(Repealed by Executive Order No. 226, s. 1987)
BATAS PAMBANSA BLG. 391
AN ACT DECLARING THE 1983 INVESTMENT INCENTIVES POLICY BY MODIFYING THE SYSTEM ON THE GRANT OF INVESTMENT INCENTIVES, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NUMBERED SEVENTEEN HUNDRED AND EIGHTY-NINE AND OTHER PERTINENT LAWS ON INVESTMENTS
Section 1. This Act shall be known and referred to as the Investment Incentive Policy Act of 1983.
Section 2. Declaration of Investment Policy. ? It is the policy of the State to encourage private domestic and foreign investments in industry, agriculture, mining and other sectors of the economy which shall: provide significant employment opportunities relative to the amount of the capital being invested; increase productivity of the land, minerals, forestry, aquatic and other resources of the country, and improve utilization of the products thereof; improve technical skills of the people employed in the enterprise; provide a foundation for the future development of the economy; meet the tests of international competitiveness; accelerate development of less developed regions of the country; and result in increased volume and...
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Batas Pambansa
An Act Constituting An Independent Presidential Electoral Tribunal To Try, Hear And Decide Election Contests In The Office Of President And Vice-President Of The Philippines, Appropriating
Batas Pambansa Blg. 391
Investment Incentives Policy Act of 1983
I. Declaration of Investment Policy (Section 2)
- Encourage private domestic and foreign investments that:
- Provide significant employment opportunities
- Increase productivity and resource utilization
- Improve technical skills
- Provide foundation for economic development
- Meet international competitiveness
- Accelerate development of less developed regions
- Increase exports
- Extend fiscal incentives to projects contributing to these objectives
- Incentives to stimulate establishment and assist initial operations for up to 10 years
II. Definitions (Sections 3-4)
- Registered Domestic Producer
- Registered Agricultural Producer
- Registered New or Expanding Export Producer
- Registered Existing Export Producer
- Registered Indirect Export Producer
- Registered Export Trader
- Tax Credit
III. Investment Priorities Plan (Sections 6-7)
- Prepared by the Board and approved by the President
- Includes economic activities for investment promotion
- Criteria for inclusion based on economic soundness, contribution to development goals, comparative advantage, and market/technical considerations
IV. Incentives for Registered Domestic Producers (Section 9)
- Tax and duty exemption on imported capital equipment for 5 years (Section 9(a))
- Tax credit on domestic capital equipment purchases (Section 9(b))
- Tax credit of 5% (10% for pioneers) of net value earned for 5 years (Section 9(c))
- Net operating loss carry-over for 10 years (Section 9(d))
- Tax credit for withholding tax on foreign loan interest (Section 9(e))
- Special incentives for exports (Section 9(f))
- Employment of foreign nationals for up to 5 years (Section 9(g))
- Anti-dumping protection (Section 9(h))
- Protection from government competition (Section 9(i))
- Protection of patents and proprietary rights (Section 9(j))
- Post-operative tariff protection for pioneers (Section 9(k))
V. Other Incentives (Section 10)
- Incentives for energy-saving projects (Section 10(a))
- Incentives for industry rationalization programs (Section 10(b))
- Special incentive for investment in national development fund (Section 10(c))
VI. Incentives for Registered Export Producers (Section 11)
- Tax and duty exemption on imported capital equipment (Section 11(a))
- Tax credit on domestic capital equipment (Section 11(b))
- Tax credit of 10% on net value earned for 5 years (Section 11(c))
- Tax credit of 10% on net local content of exports for 5 years (Section 11(d))
- Net operating loss carry-over for 10 years (Section 11(e))
- Tax credit for withholding tax on foreign loan interest (Section 11(f))
- Employment of foreign nationals for up to 5 years (Section 11(g))
- Exemption from export tax, duty, impost and fee (Section 11(h))
- Tax credit for taxes and duties on raw materials (Section 11(i))
- Anti-dumping protection, protection from government competition, protection of patents (Section 11(j))
VII. Incentives for Registered Existing and Indirect Export Producers (Section 12)
- Existing Export Producers:
- Tax credit of 10% on net local content of exports for 5 years (Section 12(a))
- Exemption from export tax, duty, impost and fee (Section 12(b))
- Tax credit for taxes and duties on raw materials (Section 12(c))
- Indirect Export Producers:
- Tax credit for taxes and duties on raw materials (Section 12(1))
- Tax credit of 5% of net value earned associated with indirect exports (Section 12(2))
VIII. Incentives for Registered Export Traders (Section 14)
- Deduction of 20% of total export sales from taxable income for 5 years (Section 14(d))
IX. General Provisions
- No entitlement under other investment laws (Section 15)
- Confidentiality of applications (Section 16)
- Board to promulgate rules and regulations, impose fines (Section 17)
- Transitory provisions for pending applications (Section 18)
- Separability clause (Section 19)
- Repealing clause (Section 20)
- Existing enterprises may continue or opt for new incentives (Section 21)
- Effectivity (Section 22)
I. Declaration of Investment Policy (Section 2)
- Encourage private domestic and foreign investments that:
- Provide significant employment opportunities
- Increase productivity and resource utilization
- Improve technical skills
- Provide foundation for economic development
- Meet international competitiveness
- Accelerate development of less developed regions
- Increase exports
- Extend fiscal incentives to projects contributing to these objectives
- Incentives to stimulate establishment and assist initial operations for up to 10 years
II. Definitions (Sections 3-4)
- Registered Domestic Producer
- Registered Agricultural Producer
- Registered New or Expanding Export Producer
- Registered Existing Export Producer
- Registered Indirect Export Producer
- Registered Export Trader
- Tax Credit
III. Investment Priorities Plan (Sections 6-7)
- Prepared by the Board and approved by the President
- Includes economic activities for investment promotion
- Criteria for inclusion based on economic soundness, contribution to development goals, comparative advantage, and market/technical considerations
IV. Incentives for Registered Domestic Producers (Section 9)
- Tax and duty exemption on imported capital equipment for 5 years (Section 9(a))
- Tax credit on domestic capital equipment purchases (Section 9(b))
- Tax credit of 5% (10% for pioneers) of net value earned for 5 years (Section 9(c))
- Net operating loss carry-over for 10 years (Section 9(d))
- Tax credit for withholding tax on foreign loan interest (Section 9(e))
- Special incentives for exports (Section 9(f))
- Employment of foreign nationals for up to 5 years (Section 9(g))
- Anti-dumping protection (Section 9(h))
- Protection from government competition (Section 9(i))
- Protection of patents and proprietary rights (Section 9(j))
- Post-operative tariff protection for pioneers (Section 9(k))
V. Other Incentives (Section 10)
- Incentives for energy-saving projects (Section 10(a))
- Incentives for industry rationalization programs (Section 10(b))
- Special incentive for investment in national development fund (Section 10(c))
VI. Incentives for Registered Export Producers (Section 11)
- Tax and duty exemption on imported capital equipment (Section 11(a))
- Tax credit on domestic capital equipment (Section 11(b))
- Tax credit of 10% on net value earned for 5 years (Section 11(c))
- Tax credit of 10% on net local content of exports for 5 years (Section 11(d))
- Net operating loss carry-over for 10 years (Section 11(e))
- Tax credit for withholding tax on foreign loan interest (Section 11(f))
- Employment of foreign nationals for up to 5 years (Section 11(g))
- Exemption from export tax, duty, impost and fee (Section 11(h))
- Tax credit for taxes and duties on raw materials (Section 11(i))
- Anti-dumping protection, protection from government competition, protection of patents (Section 11(j))
VII. Incentives for Registered Existing and Indirect Export Producers (Section 12)
- Existing Export Producers:
- Tax credit of 10% on net local content of exports for 5 years (Section 12(a))
- Exemption from export tax, duty, impost and fee (Section 12(b))
- Tax credit for taxes and duties on raw materials (Section 12(c))
- Indirect Export Producers:
- Tax credit for taxes and duties on raw materials (Section 12(1))
- Tax credit of 5% of net value earned associated with indirect exports (Section 12(2))
VIII. Incentives for Registered Export Traders (Section 14)
- Deduction of 20% of total export sales from taxable income for 5 years (Section 14(d))
IX. General Provisions
- No entitlement under other investment laws (Section 15)
- Confidentiality of applications (Section 16)
- Board to promulgate rules and regulations, impose fines (Section 17)
- Transitory provisions for pending applications (Section 18)
- Separability clause (Section 19)
- Repealing clause (Section 20)
- Existing enterprises may continue or opt for new incentives (Section 21)
- Effectivity (Section 22)