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Executive Order No. 117 (2020)

Executive Order No. 117 (2020)

—under Sections 218{d) and 234 of Republic Act (RA) No. 7160 or the "Local Government Code of 1991," government-owned or -controlled corporations (GOCCs( engaged in the generation and transmission of electricity enjoy a number of exemptions and privileges with respect to real property taxes (RPT), including an assessment level of 10% on all its lands, buildings, machineries and other improvements, as well as an exemption for all machinery and equipment that are actually, directly and exclusively

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Section 1

Reduction and Condonation

Section 1.

Reduction and Condonation. —All liabilities for RPT, including any special levies accruing to the Special Education Fund, for calendar year (CY) 2019. on property, machinery, and equipment actually and directly used by IPPs for the production of electricity under a Build-Operate-Transfer scheme and similar contracts, whether denominated Power Purchase Agreements, Energy Conversion Agreements or other contractual agreements, with GOCCs, assessed by LGUs and other entities authorized to impose RPT for alt years up to CY 2019, are hereby reduced to an amount equivalent to the tax due if computed based on an assessment level of fifteen percent (15%) of the fair market value of said property, machinery and equipment depreciated at the rate of two percent (2%) per annum, less any amounts already paid by the IPPs. All interests and penalties on such deficiency RPT liabilities are hereby condoned and the concerned IPPs are relieved from payment thereof.

Section 2

Application to Future RPT Liabilities

Section 2.

Application to Future RPT Liabilities. —All RPT payments made by the IPPs over and above the reduced amount under Section 1 of this Order shall be applied to their RPT liabilities for the succeeding years.

Section 3

Compliance by all Government Entities

Section 3.

Compliance by all Government Entities. —All concerned departments, agencies and instrumentalities of the government, including relevant GOCCs and LGUs, are hereby directed to strictly comply with this Order, Any violation of this Order shall be dealt with in accordance with civil service laws and regulations.

Section 4

Repeal

Section 4.

Repeal. —All rules and regulations, or parts thereof which are inconsistent with the provisions of this Order are hereby revoked, amended or modified accordingly.

Section 5

Separability

Section 5.

Separability. —If any provision of this Order is declared invalid or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting.

Section 6

Effectivity

Section 6.

Effectivity. —This Order shall take effect immediately upon its publication in a newspaper of general circulation.

DONE, —in the City of Manila, this 24th day of July the year of Our Lord, Two Thousand and Twenty.

(SGD.)— RODRIGO ROA DUTERTE

By the President:

(SGD.)— SALVADOR C. MEDIALDEA Executive Secretary