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

Case Overview and Summary

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)