effects}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Through the CREATE
Act, the Philippine government hopes to increase the country\uc1 \u8217 ?s
investment appeal, particularly for businesses based in China looking to diversify
their supply chain in the region.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\langnp9 The tax incentives are a welcome relief for many SMEs who have been
significantly affected by the pandemic. The expected reduction in government
revenues by an estimated PHP476 billion (US$9 billion) is hoped to be offset by the
CREATE Act\uc1 \u8217 ?s fostering of a business competitive environment for the
near- to medium-term. Firms benefitting from the Act can reinvest in the
revitalization of their businesses and create more jobs for local workers.}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 The CREATE Act will
also reduce the significant discrepancy in regard to CIT that existed between the
country and other ASEAN members. The Philippines had the highest CIT rates in the
ASEAN bloc, which was a tremendous disincentive for entrepreneurs as well as a
major hindrance to local businesses from expanding and competing with their
regional counterparts.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 Moreover, the CREATE Act enables the government to provide incentives that
are performance-based, transparent and strategically targeted. This, in turn, will
encourage foreign investments in sectors and industries that are aligned with the
country\uc1 \u8217 ?s development agenda \uc1 \u8211 ? that is, creating higher-
value jobs, the expansion of pioneer industries, and promoting investments in less-
developed regions.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 Share this:}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
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\af4 \hich \af4 \loch \f4 \lang9 \langnp9 ASEAN Briefing is produced by Dezan Shira
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\lang9 \langnp9 HYPERLINK www.dezshira.com }}{\fldrslt {\fs22 \kerning2 \rtlch
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\aspnum \adjustright \lin0 \rin0
\itap0 \fs21 \kerning2 \rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\fs22
\f4 \lang9 \langnp9 Previous Article}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u171 ? Changes
to Social Security Rates in Indonesia for 2021}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 Next Article}{\fs22 \kerning2 \rtlch \ltrch \dbch
Termination of employment in Singapore \uc1 \u187 ?}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 IN THIS ARTICLE}{\fs22 \kerning2
\langnp9 An accelerated but time-bound implementation of market- boosting measures}
\af4 \loch \f4 \lang9 \langnp9 Reduction in the corporate income tax rate}{\fs22
\f4 \lang9 \langnp9 The sunset provision}{\fs22 \kerning2 \rtlch \ltrch \dbch
Greater flexibility to grant incentives}{\fs22 \kerning2 \rtlch \ltrch \dbch
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Net
operation loss carryover}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Forecast and desired
effects}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
Expand Your Business in Asia}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Dezan Shira &
Associates helps businesses establish, maintain, and grow their operations.}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 New Asia Briefing
Website is Live!}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
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\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 VISIT ASIA BRIEFING}
\af4 \loch \f4 \lang9 \langnp9 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 RELATED READING}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 March 11, 2021}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Opportunities for
Foreign Investors in Indonesia\uc1 \u8217 ?s Digital Economy}{\fs22 \kerning2
\langnp9 In this issue of the ASEAN Briefing magazine, we provide
an overview of Indonesia\uc1 \u8217 ?s digital economy, its vib...}{\fs22
\langnp9 October 23, 2020}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 An Introduction to
Doing Business in ASEAN 2021}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 This publication is
designed to introduce the fundamentals of investing in all ten ASEAN countries
(Brunei, Ca...}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 July 17, 2020}{\fs22 \kerning2 \rtlch
\langnp9 Business Recovery in ASEAN After COVID-19}{\fs22 \kerning2 \rtlch
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s 2018 Budget: Salient Features}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
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\af4 \hich \af4 \loch \f4 \lang9 \langnp9 But while the country is still struggling
to fight the coronavirus pandemic, only 5 of Duterte\uc1 \u8217 ?s SONA priority
bills on Monday, July 27, were specifically designed to respond to the COVID-19
crisis.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
These include the proposed COVID-19 response and recovery plan called Bayanihan to
Recover As One Act and the bill providing incentives to financial institutions to
sell their non-performing assets affected by the pandemic. (READ: Duterte's 2020
SONA: Pandemic plan overtaken by obsession with \uc1 \u8216 ?oligarchs')}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Duterte is also asking his
allies in Congress to approve bills that would establish a Medical Reserve Corps
and create a National Disease Prevention and Management Authority to prepare for
future outbreaks.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 The President also wants to protect online consumers and sellers alike
after the industry started booming when lockdowns were imposed across the country
due to COVID-19.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 The rest of Duterte\uc1 \u8217 ?s pet bills are a mix of proposals and
laws he had long been asking Congress to approve in his past SONAs. }{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 From the Bayanihan 2 to the
coco levy bill that he had earlier vetoed, here are Duterte\uc1 \u8217 ?s priority
measures in his 5th SONA:}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 ADVERTISEMENT}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 1. Bayanihan to Recover as One Act }
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?May I
again reiterate my thanks to you, the men and women of Congress, for the effort you
invested into passing that law (Bayanihan
to Heal as One Act). I hope that we can get some or the same treatment of clarity,
purpose and the fastness to support the passage of the Bayanihan [to Recover as One
Act], which will supplement funds for recovery and response against the impact of
the COVID-19 pandemic.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 The proposed Bayanihan 2 bill provides a comprehensive list of 64 \uc1
\u8220 ?interventions\uc1 \u8221 ? that the executive branch is expected to
undertake to combat the pandemic \uc1 \u8211 ? from setting a COVID-19 testing
protocol for vulnerable sectors to providing aid to those in the transport and
tourism industries critically affected by the health crisis. }{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 These interventions adopted the 30
special powers that the first Bayanihan law originally granted to Duterte, which
expired on June 25.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 The Senate already passed the Bayanihan 2 on second reading, while the
House version has hurdled only the committee level so far.}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Both chambers, however, are seeking
different amounts for the proposed standby fund for COVID-19 response programs:
P162 billion in the House and P140 billion in the Senate. }{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 ADVERTISEMENT}{\fs22 \kerning2 \rtlch
Lawmakers will have to reconcile the conflicting provisions of their respective
Bayanihan 2 bills before Congress can pass it into law. }{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 2. Corporate Recovery and Tax Incentives
for Enterprises (Create) Act}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 \uc1 \u8220 ?We must facilitate the country\uc1 \u8217 ?s economic
recovery. I call on Congress to fast-track the passage of proposed measures such as
the Corporate Recovery and Tax Incentives for Enterprises or Create Act. This
immediately cuts the corporate income levy from the current 30 to 25% and give the
government flexibility to grant a combination of fiscal and non-fiscal incentives,
among others.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 The Create Act is the Duterte administration\uc1 \u8217 ?s second tax
reform package that would gradually cut corporate income taxes starting 2021,
eventually bringing down the current 30% rate to 20% by 2029.}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 The House already approved it on final
reading in September 2019, while senators have yet to finish plenary debates on the
bill. }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
Duterte had earlier urged lawmakers to prioritize Citira in his 4th SONA in July
2019. The House passed the measure at the time but it did not fly in the Senate. }
\fs21 \kerning2 \rtlch \ltrch
\dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\hich \af4 \loch \f4 \lang9 \langnp9 This is also the 3rd time the bill was
renamed, as it was originally called the Tax Reform for Attracting Better and High-
Quality Opportunities Act in the previous 17th Congress. }{\fs22 \kerning2
measure was then renamed twice during the current 18th Congress \uc1 \u8211 ? first
into the Corporate Income Tax and Incentive Rationalization Act, then into its
current name, Create Act.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 3. Financial Institutions Strategic Transfer (Fist) Act}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?The Financial
Institutions Strategic Transfer or Fist Act will set up mechanisms allowing banks
and other financial institutions to dispose of and transfer non-performing assets
and loans to asset management companies similar to Special Purpose Vehicles.\uc1
\u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
House has already given its nod to the Fist bill, which would assist banks and
other financial institutions with offloading their debts and managing their non-
performing assets affected by the COVID-19 pandemic. }{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Proposed incentives include exemptions
from the payment of documentary stamp tax, capital gains tax, creditable
withholding income taxes imposed on the transfer of buildings, and value-added tax.
}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 There is currently no
Senate version of the bill.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 4. Department of Overseas Filipinos}{\fs22 \kerning2 \rtlch \ltrch
\af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?And this one, I strongly urge Congress
to pass a law establishing the Department of Overseas Filipinos [focused] solely on
addressing the concerns of Filipinos abroad and their families\uc1 \u8230 ? Kawawa
kasi itong ating mga overseas (I pity our overseas workers)... Their needs, their
pleas are not really attended to with dispatch and with care.\uc1 \u8221 ?}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 ADVERTISEMENT}
\langnp9 Duterte has long been calling for the creation of a new department focused
on the needs of overseas Filipinos workers since the 2016 presidential campaign. }
\rtlch \ltrch \dbch \af4 \hich \af4
\loch \f4 \lang9 \langnp9 The House already passed the bill on 3rd reading in
March this year, but the Senate version is still pending at the committee level. }
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 5. Death penalty for
drug convicts}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1
\u8220 ?I reiterate the swift passage of a law reviving the death penalty by lethal
injection for crimes specified under the Comprehensive Dangerous [Drugs] Act of
2002... This law will not only help us deter criminality but also save our children
from the dangers posed by illegal and dangerous drugs.\uc1 \u8221 ?}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Duterte seeking the revival
of the death penalty for drug convicts is nothing new. He had asked this from
Congress during his second SONA in 2017, then again during his 4th SONA last
year. }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
House had approved a death penalty bill punishing drug-related crimes in 2017, but
it was met with strong opposition in the Senate. }{\fs22 \kerning2 \rtlch \ltrch
\af4 \loch \f4 \lang9 \langnp9 Lawmakers seemed surprised Duterte once again asked
them to reimpose the capital punishment, as the President noticed they did not
immediately applaud when he mentioned it on Monday.}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 "I did not hear so much clapping so I
presume that they are not interested," said Duterte, which then prompted the
legislators in the plenary hall to loudly applaud him.}{\fs22 \kerning2 \rtlch
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 6.
National Housing Development bill}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\langnp9 \uc1 \u8220 ?I renew my call for Congress to pass the National Housing
Development bill and the Rental Housing Subsidy bill. These will enable all
Filipinos \uc1 \u8211 ? regardless of social status \uc1 \u8211 ? to live in decent
homes where their families can lead meaningful lives.\uc1 \u8221 ?}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Versions of this measure have been filed
both in the House and the Senate since 2019, but they are still pending at the
committee level. The bill aims to provide funding for and accelerate government
housing projects for homeless Filipinos.}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 7. Rental housing subsidy bill}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 There are pending rental housing subsidy
measures in both the House and the Senate. If the bill is passed into law, informal
sector families would receive a flat-rate rental cash aid from the government,
aiming to give them access to the formal housing market.}{\fs22 \kerning2 \rtlch
\ltrch \dbch \af4 \hich \af4
\langnp9 8. Amend the Continuing Professional Development Act of 2016}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?I also call on
Congress to amend Republic Act (RA) No. 10912 [or] the Continuing Professional
Development Act of 2016. In this time of great pandemic and forthcoming
reconstruction, requiring our professionals to undergo seminars is burdensome and
not realistic. This must end.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 RA 10912 requires professionals to earn a specific
number of units \uc1 \u8211 ? called continuing professional development (CPD)
units \uc1 \u8211 ? before their licenses are renewed. The units are usually
acquired through development programs, like seminars, graduate studies, and online
courses, among others.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 How did this story make you feel?}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 SEE THE RESULTS}{\fs22 \kerning2 \rtlch \ltrch \dbch
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 But
Duterte wants this requirement to be lifted, at least while the pandemic is still
ongoing. (READ: To have professional licenses renewed under new rules in PH, here's
the cost)}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 In
May, the Professional Regulatory Commission started granting CPD units to all
professionals who rendered essential services during the COVID-19 crisis.}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 9. Advanced Nursing
Education Act}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
\af4 \loch \f4 \lang9 \langnp9 This is a pet bill of Duterte\uc1 \u8217 ?s longtime
aide-turned-senator Bong Go, who wants to entice Filipino nurses to stay in the
Philippines instead of working abroad.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\langnp9 Senate Bill No. 395 would require higher learning institutions accredited
by the Commission on Higher Education to establish standard basic and graduate
programs for nursing education.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 No counterpart measure has been filed in the House so far.}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 10. Creating a Medical
Reserve Corps}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
There are pending bills in the 18th Congress pushing to create a Medical Reserve
Corps, who would be trained to augment the country\uc1 \u8217 ?s human health
resources in times of disasters and health emergencies.}{\fs22 \kerning2 \rtlch
\ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 11. National Disease Prevention and Management Authority}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?In the long
term, we are looking into the creation of the National Disease Prevention and
Management Authority to better prepare for pandemics, protect lives, and allow
development to proceed even in the worst of times. We are counting on the full
support of Congress for this critically important endeavor.\uc1 \u8221 ?}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 In his 5th SONA, Duterte
admitted there were lapses in his government\uc1 \u8217 ?s response to the
pandemic. He then told Congress to create a National Disease Prevention and
Management Authority that would be primarily tasked to prepare the Philippines in
the event of another crippling pandemic like what COVID-19 has caused.}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Duterte, however, has yet to
determine where to source funds, should this body be created.}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 12. Unified system of separation,
retirement, and pension of the military and uniformed personnel}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?I call on Congress to
prioritize the passage of a law for the Unified System of Separation, Retirement
and Pension of the Military and Uniformed Personnel without however diminishing the
benefits that our uniformed personnel are entitled to under existing laws.\uc1
Reforming the pension system is a longtime promise of Duterte to the military and
other uniformed personnel. He wants the current pension system amended so it would
be applicable only to newly-hired uniformed officers.}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Duterte said if Congress does not heed
his request, there would be a \uc1 \u8220 ?ballooning effect\uc1 \u8221 ? against
the military\uc1 \u8217 ?s budget in the years to come.}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 13. Modernization of the Bureau of Fire
Protection (BFP)}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 \uc1 \u8220 ?We must also modernize the Bureau of Fire Protection and the
Bureau of Immigration with urgency.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch
\af4 \loch \f4 \lang9 \langnp9 Duterte said it is about time that the BFP is
modernized, as the national government has \uc1 \u8220 ?overlooked it for a long
time.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 14. Modernization of the Bureau of Immigration (BI)}{\fs22 \kerning2
\widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2
\rtlch \ltrch \dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \rtlch \ltrch
\dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 The President likewise said in his
5th SONA that there is a need to modernize the BI, though Duterte did not elaborate
on this anymore in his speech.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 15. Department of Disaster Resilience}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?I emphasize the creation of the
Department of Disaster Resilience. Our people\uc1 \u8217 ?s safety cannot be
delegated to a council or commission.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch
Duterte first asked Congress to create a department solely focused on responding to
calamities and other disasters in 2018. The House already passed the bill on 3rd
reading during the 17th Congress, but it did not get the nod of senators at the
time. The measure has since been refiled in 2019 but remains pending in both
chambers.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 16.
Evacuation centers in every province, city, and municipality}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?Equally important is the
establishment of evacuation centers in every city, province and municipality
throughout the country. We must act [now] before another major disaster shakes [us]
into action.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 Congestion in evacuation centers is usually a problem whenever a calamity
strikes. Several senators and congressional representatives have filed their
respective bills that would require the government to ensure there\uc1 \u8217 ?s at
least one evacuation center in every province, city, and municipality across the
country. They have all remained pending at the committee level since 2019.}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 17. National Land Use
Act (NLUA)}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1
\u8220 ?The responsible extraction and equitable distribution of natural resources
remain among my non-negotiables. I reiterate the need for the passage of the
National Land Use Act which has been pending for decades. Pakisilip lang ho
ninyo \uc1 \u8216 ?yan (Please look into this).\uc1 \u8221 ?}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 This is the 4th time Duterte is asking
Congress to pass the NLUA, as it has failed to deliver this to him in the past 3
years. }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
proposed NLUA creates a national land use authority that will draft and oversee a
national land use plan that will classify land according to use: protection (for
conservation), production (for agriculture and fisheries), settlements development
(for residential purposes), and infrastructure development (for transportation,
communication, water resources, social infrastructure).}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 The NLUA has languished in Congress for
decades, even after it was certified as urgent by Duterte\uc1 \u8217 ?s
predecessor, Benigno Aquino III, in 2013.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\fs21 \kerning2 \rtlch \ltrch \dbch \af2
\hich \af0 \loch \af0 {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 18. Boracay Island
Development Authority (BIDA)}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 \uc1 \u8220 ?We have seen the remarkable reemergence of the island back to
its former glory. I want this sustained. I ask Congress to enact a law creating
\uc1 \u8211 ? importante ito (this is important) \uc1 \u8211 ? the Boracay Island
[Development] Authority or BIDA. We need it.\uc1 \u8221 ?}{\fs22 \kerning2
President said creating the BIDA would \uc1 \u8220 ?sustain\uc1 \u8221 ? the
rehabilitation of the famous summer getaway island Boracay, which his government
kicked off in 2018.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 The 6-month closure of Boracay cost the country millions in tourism
revenue, but helped clean up its famous white-sand beaches for a time. But the
Boracay Inter-Agency Task Force still has unmet targets to this day, forcing
Duterte to extend its life to May 2021.}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 19. Coconut levy trust fund bill}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 \uc1 \u8220 ?I once again urge both
houses of Congress to pass a version of the bill establishing the Coconut Farmers
Trust Fund. Tulungan natin ang ating mga magsasaka. Pagka hindi, mawawala \uc1
\u8216 ?yong pera. Bilyon \uc1 \u8216 ?yan. (Let us help our farmers. If we don\uc1
\u8217 ?t, we would lose the money. Those are billions.)\uc1 \u8221 ?}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Just like in last
year\uc1 \u8217 ?s SONA, Duterte asked lawmakers to pass the coconut levy trust
fund bill. This is despite him vetoing in February 2019 the twin bills that would
have allowed the return of coco levy funds to farmers. This is another campaign
promise that Duterte has so far failed to keep. }{\fs22 \kerning2 \rtlch \ltrch
\af4 \loch \f4 \lang9 \langnp9 20. Rural, Agricultural, and Fisheries Development
Financing System Act}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 \uc1 \u8220 ?I am also requesting Congress to pass the Rural,
Agricultural, and Fisheries Development Financing System Act. We aim to provide
adequate, accessible, and affordable food for every Filipino to the Plant, Plant,
Plant program.\uc1 \u8221 ?}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 Duterte said the proposed P66-billion stimulus package would help
fisherfolk and farmers recover from the COVID-19 pandemic. }{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 If passed into law, this bill would
establish an enhanced financing system that would provide loans, grants, and
investments to qualified fisherfolk and farmer-beneficiaries. The House already
passed the measure in March, while the Senate version is still pending at the
committee level.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 21. Internet Transactions Act}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\lisa0
\sl276 \slmult1 \widctlpar \aspalpha \aspnum \adjustright \lin0 \rin0 \itap0 \fs21
\langnp9 \uc1 \u8220 ?We need to build trust and confidence in online transactions,
stronger protection for online consumers, and enabling measures for online business
[through] the enactment of an Internet Transaction Act. This is very good.\uc1
proposed Internet Transactions Act is primarily authored by Senator Win Gatchalian
in the Senate and his brother Valenzuela City 1st District Representative Weslie
Gatchalian in the House.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\langnp9 The bills would create an e-commerce bureau that will be tasked to
regulate online selling. Duterte told lawmakers to work closely with the Department
of Trade and Industry to ensure the Internet Transactions Act would be \uc1
\u8220 ?responsive to the needs of the consumers while promoting the growth of e-
commerce in the country.\uc1 \u8221 ? \uc1 \u8211 ? Rappler.com}{\fs22 \kerning2
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 DOF
backstops Congress on reform measures vs COVID-19 in 2020}{\fs22 \kerning2
\langnp9 The Department of Finance (DOF) worked closely with lawmakers in 2020 in
providing technical support leading to swift congressional action on legislative
measures that aim to rescue businesses, provide emergency assistance to vulnerable
sectors and keep the economy afloat amid the crisis arising from the COVID-19
pandemic.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
Among these measures are the two Bayanihan laws\uc1 \u8212 ?the Bayanihan to Heal
As One Act (Republic Act or RA No. 11469) and the Bayanihan to Recover As One Act
(RA 11494), and the Corporate Recovery and Tax Incentives for Enterprises (CREATE)
bill, the DOF\uc1 \u8217 ?s Domestic Finance Group (DFG) said.}{\fs22 \kerning2
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 In its report to Finance Secretary Carlos
Dominguez III, the DFG said it has also assisted the Congress in finalizing the
Financial Institutions Strategic Transfer (FIST) Act, which was ratified by both
legislative chambers last year, and is awaiting the signature of President Duterte
for its enactment into law.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 The DFG, which is headed by Undersecretary Gil Beltran, also provided
technical support for the drafting of the Government Financial Institutions Unified
Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) bill, which the
DOF expects to be passed this year.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 According to the DFG, the DOF provided data and estimates to the concerned
legislative committees and legislator-proponents on the revenue implications of
these reform measures.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 \uc1 \u8220 ?I think you have made great achievements last year,\uc1
\u8221 ? Dominguez said in response to the report of the DFG\uc1 \u8217 ?s Fiscal
Policy Planning Office (FPLO) and Policy, Research and Liaison Office (PRLO).}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 CREATE, which
proposes to lower the corporate income tax (CIT) for micro, small, and medium
enterprises (MSMEs) from the current 30 percent to 20 percent, is envisioned to be
the largest economic stimulus package for private enterprises in the country\uc1
\u8217 ?s history.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 \par }\pard \plain \ql \li0
\ri0 \lisb0 \sa200 \lisa0 \sl276 \slmult1 \widctlpar \aspalpha \aspnum
\langnp9 It aims to support the government\uc1 \u8217 ?s efforts to keep businesses
operating this year and preserving or creating hundreds of thousands of jobs,
especially among MSMEs, which account for 99.5 percent of local enterprises and
employ two-thirds of Filipino workers.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\langnp9 The measure, which is a modified version of the earlier Corporate Income
Tax and Incentives Rationalization Act (CITIRA) bill, also provides for flexibility
in the grant of fiscal and non-fiscal incentives, which will be critical as the
Philippines competes internationally for high-value investments and more job
opportunities this year as part of its recovery from the coronavirus-induced global
economic slump.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4
\langnp9 FIST, meanwhile, will allow banks to dispose of non-performing loans and
assets through asset management companies.}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 This measure is an improved version of the special
purpose vehicle bill that was created in the early 2000s, but which was a belated
response to the Asian financial crisis that struck in 1997.}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 Another measure\uc1 \u8212 ?GUIDE\uc1
\u8212 ?aims to form a special holding company to enable government financial
institutions (GFIs) to infuse equity, under strict conditions, into strategically
important companies facing solvency issues.}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 The two Bayanihan laws, meanwhile, included the
largest social protection program in the country\uc1 \u8217 ?s history that
provided emergency cash grants to low-income families and wage subsidies to workers
in small businesses; the expansion of medical resources to fight COVID-19 and
ensure the safety of our frontliners; channeling of additional capital to GFIs to
lend more money to pandemic-hit sectors; and allocations for the COVID-19
vaccination program, among others.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\langnp9 The DFG worked on 210 briefers and 159 position papers to assist DOF
officials during congressional hearings.}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 It shepherded key legislative measures in the Senate
and House of Representatives.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\langnp9 These include House Bill (HB) No. 6136 or the proposed Motor Vehicle Road
Users\uc1 \u8217 ? Tax (MVRUT) Act, which was passed on third and final reading in
the House of Representatives; and the laws that increased the excise tax rates on
tobacco products, alcohol, and e-cigarettes.}{\fs22 \kerning2 \rtlch \ltrch
\af4 \loch \f4 \lang9 \langnp9 To facilitate the DOF\uc1 \u8217 ?s work on these
measures and other pending bills, the DFG set up a web-based Legislative Monitoring
Portal (LMP) within the Department, which contains all the legislative information
from both chambers of the Congress as well as the tracking of the DOF position
papers on these measures.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4
\langnp9 In 2020, the DFG also monitored fiscal indicators and reviewed revenue
estimates to help the economic team formulate the fiscal/revenue program for 2020
and update the medium-term fiscal plan for 2021-2022.}{\fs22 \kerning2 \rtlch
\af4 \hich \af4 \loch \f4 \lang9 \langnp9 It also lent technical support during
negotiations on the Korea
Free Trade Agreement and the Philippines\uc1 \u8217 ? membership in the Regional
Comprehensive Economic Partnership (RCEP).}{\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \loch \f4 \lang9 \langnp9 This year, the DFG will continue to engage the
Congress on the passage of the other priority bills of the Duterte administration.}
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 These priority bills
include Packages 3 and 4 of the comprehensive tax reform program (CTRP), namely,
the proposed Real Property Valuation and Assessment Reform Act (RPVARA), and the
Passive Income and Financial Intermediaries Reform Act (PIFITA).}{\fs22
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 Also, the DFG will work this
year on the passage of amendments to the Public Service Act and Retail Trade
Liberalization Act; the MVRUT bill; a new fiscal mining regime; the Warehouse
Receipts bill; and a law converting the Insurance Commission (IC) into a collegial
body.}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9
\ltrch \dbch \af2 \hich \af0 \loch \af0 {\field \fldedit {\*\fldinst {\fs22
\kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \af4 \lang9 \langnp9 }{\fs22
\kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 HYPERLINK
https://www.dof.gov.ph/dof-backstops-congress-on-reform-measures-vs-covid-19-in-
2020/ }}{\fldrslt {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\af4 \lang9 \langnp9 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch
\f4 \lang9 \langnp9 https://www.dof.gov.ph/dof-backstops-congress-on-reform-
measures-vs-covid-19-in-2020/}}}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\af4 \loch \af4 \lang9 \langnp9 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang9 \langnp9 -oOo-}{\fs22
\langnp1033 pdf file - insight briefing }{\fs22 \kerning2 \rtlch \ltrch \dbch
{\field \fldedit {\*\fldinst {\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\af4 \loch \af4 \lang1033 \langnp1033 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\hich \af4 \loch \f4 \lang1033 \langnp1033 HYPERLINK
https://www.theworldlawgroup.com/writable/documents/news/Insight-Briefing-CREATE-
FIST-Act-DETA-Aid-to-MSMEs.pdf }}{\fldrslt {\fs22 \kerning2 \rtlch \ltrch \dbch
\af4 \hich \af4 \loch \af4 \lang1033 \langnp1033 }{\fs22 \kerning2 \rtlch \ltrch
\dbch \af4 \hich \af4 \loch \f4 \lang1033 \langnp1033
https://www.theworldlawgroup.com/writable/documents/news/Insight-Briefing-CREATE-
FIST-Act-DETA-Aid-to-MSMEs.pdf}}}{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich
\af4 \loch \af4 \lang1033 \langnp1033 }{\fs22 \kerning2 \rtlch \ltrch \dbch \af4
\hich \af4 \loch \f4 \lang1033 \langnp1033 \par }\pard \plain \ql \li0 \ri0
{\fs22 \kerning2 \rtlch \ltrch \dbch \af4 \hich \af4 \loch \f4 \lang1033
\langnp1033 \par }\pard \plain \ql \li0 \ri0 \lisb0 \sa200 \lisa0 \sl276
\langnp1033 \par }\pard \plain \ql \li0 \ri0 \lisb0 \sa200 \lisa0 \sl276
\ltrch \dbch \af4 \hich \af4 \loch \f4 \lang1033 \langnp1033
https://www.aseanbriefing.com/news/the-philippines-create-act-comes-into-effect-
pushing-for-accelerated-economic-recovery/}{\fs22 \kerning2 \rtlch \ltrch \dbch
}}

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