Fiscal Incentives - RA 9576 (PDIC)

RA 9576 (April 29, 2009) which amends certain provision of RA 3591 or the Philippine Deposit Insurance Corporation (PDIC) Charter, as amended, grants institutional and financial strengthening measures to the PDIC with the intention of further strengthening the mandatory deposit insurance
coverage system to generate, preserve, maintain faith and confidence in the country’s banking system, and protect it from illegal schemes and machinations.

RA 9576 provides that “all tax obligations of the Corporation for a period of five (5) years reckoned from the date of effectivity of the Act (June 1, 2009), shall be chargeable to the Tax Expenditure Fund (TEF) in the GAA, pursuant to the provisions of EO 93 series of 1986:
Provided that, on the sixth year (6th ) and thereafter, the Corporation shall be exempt from income tax, final withholding tax, value added tax on assessments collected from member banks, and local taxes”. All notes, debentures, bonds, or such obligations issued by the PDIC are also exempt from taxation both as to principal and interest, and shall be fully guaranteed by the government.