Law Summary
State of National Emergency
- Affirms the continuing national emergency declared due to the COVID-19 pandemic.
- Recognizes the rise in COVID-19 cases and economic contraction in the Philippines.
Declaration of Policy
- Promotes a just and dynamic social order ensuring prosperity and poverty alleviation.
- States specific objectives to reduce COVID-19 socio-economic impact, consolidate relief efforts, sustain health measures, bolster the health system, and restore public trust.
- Emphasizes economic recovery through inclusivity and resilience.
- Supports alternative transportation and protection of collective Filipino interests.
- Advocates scientific and technological incorporation in government response.
COVID-19 Response and Recovery Interventions
- Authorizes the President to implement interventions following WHO and CDC guidelines, such as:
- COVID-19 testing, contact tracing, isolation, and treatment protocols.
- Expedited registration and deployment of COVID-19 testing kits approved by the HTAC.
- Adequate testing centers, hiring skilled lab personnel, and supply management for testing.
- Uninterrupted immunization, uniform reporting standards, and provision of subsidies to affected low-income households and displaced workers.
- Livelihood assistance including self-employed and repatriated OFWs.
- COVID-19 special risk allowance and hazard pay for health workers.
- Mandatory health worker testing and medical expense coverage.
- Compensation for health workers infected or deceased due to COVID-19.
- Financial relief for agrarian reform beneficiaries and education subsidies.
- Grants for displaced teaching and non-teaching personnel.
- LGU budget realignments and increased borrowing capacity.
- Measures against hoarding, profiteering, and manipulation of essential goods.
- Fast-tracked donation and distribution of health products.
- PPE procurement with preference for local manufacturers.
- Procurement exemptions with transparency and reporting obligations.
- Partnership with the Philippine Red Cross for aid distribution.
- Hiring and compensation of temporary health workers and hazard duty pay exemptions.
- Low-interest credit availability for productive sectors.
- Loan interest rate subsidies for affected learning institutions.
- Expanded loans and financial aids via SBCorp, LBP, DBP, and PhilGuarantee.
- Liberalization of incentives for critical goods importation, with preference for local products.
- Supply chain facilitation and export suspension for critical goods.
- Assistance programs for transportation and tourism sectors.
- Acceleration of digital infrastructure deployment and eased permit requirements.
- Promotion of online commerce and digitalization support for MSMEs.
- Regulation of transportation, traffic, and alternative working arrangements.
- Conservation of power, energy, water; waste management programs.
- Discontinuance and realignment of unused government funds to augment COVID-19 response.
- Reprogramming and reallocation of funds within the General Appropriations Act (GAA).
- One-time grace periods for loan payments and utilities bills.
- Rent grace periods, suspension of rent increases amid quarantine.
- Expansion and enhancement of the 4Ps and social assistance programs.
- Raising of the calamity fund cap for emergency use.
- Agricultural sector support programs.
- Fast-tracking housing loan approvals and accommodating affected homebuyers.
- Authorization for the BSP to make additional provisional advances to national government.
- Regulatory relaxation for financial institutions to support business recovery.
- Streamlined government agency approvals and eased requirements for business permits.
- Business sector regulatory relief including merger review exemptions.
- Masterlist production for displaced transport workers and wage subsidy programs.
- Provision of meals to undernourished children irrespective of learning modality.
- Support and tax relief for the creative sector and educational institutions.
- Support for alternative learning modalities through the use of SEF funds.
- Extension of loans and utilization of unspent government-held funds.
- Acceleration of infrastructure programs and permit waivers for flagship projects.
- Regulatory relief for private projects of national significance.
- Direct purchase of agricultural products from farmers and cooperatives beyond the previous law lapse.
- Authorization for fund realignment for priority COVID-19 programs like PPE procurement, hospital expansion, vaccine purchase, and testing.
- Guidelines for private isolation and quarantine facilities and establishment of national electronic contact tracing.
- Discontinuance and realignment of unutilized funds from various government sources to support COVID-19 response.
- Lending priority to hospitals and health institutions.
- Release of PhilHealth funds to hospitals.
- Regulatory relief for businesses regarding filing requirements and penalties.
- COVID-19 hospital bed capacity allocation requirements for government and private hospitals.
- Construction of temporary medical facilities and exemption of imported computing equipment for education.
- Reallocation of appropriations for school personnel and facilities for modular learning.
- Net operating loss carryover for 2020 and 2021 taxable years for businesses.
Exemption from Tax of Retirement Benefits
- Retirement benefits received between June 5 and December 31, 2020, by private firm employees are tax-exempt.
- Reemployment within 12 months equates to non-retirement and removes the tax exemption.
- Tax evasion penalties apply.
Repeal of Tax on IPO Shares
- Section 127(B) related to tax on safe, barter, or exchange of stock shares traded through IPO is repealed.
National Referral System
- Establishes a COVID-19 National Referral System via DOH and Philippine Red Cross for efficient service location and patient care.
Non-Discrimination Provision
- Penalizes acts of discrimination or harassment against COVID-19 positive or exposed individuals, returning OFWs, health workers, frontliners, or indigents.
- Penalties include imprisonment and fines.
Authority Over Private Establishments
- President may direct operation of private hospitals, health facilities, passenger vessels, and public transport for pandemic response.
- Ownership remains with the private owners; compensation mechanisms are set for damages or costs incurred.
- Government takeover possible only if operation refusal is unjustified.
Appropriations and Standby Fund
- Specifies appropriations totaling several billions of pesos for various COVID-19 response activities including health worker compensation, PPE, infrastructure, livelihood programs, loans, agriculture, transportation, education, social welfare, tourism, and more.
- Standby funds authorized for vaccine procurement, low interest loans, and additional programs.
Sources of Funding
- Outlines multiple funding sources:
- Unprogrammed funds and savings from executive agencies.
- Savings from previous related laws.
- Excess and new revenue collections.
- Cash, funds, and investments of government corporations/agencies.
- Taxes on offshore gaming operations.
- Enforcement provisions for tax compliance on offshore gaming.
Procurement of COVID-19 Drugs and Vaccines
- Waives Phase IV trial requirements for COVID-19 drugs and vaccines to expedite procurement.
- Requires WHO or internationally recognized health agency approval.
- FDA and HTAC set distribution standards.
- Private entities allowed to innovate within the law.
- Provision remains effective three months after December 19, 2020.
Reporting and Oversight
- DOH must report to Congress within one week of the Act's effectivity with improved surveillance and control plans.
- Monthly reports by the President to Congress and COA to include implementation status and detailed expenditure.
- Establishes a Joint Congressional Oversight Committee to monitor law compliance.
Legal Provisions
- Clarifies no constitutional impairment from the law.
- Law provisions prevail over conflicting statutes during the emergency.
- Separability clause preserves unaffected provisions if parts are invalidated.
- Repeals the previous related law upon adjournment of Congress session.
- The Act is effective immediately upon publication and until December 19, 2020, unless specified otherwise.