Bcda_handout.pdf

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BASES CONVERSION AND DEVELOPMENT ENOCH CASIÑO

EUGENIO ANTONIO DIG

JENNIFER FINEZA

TOPICS FOR DICUSSION

RA 7227

IMPLEMENTING RULES AND REGULATIONS (SSEFZ AND SBMA UNDER RA 7227)

BASES CONVERSION AND DEVELOPMENT ACT

RA 9400 AMENDMENT TO RA 7227

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ORDER OF REPORT

first

Salient features

second Eligibility and Conditions for Registration

third

Tax and Other Incentives

fourth

Amendment

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INTRODUCTION Presence of Military Bases in the Philippines CASIÑO ● DIG ● FINEZA

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WHAT IS A MILITARY BASE?

A military base or military reservation is a facility or an installation created as support for military operations and logistics.

WHAT IS A MILITARY BASE?

There are many functions that military bases can exert: testranges for new weaponry, posts of intelligence operations, platforms for military operations, weaponry stock or even as host for military corps.

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MILITARY BASES IN THE PHILIPPINES

Wallace Air Station John Hay Air Station

Clark Air Base

Subic Bay Naval Base Mt. Sta. Rosa Station

Villamor Air Base (Part) Fort Bonifacio (Part) Fort Abad

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MILITARY BASES IN THE PHILIPPINES

Some military bases in the Philippines were built by Spain. Fort Abad (Fuerte de San Antonio Abad) and the Subic Bay Naval Base (Arsenal de Olongapo) was built by Spain in 1584 and 1885, respectively.

MILITARY BASES IN THE PHILIPPINES

But massive construction of military bases began during the American occupation. Fort Stotsenburg was established in 1902 and would later become part of the Clark Air Base.

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MILITARY BASES IN THE PHILIPPINES The Philippines’ strategic location appealed to the US. Military presence in the country meant extending US power and influence in Asia and protection for mainland US against invasion. CASIÑO ● DIG ● FINEZA

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MILITARY BASES IN THE PHILIPPINES

Fast forward to 1944, the US Congress issued a joint resolution authorizing the president of the US to acquire bases for the mutual protection of the US and the Philippines.

In response, the Philippine Congress issued a joint resolution authorizing the president of the Philippines to negotiate with the US for the establishment of the bases. CASIÑO ● DIG ● FINEZA

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MILITARY BASES IN THE PHILIPPINES In 1947, the Military Bases Agreement was signed by Pres. Manuel Roxas and US Ambassador Paul McNutt. It gave the US the right to retain the use of bases in the Philippines for 99 years, subject to extension.

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MILITARY BASES IN THE PHILIPPINES However, several amendments were made in the Agreement including a 1966 amendment which cut down the 99-year retention of the bases to 25 years starting in 1966 or until 1991. CASIÑO ● DIG ● FINEZA

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MILITARY BASES IN THE PHILIPPINES

In September 1991, the Philippine Senate, voting 12-11, rejected the extension of US military presence in the country.

MILITARY BASES IN THE PHILIPPINES Three months earlier (June 1991), Mount Pinatubo erupted heavily damaging the Clark Air Base. This rendered the Base inoperable.

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MILITARY BASES IN THE PHILIPPINES

The following year, the US government turned over its military bases to the Philippines government. CASIÑO ● DIG ● FINEZA

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MILITARY BASES IN THE PHILIPPINES

On the same year, Republic Act 7227 or the Bases Conversion and Development Act of 1992 was passed into law.

1 RA 7227 Salient Features

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DECLARATION OF POLICIES

It is hereby declared the policy of the Government to accelerate the sound and balanced conversion into alternative productive uses of the Clark and Subic military reservations and their extensions. CASIÑO ● DIG ● FINEZA

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CREATION OF BCDA By virtue of RA 7227, the Bases Conversion and Development Authority (BCDA) was created. It shall have a term of 50 years and had an initial capitalization of PHP100 billion, which will come from the sale and proceeds of certain Metro Manila camps.

PURPOSES OF BCDA

1. To own, hold and/or administer military reservations 2. To adopt, prepare and implement a comprehensive and detailed development plan 3. To encourage the active participation of the private sector in transforming the Clark and Subic military reservations and their extensions CASIÑO ● DIG ● FINEZA

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POWERS OF BCDA 1. To enter into contracts which are necessary to the realization of its purposes 2. To reclaim or undertake reclamation projects as it may deem necessary 3. To acquire real and personal properties 4. To exercise oversight functions over the Special Economic Zones CASIÑO ● DIG ● FINEZA

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TRANSFER OF PROPERTIES These are the some of the properties to be transferred to BCDA: - Subic Bay Naval Base

- Part of Villamor Air Base

- Clark Air Base

- Part of Fort Bonifacio

- John Hay Air Station

- Camp Bago Bantay

- Wallace Air Station

- Camp Claudio

- O’Donnell Transmitter Station

- Fort Abad CASIÑO ● DIG ● FINEZA

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BCDA BOARD OF DIRECTORS The powers and functions of the BCDA shall be exercised by a Board of Directors to be composed of 9 members: 1 chairman/president and 8 members (from the private sector, 2 of whom are from the labor sector).

The chairman and members shall be appointed by the President with the consent of the Commission on Appointments.

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FUNCTIONS OF THE BOARD - The Board of Directors shall be the policy-making body of the BCDA. - It shall submit an annual report of the operation of the BCDA to the President of the Philippines, President of the Senate and Speaker of the House of Representatives - It shall undertake major conversion projects under BOT scheme and a privatization program of its projects and subsidiaries. CASIÑO ● DIG ● FINEZA

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CREATION OF SBMA

RA 7227 created another corporation, the Subic Bay Metropolitan Authority (SBMA). It shall have an authorized capital stock of PHP20 billion fully subscribed and paid up by the Republic of the Philippines. CASIÑO ● DIG ● FINEZA

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POWERS AND FUNCTIONS OF SBMA 1. To operate, manage and develop the Subic Air Base as a free market 2. To undertake and regulate the establishment, operation and maintenance of infrastructure and services in the Subic SEZ 3. To construct, operate and maintain on its own or through bulk purchase from the private sector and BOT scheme or joint-venture the required utilities and infrastructure CASIÑO ● DIG ● FINEZA

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SBMA BOARD OF DIRECTORS The powers and functions of the SBMA shall be exercised by a Board of Directors to be composed of 15 members: 1 chairman/administrator and 14 members (from the LGUs that concur to join the Subic SEZ, 2 from the NG, 5 from the private sector, and from the business and investment sectors).

The chairman and members shall be appointed by the President.

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SUBIC SPECIAL ECONOMIC ZONE

RA 7227 created the Subic Special Economic Zone consisting of Olongapo and Subic in Zambales, the lands occupied by the Subic Naval Base and its contiguous extensions, and within the territorial jurisdiction of Morong and Hermosa in Bataan.

CLARK SPECIAL ECONOMIC ZONE RA 7227 also created the Clark Special Economic Zone covering the lands occupied by the Clark military reservations and its contiguous extensions, located within the territorial jurisdiction of Angeles City, Mabalacat and Porac in Pampanga, and Capas in Tarlac.

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2 RA 7227 AND IRR Eligibility and Conditions for SBF Registration CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS The SBMA shall establish an office to register all business enterprises applying to be Subic Bay Freeport (SBF) Enterprises as well as natural persons applying to be SBF Residents.

This office shall consist of 2 departments: SBF Enterprise Department and SBF Residents Department

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SBF ENTERPRISES AND RESIDENTS Eligibility: - Open to nationals and business enterprises of any country in any area of economic activity, except only as is specifically limited by the Constitution of the Philippines

GENERAL PROVISIONS

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SBF ENTERPRISES AND RESIDENTS Conditions for Registration: 1. An SBF Enterprise shall be a constituted business enterprise organized or domiciled in the Philippines or any foreign country 2. The enterprise must name a representative or agent who is a legal resident of the SBF

GENERAL PROVISIONS

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SBF ENTERPRISES AND RESIDENTS Conditions for Registration: 3. If affiliated with an existing enterprise in the Philippines outside the SBF, the SBF Enterprise must establish a separate business organization to conduct business exclusively within the SBF which shall be a separate taxable entity.

GENERAL PROVISIONS

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SBF ENTERPRISES AND RESIDENTS EXISTING Eligibility: (ENTERPRISES) - Any business enterprise currently operating entirely within the SBF shall be eligible to register as an SBF Enterprise

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SBF ENTERPRISES AND RESIDENTS EXISTING Requirements: (ENTERPRISES) - Submit a completed application form with: a. SEC registration and similar documents b. name and address of the legal agent c. evidence of the physical location d. list of assets and other properties owned e. other documents CASIÑO ● DIG ● FINEZA

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NEW (ICS Requirements: ENTERPRISES) - Industrial, commercial and service (ICS) enterprises applying to be an SBF Enterprise shall submit a completed application form with: a. SEC registration and similar documents b. evidence of the intended physical location c. list of assets CASIÑO ● DIG ● FINEZA d. other documents

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SBF ENTERPRISES AND RESIDENTS

SBF ENTERPRISES AND RESIDENTS BANKS AND Process: AFFILIATES 1. Applications for licensing of Commercial and Offshore Banks or their branches or affiliates to be located with the SBF shall be filed with the SBMA. 2. SBMA shall forward the applications to the Central Bank, which if warranted shall directly issue a license and other required documentation. CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS BANKS AND Process: AFFILIATES 3. Should the applicant’s license not be issued by the Central Bank within 30 days, the SBMA shall forthwith inform the bank concerned. 4. Upon endorsement by the Central Bank to the SBMA, the latter shall issue the necessary Certificate of Registration to the bank. CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS Eligibility: - Current Filipino residents of the SBF may apply for a Certificate of Residencyn SBF Enterprise

EXISTING (FILIPINO RESIDENTS)

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SBF ENTERPRISES AND RESIDENTS EXISTING (FILIPINO Requirements: RESIDENTS) - Submit a completed application form with: a. documentation of residence within the SBF, i.e. residence certificate b. evidence of nationality c. evidence of employment or other business operations within the SBF CASIÑO ● DIG ● FINEZA 42 d. other documents

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SBF ENTERPRISES AND RESIDENTS Eligibility: - Foreign nationals currently residing in the SBF continuously for at least a period of 2 years, and who have been accorded permanent residency status in the Philippines may apply for a Certificate of Residency in the SBF upon presentation of sufficient proof of such residency status.

EXISTING (FOREIGN NATIONALS)

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SBF ENTERPRISES AND RESIDENTS Eligibility: - Foreign nationals currently residing in the SBF who have not yet been accorded residency status shall be eligible therefor subject to the Immigration and other provision of the IRR.

EXISTING (FOREIGN NATIONALS)

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SBF ENTERPRISES AND RESIDENTS NEW (FOREIGN Requirements: NATIONALS) - Foreign nationals accorded permanent residency status in the Philippines may apply for a Certificate of Residency in the SBF upon presentation of sufficient proof of such permanent residency status and employment in the SBF. CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS NEW (FOREIGN Requirements: NATIONALS) - Foreign nationals without prior permanent residency status in the Philippines shall be subject to the Immigration and other pertinent provisions of these Rules.

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BUSINESS REGISTRATION PROCESS THE 14-DAY BUSINESS REGISTRATION PROCESS OF THE SUBIC AND CLARK CORRIDOR Day 1

STAGE 1

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The applicant shall submit a Letter of Intent, Business Proposal and other necessary documents to the Business and Investment Departments (BIDs)/Marketing Department. 47

BUSINESS REGISTRATION PROCESS Days 2, 3, 4, and 5 -

STAGE 2 -

The BIDs/Marketing Department shall evaluate the documents. The BIDs/Marketing Department shall facilitate the signing of Letter of Conformity (LOC) between the applicant and the Freeport Authority. The BIDs/Marketing Department shall submit its recommendation to the CEO. In case of disapproval, the BIDs/Marketing Department shall state the specific reason/s for the same and the applicant may file for reconsideration.

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BUSINESS REGISTRATION PROCESS

STAGE 3

Days 6, 7 and 8 - Upon the approval of the proposal by the CEO, based on the favorable recommendation of the BIDs/Marketing Department, a 30-Day Business Permit may be issued. In case of disapproval, the same shall be stated in writing, and the applicant shall be allowed to re-submit appropriate requirements for consideration and approval. 49

BUSINESS REGISTRATION PROCESS

Days 9, 10 and 11

STAGE 4

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The Applicant shall submit other documentary requirements and clearances necessary for the issuance of CRTE/RC.

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BUSINESS REGISTRATION PROCESS

Days 12, 13 and 14 -

STAGE 5 -

The applicant and Freeport Zone Authority shall sign the Lease Agreement provided that the lessee has already acquired juridical personality either from SEC or the DTI, in case of local companies; or license from SEC in case of foreign-registered corporation. The applicant shall pay the necessary fees. The Freeport Authority shall issue the CRTE/RC. 51

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SBF ENTERPRISES AND RESIDENTS Required Documents: STAGE 1 1. SBF Investment Application Form 2. Documentary Requirements a. Letter of intent b. Business Plan c. Audited Financial Statements (last 3 years) d. Latest income tax return CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS Required Documents: STAGE 1 3. Document of Authorization stating Official Representative 4. Documentary Requirements a. For Existing Parent Corporation: Certified True Copy of SEC Certificate b. For New Corporation: SEC Name Reservation c. For Sole Proprietor: DTI Registration CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS STAGE 1

Required Documents: 5. Personal Information Sheet of Incorporators with the following attachments: a. For Filipino Citizens: photocopy of valid identification cards or passport b. For Aliens: photocopy of valid passport

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SBF ENTERPRISES AND RESIDENTS Conditions for Registration: STAGE 1 6. Bank Certificate of Deposits or Certification of approved loan or credit line 7. For Sublease Arrangements: Draft sublease agreement with technical plan and location plan, and letter of endorsement from sublessor 8. Permits and licenses required by law as necessary 9. Proof of Payment of Filing Fee (US $50.00) CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS Required Documents: STAGES 2-5 1. Signed Letter of Conformity 2. Proof of payment of registration fee 3. Certified true copy of SEC Certificate for newly registered corporations 4. Clearance from SBMA Ecology Center 5. Signed Lease Agreement with proof of payment of Advance Rental and Security Deposit CASIÑO ● DIG ● FINEZA

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SBF ENTERPRISES AND RESIDENTS Requirements after Issuance of CRTE/RC: 1. Submission of performance bond for those with development projects within 30 days. 2. For Main Lessee with existing structure, the applicant shall submit the Insurance Policy with Government Service Insurance System stating SBMA as the beneficiary within 30 days after issuance of signed and notarized Lease Agreement CASIÑO ● DIG ● FINEZA

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FEES AND VALIDITY OF PERMITS Fees (in USD)

Validity

1. Filing Fee

Certificate/Permit

50.00

One Year

2. Certificate of Registration and Tax Exemption

250.00

One Year

3. Registration Certificate

150.00

One Year

4. Business License Plate Fee

20.00

One Year

5. Business Renewal Sticker

200.00

One Year

6. Late Registration Penalty

12% of the CRTE or RC permit fee, per annum

One Year CASIÑO ● DIG ● FINEZA

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3 RA 9400 AND IRR Incentives

TAX INCENTIVES Under RA 9400: - No national and local taxes shall be imposed within the Subic SEZ. - In lieu of said taxes, a 5% tax on gross income earned shall be paid by all business enterprises within the Subic SEZ. CASIÑO ● DIG ● FINEZA

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TAX INCENTIVES Under RA 9400: - The 5% tax shall be remitted as follows: 3% to the National Government, and 2% to the SBMA for distribution to the LGUs affected by the declaration of and contiguous to the zone, namely: Olongapo, Subic, San Antonio, San Marcelino and Castillejos in Zambales; and Morong, Hermosa and Dinalupihan in Bataan, on the basis of population (50%), land area (25%), and equal sharing (25%). CASIÑO ● DIG ● FINEZA

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TAX INCENTIVES At Subic SEZ: 1. Exemption from all local and national taxes with only a 5% final tax on gross income earned computed based on Gross Sales less the following―allowable deductions depending on the activities such as manufacturing, infrastructure, development, and service. CASIÑO ● DIG ● FINEZA

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TAX INCENTIVES

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TAX INCENTIVES

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TAX INCENTIVES

TAX INCENTIVES At Subic SEZ: 2. SBF enterprises, depending on the specific type of enterprise, are likewise allowed to deduct some other expenses as specified under the law. 3. Tax and Duty-free importations of raw materials, capital and equipment CASIÑO ● DIG ● FINEZA

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OTHER INCENTIVES At Subic SEZ: 1. SBF Enterprises may generate income from sources within the Customs Territory of up to 30% of its total income from all sources. However, if it exceeds 30% of the enterprise’s total income from all sources, then it shall be subject to the income tax laws of the Customs Territory. CASIÑO ● DIG ● FINEZA

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OTHER INCENTIVES At Subic SEZ: 2. Up to 100% foreign ownership 3. No foreign exchange control; full repatriation of profit is allowed 4. Visa-free entry for 14 days, and renewable 5. Special Subic-Clark visas available to expatriates CASIÑO ● DIG ● FINEZA

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4 RA 9400 Other Matters

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 12(b)

RA 7227

RA 9400

…However, exportation or removal of goods from the territory of the Subic Special Economic Zone to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Customs and Tariff Code and other relevant tax laws of the Philippines

…However, exportation or removal of goods from the territory of the Subic Special Economic Zone to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Tariff and Customs Code of the Philippines, as amended, the National Internal Revenue Code of 1997, as amended, and other relevant tax laws of the Philippines

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 12(c)

RA 7227

RA 9400

The provisions of existing laws, rules and regulations to the contrary notwithstanding, no taxes, local and national, shall be imposed within the Subic Special Economic Zone. In lieu of paying taxes, three percent (3%) of the gross income earned by all businesses and enterprises within the Subic Special Economic Zone shall be remitted to the National Government, one percent (1%) each to the local government units affected by the declaration of the zone in proportion to their population area, and other factors. In addition, there is hereby established a development fund of one percent (1%) of the gross income earned by all businesses and enterprises within the Subic Special Economic Zone to be utilized for the development of municipalities outside the City of Olongapo and the Municipality of Subic, and other municipalities contiguous to be base areas.

The provision of existing laws, rules and regulations to the contrary notwithstanding, no national and local taxes shall be imposed within the Subic Special Economic Zone. In lieu of said taxes, a five percent (5%) tax on gross income earned shall be paid by all business enterprises within the Subic Special Economic Zone and shall be remitted as follows: three percent (3%) to the National Government, and two (2%) percent to the Subic Bay Metropolitan Authority (SBMA) for distribution to the local government units affected by the declaration of and contiguous to the zone, namely: the City of Olongapo and the municipalities of Subic, San Antonio, San Marcelino and Castillejos of the Province of Zambales; and the municipalities of Morong, Hermosa and Dinalupihan of the Province of Bataan, on the basis of population (50%), land area (25%), and equal sharing (25%). CASIÑO ● DIG ● FINEZA

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15

RA 7227 No provision

RA 9400 SEC. 15. Clark Special Economic Zone (CSEZ) and Clark Freeport Zone (CFZ). – …The Clark Air Base proper with an area of not more than four thousand four hundred hectares (4,400 has.), with the exception of the twenty-twohectare commercial area situated near the main gate and the Bayanihan Park consisting of seven and a half hectares (7.5 has.) located outside the main gate of the Clark Special Economic Zone, is hereby declared a Freeport zone.

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15

RA 7227 No provision

RA 9400 The CFZ shall be operated and managed as a separate customs territory ensuring free flow or movement of goods and capital equipment within, into and exported out of the CFZ, as well as provide incentives such as tax and duty-free importation of raw materials and capital equipment. However, exportation or removal of goods from the territory of the CFZ to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Tariff and Customs Code of the Philippines, as amended, the National Internal Revenue Code of 1997, as amended, and other relevant tax laws of the Philippines. CASIÑO ● DIG ● FINEZA

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15

RA 7227 No provision

RA 9400 The provisions of existing laws, rules and regulations to the contrary notwithstanding, no national and local taxes shall be imposed on registered business enterprises within the CFZ. In lieu of said taxes, a five percent (5%) tax on gross income earned shall be paid by all registered business enterprises within the CFZ and shall be directly remitted as follows: three percent (3%) to the National Government, and two percent (2%) to the treasurer's office of the municipality or city where they are located.

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15

RA 7227 No provision

RA 9400 Duly registered business enterprises that will operate in the Special Economic Zones to be created shall be entitled to the same tax and duty incentives as provided for under Republic Act No. 7916, as amended: Provided, That for the purpose of administering these incentives, the PEZA shall register, regulate, and supervise all registered enterprises within the Special Economic Zones.

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15-A

RA 7227 No provision

RA 9400 SEC. 15-A. Poro Point Freeport Zone (PPFZ). – The two hundred thirty-six and a half-hectare (236.5 has.) secured area in the Poro Point Special Economic and Freeport Zone created under Proclamation No. 216, series of 1993, shall be operated and managed as a freeport and separate customs territory ensuring free flow or movement of goods and capital equipment within, into and exported out of the PPFZ. The PPFZ shall also provide incentives such as tax and duty-free importation of raw materials and capital equipment. However, exportation or removal of goods from the territory of the PPFZ to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Tariff and Customs Code of the Philippines, as amended, the National Internal Revenue Code of 1997, as amended, and other relevant tax laws of the Philippines. CASIÑO ● DIG ● FINEZA

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15-A

RA 7227 No provision

RA 9400 The provisions of existing laws, rules and regulations to the contrary notwithstanding, no national and local taxes shall be imposed on registered business enterprises within the PPFZ. In lieu of said taxes, a five percent (5%) tax on gross income earned shall be paid by all registered business enterprises within the PPFZ and shall be directly remitted as follows: three percent (3%) to the National Government, and two percent (2%) to the treasurer's office of the municipality or city where they are located.

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15-B

RA 7227 No provision

RA 9400 SEC. 15-B. Morong Special Economic Zone (MSEZ). – Duly registered business enterprises operating within the MSEZ created under Proclamation No. 984, series of 1997, shall be entitled to tax and duty-free importation of raw materials and capital equipment. In lieu of all national and local taxes except real property tax on land, a five percent (5%) tax on gross income earned shall be paid by all registered business enterprises which shall be directly remitted as follows: three percent (3%) to the National Government, and two percent (2%) to the treasurer's office of the municipality or city where they are located. CASIÑO ● DIG ● FINEZA

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 15-C

RA 7227 No provision

RA 9400 Sec. 15-C. John Hay Special Economic Zone (JHSEZ). – Registered business enterprises which will operate after the effectivity of this Act, within the JHSEZ created under Proclamation No. 420, series of 1994, shall be entitled to the same tax and duty incentives as provided for under Republic Act No. 7916, as amended: Provided, That for the purpose of administering these incentives, the PEZA shall register, regulate, and supervise all registered enterprises within the JHSEZ: Provided, further, That the Conversion Authority and the John Hay Management Corporation (JHMC) shall only engage in acquiring, owning, holding, administering or leasing real properties, and in other activities incidental thereto. CASIÑO ● DIG ● FINEZA

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 6 (RA 9400)

RA 7227 No provision

RA 9400 In case of conflict between national and local laws with respect to the tax exemption privileges in the CFZ, PPFZ, JHSEZ and MSEZ, the same shall be resolved in favor of the aforementioned zones: Provided, That the CFZ and PPFZ shall be subject to the provisions of paragraphs (d), (e), (f), (g), (h), and (i) of Section 12 of Republic Act No. 7227, as amended.

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 7 (RA 9400)

RA 7227 No provision

RA 9400 Business enterprises presently registered and granted with tax and duty incentives by the Clark Development Corporation (CDC), Poro Point Management Corporation (PPMC), JHMC, and Bataan Technological Park Incorporated (BTPI), including such governing bodies, shall be entitled to the same incentives until the expiration of their contracts entered into prior to the effectivity of this Act.

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AMENDMENT RELEVANT TO INCENTIVES PROVISION Sec. 8 (RA 9400)

RA 7227 No provision

RA 9400 Administration, Implementation and Monitoring of Incentives. – The governing authorities shall be responsible for the administration and implementation of the incentives granted to their respective registered enterprises. They shall submit to the Department of Finance (DOF) their respective annual tax expenditures based on the computed costs in terms of revenue forgone on the tax incentives granted to their registered enterprises. For proper monitoring, the DOF shall create a single database of all incentives provided by all these authorities. The DOF shall monitor and review the incentives granted and submit an annual report to the President. CASIÑO ● DIG ● FINEZA

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THANK YOU! 83

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