EXECUTIVE ORDER NO. 569 November 23, 1979
AUTHORIZING THE BOARD OF INVESTMENTS TO EXTEND THE PERIOD OF AVAILMENT OF INCENTIVES BY, OR INCREASE THE RATES OF TAX EXEMPTIONS OF, REGISTERED ENTERPRISES
WHEREAS, Presidential Decree No. 1584 provides that the President, in meritorious cases and upon recommendation of the Board of Investments, is authorized to liberate the incentives under R.A. 5186, R.A. 6135 and P.D. 1159, by extending the period of availment of incentives or increasing the rates of tax exemption;
WHEREAS, in the light of the need for immediate assistance to firms, particularly those, in distressed conditions, there is a need for BOI in meritorious cases to immediately grant requests for liberalization of incentives under the aforesaid laws;
WHEREAS, Presidential Decree No. 1416 authorizes the President to reorganize the government;
WHEREAS, such assistance is necessary for sustaining industrial growth and development;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order...
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Executive Orders
Authorizing the Board of Investments to Extend the Period of Availment of Incentives By, or Increase the Rates of Tax Exemptions Of, Registered Enterprises
Executive Order No. 569
Summary of Executive Order No. 569
Authority of the Board of Investments (BOI) to Extend Incentives
- The BOI is authorized to extend the period of availment of incentives by registered enterprises for up to 5 years. (Section 1)
- The BOI is authorized to increase the rate of tax exemption of registered enterprises to not more than 50% of the previous exemption rate. (Section 1)
Criteria for Extending Incentives (Section 1):
- The registered enterprise has suffered heavy financial losses and is in distressed condition.
- The registered enterprise has suffered operational force majeure that impaired its viability.
- The registered enterprise has not fully enjoyed the incentives granted by the BOI for reasons beyond its control.
- The project of the registered enterprise has a gestation period beyond the period of availment of needed incentives.
- The operation of the registered enterprise has been subjected to unforeseen changes in government policies, particularly protectionism policies of importing countries, and other supervening factors affecting competitiveness.
Other Cases Requiring Presidential Authority (Section 2):
- In cases other than those stipulated in Section 1, the BOI must seek authority from the President to extend the period of availment of incentives and/or increase the rate of tax exemption of registered enterprises under R.A. 5186, R.A. 6135, and P.D. 1159, as provided in P.D. 1584.
Repealing Clause (Section 3):
- All laws, decrees, executive orders, administrative orders, rules or regulations inconsistent with this Order are hereby repealed, amended, or modified accordingly.
Effectivity (Section 4):
- This Order shall take effect immediately.
Authority of the Board of Investments (BOI) to Extend Incentives
- The BOI is authorized to extend the period of availment of incentives by registered enterprises for up to 5 years. (Section 1)
- The BOI is authorized to increase the rate of tax exemption of registered enterprises to not more than 50% of the previous exemption rate. (Section 1)
Criteria for Extending Incentives (Section 1):
- The registered enterprise has suffered heavy financial losses and is in distressed condition.
- The registered enterprise has suffered operational force majeure that impaired its viability.
- The registered enterprise has not fully enjoyed the incentives granted by the BOI for reasons beyond its control.
- The project of the registered enterprise has a gestation period beyond the period of availment of needed incentives.
- The operation of the registered enterprise has been subjected to unforeseen changes in government policies, particularly protectionism policies of importing countries, and other supervening factors affecting competitiveness.
Other Cases Requiring Presidential Authority (Section 2):
- In cases other than those stipulated in Section 1, the BOI must seek authority from the President to extend the period of availment of incentives and/or increase the rate of tax exemption of registered enterprises under R.A. 5186, R.A. 6135, and P.D. 1159, as provided in P.D. 1584.
Repealing Clause (Section 3):
- All laws, decrees, executive orders, administrative orders, rules or regulations inconsistent with this Order are hereby repealed, amended, or modified accordingly.
Effectivity (Section 4):
- This Order shall take effect immediately.