The National Internal Revenue Code of 1997 as amended

Sec 17

Repealing Clause. To transfer to the Fiscal Incentives Review Board the power of the Investment Promotion Agency Board to review, approve, or disapprove fiscal incentives and to mandate the Investment Promotion Agency Board to recommend to the Fiscal Incentives Review Board after a thorough review of the application, the approval or disapproval of the same, the following provisions are hereby repealed: Section 1(G) of Executive Order No. 458, series of 1991, entitled: “Devolving the Powers and Functions ofthe Board of Investments Over Investments Within the Autonomous Region in Muslim Mindanao to the Autonomous Regional Government and for Other Purposes”; Section 8 of Republic Act No. 9400, entitled: “An Act Amending Republic Act No. 7227, as Amended, Otherwise Known as the Bases Conversion and Development Act of 1992, and for Other Purposes”; Section 85(a) of Subchapter IV-B of Republic Act No. 9593, entitled: “An Act Declaring a National Policy for Tourism as an Engine of Investment, Employment, Growth and National Development, and Strengthening the Department of Tourism and its Attached Agencies to Effectively and Efficiently Implement That Policy, and Appropriating Funds Therefor”, as amended by Republic Act No. 11262; and Sections 7 and 8 of Republic Act No. 9490, entitled: “An Act Establishing the Aurora Special Economic Zone in the Province of Aurora, Creating for the Purpose the Aurora Special Economic Zone Authority, Appropriating Funds Therefor and for Other Purposes”, as amended by Republic Act No. 10088, entitled: “An Act Amending Republic Act No. 9490, Otherwise Known as the ‘Aurora Special Economic Zone Act of 2007’”; The provisions of the following laws, including the tax incentives, that are inconsistent with this Act are hereby repealed: Articles 39(A), (B), (C), (D), (H), (I), (J), (L) and (M); 40, 41, 42, 61, 62, 63, 64, 65, and 67 of Executive Order No. 226, series of 1987, entitled: The Omnibus Investments Code of 1987, as amended by Republic Act No. 7918, and further amended by Republic Act No. 8766; Executive Order No. 86, series of 2019, entitled: “Reducing the Rates of Duty on Capital Equipment, Spare Parts and Accessories Imported by Board of Investments-Registered New and Expanding Enterprises”; Presidential Decree No. 66, entitled: “Creating the Export Processing Zone Authority and Revising Republic Art No. 6490”; Section4(e) of Republic Act No. 7903, entitled: “An Act Creating a Special Economic Zone and Free Port, in the City of Zamboanga Creating for This Purpose the Zamboanga City Special Economic Zone Authority, Appropriating Funds Therefor, and for Other Purposes”; Section 7 of Republic Act 9400, entitled: “An Act Amending Republic Art No. 7227, as Amended, Otherwise Known as the Bases Conversion and Development Act of 1992, and for Other Purposes”; Section 4(b) of Republic Act No. 7922, entitled: “An Act Establishing a Special Economic Zone and Free Port in the Municipality of Santa Ana and the Neighboring Islands in the Municipality of Aparri, Province of Cagayan, Providing Funds Therefor, and for Other Purposes”; Sections 23 and 42 of Republic Act No. 7916, entitled: “An Act Providing for the Legal Framework and Mechanisms for the Creation, Operation, Administration, and Coordination of Special Economic Zones in the Philippines, Creating for this Purpose, the Philippine Economic Zone Authority (PEZA), and for Other Purposes” as amended by Republic Act No. 8748; Sections 4(f), 5(a), (b), (d), (e), (f), (g), (h), (j), (l), and (m), and 9 of Republic Act No. 9490, entitled: “An Act Establishing the Aurora Special Economic Zone in the Province of Aurora, Creating for the Purpose the Aurora Special Economic Zone Authority, Appropriating Funds Therefor and for Other Purposes”, as amended by Republic Act No. 10083; Sections 5, 9, and 10 of Republic Act No. 9728, entitled: “An Act Converting the Bataan Economic Zone Located in the Municipality of Mariveles, Province of Bataan, into the Freeport Area of Bataan (FAB), Creating for this Purpose the Authority of the Freeport Area of Bataan (AFAB), Appropriating Funds Therefor and for Other Purposes”; Section 16 of Republic Act No. 7844, entitled: “An Act to Develop Exports as a Key Towards the Achievement of the National Goals Towards the Year 2000”; Sections 86(a), (c), (d), (e), (f), and 88 of Republic Act No. 9593, entitled: “An Act Declaring a National Policy for Tourism as an Engine of Investment, Employment, Growth and National Development, and Strengthening the Department of Tourism and its Attached Agencies to Effectively and Efficiently Implement That Policy, and Appropriating Funds Therefor”; and Section 1(a) and (e) of Presidential Decree No. 1955, entitled: “Withdrawing, Subject to Certain Conditions, the Duty and Tax Privileges Granted to Private Business Enterprises and/or Persons Engaged in Any Economic Activity, and for Other Purposes”. To expand the powers and functions of the Fiscal Incentives Review Board and enhance its membership, the provisions of the following laws that are inconsistent with this Act are hereby repealed: Sections 1(6) and 2 of Presidential Decree No 776 entitled: “Modifying All Laws, Acts, Decrees, Orders and Ordinances, Granting Subsidies, Exemptions from Taxes, Duties, Fees, Imposts and Other Charges Under Certain Exceptions and Creating a Fiscal Incentives Board”; Section 2 of Presidential Decree No. 1931, series of 1984, entitled: “Directing the Rationalization of Duty and Tax Exemption Privileges Granted to Government-Owned or Controlled Corporations and All Other Units of Government; Section 1(c) and (d) of Executive Order No. 93, series of 1986, entitled: “Withdrawing All Tax and Duty Incentives, Subject to Certain Exceptions, Expanding the Powers of the Fiscal Incentives Review Board and for Other Purposes”; and Memorandum Order No. 23, series of 1986, entitled: Expanding the Membership of the Fiscal Incentives Review Board (FIRB)”. The provisions of the following laws on the Investment Priorities Plan that are inconsistent with the provisions of this Act are hereby repealed: Articles 7(1), 22, 26, 27, 28, 29, 30, 31 and 32 of Executive Order No. 226, series of 1987, entitled: The Omnibus Investments Code of 1987, as amended; and Sections 2 and 3 of Executive Order No. 458, series of 1991, entitled: “Devolving the Powers and Functions of the Board of Investments Over Investments Within the Autonomous Region in Muslim Mindanao to the Autonomous Regional Government and for Other Purposes”. Sections 4, 5, 6, and 7 of Republic Act No. 10708, entitled: “An Act Enhancing Transparency In the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies”, are also repealed for being inconsistent with this Act.

Section 86

The following laws or provisions of laws are hereby repealed and the persons and/or transactions affected herein are made subject to the VAT provision of Title IV of the NIRC, as amended: (a) Section 3 of Presidential Decree (P.D.) 1972, s. 1985, as amended, Sections 4 and 5 of Executive Order No. (E.O.) 1057, s. 1985, and Section 4 of E.O. 1064, s. 1985, insofar as the VAT tax exemption and tax credit is concerned; (b) Section 10, insofar as VAT exemption is concerned, of Republic Act No. (R.A.) 6807 or An Act Converting the Mati Community College into a State College to be known as the Davao Oriental State College of Science and Technology, Providing for a Charter for this Purpose, Expanding its Curricular Offerings, Redirecting its Objectives, and Appropriating Funds Therefor; (c) Sections 18 and 19, insofar as VAT exemption is concerned, of R.A. 6847 or The Philippine Sports Commission Act; (d) Section 8(d), last paragraph, insofar as VAT exemption is concerned, of R.A. 7278 or An Act Amending Commonwealth Act No. 111, as Amended by P.D. 460 entitled An Act to Create a Public Corporation to be Known as the Boy Scouts of the Philippines, and to Define its Powers and Purposes, by Strengthening the Volunteer and Democratic Character of the Boy Scouts of the Philippines and for Other Purposes; (e) Section 1, insofar as VAT exemption is concerned, of R.A. 7291 or An Act Restoring the Tax and Duty Incentives Previously Enjoyed by the Veterans Federation of the Philippines under Republic Act Numbered Twenty-Six Hundred and Forty; (f) Section 21, insofar as VAT exemption is concerned, of R.A. 7306 or the Charter of the People's Television Network, Inc.; (g) Section 14, insofar as VAT exemption is concerned, of R.A. 7354 or the Postal Service Act of 1992; (h) Section 9(c), insofar as VAT exemption is concerned, of R.A. 7355 or the Manlilikha ng Bayan Act; (i) Section 21, insofar as VAT exemption is concerned, of R.A. 7356 or the Law Creating the National Commission for Culture and the Arts; (j) Section 7(f), insofar as VAT exemption is concerned, of R.A. 7371 or An Act Converting the Aklan Agricultural College into Aklan State College of Agriculture, and Appropriating Funds Therefor; (k) Section 12, second sentence, insofar as VAT exemption is concerned, of R.A. 7373 or An Act Establishing the Eastern Visayas Science High School; (l) Section 11(j), insofar as VAT exemption is concerned, of R.A. 7605 or the Charter of the Philippine State College of Aeronautics; (m) Section 126, insofar as VAT exemption is concerned, of R.A. 7653 or The New Central Bank Act; (n) Section 14, insofar as VAT exemption is concerned, of R.A. 7875 or the National Health Insurance Act of 1995; (o) Section 18, insofar as VAT exemption is concerned, and Section 18, last paragraph of R.A. 7884 or the National Dairy Development Act of 1995; (p) Section 8, insofar as VAT exemption is concerned, of R.A. 8160 or An Act Granting the University of the Philippines a Franchise to Construct, Install, Operate and Maintain for Educational and Other Related Purposes, Radio and Television Broadcasting Stations within the University of the Philippines and in Such Other Areas within the Scope of its Operation; (q) Sections 2 and 16, insofar as VAT exemption is concerned, of R.A. 8282 or The Social Security Act of 1997; (r) Section 39, insofar as VAT exemption is concerned, of R.A. 8291 or The Government Service Insurance System Act of 1997; (s) Section 4(c) and (f), insofar as VAT exemption is concerned, of R.A. 8292 or the Higher Education Modernization Act of 1997; (t) Section 25, insofar as VAT exemption is concerned, of R.A. 8492 or the National Museum Act of 1998; (u) Section 3(h), insofar as VAT exemption is concerned, of R.A. 8502 or the Jewelry Industry Development Act of 1998; (v) Article 65, insofar as VAT exemption and zero rating is concerned, of regional or area headquarters and zero-rating of the sale or lease of goods and property and the rendition of services to regional or area headquarters, and Article 67, insofar as VAT exemption is concerned, of R.A. 8756; Provided, That existing RHQs and ROHQs enjoying VAT exemption and zero-rating at the time of the effectivity of TRAIN shall not be affected; (w) Section 7(c), insofar as VAT exemption is concerned, of R.A. 9045 or An Act Creating the Batangas State University; (x) Section 7(c), insofar as VAT exemption is concerned, of R.A. 9055 or An Act Converting the Aklan State College of Agriculture into the Aklan State University; (y) Section 13, insofar as VAT exemption is concerned, of R.A. 9083 or An Act Establishing the Sta. Rosa Science and Technology High School in Sta. Rosa, Laguna; (z) Section 7(c) and (f), insofar as VAT exemption is concerned, of R.A. 9138 or An Act Establishing the Guimaras State College; (aa) Section 7(c), insofar as VAT exemption is concerned, of R.A. 9141 or An Act Converting the Negros Occidental Agricultural College into State College to be known as the Negros State College of Agricultural; (bb) Section 16, insofar as VAT exemption is concerned, of R.A. 9497 or The Civil Aviation Authority Act of 2008; (cc) Section 25(b) and (c), insofar as VAT exemption is concerned, and (d), insofar as VAT zero-rating is concerned, of R.A. 9500 or the University of the Philippines Charter of 2008; (dd) Section 20(b) and (c), insofar as VAT exemption concerned, and (d) insofar as VAT zero-rating is concerned, of R.A. 9519 or An Act Converting Mindanao Polytechnic State College into a State University to be Known as the Mindanao University of Science and Technology; (ee) Section 17(c), insofar as VAT exemption is concerned, of R.A. 3591, otherwise known as the PDIC Charter, as amended by Section 8 of R.A. 9576, otherwise known as An Act Increasing the Maximum Deposit Insurance Coverage, and in Connection Therewith, to Strengthen the Regulatory and Administrative Authority, and Financial Capability of the Philippine Deposit Insurance Corporation (PDIC), Amending for this Purpose Republic Act Numbered Three Thousand Five Hundred Ninety-One, as Amended, Otherwise Known as the PDIC Charter, and for Other Purposes; (ff) Sections 2 and 19, insofar as VAT exemption is concerned, of R.A. 9679 or An Act Further Strengthening the Home Development Mutual Fund, and for Other Purposes; (gg) Section 23, insofar as VAT exemption is concerned of the National Historical Commission of the Philippines, of R.A. 10086, or the Strengthening Peoples' Nationalism Through Philippine History Act; (hh) Section 7(b) and (c), insofar as VAT exemption is concerned, and (d), insofar as VAT zero-rating is concerned, of R.A. 9647 or the Philippine Normal University Modernization Act of 2009; (ii) Section 17, insofar as VAT exemption is concerned, of R.A. 7898, as amended by R.A. 10349, Establishing the Revised AFP Modernization Program and for Other Purposes; (jj) Section 56, insofar as VAT exemption is concerned, of R.A. 10801 or the Overseas Workers Welfare Administration Act; (kk) Section 9(e)(2) and (j), with respect to VAT, of R.A. 7900 or the High-Value Crops Development Act of 1995; (ll) Section 24(e) of R.A. 10068 or the Organic Agriculture Act of 2010; (mm) Section 14(b), with respect to VAT, R.A. 7308 or the Seed Industry Development Act of 1992; (nn) Section 35 (b) and (c), with respect to VAT, of R.A. 8550 or The Philippine Fisheries Code of 1998; (oo) Section 13, second paragraph, with respect to VAT, of R.A. 10817 or the Philippine Halal Export Development and Promotion Act of 2016; (pp) Section 9(3), (4), and (8), with respect to VAT, of R.A. 8479 or the Downstream Oil Industry Deregulation Act of 1998; (qq) Section 6(c) and (d), with respect to VAT, of R.A. 7103 or the Iron and Steel Industry Act; (rr) Section 10, with respect to VAT, of R.A. 7718 or An Act Amending R.A. No. 6957; (ss) Section 26(A)(3), with respect to VAT, of R.A. 9275 or the Philippine Clean Water Act of 2004; (tt) Section 20(d)(3) of R.A. 7279 or the Urban Development and Housing Act of 1992; (uu) Section 20(d)(3) of R.A. 10884 or An Act Strengthening the Balanced Housing Development Program, Amending for the Purpose R.A. 7279, as Amended, Otherwise Known as the Urban Development and Housing Act of 1992; (vv) Section 14, with respect to VAT, of R.A. 8423 or the Traditional and Alternative Medicine Act (TAMA) of 1997; (ww) Section 22(b) of R.A. 10747 or the Rare Diseases Act of the Philippines; (xx) Section 45(a), (b), and (c), with respect to VAT, of R.A. 9003 or the Ecological Solid Waste Management Act of 2000; (yy) Section 5(b), with respect to VAT, of R.A. 10771 or the Philippine Green Jobs Act of 2016; (zz) Section 6, with respect to VAT, of R.A. 7459 or the Inventors and Invention Incentives Act of the Philippines; (aaa) Section 24, insofar as VAT exemption of foundations for scientific advancements is concerned, of R.A. 2067, as amended, or the Science Act of 1958; and (bbb) Section 9, with respect to VAT, of R.A. 9511 or the National Grid Corporation of the Philippines Act. Provided, That the VAT obligations of government-owned and -controlled corporations, state universities and colleges, and other government instrumentalities whose VAT exemption has been repealed under this Act shall be chargeable to the Tax Expenditure Fund (TEF) provided for in the annual General Appropriations Act: Provided, further, That VAT exemption, VAT zero-rating, and VAT credit granted to state universities and colleges on their purchases and importations are hereby repealed and the transactions affected herein are made subject to the VAT provisions of Title IV of the NIRC, as amended. Provided, That, with respect to income tax, the following laws or provisions of laws are hereby repealed or amended: (a) Section 33(A) of R.A. 7277, as amended by R.A. 10754 or the Magna Carta for Persons with Disability; (b) Section 22(B) of R.A. 10165 or the Foster Care Act of 2012; (c) Section 4 of R.A. 1169 or An Act Providing for Charity Sweepstakes, Horse Races and Lotteries: "SEC. 4. Holding of sweepstakes. — The Office shall hold charity horse race sweepstakes under such regulations as shall be promulgated by the Board in accordance with Republic Act Numbered Three hundred and nine: Provided, however, That when the holding of a sweepstakes race to determine prizes is impossible due to war, public calamity, or other unforeseen or fortuitous event or when there is no sufficient number of horses to determine the major prizes, the Board of Directors may determine the procedure to be followed in the distribution of prizes in the most just, equitable and expeditious manner. The horse races and the sale of tickets in the said sweepstakes shall be exempt from all taxes, except that each ticket shall bear a twelve-centavo internal revenue stamp. The tickets shall be printed by the Government and shall be considered government securities for the purposes of penalizing forgery or alteration." (d) Section 5 of R.A. 8756 or An Act Providing for the Terms, Conditions and Licensing Requirements of Regional or Area Headquarters, Regional Operating Headquarters, and Regional Warehouses of Multinational Companies, Amending for the Purpose Certain Provisions of Executive Order No. 226 or The Omnibus Investments Code of 1987: Provided, That existing Regional or Area Headquarters, Regional Operating Headquarters, and Regional Warehouses of Multinational Companies enjoying the preferential income tax rate at the time of the effectivity of the TRAIN shall not be affected; (e) Section 2 of P.D. 1354, s. 1978 or Imposing Final Income Tax on Subcontractors and Alien Employees of Service Contractors and Subcontractors Engaged in Petroleum Operations in the Philippines under Presidential Decree No. 87: Provided, That service contractors and subcontractors enjoying the preferential income tax rate at the time of the effectivity of the TRAIN shall not be affected; and (f) Section 7 of P.D. 1034, s. 1976, or Authorizing the Establishment of an Offshore Banking System in the Philippines: Provided, That service contractors and subcontractors enjoying the preferential income tax rate at the time of the effectivity of the TRAIN shall not be affected. (as amended by RA No 10963) Repealing and Amendatory Clauses of RA No 11534

Sec 312

All laws, decrees, executive orders, rules and regulations or parts thereof which are contrary to or inconsistent with this Code are hereby repealed, amended or modified accordingly. Repealing Clause of RA No 10963