  
  
G/SCM/N/401/PHL  
 
19 July 2023  
(23-4931) Page: 1/16 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT  1994  AND  ARTICLE  25 OF THE AGREEMENT  ON  
SUBSIDIES  AND  COUNTERVAILING  MEASURES  
PHILIPPINES  
The following communication, dated and received on 17 July 2023, is being circulated at the request 
of the delegation of the Philippines.  
 
_______________  
 
 
In the interest of transparency, please find herewith the Philippines' new and full notification 
pursuant to Article XVI:1 of the GATT 1994, and Article 25 of the Agreement on Subsidies and 
Countervailing Measures (ASCM) covering the period 20 21 to 202 2. 
As provided under Article 25.7 of the ASCM, this notification does not prejudge the legal status, 
effects or nature of the notified programs or measures under GATT 1994 and the ASCM.  
  G/SCM/N/401/PHL  
 
- 2 - 
 
  Table of Contents  
1  ALL SECTORS  ................................ ................................ ................................ ...........  3 
1.1  Investment Promotion Program  ................................ ................................ ...............  3 
1.2  Market Competitiveness Program  ................................ ................................ ............  3 
1.2.1  Economic Zones and Industrial Areas  ................................ ................................ ... 3 
1.2.2  Shared Service Facilities (SSF)  ................................ ................................ ............  4 
2  INDUSTRIAL ................................ ................................ ................................ .............  5 
2.1  Industry Promotion Program  ................................ ................................ ...................  5 
2.2  Downstream Oil Industry  ................................ ................................ ........................  5 
2.2.1  Mining  ................................ ................................ ................................ ..............  6 
2.2.2  Renewable Energy  ................................ ................................ ..............................  7 
2.2.3  Coal ................................ ................................ ................................ .................  9 
2.2.4  Biofuel  ................................ ................................ ................................ ............  10 
2.2.5  Compressed Natural Gas (CNG)  ................................ ................................ .........  11 
2.2.6  Oil and Natural Gas  ................................ ................................ ..........................  12 
2.2.7  Power  ................................ ................................ ................................ .............  13 
2.2.8  Motor Vehicle – Manufacture and Assembly  ................................ .........................  14 
2.2.9  Jewelry  ................................ ................................ . Error! Bookmark not defined.  
3  AGRICULTURAL  ................................ ................................ ................................ ...... 16 
3.1  Coconut  ................................ ................................ ................................ .............  16 
 
  G/SCM/N/401/PHL  
 
- 3 - 
 
  1  ALL  SECTORS  
1.1  Investment Promotion Program  
1. Title of the subsidy program  
Investment Promotion Program  
2. Period covered by the notification  
2021-2022 
3. Policy objective  of the subsidy  
Encourage investments in activities that will create more jobs and contribute to industry 
development.  
4. Background and authority for the subsidy  
a. Executive Order (EO) No. 226 ( Omnibus Investments Code of 1987 ), as amended.  
b. Republic Act No. 11534 otherwise known as the Corporate Recovery and Tax Incentiv es for  
Enterprises (CREATE) Act, which took effect on 11 April 2021.   
 
5. Form of the subsidy  
Tax concessions.   
6. To whom and how the subsidy is  provided  
Tax concessions  are granted to qualified business enterprises registered with an Investment 
Promotion Agency (IPA), such as the BOI and PEZA .  
To apply for incentives,  registered business enterprises  (RBEs) shall submit  an application with the 
IPA.  
7. Amount of the subsidy  
Not available.  
8. Duration of the subsidy  and/or anytime attached to it 
Ongoing.  
9. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
1.2  Market Competitiveness Program  
1.2.1   Economic Zones and Industrial Areas  
1. Title of the subsidy program  
Economic Zones and Industrial Areas  
2. Period covered by the notification  
2021-2022.  G/SCM/N/401/PHL  
 
- 4 - 
 
  3. Policy objective  of the subsidy  
Transform disadvantaged areas into productive centers of businesses and livelihood.  
4. Background and authority for the subsidy  
a. Republic Act (RA) No. 7916 ( The Special Economic Zone Act of 1995 ), as amended  
b. RA No. 7922 ( Cagayan Special Economic Zone Act of 1995), as amended  
c. RA No. 7903 ( Zamboanga City Special Economic Zone Act of 1995 ), as amended   
d. Presidential Decree (PD) No. 538 ( Creating and Establishing the PHIVIDEC Industrial Authority 
and Making it a Subsidiary Agency of the Philippine Veterans Investm ent Development 
Corporation Defining its Powers, Functions and Responsibilities, and for Other Purposes ), as 
amended  
e. Republic Act No. 11534 otherwise known as the Corporate Recovery and Tax Incentives for 
Enterprises (CREATE) Act took effect on 11 April 20 21.  
 
5. Form of the  subsidy  
Tax concessions.   
 
6. To whom and how the subsidy is  provided  
Qualified registered business enterprises located within ecozones, freeport zones or industrial  areas, 
and whose project s or activit ies are listed in the Strategic Investment Priority Plan ( SIPP).  
7. Amount of the subsidy  
Not available.  
 
8. Duration of the subsidy  and/or anytime attached to it 
Ongoing.  
 
9. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
1.2.2   Shared Service Facilities (SSF)  
1. Title of the subsidy program  
 
Shared Service Facilities (SSF)  
2. Period covered by the notification  
2021-2022. 
3. Policy objective  of the subsidy  
Improve the competitiveness of micro, small and medium enterprises ( MSMEs ) by providing them 
with machinery, equipment, tools, systems, skills and knowledge under a shared system.  
4. Background and authority for the subsidy  
MSME Development Plan 2017 -2022.  
Republic Act No 11518 (General Appropriations Act [GAA] Fiscal Year 2021) an d RA 11639 
(GAA Fiscal Year 2022)  G/SCM/N/401/PHL  
 
- 5 - 
 
  5. Form of the subsidy  
Provision of machine, tools, and equipment under a shared system.  
6. To whom and how the subsidy is  provided  
Beneficiaries of the project are the actual and potential users of the SSF which are predominant ly 
cooperatives, associations or groups of MSMEs including individual entrepreneurs who may not be 
members of cooperatives, associations, corporations or organizations.  
7. Amount of the subsidy  
Not available . 
8. Duration of the subsidy  and/or anytime attached to  it 
The machinery and equipment shall be used by the Cooperator under a 2 -year Usufruct Agreement 
which shall form an integral part of the Memorandum of Agreement. The validity of the SSF budget 
is based on the General Appropriations Act ( GAA) and the Act/s extending the availability of the 
GAA. 
9. Statistical data  permitting an assessment of the trade effects of a subsidy  
For the period of 2021 to 2022, the government has established 676 SSF projects amounting to 
PhP 607.245 million with over 138,000 MSMEs and other users assisted and 82,000 employments 
generated.  
2  INDUSTRIAL  
2.1  Industry Promotion Program  
2.2  Downstream Oil Industry  
1. Period covered by the notification  
2021-2022 
2. Policy objective  of the subsidy  
a. To liberalize and deregulate the downstream oil industry in order to ensure a truly competitive 
market under a regime of fair prices, adequate and continuous supply of environmentally -
clean and high -quality petroleum products; and  
b. To promote and encourage the entry of new participants in the downstr eam oil industry, and 
introduce adequate measures to ensure the attainment of these goals.  
3. Background and authority for the subsidy  
RA No. 8479 ( Downstream Oil Industry Deregulation Act of 1998 ) and its Implementing Rules and 
Regulations (IRR) under DOE De partment Circular No. 98 -03-004. 
RA No. 11534 (Corporate Recovery and tax Incentives for Enterprises Act)   
 
4. Form of the subsidy  
a. Incentives under RA No. 8479  
The same incentives granted to BOI -registered enterprises engaged in a preferred area of 
Investments, pursuant to Executive Order No. 226 (Omnibus Investment Code of 1987), shall 
be extended, as applicable, to persons with new investments as determined by the DOE and 
registered with the BOI in refining, storage, marketing, and distribution of petroleum 
products. Such incentives shall include:  
 G/SCM/N/401/PHL  
 
- 6 - 
 
  • Income tax holiday;  
• Additional deduction for labor expenses;   
• Minimum tax and duty of three percent (3%) and value -added tax (VAT) on imported 
capital equipment;  
• Tax credit on domestic capital equipment;  
• Exemption from contractor's tax;  
• Unrestricted use of consigned equipment;  
• Exemption from the real property tax on production  equipment or machineries;   
• Exemption from taxes and duties on imported spare parts;  
• Such other applicable incentives un der Article 29 of EO 226;  OR 
 
b. Incentives under CREATE Act.   
• Income tax holiday;  
• Special Corporate Income Tax (SCIT) Rate under the Strategic Investment Priority Plan  
• Enhanced deductions for labor, expenses for asset , research and development, power 
expense ;  
• Duty exemption on imported equipment, raw materials, and spare parts ; 
• VAT exemption on local purchases;  
• Donor tax exemption  
 
c. The approved Memorandum Order No. 50 entitled, "Approving the 2020 Investment Priorities 
Plan (IPP) " states that the inclusion in the I nvestment Priority Plan of refining, storage, 
marketing, and distribution of petroleum products under the Downstream Oil Industry 
Deregulation Act of 1998 is mandated for purposes of incentives. (Item 4 in C. Special Laws 
under I. Preferred Activities for Investment of Memorandu m Order No. 50)  
 
5. To whom and how the incentives are provided  
a. "New Industry Participants " with new investments as determined by the Department of Energy  
and registered with the B oard of Investments  in any of the following activities, i.e., refining, 
storage , marketing and distribution of petroleum products   
b. Qualified IPA -registered enterprises.  
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anytime attached to it 
Ongoing.  
8. Statistical data  permitting an assessment of the trade effects of  a subsidy  
Not available.  
2.2.1   Mining  
1. Period covered by the notification  
2021-2022 
2. Policy objective  of the subsidy  
Promote rational exploration, development, utilization, and conservation of the country's mineral 
resources in order to enhance national growth in a way that effectively safeguards the environment 
and protects the rights of affected communities.  
3. Background and authority for the subsidy  
a. RA No. 7942 ( Philippine Mining Act of 1995 ) G/SCM/N/401/PHL  
 
- 7 - 
 
  b. EO No. 79, s. 2012 ( Institutionalizing and Implementing Reform s in the Philippine Mining  
Sector, Providing  Policies and Guidelines to Ensure Environmental Protection and Responsible 
Mining in the Utilization of Mineral Resources ) 
c. RA No. 11534 (Corporate Recovery and tax Incentives for Enterprises Act)   
 
4. Form of the subsidy  
Tax concessions.   
 
5. To whom and how the subsidy is  provided  
Qualified BOI -registered enterprises with valid exploration Permit, Mineral Production Sharing 
Agreement (MPSA), Financial or Technical Assistance Agreement (FTAA), Joint venture Agreement 
(JVA), or Co -Production Agreement (CPA), quarry permit, or mineral processing permit, whichever 
is applicable.  
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anytime attached to it  
Ongoing  
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
2.2.2   Renewable Energy  
1. Period covered by the notification  
2021-2022.  
2. Policy objective  of the subsidy  
a. Accelerate the exploration, development and use of renewable energy resources for power 
generation;  
b. Achieve energy self -reliance;  
c. To reduce the country's dependence on fossil fue ls; 
d. Minimize the country's exposure to price fluctuations;  
e. Adoption of clean energy to mitigate climate change;  
f. Promote socio -economic development in rural areas; and  
g. Increase the utilization of Renewable Energy by providing fiscal and non -fiscal incentive s. 
 
3. Background and authority for the subsidy  
RA No. 9513 ( Renewable Energy Act of 2008 ). 
RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act)  
 
4. Form of the subsidy  
• Renewable Energy Developers  
a. Income tax holiday for seven years;  
b. Duty-free importation of RE machinery, equipment and materials including control and 
communication equipment;  
c. Special realty tax rates on equipment and machinery not exceeding 1.5% of their original cost 
less accumulated normal depreciation or net book val ue; G/SCM/N/401/PHL  
 
- 8 - 
 
  d. Net operating loss during the first 3 years of commercial operation which had not been 
previously deducted from gross income shall be carried over as deduction from gross income 
for the next  7 consecutive taxable years immediately following the year of  such loss (NOLCO);  
e. Corporate tax rate of 10% on its net taxable income after 7 years of ITH;  
f. Accelerated depreciation of plant, machinery and equipment may be applied if the project fails 
to receive an ITH before full operation;  
g. 0% Value -Added Tax rate on  the sale of fuel or power generated from RE sources. Zero rated 
VAT on purchases of local supply of goods, properties and services needed by RE developers 
in the development, construction and installation of its plant facility as well as the exploration 
and development of RE resources and its conversion into power;  
h. Tax exemption on carbon credits;  
i. Cash incentive of Renewable Energy developers for Missionary Electrification. A cash 
generation -based incentive per kilowatt hour equivalent to 50% of the univer sal charge for 
the power needed to service missionary areas chargeable against the universal charge for 
missionary electrification;  
j. Tax credit on domestic capital equipment and services;  
k. Exemption from universal charge; and  
l. Option to pay transmission and w heeling charges of on a per kilowatt -hour basis at a cost 
equivalent to the average per kilowatt -hour rate of all other electricity transmitted through 
the grid.  
• Manufacturers, Fabricators and Suppliers  
a. Tax and duty free importation of components, parts an d materials necessary for the 
manufacture and/or fabrication of RE Equipment and components made after obtaining DOE 
approval for such importation;  
b. Tax credit on domestic capital components, parts and materials purchase made from DOE -
accredited local manuf acturers;  
c. Income tax holiday for 7 years from the date of recognition/accreditation; and  
d. Zero-rated value added tax on transactions with local suppliers of goods, properties and 
services.  
• Biomass Resources Plantation  
a. Duty-free importation; and  
b. Exemption from Value Added Tax on all types of agricultural inputs, equipment and machinery 
and spare parts.  
• Purchase of Renewable Energy Component  
a. Tax rebate for all or part of the tax paid for the purchase of RE equipment for residential, 
industrial or c ommunity as prescribed by DOF.  
• Incentives under CREATE Act.   
a. Income tax holiday;  
b. Special Corporate Income Tax (SCIT) Rate under the Strategic Investment Priority Plan  
c. Enhanced deductions for labor, expenses for asset, research and development, power 
expens e;  
d. Duty exemption on imported equipment, raw materials, and spare parts;  
e. VAT exemption on local purchases;  
f. Donor tax exemption  
 
5. To whom and how the subsidy  is provided  
a. RA No. 9513 registered RE projects and equipment manufacturers/suppliers; and  
b. Qualified IPA -registered enterprises . 
 
6. Amount of the subsidy  
Not available.  G/SCM/N/401/PHL  
 
- 9 - 
 
  7. Duration of the subsidy  and/or anytime attached to it 
In effect and ongoing.  
8. Statistical data  permitting an assessment of the trade effects of a subsid y 
Not available.  
2.2.3   Coal 
1. Period covered by the notification  
2021-2022.  
2. Policy objective  of the subsidy  
To immediately accelerate the exploration, development, exploitation production and utilization of 
the country's coal resources.  
3. Background and authority for the subsidy  
a. Presidential Decree (PD) No. 972 ( The Coal Development Act of 1976 ), as amended by 
PD No. 1174;  
b. PD No. 1174 ( Amending the Coal Development Act of 1976 ); and  
c. RA No. 1 1534 (Corporate Recovery and Tax Incentives for Enterprises Act).   
 
4. Form of the subsidy  
a. Incentives under PD 972, as amended by PD No. 1174  
• Cost reimbursement of operating expenses up to 90% of gross proceeds from production 
with carry forward of unrecovered cos t; 
• Special allowance of up to 40% of the net proceeds;  
• Exemption from all taxes except income tax;  
• Exemption from payment of tariff duties and compensating tax on the importation of 
machinery, equipment, spare parts and all materials for coal operations;  
• Entry of alien technical and specialized personnel; and  
• Right of ingress to and egress from the coal operating contract (COC) area.  
 
b. Incentives under CREATE Act.   
• Income tax holiday;  
• Special Corporate Income Tax (SCIT) Rate under the Strategic Investment Priority Plan  
• Enhanced deductions for labor, expenses for asset, research and development, power 
expense;  
• Duty exemption on imported equipment, raw materials, and spare parts;  
• VAT exemption on local purchases;  
• Donor tax exemption  
 
5. To whom and how the subsidy  is provided  
a. PD No. 972 registered projects and/or accredited operator with coal operating 
contracts/trade/user; and  
b. Qualified IPA -registered enterprises.  
 
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anyt ime attached to it 
In effect  and ongoing.  G/SCM/N/401/PHL  
 
- 10 - 
 
  8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
2.2.4   Biofuel  
1. Period covered by the notification  
2021-2022.  
2. Policy objective  of the subsidy  
a. Develop and utilize indigenous renewable and sustainably -sourced clean energy sources to 
reduce dependence on imported oil;  
b. Mitigate toxic and greenhouse gas (GHG) emissions;  
c. Increase rural employment and income; and  
d. Ensure the availability of alternative and renewable clean energy without any detriment to the 
natural ecosystem, biodiversity and food reserves of the country.  
3. Background and authority for the subsidy  
RA No. 9367 ( Biofuels Act of 2006 ) 
RA No. 1 1534 (Corporate Recovery and Tax Incentives for Enterprises Act)   
 
4. Form of the subsidy  
a. Incentives under RA No. 9367   
• Income tax holiday;  
• Minimum tax and duty of 3% and value -added tax on imported capital equipment;  
• Tax credit on domestic capital equipment;  
• Exemption from contractor's tax;  
• Unrestricted use of consigned equ ipment;  
• Exemption from taxes and duties on imported spare parts; and  
• Such other applicable incentives under Article 39 of E.O. No. 226; OR 
b. Incentives under CREATE Act  
• Income tax holiday;  
• Special Corporate Income Tax (SCIT) Rate under the Strategic Investment Priority Plan  
• Enhanced deductions for labor, expenses for asset, research and development, power 
expense;  
• Duty exemption on imported equipment, raw materials, and spare parts;  
• VAT exemption on local purchases;  
• Donor tax exemption  
 
5. To whom and how the subsidy  is provided  
a. RA No. 9367 registered biofuels projects and/or accredited producers and distributors of 
biofuels; and  
b. Qualified IPA -registered enterprises.  
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anytim e attached to it 
In effect and ongoing.  G/SCM/N/401/PHL  
 
- 11 - 
 
  8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available . 
2.2.5   Compressed Natural Gas (CNG)  
1. Period covered by the notification  
2021-2022.  
2. Policy objective  of the subsidy  
a. Ensure energy supply in the transport sector through fuel diversification using indigenous 
natural gas, and use compressed natural gas (CNG) as a clean alternative fuel for transport; 
and 
b. Develop an implementation plan for a gradual shift to CNG fuel utilization in public utility 
vehicles (PUVs) and promote natural gas vehicles (NGVs) in Metro Manila and Luzon through 
the issuance of directives/orders providing preferential franchises in present day major routes 
and exclusive franchises to NGVs in newl y opened routes, and other preferential incentives  
3. Background and authority for the subsidy  
E.O. 290, s. 2004 (Implementing the Natural Gas Vehicle Program for Public Transport or NGVPPT)  
 
The NGVPPT, particularly the Pilot Project, ended in 2018 with the findings that while it is technically 
viable, it is not e conomically sustainable due to heavy fuel cost subsidy and non -availability of 
franchise to operate the buses.  
 
The following policies were issued to provide support in the implementation of the NGVP PT, including 
its expansion for commercialization. However, the policy for sustainable operation of the vehicles is 
equally important for the Program to continue.  
 
• Department Circular No. DC 2004 -04-004 – Guidelines on the issuance of Certificate of 
Accreditation and Certificate of Authority to import under the NGVPPT  
• Department Circular No. DC2005 -07-006 – Directing the enhanced implementation of 
NGVPPT and the development of CNG supply infrastructure  
• Department Circular No. DC 2006 -04-004 – Adopting DC 2004 -04-004 as the IRR of EO396 
and 488 and DC2005 -07-006 and amending certain provisions of said Department Circular.  
 
RA No. 1 1534 (Corporate Recovery and Tax Incentives for Enterprises Act).   
 
4. Form of the subsidy  
a. Incentives under E.O.  290, s. 2004  
• Income tax holiday  
• 1% rate of duty on imported NGV, NGV engines and other NGV industry related equipment, 
facilities, parts and components as certified by the DOE;  
• Issuance by the Land Transportation Office (LTO) Certificates of Compliance wi th Emissions 
Standards to NGVs;  
• Preferential and exclusive franchises from the Land Transportation Franchising Regulatory 
Board (LTFRB) for NGVs to newly opened routes;  
• Accelerated issuance by the DENR of Environmental Compliance Certificate (ECC) for NGV 
facilities and refuelling stations;  
• Affordable and commercially tenable financial packages from Government Financing 
Institutions (GFIs);  
• Manpower development and capability building through training and technology transfer 
programs;  
• Attractive CNG prices which translate to a discount to diesel prices; and  
• Other privileges and incentives that may be subsequently provided.  G/SCM/N/401/PHL  
 
- 12 - 
 
  b. CREATE incentives for IPA -registered enterprises.   
• Income tax holiday;  
• Special Corporate Income Tax (SCIT) Rate under the Strategic Investment Priority Plan  
• Enhanced deductions for labor, expenses for asset, research and development, power 
expense;  
• Duty exemption on imported equipment, raw materials, and spare parts;  
• VAT exemption on local purchases;  
• Donor tax exemption  
 
5. To whom and how the subsidy  is provided  
a. E.O 290 registered projects; and  
b. Qualified IPA -registered enterprises.   
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anytime attached to it 
In effect and ongoing.  
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
2.2.6   Oil and Natural Gas  
1. Period covered by the notification  
2021-2022 
2. Policy objective  of the subsidy  
a. Hasten the discovery and production of indigenous petroleum through the utilization o f 
government and/or private resources, local and foreign under the arrangements embodied in 
PD No. 87  
3. Background and authority for the subsidy  
a. Presidential Decree (PD) 87 (Oil Exploration and Development Act of 1972)  
b. Office of the Energy Affairs Circular No. 87 -12-003 
c. DOE Circular No. 94 -01-01 
d. RA No. 1 1534 (Corporate Recovery and tax Incentives for Enterprises Act)   
4. Form of the subsidy  
a. Incentives under Presidential Decree (PD) 87 and related issuances   
• Service fee of up to 40% of net production  
• Cost reimbursement of up to 70% gross production with carry -forward of unrecovered 
costs 
• FPIA grants of up to 7.5% of the gross proceeds for service contract with minimum Filipino 
company participation of 15%  
• Exemption from all taxes except inco me tax  
• Income tax obligation paid out of government's share  
• Exemption from all taxes and duties for importation of materials and equipment for 
petroleum operations  
• Easy repatriation of investments and profits  G/SCM/N/401/PHL  
 
- 13 - 
 
  • Free market determination of crude oil prices, i.e., prices realized in a transaction between 
independent persons dealing at arms -length  
• Special income tax of 8% of gross Philippine income for subcontractors  
• Special income tax of 15% of Philippine income for foreign employees of service contractors 
and subcontractors  
• Sliding scale allowance from 1.5 percent to 7.5 percent of the gross proceeds granted to 
the contractor when the aggregate participation in the contract by one or more Filipino 
Citizens and/or companies is at least 15.0 perce nt in respect to a Deepwater Contract; and  
• Allowance of 7.5 percent of the gross proceeds granted to the contractor when the 
aggregate participation in the contract by one or more Filipino citizens and/or companies 
is at least 15.0  percent in respect to th e drilling of a well by the contractor in water depths 
beyond 200  meters, whether inside or outside a deepwater area.  
 
b. CREATE incentives for IPA -registered enterprises  
• Income tax holiday;  
• Special Corporate Income Tax (SCIT) Rate under the Strategic Investm ent Priority Plan  
• Enhanced deductions for labor, expenses for asset, research and development, power 
expense;  
• Duty exemption on imported equipment, raw materials, and spare parts;  
• VAT exemption on local purchases;  
• Donor tax exemption  
 
5. To whom and how the subsidy  is provided  
a. PD No. 87, Office of Energy Affairs Circular No. 87 -12-003, and DOE Circular 
No. 94-0101registered projects; and  
b. Qualified IPA -registered enterprises.  
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anytime attached to it 
Ongoing.  
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
2.2.7   Power  
1. Period covered by the notification  
2021-2022.  
2. Policy objective  of the subsidy  
a. To ensure and accelerate the total electrification of the country; and  
b. To ensure the quality, reliability, security and affordability of the supply of electric power  
3. Background and authority for the subsidy  
a. Republic Act No. 9136 (Electric Power Industry Reform Act of 2001)  
b. Executive Order N o. 226 (Omnibus Investments Code of 1987);  
c. RA No. 1 1534 (Corporate Recovery and tax Incentives for Enterprises Act)   
 G/SCM/N/401/PHL  
 
- 14 - 
 
  4. Form of the subsidy  
a. Incentives under Republic Act No. 9136   
• Income tax holiday  
• Exemption from taxes and duties on imported spare parts 
• Exemption from wharfage dues and export tax, duty, impost and fees  
• Modified duty rate for capital equipment by virtue of E.O. 313 (modified by E.O 528)  
• Tax credits  
• Additional deductions from taxable income  
• Employment of foreign nationals  
• Simplification of customs procedures  
• Importation of consigned equipment  
• The privilege to operate a bonded manufacturing/trading warehouse subject to custom 
rules and regulations.  
 
b. CREATE incentives for IPA -registered enterprises   
• Income tax holiday;  
• Special Corporate Income Tax (SCIT) Rate under the Strategic Investment Priority Plan  
• Enhanced deductions for labor, expenses for asset, research and development, power 
expense;  
• Duty exemption on imported equipment, raw materials, and spare parts ; 
• VAT exemption on local purchases;  
• Donor tax exemption  
 
5. To whom and how the subsidy  is provided  
a. RA 9136 and EO 226 registered projects; and  
b. Qualified IPA -registered enterprises.  
6. Amount of the subsidy  
Not available.  
7. Duration of the subsidy  and/or anytime attached to it 
In effect and ongoing.  
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available.  
2.2.8   Motor Vehicle  – Manufacture and Assembly  
1. Period covered by the notification  
2021-2022. 
2. Policy objective  of the subsidy  
Accelerate  the sound development of the motor vehicle industry in the Philippines.  
3. Background and authority for the  subsidy  
a. EO No. 156 ( Providing for a Comprehensive Industrial Policy and Directions for the Motor 
Vehicle Development Program  and its Implementing Guidelines ), s. 2002   
b. EO No. 877 -A (The Comprehensive Motor Vehicle Development Program ) 
c. RA No. 10963 [Tax Reform for Acceleration and Inclusion (TRAIN) law]   
d. RA No. 1 1534 (Corporate Recovery and tax Incentives for Enterprises Act)   
 G/SCM/N/401/PHL  
 
- 15 - 
 
  4. Form of the subsidy  
a. Tax concessions on the importation of completely knocked -down parts and components  
b. CREATE Act incentives for qualified IPA -registered entities.  
5. To whom and how the subsidy  is provided  
IPA-registered  enterprises engaged in the manufacture/assembly of motor vehicles.  
 
6. Amount of the subsidy  
Not available . 
7. Duration of the subsidy  and/or anytime attached to it  
Ongoing . 
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available . 
2.2.9   Jewelry  
1. Period covered by the notification  
2021-2022 
2. Policy objective  of the subsidy  
Encourage  the development of the jewelry  industry.  
3. Background and authority for the subsidy  
RA No. 8502 ( Jewelry  Industry Development Act of 1998 ). 
4. Form of the subsidy  
Tax concessions . 
5. To whom and how the subsidy is  provided  
Qualified  BOI-accredited jewelry  enterprises, which should apply with relevant authorities.  
6. Amount of the subsidy  
Not available . 
7. Duration of the subsidy  and/or anytime attached to it 
Ongoing . 
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available . G/SCM/N/401/PHL  
 
- 16 - 
 
  3  AGRICULTURAL  
3.1  Coconut  
1. Period covered by the notification  
2021-2022 
2. Policy objective  of the subsidy  
To consolidate the benefits due to coconut farmers, especially the poor and marginalized, under 
various statutes and to expedite the delivery thereof to attain increased incomes for farmers, 
alleviate poverty and achieve social equality.  
3. Background and authority for the subsidy  
 
a. Republic Act 115241 otherwise known as the Coconut Farmers and Industry Act  
b. Coconut Farmers and Industry Roadmap 2021 -2040 
c. Coconut Farmers and Industry Development Plan  
4. Form of the subsidy  
• Provision of Social Protection (health and medical program, crop insurance, scholarship 
and training)  
• Coconut Farmers Organization and Development (Farm Cooperatives/Associations 
Development)  
• Hybridization (Operations and Research)  
• Community -Based Farm Enterprise Devel opment (Intercropping, Livestock and Dairy  
• Provision of integrated coconut processing and downstream products (shared processing 
facilities)  
• Support services (credit programs, marketing assistance, research and market promotion)  
 
5. To whom and how the subsid y is provided  
• For the various programs, priority is given to National Coconut Farmers ' Registry System -
registered landowners and owner -operators with 5 hectares and below of land.  
• Dependents of the National Coconut Farmers ' Registry System -registered coco nut farmers 
who are interested to pursue their college education but do not have the financial capability 
to cover their education expenses.  
• Coconut farm workers followed by the tenants, and last the owner operators (55 -59 years 
old) 
• SEC registered coconut  farmers organization  
• CDA registered cooperatives with coconut farmers as members  
• Individual coconut farmers, Coconut Farmers Organization, and/or Cooperatives registered 
with the Philippine Coconut Authority under the National Coconut Farmers ' Registry 
System.  
 
6. Amount of the subsidy  
Not available . 
7. Duration of the subsidy  and/or anytime  attached to it 
Ongoing . 
8. Statistical data  permitting an assessment of the trade effects of a subsidy  
Not available . 
__________  