MONTERO // 3A TAX DIGESTS

AGATEP ALARCON ARCAINA AUSTRIA BAADERA BANTA BELLO BUGAY CARAAN COLOQUIO CUALOPING DE LUIS DIPLOMA FAJARDO GO GUZMAN
LAYNO LIM, J. LIM, Q. LUNA OCAMPO ONG PASCUAL REYES ROCILLO TRIAS TUAZON VANSLEMBROUCK VILLARIN, L. VILLARIN, P. VILLARIVERA

Local Government Code of 1991 (approved on October 10, 1991;

Effective January 1, 1992)

(i) Tax exemption or tax relief may be granted in cases of natural calamities,
civil disturbance, general failure of crops, or adverse economic conditions

Section 192. Authority to Grant Tax Exemption Privileges. - Local

such as substantial decrease in the prices of agricultural or agri-based

government units may, through ordinances duly approved, grant tax

products;

exemptions, incentives or reliefs under such terms and conditions as they

may deem necessary.

(ii) The grant of exemption or relief shall be through an ordinance.

Section 193. Withdrawal of Tax Exemption Privileges. - Unless

(iii) Any exemption or relief granted to a type or kind of business shall apply

otherwise provided in this Code, tax exemptions or incentives granted to,

to all business similarly situated; and

or presently enjoyed by all persons, whether natural or juridical, including

government-owned or controlled corporations, except local water districts,

(iv) Any exemption or relief granted shall take effect only during the next

cooperatives duly registered under R.A. No. 6938, non-stock and non-

calendar year for a period not exceeding twelve (12) months as may be

profit hospitals and educational institutions, are hereby withdrawn upon the

provided in the ordinance. In the case of shared revenues, the exemption or

effectivity of this Code.

relief shall only extend to the LGU granting such exemption or relief.
(2) On the grant of tax incentives:

ARTICLE 282. Authority to Grant Tax Exemption Privileges or

(i) The tax incentive shall be granted only to new investments in the locality

Incentives.

and the ordinance shall prescribe the terms and conditions therefore;

(a) While sanggunians may grant tax exemption, tax incentive, or tax relief,

(ii) The grant of the tax incentive shall be for a definite period not exceeding

such grant shall not apply to regulatory fees which are levied under the police

one (1) calendar year;

power of LGUs. Tax exemptions shall be conferred through the issuance of a

tax exemption certificate, which shall be non-transferable.

(iii) The grant of tax incentives shall be by ordinance passed prior to the first
(1st) day of January of any year; and

(b) The sanggunians granting tax exemptions, tax incentives and tax reliefs
may be guided by the following:

(iv) Any tax incentive granted to a type or kind of business shall apply to all
businesses similarly situated.

(1) On the grant of tax exemptions or tax reliefs:

MONTERO // 3A TAX DIGESTS

AGATEP ALARCON ARCAINA AUSTRIA BAADERA BANTA BELLO BUGAY CARAAN COLOQUIO CUALOPING DE LUIS DIPLOMA FAJARDO GO GUZMAN
LAYNO LIM, J. LIM, Q. LUNA OCAMPO ONG PASCUAL REYES ROCILLO TRIAS TUAZON VANSLEMBROUCK VILLARIN, L. VILLARIN, P. VILLARIVERA

ARTICLE 283. Withdrawal of Tax Exemption Privileges or Incentives.

Unless otherwise provided in this Rule, beginning January 1, 1992, all local
tax exemption privileges or incentives granted to and presently enjoyed by
any person, whether natural or juridical, including GOCCs, are considered
withdrawn, except the following:
(a) Local water districts;
(b) Cooperatives duly registered under RA 6938, otherwise known as the
Cooperative Code of the Philippines;
(c) Non-stock and non-profit hospitals and educational institutions;
(d) Business enterprises certified by the Board of Investments (BOI) as
pioneer or non-pioneer for a period of six (6) and four (4) years, respectively,
from the date of registration;
(e) Business entity, association, or cooperatives registered under RA 6810;
and
(f) Printer and/or publisher of books or other reading materials prescribed by
DECS as school texts or references, insofar as receipts from the printing
and/or publishing thereof are concerned.
Unless otherwise repealed by law, business and economic enterprises
operating within export processing zones administered by the Export
Processing Zone Authority shall continue to enjoy the tax exemption
privileges and tax incentives granted in PD 66, as amended.