Question & AnswerQ&A (EXECUTIVE ORDER NO. 569)
Executive Order No. 569 authorizes the Board of Investments to extend the period of availment of incentives by registered enterprises for up to five years and/or increase the rate of tax exemptions of such enterprises under R.A. 5186, R.A. 6135, and P.D. 1159, subject to certain criteria.
The BOI can act without President's approval if the registered enterprise meets any of the following: suffering heavy financial losses and in distress; operational force majeure impairing viability; not fully enjoying incentives due to reasons beyond control; projects with gestation periods exceeding current incentive availment; or operation affected by unforeseen government policy changes affecting competitiveness.
The BOI can increase the tax exemption rate to not more than fifty percent (50%) of the tax exemption previously enjoyed by the registered enterprise.
In cases not covered by the specified criteria, the BOI must seek authority from the President to extend the incentives or increase tax exemptions as provided in P.D. 1584.
The incentives covered are those under Republic Act No. 5186, Republic Act No. 6135, and Presidential Decree No. 1159.
The purpose is to provide immediate assistance to firms, especially those in distressed conditions, to sustain industrial growth and development.
The BOI can extend the period of availment of incentives for a period not exceeding five (5) years.
Yes, Section 3 states that all laws, decrees, executive orders, administrative orders, rules, or regulations inconsistent with this Order are repealed, amended, or modified accordingly.
It took effect immediately upon its signing on November 23, 1979.