Question & AnswerQ&A (EXECUTIVE ORDER NO. 569)
Executive Order No. 569 authorizes the Board of Investments to extend the period of availment of incentives and/or increase the rates of tax exemptions of registered enterprises under R.A. 5186, R.A. 6135, and P.D. 1159 without exceeding the prescribed limits.
The BOI can extend the period of availment of incentives for a period not exceeding five (5) years.
The BOI can increase the rate of tax exemption to not more than fifty percent (50%) of the tax exemption previously enjoyed by the registered enterprise.
The BOI can grant liberalization if the registered enterprise meets any of the following criteria: (1) suffered heavy financial losses and is in a distressed condition; (2) suffered operational force majeure impairing viability; (3) did not fully enjoy incentives for reasons beyond its control; (4) has a project gestation period extending beyond the incentive period; or (5) faces unforeseen government policy changes affecting competitiveness.
The BOI must seek authority from the President to extend the period of availment of incentives and/or increase tax exemption rates in cases other than those specified in the Order.
The laws referenced are R.A. 5186, R.A. 6135, and P.D. 1159.
Operational force majeure refers to extraordinary events or circumstances beyond the enterprise's control that impair its operational viability, such as natural disasters or other unforeseeable disruptions.
Yes, Section 3 provides that all laws, decrees, executive orders, administrative orders, rules, or regulations inconsistent with this Order are repealed, amended, or modified accordingly.
This Order took effect immediately upon its signing on November 23, 1979.
The Order was signed by President Ferdinand E. Marcos, with the attestation of Presidential Assistant Juan C. Tuvera.