Exemptions and Privileges

Section 24. Exemptions from the GOCC Governance Act Of 2011.

The President of the Philippines recognizes the strict requirements set for the GFls forming the MIF in that they have higher standards of knowledge and expertise in the fields Of finance, economics, risk, and governance, and that there is a need for flexibility to operate, function, employ and retain employees to ensure the successful implementation Of the goals Of the MIF.

In this regard, the GFls which form part of the MIF shall have the option to be exempted from the coverage and all of the provisions of Republic Act No. 10149 or the “GOCC Governance Act Of 2011.”

Section 25. Tor E*empfrous.

The MIF and MIC, whether as a direct taxpayer, collecting or rehitting agent, all of its funds, assets, properties, including all accruals thereto, all revenues, income or investment earings therefrom, as well as accruals thereto, transactions, as well as all supplies, equipment, papers or documents shall be exempt from any and all forms and kinds of direct or indirect taxes, including output and input VAT and Documentary Stamp Taxes (DST), assessments, fees, charges, customs or import duty or duties imposed by the national or local government and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process, whatsoever, either before or after receipt by the person or persons entitled thereto.

These exemptions shall continue unless expressly, specifically, and categorically revoked or repealed, and any tax assessment imposed against the MIF and MIC as of the approval of this Act or subsequent thereto shall be null and void and considered paid and cancelled.

No tax measure of whatever nature enacted shall apply to the MIF and MIC, unless it expressly and categorically revokes the declared policy of the State in this Act and this Section granting tax-exemption to the MIF and MIC. Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of this provision are hereby deemed repealed, superseded, and rendered ineffective and without legal force and effect.1

The exemptions provided herein shall not be affected or derogated by subsequent laws to the contrary unless this Section is expressly, specifically, and categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption herein referred, as an essential factor to maintain and/or protect the solvency of the fund, notwithstanding and independently of the guarantee of the National Government to secure such solvency or liability.

Transactions of and with the MIF and MIC are likewise exempt from the documentary stamp tax (DST).

Sectton 26. Exemptions from the Govermment ProcuremeritRoform. AlctandCompetittonLow.

The MIF lnvestments’transactionsshallbeexemptfromtheprovisionsofRepublicActNo.9184,otherwise known as the “Government Procurement Reform Act,” and Republic Act No. 10667, otherwise known as the “Philippine Competition Act,” and their respective IRRs.

Section 27. ExemptionfromthecivtlserviceLowandsalayswhardizthnAct

TheclREoers and employees of the MIC shall be exempt from Civil Service laws , rules and regulations. Further, they shall be exempt from the provisions of Republic Act No. 6758, otherwise known as the “Salary Standardization Act”, and succeeding laws on salary standardization.

Notwithstandinganylaworrules,regulations,orotherissuancestothecontrary,thecompensation of the officers and key personnel of the MIC shall be set based on an objective classification consistent with international standards for compensating investment management professionals managing global assets, taking into consideration the importance and responsibilities attached to the respective positions.

Section 28. Desis"afro„ ¢nd Seco#dJ„e#f

The MIC may enlist the assistance of the GFls composing the Colporation in achieving the objectives under this Act. This includes the designation or secondment of their respective personnel to the MIC, as may be necessary. The designation of the respective GFls’ personnel to the MIc involves the imposition of additional and/or higher duties to be performed by said personnel for the MIC which is temporary and can be terminated anytime at the pleasure of the appointing officer/authority. Designated personnel shall continue to receive their salaries, benefits, and emoluments from their respective offices or agencies.

The secondment of the GFls’ persounel to the MIc involves the movement of said persounel from their mother agencies and offices to the MIC, which is temporary in nature, which may or may not require the issuance Of an appointment, and which may or may not involve increase in compensation and benefits.

Seconded personnel shall receive, in lieu of their respective compensation from their respective agencies or offices, the salaries, emoluments and all other benefits which their positions are entitled to receive from the MIC.