Republic Act No. 10026 | Senate of the Philippines Legislative Reference Bureau

Full Title

AN ACT GRANTING INCOME TAX EXEMPTION TO LOCAL WATER DISTRICTS BY AMENDING SECTION 27 (C) OF THE NATIONAL INTERNAL REVENUE CODE (NIRC) OF 1997, AS AMENDED, AND ADDING SECTION 289-A TO THE CODE, FOR THE PURPOSE.

Congress

14th Congress of the Republic

Senate Bill

S. No. 3392

House Bill

H. No. 5210

Legislative History

View Legislative History in Senate website

Floor Activity

View Floor Activity in Senate website

Committee Report Senate Link

View Committee Report

View PDF link of Committee Report no. 551

Date of Approval

March 11, 2010

Legislative History

Entitled:

AN ACT GRANTING INCOME TAX EXEMPTION TO LOCAL WATER DISTRICTS, AMENDING FOR THE PURPOSE SECTION 27 (C) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

[ THIRD REGULAR SESSION, 14TH CONGRESS ]

[ 2009 ]

8/17/2009 Prepared and submitted by the Committee on WAYS AND MEANS with Senator(s) PANFILO M. LACSON and FRANCIS "CHIZ" G. ESCUDERO as author(s) per Committee Report No. 551, recommending its approval in substitution of HBN-5210 and SBN-3152, taking into consideration SJR-24;

8/18/2009 Sponsors: Senator(s) PANFILO M. LACSON and FRANCIS "CHIZ" G. ESCUDERO;

8/18/2009 Committee Report calendared for Ordinary Business;

8/19/2009 Transferred from Ordinary Business to Special Order;

8/19/2009 Sponsorship speech of Senator PANFILO M. LACSON;

8/19/2009 On motion of Senator Zubiri all Members present (Senators BENIGNO S. AQUINO III, JOKER P. ARROYO, RODOLFO G. BIAZON, JINGGOY P. EJERCITO-ESTRADA, RICHARD "DICK" J. GORDON, GREGORIO B. HONASAN II, AQUILINO Q. PIMENTEL JR., MAR ROXAS and JUAN MIGUEL F. ZUBIRI) were made coauthors and cosponsors of the Bill;

9/9/2009 Period of interpellation closed;

9/14/2009 Period of committee amendments closed;

9/14/2009 Period of individual amendments closed;

9/14/2009 Approved on Second Reading without Amendment;

9/15/2009 Printed copies were distributed to the Senators;

9/22/2009 Approved on Third Reading;

9/22/2009 In favor: (13) EDGARDO J. ANGARA, BENIGNO S. AQUINO III, JOKER P. ARROYO, RODOLFO G. BIAZON, JUAN PONCE ENRILE, RICHARD "DICK" J. GORDON, GREGORIO B. HONASAN II, PANFILO M. LACSON, MANUEL "LITO" M. LAPID, LOREN B. LEGARDA, M. A. MADRIGAL, MAR ROXAS and JUAN MIGUEL F. ZUBIRI;

9/22/2009 Against: N o n e;

9/22/2009 Abstention: N o n e;

9/23/2009 Sent to the House of Representatives requesting for concurrence;

10/12/2009 House of Representatives requested the Senate for a conference on the disagreeing provisions of SBN-3392 and HBN-5210, and designated Representatives Javier, Duavit, VInzonz-Chato, Lapus, Villafuerte and Casiño as its conferees to the Bicameral Conference Committee on October 6, 2009;

11/10/2009 Senate accepted the request of the House of Representatives for a Conference on the disagreeing provisions of SBN-3392 and HBN-5210, and designated Senators Lacson, Zubiri and Companera Pia S. Cayetano as its conferees to the Bicameral Conference Committee;

12/8/2009 Conference Committee Report submitted to the Senate recommending that HBN-5210, in consolidation with SBN-3392, be approved as reconciled;

12/8/2009 Sponsorship speech on the conference committee report of Senator PANFILO M. LACSON;

12/8/2009 Conference Committee Report Approved by the Senate;

12/16/2009 Conference Committee Report approved by the House of Representatives on December 15, 2009;

[ 2010 ]

1/20/2010 Enrolled copies of the consolidated version of HBN-5210 and SBN-3392, received by the Senate for the signature of Senate Secretary Reyes and Senate President Enrile;

2/3/2010 Enrolled copies of the consolidated version of HBN-5210 and SBN-3392, sent back to the House of Representatives already signed by Senate Secretary Reyes and Senate President Enrile;

FINAL TITLE:
AN ACT GRANTING INCOME TAX EXEMPTION TO LOCAL WATER DISTRICTS BY AMENDING SECTION 27 (C) OF THE NATIONAL INTERNAL REVENUE CODE (NIRC) OF 1997, AS AMENDED, AND ADDING SECTION 289-A TO THE CODE, FOR THE PURPOSE.

5/31/2010 Consolidated with HBN-5210 which was Enacted into Law without Executive Approval Pursuant to the provisions of Section 27(1), Article VI of the Constitution on March 11, 2010 and Became;

5/31/2010 REPUBLIC ACT NO. 10026.

Committees

Committee Report No.

551

Committee Referral

View Committee Referral in Senate website

Other Details

Issuance Category

Legislative Issuance

Legislative Issuance Type

Republic Act

Bill Note

Senate Bill First in Billing

Approval Note

Approved by the President on March 11, 2010

LAPSED 3/11/2010

Lapse Date

2010-03-10

Subjects

LOCAL WATER DISTRICTS

TAXATION, EXEMPTION FROM

WATER

NATIONAL INTERNAL REVENUE CODE OF 1997 -- AMENDMENTS AND REPEALS

TAX EXEMPTIONS

Amendment Note

Ra 8424, sec. 27 (C)

RA 8424, chap. II, T. XI, sec. 289-A (inserted)

Related to Note

RA 9337

Link From Other Sources

URL (Senate)

PDF link from senate.gov.ph

URL (Congress)

http://congress.gov.ph/download/ra_14/RA10026.pdf

URL (Supreme Court)

Supreme Court link to the resource

Official Gazette

Official Gazette Source

Official Gazette vol. 106 no. 20 page 2887 (5/17/2010)

Newspaper Source Detail

Newspaper Source

Standard Today (March 29, 2010)

Newspaper Source

Malaya (March 29, 2010)

Full Text of Issuance

Click to view full text

S. No. 3392 H. No. 5210; Standard Today; Malaya, March 29, 2010

[ REPUBLIC ACT NO. 10026, March 11, 2010 ]

AN ACT GRANTING INCOME TAX EXEMPTION TO LOCAL WATER DISTRICTS BY AMENDING SECTION 27(C) OF THE NATIONAL INTERNAL REVENUE CODE (NIRC) OF 1997, AS AMENDED, AND ADDING SECTION 289-A TO THE CODE, FOR THE PURPOSE

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 27(C) of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act No. 9337, is hereby further amended to read as follows:

"SEC. 27. Rates of Income Tax on Domestic Corporations. —

"x x x

"(C) Government-owned or -Controlled Corporations, Agencies or Instrumentalities. - The provisions of existing special or general laws to the contrary notwithstanding, all corporations, agencies, or instrumentalities owned or controlled by the Government, except the Government Service and Insurance System (GSIS), the Social Security System (SSS), the Philippine Health Insurance Corporation (PHIC), the local water districts (LWD) and the Philippine Charity Sweepstakes Office (PCSO), shall pay such rate of tax upon their taxable income as are imposed by this Section upon corporations or associations engaged in a similar business, industry, or activity.

"x x x."

SEC 2. A new section, designated as Section 289-A under Chapter II, Title XI, of the same Code is inserted to read as follows:

"SEC. 289-A. Support for Local Water Districts. — The amount that would have been paid as income tax and saved by the local water district by virtue of its exemption to the income taxes shall be used by the local water district concerned for capital equipment expenditure in order to expand water services coverage and improve water quality in order to provide safe and clean water in the provinces, cities, and municipalities: Provided, That, the water district shall adopt internal control reforms that would bring about their economic and financial viability: Provided, further, That the water district shall not increase by more than twenty percent (20%) a year its appropriation for personal services, as well as for travel, transportation or representation expenses and purchase of motor vehicles.

"All unpaid taxes or any portion thereof due from a local water district for the period starting August 13, 1996 until the effectivity date of this Act are hereby condoned by the Government subject to the following conditions: (1) that the Bureau of Internal Revenue, after careful review of the financial statements of a water district applying for condonation of taxes due, establishes its financial incapacity, after providing for its maintenance and operating expenses, debt servicing and reserve fund, to meet such obligations for the period stated herein; and (2) that the water district availing of such condonation shall submit to Congress of the Philippines a program of internal reforms, duly certified by the local water utilities administration, that would bring about its economic and financial viability.

"All water districts, through the Local Water Utilities Administration, shall furnish the Committee on Ways and Means of the Senate and House of Representatives, respectively, on an annual basis, with statistical data and financial statements regarding their operations and other information as may be required, for purposes of monitoring compliance with the provisions of this Act and reviewing the rationalization for tax exemption privileges."

SEC. 3. Implementing Rules and Regulations. — The Secretary of Finance shall, upon the recommendation of the Commissioner of Internal Revenue, and upon consultation with the appropriate government agencies, promulgate the necessary rules and regulations for the effective implementation of this Act.

SEC. 4. Separability Clause. — If any provision of this Act is declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall continue to be in full force and effect.

SEC. 5. Repealing Clause. — Any law, presidential decree or issuance, executive order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with any provision of this Act is hereby repealed or modified accordingly.

SEC. 6. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation, whichever date comes earlier.

Approved,

(Sgd.) JUAN PONCE ENRILE	(Sgd.) PROSPERO C. NOGRALES
President of Senate	Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 5210 and Senate Bill No. 3392 was finally passed by the House of Representatives and the Senate on December 15, 2009 and December 8, 2009, respectively.

(Sgd.) EMMA LIRIO-REYES	(Sgd.) MARILYN B. BARUA-YAP
Secretary of Senate	Secretary General House of Representatives

Approved:

GLORIA MACAPAGAL - ARROYO
President of the Philippines

Lapsed into law on MAR 11 2010 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.

Source: Supreme Court E-Library | Date created: April 08, 2019

Source: Supreme Court E-Library

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Entitled:
AN ACT GRANTING INCOME TAX EXEMPTION TO LOCAL WATER DISTRICTS, AMENDING FOR THE PURPOSE SECTION 27 (C) OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED
[ THIRD REGULAR SESSION, 14TH CONGRESS ]
[ 2009 ]
8/17/2009	Prepared and submitted by the Committee on WAYS AND MEANS with Senator(s) PANFILO M. LACSON and FRANCIS "CHIZ" G. ESCUDERO as author(s) per Committee Report No. 551, recommending its approval in substitution of HBN-5210 and SBN-3152, taking into consideration SJR-24;
8/18/2009	Sponsors: Senator(s) PANFILO M. LACSON and FRANCIS "CHIZ" G. ESCUDERO;
8/18/2009	Committee Report calendared for Ordinary Business;
8/19/2009	Transferred from Ordinary Business to Special Order;
8/19/2009	Sponsorship speech of Senator PANFILO M. LACSON;
8/19/2009	On motion of Senator Zubiri all Members present (Senators BENIGNO S. AQUINO III, JOKER P. ARROYO, RODOLFO G. BIAZON, JINGGOY P. EJERCITO-ESTRADA, RICHARD "DICK" J. GORDON, GREGORIO B. HONASAN II, AQUILINO Q. PIMENTEL JR., MAR ROXAS and JUAN MIGUEL F. ZUBIRI) were made coauthors and cosponsors of the Bill;
9/9/2009	Period of interpellation closed;
9/14/2009	Period of committee amendments closed;
9/14/2009	Period of individual amendments closed;
9/14/2009	Approved on Second Reading without Amendment;
9/15/2009	Printed copies were distributed to the Senators;
9/22/2009	Approved on Third Reading;
9/22/2009	In favor: (13) EDGARDO J. ANGARA, BENIGNO S. AQUINO III, JOKER P. ARROYO, RODOLFO G. BIAZON, JUAN PONCE ENRILE, RICHARD "DICK" J. GORDON, GREGORIO B. HONASAN II, PANFILO M. LACSON, MANUEL "LITO" M. LAPID, LOREN B. LEGARDA, M. A. MADRIGAL, MAR ROXAS and JUAN MIGUEL F. ZUBIRI;
9/22/2009	Against: N o n e;
9/22/2009	Abstention: N o n e;
9/23/2009	Sent to the House of Representatives requesting for concurrence;
10/12/2009	House of Representatives requested the Senate for a conference on the disagreeing provisions of SBN-3392 and HBN-5210, and designated Representatives Javier, Duavit, VInzonz-Chato, Lapus, Villafuerte and Casiño as its conferees to the Bicameral Conference Committee on October 6, 2009;
11/10/2009	Senate accepted the request of the House of Representatives for a Conference on the disagreeing provisions of SBN-3392 and HBN-5210, and designated Senators Lacson, Zubiri and Companera Pia S. Cayetano as its conferees to the Bicameral Conference Committee;
12/8/2009	Conference Committee Report submitted to the Senate recommending that HBN-5210, in consolidation with SBN-3392, be approved as reconciled;
12/8/2009	Sponsorship speech on the conference committee report of Senator PANFILO M. LACSON;
12/8/2009	Conference Committee Report Approved by the Senate;
12/16/2009	Conference Committee Report approved by the House of Representatives on December 15, 2009;
[ 2010 ]
1/20/2010	Enrolled copies of the consolidated version of HBN-5210 and SBN-3392, received by the Senate for the signature of Senate Secretary Reyes and Senate President Enrile;
2/3/2010	Enrolled copies of the consolidated version of HBN-5210 and SBN-3392, sent back to the House of Representatives already signed by Senate Secretary Reyes and Senate President Enrile;
FINAL TITLE: AN ACT GRANTING INCOME TAX EXEMPTION TO LOCAL WATER DISTRICTS BY AMENDING SECTION 27 (C) OF THE NATIONAL INTERNAL REVENUE CODE (NIRC) OF 1997, AS AMENDED, AND ADDING SECTION 289-A TO THE CODE, FOR THE PURPOSE.
5/31/2010	Consolidated with HBN-5210 which was Enacted into Law without Executive Approval Pursuant to the provisions of Section 27(1), Article VI of the Constitution on March 11, 2010 and Became;
5/31/2010	REPUBLIC ACT NO. 10026.