PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Nineteenth Congress
Second Regular Session

House Bill No. __________

(in substitution of House Bill No. 9794)

___________________________________________________________________________

Introduced by Representatives Joey Sarte Salceda, Mikaela Angela B. Suansing, Teodorico T.

Haresco, Jr., Sonny “SL” L. Lagon, Allan U. Ty, Eric Go Yap, Gus S. Tambunting, Rosanna
“Ria” V. Vergara, Rodolfo “Ompong” M. Ordanes, Stella Luz A. Quimbo, Midy N. Cua,
Ambrosio C. Cruz, Jr., Milagros Aquino-Magsaysay, Sergio C. Dagooc, Christian Tell A. Yap,
Francisco Paolo P. Ortega V, Jonathan Keith T. Flores, Wilter Y. Palma, Kristine Singson-
Meehan, Leody “Odie” F. Tarriela, James “Jojo” A. Ang, Jr., Horacio P. Suansing, Jr., Michael
B. Gorriceta, Franz S. Pumaren, Janette L. Garin, Jose C. Alvarez, Lordan G. Suan, Luis N.
Campos, Jr., Gerville “Jinky Bitrics” R. Luistro, Solomon R. Chungalao, Ambrosio C. Cruz,
Jr., Arnie B. Fuentebella, Roy M. Loyola, Ramon Rodrigo L. Gutierrez, Sergio C. Dagooc,
Mario Vittorio “Marvey” A. Mariño, Janice Z. Salimbangon, Antonio “Tonypet” T. Albano,
Ray T. Reyes, Joseph Gilbert F. Violago, Rufus B. Rodriguez, Jose Gay G. Padiernos, Lex
Anthony Cris A. Colada, John Tracy F. Cagas, Samuel S. Verzosa, Jr., Josephine Veronique
“Jaye” R. Lacson-Noel, Wilbert T. Lee, Alfelito “Alfel” M. Bascug, Rudy S. Caoagdan, DPA,
Stephen James T. Tan, Ricardo T. Kho, Alfred C. Delos Santos, Ching B. Bernos, Peter John
D. Calderon, Ron P. Salo, Ramon C. Nolasco, Jr., Florida “Rida” P. Robes, Luisa Lloren
Cuaresma, and Bienvenido M. Abante, Jr.
___________________________________________________________________________

AN ACT
AMENDING SECTIONS 27, 28, 57, 112, 292, 293, 294, 295, 296, 297, 300, 301, 309, 310
AND 311, AND ADDING A NEW SECTION 295-A IN THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in

Congress assembled:

1 SECTION 1. Section 27 of the National Internal Revenue Code of 1997, as amended,

2 is hereby further amended to read as follows:
3 “SEC. 27. Rates of Income tax on Domestic Corporations. –
4 “(A) In General. – Except as otherwise provided in this Code, an income
5 tax rate of twenty-five percent (25%) effective July 1, 2020, is hereby imposed
6 upon the taxable income derived during each taxable year from all sources within
7 and without the Philippines by every corporation, as defined in Section 22(B) of

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 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 this Code and taxable under this Title as a corporation, organized in, or existing
2 under the laws of the Philippines[.]:
3 “Provided, That corporations with net taxable income not exceeding Five
4 million pesos (P5,000,000.00) and with total assets not exceeding One hundred
5 million pesos (P100,000,000.00), excluding land on which the particular business
6 entity's office, plant, and equipment are situated during the taxable year for which
7 the tax is imposed, shall be taxed at twenty percent (20%).
8 “PROVIDED, FURTHER, THAT FOR CORPORATIONS
9 ELECTING TO BE UNDER THE ENHANCED DEDUCTIONS REGIME
10 AS PROVIDED IN SECTION 294(C) OF THIS CODE, A TAX RATE
11 EQUIVALENT TO TWENTY PERCENT (20%) IS HEREBY IMPOSED
12 UPON THEIR TAXABLE INCOME DERIVED FROM REGISTERED
13 PROJECTS OR ACTIVITIES DURING EACH TAXABLE YEAR.
14 “In the case of corporations adopting the fiscal-year accounting period,
15 the taxable income shall be computed without regard to the specific date when
16 specific sales, purchases and other transactions occur. Their income and expenses
17 for the fiscal year shall be deemed to have been earned and spent equally for each
18 month of the period.
19 “The corporate income tax rate shall be applied on the amount computed
20 by multiplying the number of months covered by the new rate within the fiscal
21 year by the taxable income of the corporation for the period, divided by twelve.
22 “(B) Proprietary Educational Institutions and Hospitals. – xxx
23 “(C) Government-owned or –Controlled Corporations, Agencies or
24 Instrumentalities. – xxx
25 “(D) Rates of Tax on Certain Passive Incomes. – xxx
26 “(E) Minimum Corporate Income Tax on Domestic Corporations. – xxx
27 “(F) Offshore Gaming Licensees. – xxx
28 “(G) Accredited Service Providers to Offshore Gaming Licensees. – xxx
29 “xxx.”
30 SEC. 2. Section 28 of the National Internal Revenue Code of 1997, as amended, is
31 hereby further amended to read as follows:
32 “SEC. 28. Rates of Income Tax on Foreign Corporations. –
33 “(A) Tax on Resident Foreign Corporations. –

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 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 “(1) In General. – Except as otherwise provided in this Code, a

2 corporation organized, authorized, or existing under the laws of any foreign
3 country, engaged in trade or business within the Philippines, shall be subject to
4 an income tax equivalent to twenty-five percent (25%) of the taxable income
5 derived in the preceding taxable year from all sources within the Philippines
6 effective July 1, 2020[.]:
7 “PROVIDED, THAT FOR CORPORATIONS ELECTING TO BE
8 UNDER THE ENHANCED DEDUCTIONS REGIME AS PROVIDED IN
9 SECTION 294(C) OF THIS CODE, A TAX RATE EQUIVALENT TO
10 TWENTY PERCENT (20%) IS HEREBY IMPOSED UPON THEIR
11 TAXABLE INCOME DERIVED FROM REGISTERED PROJECTS OR
12 ACTIVITIES DURING EACH TAXABLE YEAR.
13 “In the case of corporations adopting the fiscal-year accounting period,
14 the taxable income shall be computed without regard to the specific date when
15 sales, purchases and other transactions occur. Their income and expenses for the
16 fiscal year shall be deemed to have been earned and spent equally for each month
17 of the period.
18 “The corporate income tax rate shall be applied on the amount computed
19 by multiplying the number of months covered by the new rate within the fiscal
20 year by the taxable income of the corporation for the period, divided by twelve.
21 “xxx
22 “(B) Tax on Nonresident Foreign Corporation. –
23 “(1) In General. – xxx”
24 SEC. 3. Section 57 of the National Internal Revenue Code of 1997, as amended, is
25 hereby further amended to read as follows:
26 “SEC. 57. Withholding of Tax at Source. –
27 “(A) Withholding of Final Tax on Certain Incomes. – xxx
28 “(B) Withholding of Creditable Tax at Source. - The Secretary of Finance
29 may, upon the recommendation of the Commissioner, require the withholding of
30 a tax on the items of income payable to natural or juridical persons, residing in the
31 Philippines, by payor-corporation/persons as provided for by law, at the rate of
32 not less than [one percent (1%)] ONE HALF PERCENT (1/2%) but not more
33 than thirty-two percent (32%) thereof, which shall be credited against the income
34 tax liability of the taxpayer for the taxable year[: Provided, That, beginning

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1 January 1, 2019, the rate of withholding shall not be less than one percent (1%)
2 but not more than fifteen percent (15%) of the income payment].
3 “(C) Tax-free Covenant Bonds. – xxx
4 “The Department of Finance shall review, at least once every three (3)
5 years, regulations and processes for the withholding of creditable tax under this
6 Code, and direct the Bureau of Internal Revenue to amend rules and regulations
7 for the same, should it be found during the review that the existing rules,
8 regulations, and processes for the withholding of creditable tax under this Code
9 adversely and materially impact the taxpayer.”
10 SEC. 4. Section 112 of the National Internal Revenue Code of 1997, as amended, is
11 hereby further amended to read as follows:
12 “SEC. 112. Refunds [or Tax Credits] of Input Tax. –
13 “(A) Zero-rated or Effectively Zero-rated Sales. – xxx
14 “(B) Cancellation of VAT Registration. – xxx
15 “(C) Period within which the Refund of Input Taxes shall be Made. - In
16 proper cases, the Commissioner shall grant a refund for creditable input taxes
17 within ninety (90) days from the date of submission of invoices and other
18 documents SPECIFICALLY PRESCRIBED BY THE COMMISSIONER,
19 WHICH SHALL BE DEEMED EXHAUSTIVE AND NOT SUBJECT TO
20 FURTHER MODIFICATION, AND LIMITED TO THOSE REQUIRED
21 BY LAW, in support of the application filed in accordance with Subsections (A)
22 and (B) hereof: Provided, That for this purpose, the VAT refund claims shall be
23 classified into low-, medium-, and high-risk claims, with the risk classification
24 TO BE based on amount of VAT refund claim, tax compliance history, frequency
25 of filing VAT refund claims, [among others:] AND OTHER CRITERIA
26 SUBJECT TO REGULAR PUBLIC CONSULTATION: PROVIDED,
27 HOWEVER, THAT THE BUREAU OF INTERNAL REVENUE SHALL
28 ESTABLISH A REFUND LANE FOR EXPEDITING LOW-RISK
29 CLAIMS, AND PRESCRIBE A THRESHOLD FOR THE AUTOMATIC
30 GRANT OF REFUND CLAIMS WITHOUT NEED FOR VERIFICATION:
31 PROVIDED, FURTHER, THAT LOW-RISK CLAIMS SHALL NOT BE
32 SUBJECT TO VERIFICATION WHILE MEDIUM-RISK CLAIMS
33 SHALL BE SUBJECT TO MINIMAL VERIFICATION
34 REQUIREMENTS: Provided, [further,] FURTHERMORE, that medium- and

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1 high-risk claims shall be subject to audit or other verification processes in

2 accordance with the Bureau of Internal Revenue’s national audit program for the
3 relevant year: Provided, finally, That should the Commissioner find that the grant
4 of refund is not proper, the Commissioner must [state] COMMUNICATE TO
5 THE TAXPAYER in writing the DEFICIENCIES OF THE VAT REFUND
6 CLAIM, AND THE legal and factual basis for the denial within the ninety (90)-
7 day period AND PROVIDE THE TAXPAYER AT LEAST TEN (10) DAYS
8 FROM DATE OF COMMUNICATION TO FILE AND SUBSTANTIATE A
9 REQUEST FOR RECONSIDERATION. THE DENIAL SHALL NOT BE
10 FINAL UNLESS THE TAXPAYER HAS BEEN PROVIDED THE
11 OPPORTUNITY TO REQUEST FOR A RECONSIDERATION.

12 “In case of full or partial denial of the claim for tax refund, or [the] failure
13 on the part of the Commissioner to act on the application within the period
14 prescribed above, the taxpayer affected may, within thirty (30) days from the
15 receipt of the decision denying the claim or after the expiration of the ninety (90)-
16 day period IN CASES WHERE NO ACTION IS MADE BY THE BUREAU
17 OF INTERNAL REVENUE, appeal the decision with the Court of Tax Appeals:
18 Provided, however, That failure on the part of any official, agent, or employee of
19 the Bureau of Internal Revenue to act on the application within THE ninety (90)-
20 [days]DAY period shall be punishable under Section 269 of this Code:
21 PROVIDED, FURTHER, THAT IN CASE OF AN ADVERSE FINDING
22 AGAINST A CLAIM, THE RISK CLASSIFICATION OF A TAXPAYER
23 MAY BE ADJUSTED ACCORDINGLY.

24 “(D) Manner of Giving Refund. - Refunds shall be made upon warrants

25 drawn by the Commissioner or by his duly authorized representative without the
26 necessity of being countersigned by the Chairperson, Commission on Audit, the
27 provisions of the Administrative Code of 1987 to the contrary notwithstanding:
28 Provided, That refunds under this paragraph shall be subject to post audit by the
29 Commission on Audit following the risk-based classification above-described:
30 PROVIDED, FURTHER, THAT A SIMPLIFIED AND STREAMLINED
31 TAX REFUND SYSTEM FOR REGISTERED BUSINESS ENTERPRISES
32 UNDER TITLE XIII OF THIS CODE SHALL BE ESTABLISHED IN
33 CONSULTATION WITH THE COMMISSION ON AUDIT AND THE

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1 INVESTMENT PROMOTION AGENCIES, WHICH SHALL REQUIRE

2 MINIMAL DOCUMENTARY REQUIREMENTS FROM TAXPAYERS
3 WHO QUALIFY AS LOW-RISK. NOTWITHSTANDING RELEVANT
4 LAWS, RULES, AND REGULATIONS ON DATA PRIVACY AND
5 CONFIDENTIALITY OF TAXPAYER INFORMATION, THE BUREAU
6 OF INTERNAL REVENUE SHALL PUBLISH STATISTICS ON THE
7 VOLUME, PROCESSING TIME, AND RATE OF APPROVAL OF
8 REFUND CLAIMS, AND OTHER RELEVANT STATISTICS:
9 PROVIDED, [further,] FINALLY, That in case of disallowance by the
10 Commission on Audit, only the taxpayer shall be liable for the disallowed amount
11 without prejudice to any administrative liability on the part of any employee of
12 the Bureau of Internal Revenue who may be found to be grossly negligent in the
13 grant of refund.”
14 SEC. 5. Section 292 of the National Internal Revenue Code of 1997, as amended, is
15 hereby further amended to read as follows:
16 “SEC. 292. Extent of Authority to Grant Tax Incentives. - The [Fiscal
17 Incentives Review Board, or the] Investment Promotion Agencies, [under a
18 delegated authority from the Fiscal Incentives Review Board,] shall grant the
19 appropriate tax incentives provided in this Title [to be granted] to registered
20 business enterprises only to the extent of their approved registered project or
21 activity under the Strategic Investment Priority Plan.
22 “MATTERS PENDING WITH THE FISCAL INCENTIVES
23 REVIEW BOARD, INCLUDING APPLICATIONS FOR REGISTRATION,
24 REQUESTS FOR RECONSIDERATION AND APPEAL, SHALL BE
25 IMMEDIATELY REFERRED TO THE CONCERNED INVESTMENT
26 PROMOTION AGENCY FOR PROPER AND IMMEDIATE
27 RESOLUTION.”
28 SEC. 6. Section 293 of the National Internal Revenue Code of 1997, as amended, is
29 hereby further amended to read as follows:
30 “Sec. 293. Definitions. – When used in this Title:

31 “(A) Capital equipment refers to machinery, equipment, major

32 components thereof, tools, devices, applications or apparatus, which are directly

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1 ATTRIBUTABLE TO [or reasonably needed in] the registered project or

2 activity of the registered enterprise;

3 “xxx

4 “(E) Export enterprise refers to any individual, partnership, corporation,

5 Philippine branch of a foreign corporation, or other entity organized and existing
6 under Philippine laws, [and registered with the] Investment Promotion Agency
7 OR THE EXPORT MARKETING BUREAU OF THE DEPARTMENT OF
8 TRADE AND INDUSTRY to engage in manufacturing, assembling or
9 processing activity, and services such as information technology (IT) activities
10 and business process outsourcing (BPO), and resulting in the direct exportation,
11 and/or sale of its manufactured, assembled or processed product or IT/BPO
12 services to another registered export enterprise that will form part of the final
13 export product or export service of the latter, of at least seventy percent (70%) of
14 its total production or output;

15 “(F) Freeport zones refer to [an] isolated and policed [area]AREAS

16 adjacent to a port of entry, which shall be operated and managed as a separate
17 customs territory FOR VALUE-ADDED TAX AND CUSTOMS DUTY
18 PURPOSES to ensure free flow or movement of goods, except those expressly
19 prohibited by law, within, into, and exported out of the freeport zone where
20 imported goods may be unloaded for immediate transshipment or stored,
21 repacked, sorted, mixed, or otherwise manipulated without being subject to import
22 duties. However, movement of these imported goods from the free-trade area to a
23 non-free trade area in the country shall be subject to all applicable internal revenue
24 taxes and duties: Provided, That for the freeport to qualify as a separate customs
25 territory, a freeport shall have a permanent customs control or customs office at
26 its perimeter: PROVIDED, FURTHER, THAT POINTS OF EXIT OF
27 GOODS FROM THE TERRITORY OF THE FREEPORT ZONES TO THE
28 OTHER PARTS OF THE PHILIPPINE TERRITORY SHALL BE
29 CONSIDERED PORTS OF ENTRY AND POLICED AS SUCH;

30 “(G)

31 “(H) Investment Promotion Agencies refer to government entities created

32 by law, executive order, decree, or other issuances, in charge of promoting

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1 investments, granting and administering tax and non-tax incentives, and

2 overseeing the operations of the different economic zones and freeports in
3 accordance with their respective special laws. These include the Board of
4 Investments (BOI), [Regional Board of Investments – Autonomous Region in
5 Muslim Mindanao (RBOI – ARMM)] BANGSAMORO BOARD OF
6 INVESTMENTS (BBOI), BANGSAMORO ECONOMIC ZONE
7 AUTHORITY (BEZA), Philippine Economic Zone Authority (PEZA), Bases
8 Conversion and Development Authority (BCDA), Subic Bay Metropolitan
9 Authority (SBMA), Clark Development Corporation (CDC), John Hay
10 Management Corporation (JHMC), Poro Point Management Corporation
11 (PPMC), Cagayan Special Economic Zone Authority (CEZA), Zamboanga City
12 Special Economic Zone and Freeport Authority (ZCSEZA), PHIVIDEC
13 Industrial Authority (PIA), Aurora Pacific Economic Zone Authority (APECO),
14 Authority of the Freeport Area of Bataan (AFAB), Tourism Infrastructure and
15 Enterprise Zone Authority (TIEZA), and all other similar existing authorities or
16 that may be created by law unless otherwise specifically exempted from the
17 coverage of this Code.

18 “xxx.”

19 SEC. 7. Section 294 of the National Internal Revenue Code of 1997, as amended, is
20 hereby further amended to read as follows:
21 “SEC. 294. Incentives. – Subject to the conditions and period of availment
22 in Sections 295 and 296, respectively, the following types of tax incentives may
23 be granted BY INVESTMENT PROMOTION AGENCIES, to registered
24 projects or activities:
25 “(A) Income Tax Holiday (ITH);
26 “(B) Special Corporate Income Tax (SCIT) Rate. – xxx
27 “(C) Enhanced Deductions (ED) REGIME. – [For] A [export enterprise
28 and domestic market enterprise,] REGISTERED BUSINESS ENTERPRISE,
29 MAY ELECT TO BE UNDER THE ENHANCED DEDUCTIONS
30 REGIME, WHEREIN the following may be allowed as deductions:
31 “(1) Depreciation allowance of the assets acquired for the entity's
32 production of goods and services (qualified capital expenditure) - additional ten

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 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 percent (10%) for buildings; and additional twenty percent (20%) for machineries
2 and equipment;
3 “(2) Fifty percent (50%) additional deduction on the labor expense
4 incurred in the taxable year;
5 “(3) One hundred percent (100%) additional deduction on research and
6 development expense incurred in the taxable year;
7 “(4) One hundred percent (100%) additional deduction on training
8 expense incurred in the taxable year;
9 “(5) Fifty percent (50%) additional deduction on domestic input expense
10 incurred in taxable year;
11 “(6) Fifty percent (50%) additional deduction on power expense incurred
12 in the taxable year: PROVIDED, THAT THIS RATE SHALL BE
13 INCREASED TO ONE HUNDRED PERCENT (100%) FROM JANUARY
14 1, 2024 TO DECEMBER 31, 2028: PROVIDED, FURTHER, THAT THE
15 PRESIDENT MAY EXTEND THE PERIOD OF AVAILMENT OF THE
16 INCREASED DEDUCTION BY ANOTHER FIVE (5) YEARS:
17 PROVIDED, FINALLY, THAT ADDITIONAL DEDUCTION ON POWER
18 EXPENSES INCURRED DURING THE AVAILMENT OF THE INCOME
19 TAX HOLIDAY SHALL BE CREDITABLE AGAINST INCOME TAX
20 DUES DURING THE PERIOD OF AVAILMENT OF ENHANCED
21 DEDUCTIONS;
22 “(7) Deduction for reinvestment allowance to manufacturing AND
23 TOURISM industry. – When a manufacturing OR TOURISM registered
24 business enterprise reinvests its undistributed profit or surplus in any of the
25 projects or activities listed in the Strategic Investment Priority Plan, the amount
26 reinvested to a maximum of fifty percent (50%) shall be allowed as a deduction
27 from its taxable income within a period of five (5) years from the time of such
28 reinvestment; [and]
29 “(8) ONE HUNDRED PERCENT (100%) ADDITIONAL
30 DEDUCTION ON EXPENSES RELATING TO TRADE FAIRS,
31 EXHIBITIONS OR TRADE MISSIONS; AND
32 “[(8)](9) Enhanced Net Operating Loss Carry-Over (NOLCO). – The net
33 operating loss of the registered project or activity during the first three (3) years
34 from the start of commercial operation, which had not been previously offset as

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1 deduction from gross income, may be carried over as deduction from gross
2 income within the next five (5) consecutive taxable years immediately following
3 the LAST year of [such loss] THE INCOME TAX HOLIDAY
4 ENTITLEMENT PERIOD OF THE PROJECT.
5 “(D) Duty exemption on importation of capital equipment, raw materials,
6 spare parts, or accessories; [and]
7 “(E) Value-Added Tax (VAT) exemption on importation and VAT zero-
8 rating on local purchases[.];
9 “(F) REGISTERED BUSINESS ENTERPRISE LOCAL TAX. – IN
10 LIEU OF ALL LOCAL TAXES IMPOSED BY THE LOCAL
11 GOVERNMENT UNIT, THERE SHALL BE IMPOSED A REGISTERED
12 BUSINESS ENTERPRISE LOCAL TAX AT THE RATE NOT
13 EXCEEDING TWO PERCENT (2%) OF GROSS SALES FOR
14 REGISTERED BUSINESS ENTERPRISES AVAILING OF THE
15 INCOME TAX HOLIDAY OR THE ENHANCED DEDUCTION REGIME
16 UNDER SECTION 294(A) AND (C) OF THIS CODE, UNLESS
17 EXEMPTION THEREFROM IS PROVIDED UNDER OTHER LAWS,
18 PROVIDED THAT THE ENTERPRISE MEETS THE TERMS OF ITS
19 REGISTRATION. FOR REGISTERED BUSINESS ENTERPRISES
20 UNDER THE SPECIAL CORPORATE INCOME TAX RATE, THE
21 REGISTERED BUSINESS ENTERPRISE LOCAL TAX SHALL BE
22 IMPOSED AFTER THE DURATION OF THE SPECIAL CORPORATE
23 INCOME TAX ENTITLEMENT PERIOD.
24 “THE EXEMPTION FROM ALL LOCAL TAXES PROVIDED
25 HEREIN SHALL INCLUDE THE FOLLOWING LOCAL TAXES:
26 “(1) TAX ON BUSINESS OF PRINTING AND PUBLICATION;
27 “(2) FRANCHISE TAX;
28 “(3) AMUSEMENT TAX;
29 “(4) ANNUAL FIXED TAX FOR EVERY DELIVERY TRUCK OR
30 VAN OF MANUFACTURERS OR PRODUCERS, WHOLESALERS OF,
31 DEALERS, OR RETAILERS OF, CERTAIN PRODUCTS;
32 “(5) LOCAL BUSINESS TAX;
33 “(6) FEES FOR SEALING AND LICENSING OF WEIGHTS AND
34 MEASURES;
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1 “(7) REGULATORY, BUILDING, INSPECTION, OR PERMIT

2 FEES AND CHARGES IMPOSED BY LOCAL GOVERNMENT UNITS;
3 “(8) TAXES LEVIED BY PROVINCES, CITIES, OR
4 MUNICIPALITIES ON BUSINESS;
5 “(9) BARANGAY TAXES, FEES, CHARGES, FINES, AND OTHER
6 FINANCIAL IMPOSITIONS; AND
7 “(10) REAL PROPERTY TAXES, EXCEPT ON PROPERTY
8 OWNED BY DEVELOPERS; AND
9 “(G) SPECIAL VISAS. – AN INVESTMENT PROMOTION
10 AGENCY IS HEREBY AUTHORIZED TO ISSUE THE FOLLOWING
11 SPECIAL VISAS:
12 “(1) SPECIAL SKILLS VISA FOR FOREIGN NATIONALS WHO
13 POSSESS HIGHLY SPECIALIZED SKILLS AS DETERMINED TO BE
14 NECESSARY OR STRATEGIC BY THE CONCERNED INVESTMENT
15 PROMOTION AGENCY IN THE OPERATION OF REGISTERED
16 BUSINESS ENTERPRISES; AND
17 “(2) EXECUTIVE WORKING VISA FOR FOREIGN NATIONALS
18 HOLDING EXECUTIVE POSITIONS, INCLUDING PRESIDENTS,
19 VICE-PRESIDENTS, TREASURERS, MANAGERS, OR THEIR
20 EQUIVALENTS, AND TO NON-RESIDENT ALIENS EMPLOYED IN
21 SUPERVISORY, TECHNICAL, AND ADVISORY POSITIONS.
22 “THE CONCERNED INVESTMENT PROMOTION AGENCY
23 AND THE BUREAU OF IMMIGRATION SHALL FORMULATE THE
24 NECESSARY GUIDELINES FOR THE SUBMISSION AND APPROVAL
25 OF APPLICATIONS, AS WELL AS THE MONITORING OF VISA
26 GRANTEES UNDER THIS PARAGRAPH: PROVIDED, THAT THE
27 VISA APPLICATION SHALL BE SPONSORED BY REGISTERED
28 BUSINESS ENTERPRISES THAT REQUIRE THE EXPERTISE OF THE
29 APPLICANTS.”
30 SEC. 8. Section 295 of the National Internal Revenue Code of 1997, as amended, is
31 hereby further amended to read as follows:
32 “SEC. 295. Conditions of Availment. – The tax incentives in the preceding
33 Section shall be governed by the following rules:

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1 “(A) The income tax holiday shall be followed by the Special Corporate
2 Income Tax Rate or Enhanced Deductions REGIME.
3 “(B) At the option of the export enterprise, the Special Corporate Income
4 Tax rate or enhanced deductions shall be granted: Provided, That in no case shall
5 the enhanced deductions be granted simultaneously with the Special Corporate
6 Income Tax.
7 “The following conditions for the availment of each enhanced
8 [deductions] DEDUCTION shall be complied with:
9 “(1) xxx
10 “(2) xxx
11 “(3) xxx
12 “(4) xxx
13 “(5) xxx
14 “(6) The additional AND INCREASED [deduction] DEDUCTIONS on
15 power expense shall only apply to power utilized for the registered project or
16 activity.
17 “(7) xxx
18 “(8) THE ADDITIONAL DEDUCTION ON EXPENSES
19 RELATING TO TRADE FAIRS, EXHIBITIONS OR TRADE MISSIONS
20 SHALL INCLUDE EXPENSES INCURRED IN PROMOTING THE
21 EXPORT OF GOODS OR THE PROVISION OF SERVICES TO
22 FOREIGN MARKETS WHICH SHALL COVER:
23 A. EXPENSES INCURRED IN ESTABLISHING,
24 MAINTAINING, OR PARTICIPATING IN A TRADE
25 FAIR, TRADE EXHIBITION, TRADE MISSION OR
26 TRADE PROMOTION ACTIVITY HELD OR
27 CONDUCTED OUTSIDE THE PHILIPPINES, OR A
28 TRADE FAIR OR TRADE EXHIBITION APPROVED BY
29 THE APPROPRIATE INVESTMENT PROMOTION
30 AGENCY BASED ON GUIDELINES PROMULGATED BY
31 THE DEPARTMENT OF TRADE AND INDUSTRY, AND
32 HELD IN THE PHILIPPINES;

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1 B. EXPENSES FOR SECURING A SPOT TO SPEAK AT A

2 TRADE MISSION OR TRADE PROMOTION ACTIVITY
3 IN PARAGRAPH (A);
4 C. EXPENSES FOR THE TRANSPORTATION OF ANY
5 SAMPLE FOR USE AT A TRADE MISSION OR TRADE
6 PROMOTION ACTIVITY MENTIONED IN
7 PARAGRAPH (A);
8 D. EXPENSES FOR THE ENGAGEMENT OF A
9 CONSULTANT, NOT BEING A RELATED PARTY OF
10 THE APPROVED FIRM OR COMPANY OR AN
11 OFFICER OR EMPLOYEE OF SUCH RELATED PARTY,
12 TO ORGANIZE A BUSINESS NETWORKING EVENT
13 DURING A TRADE MISSION OR TRADE PROMOTION
14 ACTIVITY MENTIONED IN PARAGRAPH (A);
15 E. EXPENSES INCURRED IN ESTABLISHING,
16 MAINTAINING, OR PARTICIPATING IN A TRADE
17 FAIR OR TRADE EXHIBITION HELD OR CONDUCTED
18 (WHETHER WHOLLY OR PARTLY) BY MEANS OF
19 TELECONFERENCE, VIDEOCONFERENCING OR ANY
20 OTHER ELECTRONIC MEANS OF
21 COMMUNICATIONS;
22 F. EXPENSES INCURRED FOR THE TRANSPORTATION
23 OF ANY SAMPLE TO ANY POTENTIAL CLIENT
24 OUTSIDE OF PHILIPPINES, FOLLOWING THE
25 POTENTIAL CLIENT’S ATTENDANCE AT OR
26 PARTICIPATION IN A TRADE FAIR OR TRADE
27 EXHIBITION; AND
28 G. EXPORT MARKET DEVELOPMENT EXPENDITURE
29 FOR THE CARRYING OUT OF ANY APPROVED
30 MARKETING PROJECT.
31 “(C) A FOREIGN CORPORATION SUBJECT TO A GLOBAL
32 MINIMUM EFFECTIVE TAX RATE OR RESTRICTIONS AGAINST
33 BASE EROSION AND PROFIT SHIFTING IN ITS COUNTRY OF
34 ORIGIN OR RESIDENCE MAY ELECT TO RETAIN THE SPECIAL
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 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 CORPORATE INCOME TAX INCENTIVE OR TO SHIFT TO

2 ENHANCED DEDUCTIONS REGIME.
3 “[(C)](D) The duty exemption shall only apply to the importation of
4 capital equipment, raw materials, spare parts, or accessories [directly and
5 exclusively used in] DIRECTLY ATTRIBUTABLE TO the registered project
6 or activity by registered business enterprises AS DETERMINED BY THE
7 CONCERNED INVESTMENT PROMOTION AGENCY FOR THE
8 DURATION OF THE PERIOD OF REGISTRATION OF SUCH
9 PROJECT OR ACTIVITY WITH THE INVESTMENT PROMOTION
10 AGENCY: Provided, That the following conditions are complied with:
11 “(1) The capital equipment, raw materials, spare parts, or accessories are
12 directly ATTRIBUTABLE TO [and reasonably needed and will be used
13 exclusively in and as part of the direct cost of] the registered project or activity
14 of the registered business enterprise, and are not produced or manufactured
15 domestically in sufficient quantity or of comparable quality and at reasonable
16 prices. Prior approval of the Investment Promotion Agency may be secured for
17 the part-time utilization of said capital equipment, raw materials, spare parts, or
18 accessories in a non-registered project or activity to maximize usage thereof:
19 Provided, That the proportionate taxes and duties are paid on a specific capital
20 equipment, raw materials, spare parts, or accessories in proportion to the
21 utilization for non-registered projects or activities. In the event that the capital
22 equipment, raw materials, spare parts, or accessories shall be used for a non-
23 registered project or activity of the registered business enterprise at any time
24 within the first five (5) years from date of importation, the registered business
25 enterprise shall first seek prior approval of the concerned Investment Promotion
26 Agency and pay the taxes and customs duties that were not paid upon the
27 importation; and
28 “(2) The approval of the Investment Promotion Agency was obtained by
29 the registered business enterprise prior to the importation of such capital
30 equipment, raw materials, spare parts, or accessories.
31 “AN INVESTMENT PROMOTION AGENCY MAY AUTHORIZE
32 THE IMPORTATION OF CAPITAL EQUIPMENT, RAW MATERIALS,
33 SPARE PARTS, OR ACCESSORIES PENDING ISSUANCE OF THE
34 CERTIFICATE OF REGISTRATION, SUBJECT TO THE POSTING OF
14
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 PERFORMANCE BOND OR BANK GUARANTEE EQUIVALENT TO

2 THE DUTIES WAIVED ON SUCH IMPORTATIONS AND OTHER
3 CONDITIONS AS MAY BE DETERMINED BY THE CONCERNED
4 INVESTMENT PROMOTION AGENCY.
5 “Within the first five (5) years from date of importation, approval of the
6 Investment Promotion Agency must be secured before the sale, transfer, or
7 disposition of the capital equipment, raw materials, spare parts, or accessories,
8 which were granted tax and customs duty exemption hereunder, and shall be
9 allowed only under the following circumstances:
10 “(a) If made to another enterprise availing customs duty exemption on
11 imported capital equipment, raw materials, spare parts, or accessories;
12 “[(b) If made to another enterprise not availing of duty exemption on
13 imported capital equipment, raw materials, spare parts, or accessories, upon
14 payment of any taxes and duties due on the net book value of the capital
15 equipment, raw materials, spare parts, or accessories to be sold;]
16 “[(c)](B) Exportation of capital equipment, raw materials, spare parts,
17 accessories, source documents, or those required for pollution abatement and
18 control; OR
19 “[(d) Proven technical obsolescence of the capital equipment, raw
20 materials, spare parts, or accessories; or]
21 “[(e)](C) If donated to the TESDA, State Universities and Colleges
22 (SUCs), or DepEd and CHED-accredited schools: Provided, That the donation
23 shall be exempt from import duties and taxes, including donor's tax.
24 “IN CASE OF SUBSEQUENT SALE, TRANSFER, OR
25 DISPOSITION OF TAX AND DUTY-FREE CAPITAL EQUIPMENT,
26 RAW MATERIALS, SPARE PARTS, OR ACCESSORIES WITHIN THE
27 FIRST FIVE (5) YEARS FROM DATE OF IMPORTATION AND UPON
28 APPROVAL BY THE INVESTMENT PROMOTION AGENCY, THERE
29 SHALL BE TAXES AND DUTIES ASSESSED BASED ON THE NET
30 BOOK VALUE OF THE CAPITAL EQUIPMENT, RAW MATERIALS,
31 SPARE PARTS OR ACCESSORIES:
32 “(A) IF MADE TO ANOTHER ENTERPRISE NOT AVAILING OF
33 DUTY EXEMPTION ON IMPORTED CAPITAL EQUIPMENT, RAW
34 MATERIALS, SPARE PARTS, OR ACCESSORIES; OR
15
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 “(B) IF THERE IS PROVEN TECHNICAL OBSOLESCENCE OF

2 THE CAPITAL EQUIPMENT, RAW MATERIALS, SPARE PARTS, OR
3 ACCESSORIES.
4 “Provided, That if the registered business enterprise sells, transfers, or
5 disposes the aforementioned imported items without prior approval, the
6 registered business enterprise and the vendee, transferee, or assignee shall be
7 solidarily liable to pay twice the amount of the duty exemption that should have
8 been paid during its importation: Provided, further, That the sale, transfer, or
9 disposition of the capital equipment, raw materials, spare parts, or accessories
10 made after five (5) years from date of importation shall require that prior notice
11 be given by the registered business enterprise to the Investment Promotion
12 Agency: Provided, [finally] FURTHERMORE, That even if the sale, transfer, or
13 disposition of the capital equipment, raw materials, spare parts or accessories was
14 made after five (5) years from date of importation with notice to the Investment
15 Promotion Agency, the registered business enterprise is still liable to pay the
16 duties based on the net book value of the capital equipment, raw materials, spare
17 parts, or accessories if it has violated any of its registration terms and
18 conditions[.]: PROVIDED, FINALLY, THAT NET BOOK VALUE AS USED
19 IN THIS SECTION SHALL REFER TO HISTORICAL COST LESS
20 ACCUMULATED DEPRECIATION, AS APPEARING IN THE
21 REGISTERED BUSINESS ENTERPRISE’S BOOKS OF ACCOUNTS OR
22 FINANCIAL STATEMENTS, AND DETERMINED IN ACCORDANCE
23 WITH ACCEPTED ACCOUNTING STANDARDS AND APPROVED BY
24 THE BUREAU OF INTERNAL REVENUE.
25 “[(D)](E) The VAT exemption on importation and VAT zero-rating on
26 local purchases [shall only apply to] OF goods and services [directly and
27 exclusively used in] DIRECTLY ATTRIBUTABLE TO the registered project
28 or activity [by] OF a registered business enterprise[.], WHICH SHALL
29 INCLUDE JANITORIAL SERVICES, SECURITY SERVICES,
30 FINANCIAL SERVICES, CONSULTANCY SERVICES, MARKETING
31 AND PROMOTION, AND SERVICES RENDERED FOR
32 ADMINISTRATIVE OPERATIONS SUCH AS HUMAN RESOURCES,
33 LEGAL, AND ACCOUNTING: PROVIDED, THAT THE PROJECT OR

16
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 ACTIVITY IS REGISTERED WITH THE INVESTMENT PROMOTION

2 AGENCY, SHALL BE SUBJECT TO THE FOLLOWING CONDITIONS:
3 “(1) SALE OF GOODS OR SERVICES TO AN ENTERPRISE
4 WHOSE TOTAL SALES ARE EXPORTED SHALL BE VAT EXEMPT;
5 “(2) SALE OF GOODS OR SERVICES BY A VAT-REGISTERED
6 SELLER TO REGISTERED EXPORT ENTERPRISES, REGARDLESS
7 OF LOCATION, SHALL BE SUBJECT TO ZERO PERCENT (0%) VAT,
8 IF EXPORT SALES ARE LESS THAN ONE HUNDRED PERCENT
9 (100%) OF TOTAL ANNUAL PRODUCTION;
10 “(3) SALE AND DELIVERY OF GOODS TO REGISTERED
11 ENTERPRISES WITHIN A SEPARATE CUSTOMS TERRITORY,
12 SHALL BE SUBJECT TO ZERO PERCENT (0%) VAT;
13 “(4) SALE, TRANSFER, OR DISPOSAL OF PREVIOUSLY VAT-
14 EXEMPT IMPORTED CAPITAL EQUIPMENT, RAW MATERIALS,
15 SPARE PARTS, AND ACCESSORIES, SHALL BE SUBJECT TO THE
16 FOLLOWING RULES:
17 A. IF THE PURCHASER IS A REGISTERED EXPORT
18 ENTERPRISE, REGARDLESS OF LOCATION, THE
19 TRANSACTION SHALL BE SUBJECT TO ZERO
20 PERCENT (0%) VAT;
21 B. IF THE SELLER IS A REGISTERED DOMESTIC
22 MARKET ENTERPRISE, REGARDLESS OF LOCATION,
23 THE TRANSACTION SHALL BE SUBJECT TO TWELVE
24 PERCENT (12%) VAT BASED ON THE NET BOOK
25 VALUE OF THE CAPITAL EQUIPMENT, RAW
26 MATERIALS, SPARE PARTS, OR ACCESSORIES; AND
27 C. IF THE SELLER IS A REGISTERED DOMESTIC
28 MARKET ENTERPRISE AND THE PURCHASER IS A
29 REGISTERED EXPORT ENTERPRISE, REGARDLESS
30 OF LOCATION, THE TRANSACTION SHALL BE
31 SUBJECT TO ZERO PERCENT (0%) VAT:
32 “PROVIDED, THAT DOMESTIC MARKET ENTERPRISES
33 WITH INVESTMENT CAPITAL OF AT LEAST FIFTY BILLION
34 PHILIPPINE PESOS (PHP50,000,000,000) OR ITS EQUIVALENT IN US
17
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 DOLLARS, AND ARE IMPORT-SUBSTITUTING OR CATERING TO

2 NON-RESIDENTS, AS DETERMINED BY THE PRESIDENT UNDER
3 SECTION 301, MAY AVAIL OF ZERO PERCENT (0%) VAT ON LOCAL
4 PURCHASES, AND VAT EXEMPTION ON IMPORTATION OF
5 CAPITAL EQUIPMENT, RAW MATERIALS, SPARE PARTS, OR
6 ACCESSORIES.
7 “Notwithstanding the provisions in the preceding paragraphs, sales
8 receipts and other income derived from non-registered project or activity shall be
9 subject to appropriate taxes imposed under this Code.
10 “[(E)](F) xxx
11 “[(F)](G) xxx
12 “[(G)](H) xxx
13 “(I) UNLESS EXEMPT UNDER OTHER LAWS, THE
14 REGISTERED BUSINESS ENTERPRISE LOCAL TAX SHALL BE
15 IMPOSED ON REGISTERED BUSINESS ENTERPRISES FOR AS LONG
16 AS IT MEETS THE CONDITIONS FOR ITS REGISTRATION,
17 INCLUDING DURING THE PERIOD OF AVAILMENT OF THE
18 INCOME TAX HOLIDAY AND THE ENHANCED DEDUCTION
19 REGIME.
20 “THE TAX SHALL BE COLLECTED FOR THE LOCAL
21 GOVERNMENT BY THE CONCERNED INVESTMENT PROMOTION
22 AGENCY, OR BY THE BUREAU OF INTERNAL REVENUE WHEN
23 ASSIGNED BY THE INVESTMENT PROMOTION AGENCY. IN THE
24 COLLECTION OF THE REGISTERED BUSINESS ENTERPRISE
25 LOCAL TAX, THERE SHALL BE NO DIRECT TRANSACTION
26 BETWEEN THE LOCAL GOVERNMENT UNIT AND THE
27 REGISTERED BUSINESS ENTERPRISES. ALL ASSESSMENTS AND
28 IMPOSITION OF LOCAL TAXES ON REGISTERED BUSINESS
29 ENTERPRISES SHALL BE MADE THROUGH THE INVESTMENT
30 PROMOTION AGENCIES;
31 “THE INVESTMENT PROMOTION AGENCY MAY, UPON
32 AGREEMENT WITH THE CONCERNED LOCAL GOVERNMENT
33 UNIT, IMPLEMENT A STREAMLINED SYSTEM FOR THE

18
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 REMITTANCE OF THE LOCAL TAX BY REGISTERED BUSINESS

2 ENTERPRISES.
3 “WHERE TWO OR MORE LOCAL GOVERNMENT UNITS
4 COVER THE SAME ENTERPRISE, THE SHARING BETWEEN SUCH
5 LOCAL GOVERNMENT UNITS SHALL BE AS FOLLOWS:
6 “FIFTY PERCENT (50%) OF REVENUES SHALL BE SHARED
7 EQUALLY AMONG THE LOCAL GOVERNMENT UNITS; AND
8 “FIFTY PERCENT (50%) OF REVENUES SHALL BE
9 APPORTIONED BASED ON THE POPULATION OF THE LOCAL
10 GOVERNMENT UNITS.
11 “LOCAL GOVERNMENT UNITS MAY REDUCE OR WAIVE
12 THE RATE OF TAX, OR THEIR SHARE THEREOF IN THE CASE OF
13 TWO OR MORE LOCAL GOVERNMENT UNITS COVERING THE
14 SAME ENTERPRISE.
15 “Registered business enterprises, whose performance commitments
16 include job generation, shall maintain their employment levels to the extent
17 practicable, and in the case of reduced employment or when the performance
18 commitment for job generation is not met, the registered business enterprises
19 must submit to their respective Investment Promotion Agencies [and the Fiscal
20 Incentives Review Board] their justification for the same.”
21 SEC. 9. A new Section 295-A shall be introduced in the National Internal Revenue
22 Code of 1997, as amended. The new Section 295-A shall read as follows:
23 “SEC. 295-A. REGISTERED BUSINESS ENTERPRISES
24 TAXPAYER SERVICE. – THERE IS HEREBY CREATED A SEPARATE
25 SERVICE WITHIN THE BUREAU OF INTERNAL REVENUE FOR
26 REGISTERED BUSINESS ENTERPRISES. THE COMMISSIONER
27 SHALL PRESCRIBE THE MANNER AND PLACE OF FILING OF
28 RETURNS AND PAYMENTS OF TAXES BY REGISTERED BUSINESS
29 ENTERPRISES THROUGH THE SAID SERVICE. FOR EASE OF
30 COMPLIANCE WITH TAX RULES AND REGULATIONS,
31 SIMPLIFIED FILING AND PAYMENTS PROCESSES SHALL BE
32 IMPLEMENTED FOR REGISTERED BUSINESS ENTERPRISES.”
33 SEC. 10. Section 296 of the National Internal Revenue Code of 1997, as amended, is
34 hereby further amended to read as follows:

19
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 “SEC. 296. Period of Availment. - The period of availment of [incentive]

2 INCENTIVES by the registered business enterprise shall be as follows:
3 “(A) For export enterprise, income tax holiday of four (4) to seven (7)
4 years, depending on location and industry priorities as specified in this Section,
5 and followed by special corporate income tax rate or enhanced deductions for ten
6 (10) years. REGISTERED EXPORT ENTERPRISES SHALL ENJOY NON-
7 INCOME TAX INCENTIVES, SUCH AS DUTY EXEMPTION ON
8 IMPORTATION OF CAPITAL EQUIPMENT, RAW MATERIALS,
9 SPARE PARTS, OR ACCESSORIES, VAT EXEMPTION ON
10 IMPORTATION AND VAT ZERO-RATING ON LOCAL PURCHASES:
11 PROVIDED, THAT THE REGISTERED EXPORT ENTERPRISE
12 MAINTAINS SEVENTY PERCENT (70%) OF TOTAL ANNUAL
13 PRODUCTION AS EXPORT SALES AND CONTINUES TO BE
14 REGISTERED IN GOOD STANDING WITH THE INVESTMENT
15 PROMOTION AGENCY.
16 “(B) For domestic market enterprise under the Strategic Investment
17 Priority Plan, AND CREATIVE INDUSTRIES LISTED UNDER REPUBLIC
18 ACT NO. 11904, OTHERWISE KNOWN AS THE “PHILIPPINE
19 CREATIVE INDUSTRIES DEVELOPMENT ACT,” income tax holiday for
20 four (4) to seven (7) years followed by enhanced deductions for five (5) years.
21 “A qualified expansion or entirely new project or activity registered under
22 this Act may qualify to avail of incentives, subject to the qualifications set forth
23 in the Strategic Investment Priority Plan and performance review by the [Fiscal
24 Incentives Review Board] INVESTMENT PROMOTION AGENCY:
25 Provided, That existing registered projects or activities prior to the effectivity of
26 this Act may qualify to register and avail of the incentives granted under this Act
27 for the prescribed period, subject to the criteria and conditions set forth in the
28 Strategic Investment Priority Plan.
29 “The period of availment of the foregoing incentives shall commence from
30 the actual start of commercial operations with the registered business enterprise
31 availing of the tax incentives within three (3) years from the date of registration,
32 unless otherwise provided in the Strategic Investment Priority Plan and its
33 corresponding guidelines: Provided, That after the expiration of the transitory
34 period under Section 311(C), export enterprises registered prior to the effectivity

20
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 of this Act shall have the option to reapply and avail of the incentives granted
2 under Section 294(B) for the same period provided under this Section, subject to
3 the conditions and qualifications set forth in the Strategic Investment Priority Plan
4 and performance review by the [Fiscal Incentives Review Board.]
5 INVESTMENT PROMOTION AGENCY: PROVIDED, FURTHER, THAT
6 THE IMPORTATION AND LOCAL PURCHASES OF GOODS AND
7 SERVICES OF EXISTING EXPORT ENTERPRISES, WHICH ARE NOT
8 REGISTERED WITH AN INVESTMENT PROMOTION AGENCY, BUT
9 ACCREDITED BY THE EXPORT MARKETING BUREAU, PURSUANT
10 TO REPUBLIC ACT NO. 7844, OTHERWISE KNOWN AS THE
11 “EXPORT DEVELOPMENT ACT OF 1994,” SHALL BE SUBJECT TO
12 VAT EXEMPTION AND ZERO-RATING UNDER SECTION 295,
13 RESPECTIVELY, UPON CERTIFICATION AS EXPORTER UNDER
14 SUCH RULES AND REGULATIONS AS MAY BE PROMULGATED BY
15 THE EXPORT MARKETING BUREAU.
16 “xxx.”
17 SEC. 11. Section 297 of the National Internal Revenue Code of 1997, as amended, is
18 hereby further amended to read as follows:
19 “SEC. 297. Expanded Functions of the Fiscal Incentives Review Board. –
20 The functions and powers of the Fiscal Incentives Review Board created under
21 Presidential Decree No. 776, as amended, shall be expanded as follows:
22 “(A) To exercise policy making and [oversight] MONITORING
23 functions on the administration and grant of tax incentives by the Investment
24 Promotion Agencies and other government agencies administering tax incentives.
25 In particular, the Fiscal Incentives Review Board shall:
26 “(1) Determine the target performance metrics as conditions to avail of
27 tax incentives;
28 “(2) Review and audit the compliance of other government agencies
29 administering tax incentives, with respect to the administration and grant of tax
30 incentives [and impose sanctions such as, but not limited to, withdrawal,
31 suspension, or cancellation of their power to grant tax incentives];
32 “(3) [Determine the minimum contiguous land area that vertical economic
33 zones should comply with] RECOMMEND TO THE PRESIDENT
34 STANDARDS FOR PROCLAIMING ECONOMIC ZONES; AND

21
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 “(4) Conduct regular monitoring and evaluation of investment and non-

2 investment tax incentives, such as using cost-benefit analysis (CBA) to determine
3 their impact on the economy and whether agreed performance targets are met,
4 AND PRESCRIBE THE DATA REQUIREMENTS FOR THE
5 APPLICATION OF INCENTIVES TO ALLOW FOR THE
6 CALCULATION OF COSTS AND BENEFITS UPON APPLICATION:
7 PROVIDED, THAT FIRM-LEVEL SUBMISSIONS SHALL ONLY BE
8 MADE BY FIRMS TO INVESTMENT PROMOTION AGENCIES[; and].
9 “[(5) Check and verify, as necessary, the compliance of registered
10 business enterprises with the terms and conditions of their availment, in particular
11 the agreed target performance metrics, rules and regulations of this Act, and other
12 relevant laws or issuances]
13 “(B) [To approve or disapprove, the grant of tax incentives to the extent
14 of the registered project or activity upon the recommendation of the Investment
15 Promotion Agency: Provided, That the application for tax incentives shall be duly
16 accompanied by a cost-benefit analysis: Provided, further, That the Fiscal
17 Incentives Review Board shall prescribe the data requirements for the application
18 of incentives to allow for the calculation of costs and benefits upon application:
19 Provided, further, That the grant of tax incentives to registered projects or
20 activities with investment capital of One billion pesos (P1,000,000,000.00) and
21 below shall be delegated by the Fiscal Incentives Review Board to the concerned
22 Investment Promotion Agency to the extent of the registered project or activity:
23 Provided, furthermore, That the Fiscal Incentives Review Board may increase
24 the threshold amount of One billion pesos (P1,000,000,000.00)] TO
25 RECOMMEND, UPON THE DIRECTIVE OF THE PRESIDENT, THE
26 GRANT OF TAX AND NON-TAX INCENTIVES TO REGISTERED
27 ENTERPRISES IN A HIGHLY DESIRABLE PROJECT OR A SPECIFIC
28 INDUSTRIAL ACTIVITY PURSUANT TO SECTION 301[.];
29 “(C) To approve applications for tax subsidies to government-owned or -
30 controlled corporations, government instrumentalities, government
31 commissaries, and state universities and colleges[.];
32 “For this purpose, the other government agencies shall ensure complete
33 submission of applications, documents, records, books, or other relevant data or
34 material;

22
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 “(D) To [formulate] RECOMMEND ADDITIONAL TIME-BOUND

2 OR place-specific PROJECTS OR ACTIVITIES TO THE [strategic
3 investment plans] STRATEGIC INVESTMENT PRIORITY PLAN during
4 periods of recovery from calamities and post-conflict situations and where the
5 Fiscal Incentives Review Board determines that there is a need to attract many
6 classes, firms, that would accelerate the growth of a region's flagship industries,
7 in accordance with the Medium-Term Development Plan, [The Fiscal Incentives
8 Review Board may formulate and approve place-specific strategic investment
9 plans and recommend incentives to the President,] following the same procedure
10 in Section 297;
11 “(E) To MONITOR CANCELLATION, SUSPENSION, OR
12 WITHDRAWAL OF [cancel, suspend, or withdraw] the enjoyment of fiscal
13 incentives of concerned registered business enterprises [on its own initiative or
14 upon the recommendation of the Investment Promotion Agency] BY
15 INVESTMENT PROMOTION AGENCIES for material violations of any of
16 the conditions imposed in the grant of fiscal incentives, including, but not limited
17 to, the non-compliance of the agreed performance commitments and endorse
18 registered business enterprises whose incentives are cancelled, suspended, or
19 withdrawn to the concerned revenue agencies for the assessment and collection
20 of taxes and duties due commencing from the first year of availment;
21 “(F) To cancel, suspend, or withdraw the enjoyment of tax subsidy of
22 concerned government-owned or controlled corporations, government
23 commissaries, and state universities and colleges, and when necessary, endorse
24 the same to the concerned revenue agencies for assessment and collection of taxes
25 and duties due, including fines or penalties, if warranted, for violations of any of
26 the conditions imposed in the grant of tax subsidy, or provisions of this Act, or
27 applicable rules;
28 “(G) To require Investment Promotion Agencies and other government
29 agencies administering tax incentives to submit, regularly or when requested,
30 summaries of approved investment and incentives granted, and firm- or entity-
31 level tax incentives and benefits data as input to the Fiscal Incentives Review
32 Board's review and audit function, and evaluation of performance of recipients of
33 tax incentives[.]: PROVIDED, THAT THE FISCAL INCENTIVES
34 REVIEW BOARD SHALL NOT DIRECTLY REQUEST FOR FIRM-
23
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 LEVEL DATA FROM REGISTERED BUSINESS ENTERPRISES,

2 EXCEPT THROUGH INVESTMENT PROMOTION AGENCIES. For this
3 purpose, the Fiscal Incentives Review Board shall maintain a masterlist of
4 registered products and services for export or domestic consumption that are
5 entitled to incentives: Provided, FURTHER, That to facilitate compliance with
6 the foregoing, the Department of Trade and Industry, in coordination with
7 relevant regulatory bodies, shall cause the registration and reporting by registered
8 business enterprises of the types of services rendered whether domestically or to
9 foreign clients; types of products manufactured domestically, products imported
10 and sold locally, and products exported;
11 “(H) To publish regularly, per firm, the data pertaining to the amount of
12 tax incentives, tax payments, and other related information, including benefits
13 data, AS SUBMITTED BY INVESTMENT PROMOTION AGENCIES;
14 “(I) To obtain information, summon, examine, inquire and receive from
15 other government agencies administering tax incentives, government-owned or -
16 controlled corporations, government instrumentalities, government
17 commissaries, state universities and colleges, and local government units,
18 documents, records, books, or other data relevant or material to the resolution of
19 issues arising from the approval, disapproval, cancellation, suspension,
20 withdrawal or forfeiture of tax subsidy, or in imposing penalties for violations of
21 the terms and conditions on the availment of tax subsidy, or any of the provisions
22 of this Act;
23 “(J) To submit annual reports to the Office of the President, as part of the
24 budget process, covering its policy and activities in the administration of this Act,
25 including recommendations on tax incentives policies and approval of tax
26 incentives;
27 “[(K) To decide on issues, on its own initiative or upon the
28 recommendation of the Investment Promotion Agency, after due hearing,
29 concerning the approval, disapproval, cancellation, suspension, withdrawal, or
30 forfeiture of tax incentives or tax subsidy in accordance with this Act. The Fiscal
31 Incentives Review Board shall decide on the matter within ninety (90) days from
32 the date when the Fiscal Incentives Review Board declares the issues submitted
33 for resolution. A business enterprise adversely affected by the decision of the

24
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 Fiscal Incentives Review Board may, within thirty (30) days from receipt of the
2 adverse decision, appeal the same to the Court of Tax Appeals;]
3 “[(L) To promulgate such rules and regulations as may be necessary to
4 implement the intent and provisions of this Section;]
5 “[(M)](K) To recommend to the President the grant of appropriate non-
6 fiscal incentives in accordance with the Strategic Investment Priority Plan for
7 highly desirable projects or very specific industrial activities and based on: (a)
8 benefit-cost analysis approved by the Fiscal Incentives Review Board; and (b)
9 containing a schedule of budgets of expenditures and sources of financing with
10 magnitudes provisionally approved via resolution for inclusion in the upcoming
11 National Expenditure Plans by the Development Budget Coordination
12 Committee;
13 “[(N)](L) To adopt policies for the development and expansion of the
14 domestic supply chain in order to reduce dependence on imports; promote
15 diversification and sophistication of products produced and services offered,
16 whether exported or consumed locally; and cater to local market demand; [and]
17 “(M) TO RECOMMEND POLICIES FOR THE PREVENTION OF
18 FISCAL INCENTIVES AVAILMENT ABUSE AND TAX EVASION
19 UNDER THIS CODE AND SMUGGLING ACTIVITIES; AND
20 “[(O)](N) To exercise all other powers necessary or incidental to attain
21 the purposes of [this Act and other laws vesting additional functions on the Fiscal
22 Incentives Review Board] THE FISCAL INCENTIVES REVIEW BOARD
23 AS POLICY-MAKING AND MONITORING BODY FOR INVESTMENT
24 PROMOTION AGENCIES.
25 “xxx.”
26 SEC. 12. Section 300 of the National Internal Revenue Code of 1997, as amended, is
27 hereby further amended to read as follows:
28 “SEC. 300. Strategic Investment Priority Plan. – The Board of
29 Investments, in coordination with the Fiscal Incentives Review Board,
30 Investment Promotion Agencies, other government agencies administering tax
31 incentives, and the private sector, shall formulate the Strategic Investment
32 Priority Plan to be submitted to the President for approval, which may contain
33 recommendations for types of non-fiscal support needed to create high-skilled
34 jobs to grow a local pool of enterprises, particularly micro, small and medium

25
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 enterprises (MSMEs), that can supply to domestic and global value chains, to
2 increase the sophistication of products and services that are produced and/or
3 sourced domestically, to expand domestic supply and reduce dependence on
4 imports, and to attract significant foreign capital or investment. The Strategic
5 Investment Priority Plan shall be valid for a period of three (3) years, subject to
6 review and amendment every three (3) years thereafter unless there would be a
7 supervening event that would necessitate its review.
8 “The Strategic Investment Priority Plan shall contain the following:
9 “(A) Priority projects or activities that are included in the Philippine
10 Development Plan or its equivalent, or other government programs, taking into
11 account any of the following:
12 “(1) Substantial amount of investments;
13 “(2) Considerable generation of employment, especially towards less
14 developed areas;
15 “(3) Considerable amount of net exports;
16 “(4) Use of modern, advance, or new technology;
17 “(5) Processes and innovations that will lead towards the attainment of the
18 sustainable development goals, shall include, but not be limited to, adoption of
19 adequate environmental protection systems and sustainability strategies;
20 “(6) Addressing missing links and other gaps in the supply or value chain
21 or otherwise moving up the value chain or product ladder;
22 “(7) Promotion of market competitiveness;
23 “(8) Enhancement of the capabilities of Filipino enterprises and
24 professionals to produce and offer increasingly sophisticated products and
25 services;
26 “(9) Contribution to Philippine food security and increase incomes in the
27 agriculture and fisheries sector; or
28 “(10) Services and activities that can promote regional and global
29 operations in the country.
30 “(B) Scope and coverage of location and industry tiers in Section 296; and
31 “(C) Terms and conditions on the grant of enhanced deductions under
32 Section 294(C), AS DETERMINED BY THE DEPARTMENT OF
33 FINANCE.

26
 PLENARY SUBSTITUTE BILL AS OF 30 JANUARY 2024

1 “All sectors or industries that may be included in the Strategic Investment

2 Priority Plan shall undergo an evaluation process to determine the suitability and
3 potential of the industry or the sector in promoting long-term growth and
4 sustainable development, and the national interest. In no case shall a sector or
5 industry be included in the Strategic Investment Priority Plan unless it is
6 supported by a formal evaluation process or report.
7 “The projects or activities must comply with the specific qualification
8 requirements or conditions for a particular sector or industry and other limitations
9 as set and determined by the Board of Investments, and in coordination with the
10 Fiscal Incentives Review Board.
11 “In no case shall the Investment Promotion Agencies accept applications
12 unless the project or activity is listed in the Strategic Investment Priority Plan.
13 Projects or activities not listed in the Strategic Investment Priority Plan shall be
14 automatically disapproved.”
15 SEC. 13. Section 301 of the National Internal Revenue Code of 1997, as amended, is
16 hereby further amended to read as follows:
17 “SEC. 301. Power of the President to Grant Incentives. –
18 Notwithstanding the provisions of Sections 295 and 296, the President may, in
19 the interest of national economic development, [and] OR upon the
20 recommendation of the Fiscal Incentives Review Board, modify the mix, period
21 or manner of availment of incentives provided under this Code or craft the
22 appropriate financial support package for a highly desirable project or a specific
23 industrial activity based on defined development strategies for creating high-
24 value jobs, building new industries to diversify economic activities, and attracting
25 significant foreign and domestic capital or investment, and the fiscal requirements
26 of the activity or project, subject to maximum incentive levels recommended by
27 the Fiscal Incentives Review Board: Provided, That the grant of income tax
28 holiday shall not exceed eight (8) years and thereafter, a special corporate income
29 tax rate of five percent (5%) may be granted: Provided, further, That the total
30 period of incentive availment shall not exceed forty (40) years.
31 “The Fiscal Incentives Review Board shall determine whether the benefits
32 that the Government may derive from such investment are clear and convincing
33 and far outweigh the cost of incentives that will be granted in determining whether
34 a project or activity is highly desirable.

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1 “The exercise by the President of his powers under this Section shall be
2 based on a positive recommendation from the Fiscal Incentives Review Board
3 upon its determination that the following conditions are satisfied:
4 “(1) The project has a comprehensive sustainable development plan with
5 clear inclusive business approaches, and high level of sophistication and
6 innovation; and
7 “(2) Minimum investment capital of Fifty billion pesos
8 (P50,000,000,000.00) or its equivalent in US dollars, or a minimum direct local
9 employment generation of at least ten thousand (10,000) within three (3) years
10 from the issuance of the certificate of entitlement.
11 “Provided, That the threshold shall be subject to a periodic review by the
12 Fiscal Incentives Review Board every three (3) years, taking into consideration
13 international standards or other economic indicators: Provided, further, That if
14 the project fails to substantially meet the projected impact on the economy and
15 agreed performance targets, the Fiscal Incentives Review Board shall recommend
16 to the President the cancellation of the tax incentive or financial support package
17 or the modified period or manner of availment of incentives, after due hearing
18 and an adequate opportunity to substantially comply with the agreed performance
19 targets and outputs.
20 “For this purpose, financial support includes utilization of government
21 resources such as land use, water appropriation, power provision, and budgetary
22 support provision under the annual General Appropriations Act.
23 “This power of the President, in as far as it commands additional public
24 sector expenditures in support of investors, is suspended during fiscal years when,
25 an [unimaginable] UNMANAGEABLE fiscal deficit is declared by the President
26 on the advice of the Development Budget Coordination Committee with a
27 consequence that even core budgetary obligations, such as, but not limited to,
28 mandatory revenue allotments for local government units and budget for the
29 National Economic and Development Authority's core public investments
30 program, cannot be fully financed.
31 “Notwithstanding the provisions in the preceding paragraphs, tax and duty
32 incentives granted through legislative franchises shall be excepted from the
33 foregoing powers of the President to review, withdraw, suspend, or cancel tax
34 incentives and subsidies.”

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1 SEC. 14. Section 309 of the National Internal Revenue Code of 1997, as amended, is
2 hereby further amended to read as follows:
3 “SEC. 309. Prohibition on Registered Activities. – EXCEPT AS
4 ALLOWED UNDER THIS PROVISION, [A] A qualified registered project or
5 activity under an Investment Promotion Agency administering an economic zone
6 or freeport shall be exclusively conducted or operated within the geographical
7 boundaries of the zone or freeport being administered by the Investment
8 Promotion Agency in which the project or activity is registered, OR WITHIN
9 THE REGISTERED PLACE OF BUSINESS OF THE QUALIFIED
10 PROJECT OR ACTIVITY FOR THOSE LOCATED OUTSIDE
11 ECONOMIC ZONES OR FREEPORTS: Provided, That a registered business
12 enterprise may conduct or operate more than one qualified registered project or
13 activity within the same zone or freeport under the same Investment Promotion
14 Agency: Provided, further, That any project or activity conducted or performed
15 outside the geographical boundaries of the zone or freeport shall not be entitled
16 to the incentives provided in this Act, unless such project or activity is conducted
17 or operated under another Investment Promotion Agency: PROVIDED,
18 FINALLY, THAT REGISTERED BUSINESS ENTERPRISES IN
19 INFORMATION TECHNOLOGY – BUSINESS PROCESS
20 OUTSOURCING SECTOR, COMPLIANT WITH ON-SITE WORK
21 REQUIREMENTS SET BY THEIR RESPECTIVE INVESTMENT
22 PROMOTION AGENCIES, WHICH SHALL NOT BE LESS THAN
23 FIFTY PERCENT (50%) OF THE TOTAL WORKFORCE OR TOTAL
24 WORK HOURS, MAY BE ALLOWED TO CONDUCT BUSINESS
25 UNDER ALTERNATIVE WORK ARRANGEMENTS.”
26 SEC. 15. Section 310 of the National Internal Revenue Code of 1997, as amended, is
27 hereby further amended to read as follows:
28 “SEC. 310. Establishment of One-Stop Action Center AND INITIAL
29 POINT OF CONTACT FOR FOREIGN INVESTMENT LEADS. - All
30 Investment Promotion Agencies shall establish a one-stop shop or one-stop action
31 center that will facilitate and expedite, to the extent possible, the setting up and
32 conduct of registered projects or activities, including assistance in coordinating
33 with the local government units and other government agencies to comply with
34 Republic Act No. 11032, otherwise known as the Ease of Doing Business and

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1 Efficient Government Service Delivery Act of 2018: Provided, however, That the
2 enterprises shall continue to avail of the one-stop shop facility notwithstanding
3 the expiration of their incentives under this Code[.]: PROVIDED, FURTHER,
4 THAT THE BOARD OF INVESTMENTS MAY DESIGNATE REGIONAL
5 OFFICES OF THE DEPARTMENT OF TRADE AND INDUSTRY OR
6 NEGOSYO CENTERS ESTABLISHED PURSUANT TO REPUBLIC ACT
7 NO. 10644, OTHERWISE KNOWN AS THE “GO NEGOSYO ACT” AS
8 ONE-STOP ACTION CENTERS.
9 “LOCAL GOVERNMENT UNITS MAY DELEGATE TO
10 INVESTMENT PROMOTION AGENCIES, THROUGH APPROPRIATE
11 MEMORANDA OF AGREEMENT, FUNCTIONS OF ACCEPTING,
12 PROCESSING, AND GRANTING BUSINESS PERMITS AND LICENSES.
13 “INVESTMENT PROMOTION AGENCIES MAY ALSO ASSIST
14 REGISTERED BUSINESS ENTERPRISES IN OBTAINING LICENSES
15 AND PERMITS FROM NATIONAL GOVERNMENT AGENCIES BY
16 ACCEPTING DOCUMENTARY REQUIREMENTS FOR SUCH
17 LICENSES AND PERMITS, AND SUBMITTING THE SAME ON
18 BEHALF OF REGISTERED BUSINESS ENTERPRISES TO THE
19 APPROPRIATE NATIONAL GOVERNMENT AGENCIES;
20 “INVESTMENT PROMOTION AGENCIES MAY UNDERTAKE
21 SUCH ACTIVITIES THAT ARE NECESSARY TO PERFORM THE
22 FUNCTION OF THE INITIAL POINT OF CONTACT FOR FOREIGN
23 INVESTMENT LEADS. SUCH ACTIVITIES SHALL INCLUDE
24 ASSISTING POTENTIAL FOREIGN INVESTORS ESTABLISH THEIR
25 BUSINESS ENTERPRISES IN THE INVESTMENT PROMOTION
26 AGENCY OR ECONOMIC ZONE MOST SUITED TO THEIR SPECIFIC
27 NEEDS.”
28 SEC. 16. Section 311 of the National Internal Revenue Code of 1997, as amended, is
29 hereby further amended to read as follows:
30 “SEC. 311. Investments Prior to the Effectivity of this Act. – Registered
31 business enterprises with incentives granted prior to the effectivity of this Act
32 shall be subject to the following rules:
33 “(A) Registered business enterprises whose projects or activities were
34 granted only an income tax holiday prior to the effectivity of this Act shall be

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1 allowed to continue with the availment of the income tax holiday for the
2 remaining period of the income tax holiday as specified in the terms and
3 conditions of their registration: Provided, That for those that have been granted
4 the income tax holiday but have not yet availed of the incentive upon the
5 effectivity of this Act, they may use the income tax holiday for the period
6 specified in the terms and conditions of their registration;
7 “(B) Registered business enterprises, whose projects or activities were
8 granted an income tax holiday prior to the effectivity of this Act and that are
9 entitled to the five percent (5%) tax on gross income earned incentive after the
10 income tax holiday, shall be allowed to avail of the five percent (5%) tax on gross
11 income earned incentive based on Subsection (C), INCLUDING ALL
12 CORRESPONDING EXEMPTIONS FROM LOCAL AND NATIONAL
13 TAXES, FOR THE DURATION OF THE PERIOD OF REGISTRATION
14 OF THE PROJECTS OR ACTIVITIES WITH THE INVESTMENT
15 PROMOTION AGENCY; [and]
16 “(C) Registered business enterprises currently availing of the five percent
17 (5%) tax on gross income earned granted prior to the effectivity of this Act shall
18 be allowed to continue availing the said tax incentive at the rate of five percent
19 (5%), INCLUDING ALL CORRESPONDING EXEMPTIONS FROM
20 LOCAL AND NATIONAL TAXES, for ten (10) years[.];
21 “(D) ALL EXISTING REGISTERED BUSINESS ENTERPRISES,
22 WHICH ARE IN GOOD STANDING WITH THEIR RESPECTIVE
23 INVESTMENT PROMOTION AGENCIES, MAY CONTINUE TO
24 ENJOY THE FOLLOWING INCENTIVES AS PROVIDED IN THEIR
25 REGISTRATION DURING THE TRANSITORY PERIOD:
26 “(1) FOR REGISTERED BUSINESS ENTERPRISES, WHETHER
27 DOMESTIC OR EXPORT, INSIDE THE ECONOMIC AND FREEPORT
28 ZONES – DUTY EXEMPTION ON IMPORTATION OF CAPITAL
29 EQUIPMENT, RAW MATERIALS, SPARE PARTS, OR ACCESSORIES,
30 VAT EXEMPTION ON IMPORTATION, AND VAT ZERO-RATING ON
31 LOCAL PURCHASES; AND
32 “(2) FOR REGISTERED EXPORT ENTERPRISES OUTSIDE THE
33 ECONOMIC AND FREEPORT ZONES – DUTY EXEMPTION ON
34 IMPORTATION OF CAPITAL EQUIPMENT, RAW MATERIALS,
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1 SPARE PARTS, OR ACCESSORIES AND VAT ZERO-RATING ON

2 LOCAL PURCHASES.
3 “(E) REGISTERED BUSINESS ENTERPRISES WITH
4 INCENTIVES GRANTED PRIOR TO THE EFFECTIVITY OF THIS ACT
5 MAY CONTINUE TO ENJOY VAT EXEMPTION ON IMPORTATION,
6 AND VAT ZERO-RATING ON LOCAL PURCHASES, FOR TWELVE
7 (12) YEARS: PROVIDED, THAT NO TAX REFUND OR CREDIT SHALL
8 BE GRANTED TO QUALIFIED REGISTERED BUSINESS
9 ENTERPRISES.”
10 SEC. 17. Transitory Provisions. – The exemption from local and national taxes under
11 Section 8 of this Act shall have retroactive application: Provided, That no tax refund or credit
12 shall be granted to registered business enterprises covered by Section 311 of the National
13 Internal Revenue Code of 1997, as amended, as a result of the exemption from local and
14 national taxes.
15 SEC. 18. Implementing Rules and Regulations. – Within ninety (90) days from the
16 effectivity of this Act, the Secretary of Finance, upon the recommendation of the Commissioner
17 of Internal Revenue, shall promulgate the necessary rules and regulations for its effective
18 implementation: Provided, That for the provisions under Title XIII of the National Internal
19 Revenue Code of 1997, as amended, the Secretary of Finance and the Secretary of Trade and
20 Industry shall jointly promulgate the necessary rules and regulations thereof within the same
21 period, after due consultations with the Commissioner of Internal Revenue, the Board of
22 Investments, and other Investment Promotion Agencies, for their effective implementation.
23 Failure to promulgate the rules and regulations shall not prevent the implementation of this Act
24 upon its effectivity.
25 SEC. 19. Separability Clause. – If any provision of this Act is declared
26 unconstitutional, the remaining parts or provisions hereof not affected thereby shall remain in
27 full force and effect.
28 SEC. 20. Repealing Clause. – All law, decrees, executive orders, implementing rules
29 and regulations, issuances, or any part thereof inconsistent with the provisions of this Act are
30 deemed repealed, amended or modified accordingly.
31 SEC. 21. Effectivity. – This Act shall take effect after fifteen (15) days from its
32 publication in the Official Gazette or in a newspaper of general circulation.
Approved,

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