EXECUTIVE ORDER NO. 1037
EXECUTIVE ORDER NO. 1037 - CREATING
THE PHILIPPINE RETIREMENT PARK SYSTEM, PROVIDING FUNDS THEREFOR AND FOR
OTHER PURPOSES
WHEREAS, the Philippine economy is
undergoing structural changes to cope with its tight foreign exchange
situation emphasizing the urgent need to establish non-conventional
programs to attract foreign investment into the country;
WHEREAS, the development and promotion of the Philippines as a
retirement haven makes use of a concept that has been tried and proven
in other parts of the world resulting in the intensified inflow of
foreign exchange to the country concerned;
WHEREAS, there exists a potent and untapped market of 25.5 million
retired Americans (1980 Census) in the United States and 1.6 million
overseas Filipinos who find the Philippines the most suitable place for
retirement;
WHEREAS, the leverage of the US dollar against the Philippine peso
enables the country to be competitive in offering an attractive package
to targeted retirees who seek a change of environment while looking
forward to an easy and comfortable lifestyle as the reach retirement
age by way of getting the best value of their money and investment
opportunities in their retirement years;
WHEREAS, the country has existing facilities and professional services
to cater to the needs of a retirement community;
WHEREAS, the establishment and operation of retirement parks, in
addition to the foreign exchange derived, generates employment
opportunities, promotes the country’s image abroad supports the tourism
industry and assists in making fully operational the idle assets of the
government and the private sector such as hotels, resorts, etc.;
WHEREAS, it is necessary to establish and operationalize the
institutional structure of the organization to handle this program
calls the objective of accelerating its implementation by providing the
institution with flexibility to compete in the international market;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution do hereby
order;
Section 1. Declaration of Policy. — The development
and promotion of the Philippines as a retirement haven as a means of
accelerating the social and economic development of the country,
strengthening its foreign exchange position at the same time providing
further best quality of life to the targeted retirees in a most
attractive package, is hereby declared to be a national policy.
Sec. 2. Creation of the Philippine Retirement Park
System. — There is hereby created a corporate body to be known as the
Philippine Retirement Park System, hereinafter referred to as the
“SYSTEM”, which shall implement the policy declared in his Executive
Order. The SYSTEM shall have its principal office in Metro Manila and
may have such branches, agencies, and/or subsidiaries; within Metro
Manila and in other areas within and without Philippines as it may deem
necessary for the proper conduct of its business and the discharge of
its functions. The SYSTEM shall be under the Office of the President
and shall be attached to the RP-US Business Development Council created
by Executive Order No. 831.
Sec. 3. Purposes and Objectives. — The SYSTEM
shall have the following purposes and objectives:
a.
To develop and promote the country as a retirement haven;
b. To adopt
the integrated approach in the development or establishment of
retirement communities in the country considering the eleven (11) basic
needs of man;
c. To provide
the organizational framework to encourage foreign investment in the
SYSTEM’s development projects;
d. To provide
an affective supervision, regulation and control in the development and
establishment of retirement communities in the country and in the
organization, management and ownership of the SYSTEM’s projects; and
e. To make
optimum use of existing facilities and/or assets of the government and
the private sector without sacrificing their competitiveness in the
international and local markets.
Sec. 4. Corporate Powers. — The SYSTEM, as a body
corporate acting through its Board of Trustees, shall have the
following powers and functions in addition to those provided for in the
other sections of this Executive Order:
a.
To adopt and use a corporate seal;
b. To sue and
be sued as well as to succeed in its corporate name;
c. To adopt
its by-laws, promulgate rules and regulations as it may deem proper and
necessary in the attainment of the purposes and objectives of the
SYSTEM;
d. To exercise
the right of eminent domain in the name of the Republic of the
Philippines, and in the acquisition of real properties by condemnation
proceedings, land grant and any means allowed by law, the title to such
real estate shall be taken in the name of the SYSTEM; provided that
only those real properties acquired through purchase may be sold;
e. To conduct
the business of handling the transfer of foreigners into the country as
immigrants or permanent residents, investors, tourists or in whatever
means allowed by law and to handle businesses related to providing
these foreigners with a complete living package that includes but not
limited to the following: accommodation, food, recreation, medical
needs, insurance and livelihood. In the discharge of this function, the
SYSTEM shall exercise the following specific powers:
1.
To conduct the business of travel agency an act in their own right and
as agent in the purchase and sale of passenger and freight
accommodations in land, air and sea travel, enter into charter parties
for the carriage of passenger and freight, conduct tours and
sight-seeing trips, within and/or outside of the Philippines, act as
agents of hotels and transportation companies, secure from the
Philippine Government and foreign governments passports, visas,
clearance, permits and other documents necessary for travel and stay in
the country;
2. To acquire,
by purchase, lease or otherwise, and to own, use, hold, sell, convey,
exchange, lease, mortgage, work, improve, develop, divide and
otherwise, handle, deal and dispose of real properties of every kind,
nature, and description; and to construct or cause to be constructed on
any land owned, held, leased, managed, operated or occupied by the
SYSTEM, any house, building, condominium or any other improvement as
well as manage and operate the same; or otherwise invest in housing,
buildings, condominiums, and all other construction projects of every
kind and nature; and generally to do anything and everything necessary
and proper and to the extent permitted by law, in connection with the
ownership, management, operation, sale and disposition of real and
personal properties of any and all kind;
3. To own,
lease and operate, manage and administer, alone or jointly with others,
in the Municipality of Makati and elsewhere, one or more hotels and all
adjustments and accessories thereto, including restaurants, bar rooms,
barbershops, and cigar stores, roof gardens and to furnish amusement
therefore; to do and perform any and all things for the comfort,
convenience, pleasure and amusement of guests in said hotels,
hotel-apartments, motorists’ hotel, motorists’ court, condominiums and
inns.
f.
To hold, purchase or otherwise acquire, and to sell, assign, pledge, or
otherwise dispose of, shares of the capital stock, bonds or other
evidences of debt issued or created by any corporation, whether foreign
or domestic, and whether now or hereafter organized; and while the
holder of any such shares of stock, to exercise all rights and
privileges of ownership, including the right to vote thereon, to the
same extent as a natural person might or could do;
g. To issue
pursuant to law, its capital stock, bonds, debentures or other
evidences of obligation in payment for property purchased or acquired
by it, for money borrowed, or for any other lawful obligation and to
change all or any part of its properties as security therefor;
h. To acquire,
by purchase, lease or otherwise and to own, use, hold, sell, convey,
exchange, lease, mortgage capital assets such as vehicles or any
transportation equipment, computer equipment, communications equipment,
machineries of any kind, spare parts, tools, jigs, and fixtures that
are necessary in the business that the corporation is involved in
businesses that it plans to invest in, including rights, softwares,
patent rights, trademarks, trade names, service names, service marks,
brands, distinctive marks, inventions, designs, improvement and
processes, and all privileges, rights, titles and interest pertaining
thereto;
i. To carry on
the business of warehousing and storing, packing, crating, and
repacking of all kinds of substance and articles of commerce and
merchandise and to do all business necessary to and incidental thereto;
j. To make and
enter into all kinds of contracts, agreements, and obligations by or
with any person or persons, corporation or corporations, for the
purchase, acquisition, holding, manufacture, and sale of, or otherwise
deal in, any and all kinds of goods, articles, or personal property
whatsoever, either as principal, or agent, upon commission or
otherwise, and generally with full power to perform any and all acts
connected therewith or arising therefrom, or incidental thereto, and
any and all acts proper or necessary for the conduct of its business.
k. To borrow
funds from any source, private or public, foreign or domestic, and to
issue promissory notes, bonds, debentures and other evidence of
indebtedness and to charge all or any part of its properties as
security therefor;
l. To
purchase, hold, convey, sell, lease, let, mortgage, encumber, and
otherwise deal with such real and personal property or engage in any
transaction as the lawful business of the SYSTEM may reasonably and
necessarily require;
m. To endorse
or assume the payment of principal of, and/or interest or dividends
upon, and to undertake the performance of sinking fund or other
obligation of, any stocks, bonds, obligations, or other securities or
evidences or indebtedness, and to guarantee in any way permitted by the
law the performance of any of the contracts or other undertakings in
which the SYSTEM may otherwise be or become interested in, of any
corporation, association, partnership, firm, syndicate, individual,
government, state, municipality, or other political or government
division or subdivision, domestic or foreign, insofar as may be
permitted by law;
n. To act as
general manager for the management of business of any person,
corporation or other juridical entity, the management of funds,
properties, portfolio and similar assets of such managed person,
corporation of juridical entity;
o. To conduct
a general advertising business both as principal and agent, including
the preparation and management of advertisements and the manufacture
and construction and advertising devices and novelties; to erect,
construct, purchase, lease or otherwise acquire fences, billboards,
signboards, buildings and other structures for advertising purposes, to
carry on the business of general advertising by circulation and
distribution and display of cards, signs, ogers, posters, handbills,
programs, banners, caps and all kinds of conveyance for the aforesaid
purpose; and to make use of radio, television and any other media of
advertisement;
p. To secure
from any governmental agencies, state, municipal and other authority,
any rights, powers, privileges, franchises and concessions, and to
utilize and dispose of the same in any lawful manner;
q. To act as
agent or representative of any and all corporation, firms or
individuals organized, located or residing in any part of the worlds
insofar as the same may not prohibited by law;
r. To organize
or cause to be organized under the laws of the Republic of the
Philippines or any other state, territory, nation, colony, province or
government, a corporation or corporations, associations firms or
entities for the purpose of accomplishing any or all of the objects
which the SYSTEM is organized and to dissolve, wind up, liquidate,
merge, consolidate, combine or amalgamate any such corporation or
corporations, associations, firms or entities or to cause the same to
be dissolved, wound up, liquidated, merged, consolidated, combined, or
amalgamated;
s. To make and
enter into all kinds of contracts and agreements with any person or
persons, corporation or corporations, including government-owned or
controlled corporations, or any agency or agencies of the government,
as may be necessary, expedient, advisable or in any manner pertaining
to the whole or any part of its businesses and operations, and/or as
may be necessary or proper for the attainment of the purposes and
objectives of the SYSTEM.
Sec. 5. The Board of Trustees. — The SYSTEM shall
be governed, and its activities and properties shall be controlled and
managed by a Board of Trustees, hereinafter referred to as the “BOARD”,
which shall be composed of the Minister of Human Settlements as
Chairman; the Chairman of the Philippines-United States Business
Development Council as Vice Chairman; the Chairman of the Monetary
Board, the Minister of Tourism, the Commissioner on Immigration and
Deportation, the Representative of the Office of the President, and the
Chief Executive Officer/General Manager of the Philippine Retirement
Park System (the SYSTEM) as ex-officio members.
In the absence of the Chairman, the Vice Chairman, shall act as
Chairman. In the absence of both the Chairman and the Vice Chairman,
the BOARD shall elect a temporary presiding officer. The officials next
in rank to, or such officials duly designated in writing by the
ex-officio Board members shall serve as alternate members. Such
alternates shall attend board meeting and the meetings of any committee
assigned to their principals, and receive the corresponding per diems,
whenever their principals are absent or said positions are vacant.
The BOARD shall meet regularly at least once a month and as often as
the exigencies of the service demand. The presence of at least four (4)
members shall constitute a quorum, and the vote of a majority of the
members present there being a quorum, shall be necessary for the
adoption of any resolution, rule, regulation, decision, award or any
other corporate act.
Each member of the BOARD shall receive a per diem of at least FIVE
HUNDRED PESOS (P500.00) per meeting actually attend: Provided, That no
member shall receive a per diem of more than TWO THOUSAND FIVE HUNDRED
PESOS (P2,500.00) per month;
Sec. 6. Powers and Functions of the Board. — The
BOARD shall have the following powers, functions and duties:
a.
To formulate policies, guidelines and programs to effectively implement
and carry out the purposes and objectives of the SYSTEM;
b. To
prescribed and periodically review and revise the amount of the fees,
charges and assessments levied and collected for the support and
maintenance of the operations of the SYSTEM;
c. To control
the management, operation and administration of the SYSTEM;
d. To
promulgate such rules and regulations as may be necessary or proper for
the effective exercise of powers and functions as well as the discharge
of the duties and responsibilities of the SYSTEM, its officers and
employees;
e. To
authorize such expenditures of the SYSTEM as may be necessary or proper
for the effective management, operation and administration of the
SYSTEM;
f. Upon the
recommendation of the Chief Executive Officer/General Manager of the
SYSTEM, to determine and approve the SYSTEM’s organizational and
administrative structure or pattern, and establish and fix, review,
revise and adjust the appropriate compensation scheme of the officers
and employees of the SYSTEM with reasonable allowances, bonuses and
other incentives as may be recommended by the Chief Executive
Officer/General Manager of the SYSTEM;
g. To approve
the annual supplemental budget of the receipts and expenditures of the
SYSTEM;
h. To appoint,
promote, transfer, remove, suspend or otherwise discipline the Deputy
General Manager and other officer of the SYSTEM, occupying executive
and senior management positions; and
i. To do any
all acts and transact such business as may be necessary or proper for
the attainment of the purposes and objectives of this SYSTEM.
Sec. 7. Officer of the System. — The officers of
the SYSTEM shall be one Chief Executive Officer, one General Manager as
Managing Director who shall be directed by at least one (1) Deputy
General Manager, and all shall be appointed by the BOARD. The BOARD
shall determine the other officers of the SYSTEM who, except as
provided in this Executive Order, shall be appointed by the General
Manager subject to confirmation by the BOARD.
Sec. 7a. The Chief Executive Officer. — The
Executive Officer shall coordinate all the activities of the SYSTEM in
relation to the Philippines-United States Business Development Council.
He shall have such functions as may be delegated to him by the Board of
Trustees:
Sec. 8. The General Manager: His Power and Duties.
— The General Manager shall be the Chief Operating Officer of the
SYSTEM. He shall exercise the following powers and duties:
a.
To execute the policies, guidelines and programs approved by the BOARD,
and to be responsible for the efficient discharge of management and
operational functions;
b. To submit
for the consideration and approval of the BOARD, proposed measures,
policies, guidelines and programs as he may deem necessary or proper
for the effective implementation of this Executive Order;
c. To direct
and supervise the management, operation and administration of the
SYSTEM, and, for this purpose, he may delegate any or some of his
administrative responsibilities and duties to the other officers of the
SYSTEM;
d. To execute,
on behalf of the SYSTEM, all contracts and agreements which the SYSTEM
may enter into, and to execute, accomplish, and deliver any and all
documents relative to such contracts and agreements;
e. To present
the SYSTEM in all dealings with other officers, agencies and with all
other persons or entities, whether domestic or foreign and whether
government or private;
f. To appoint,
promote, transfer, remove, suspend and discipline the officers and
employees of the SYSTEM, except those appointed by the BOARD, and
prescribe their duties and qualifications;
g. To exercise
such other powers and perform such duties as may be vested or reposed
upon him by the BOARD.
Sec. 9. Incentives and Benefits. — In order to
encourage foreign nationals and overseas Filipinos to participate in
the development of retirement villages and other projects of the SYSTEM
in the country, the following set of incentives are hereby accorded as
follows:
a.
Entitlement to the tax exemptions provided by P.D. No. 1217 upon
certification thereof by the SYSTEM;
b. Guaranteed
repatriation of any foreign exchange currency remitted to brought in,
or invested in, the SYSTEM and/or development projects of the SYSTEM;
c. Extension
of all Balikbayan privileges and exceptions to Filipinos and former
Filipinos overseas returning to the Philippines to take up permanent
residency in the projects of the SYSTEM;
d. Grant of
permanent resident status to foreigners participating or taking up
residency under the retirement programs or projects of the SYSTEM
through a minimum investment of 50,000 U.S. Dollars in the SYSTEM via a
Trust Fund, withdrawable only upon withdrawal from the retirement
program of the SYSTEM of the participant concerned. For purposes
hereof, the spouse and unmarried children under 21 years of age, of the
applicant may also be given permanent resident status, if accompanying
or if the following to join him after his admission into the
Philippines as a permanent resident. This investment requirement may be
increased or decreased by the Board of Trustees upon recommendation of
the General Manager;
e. Exemption
from customs duties and from other present or future import taxes, for
one time only and up to the amount of seven thousand dollars
(US$7,000.00) for the importation of their household furniture shall be
granted.
In case of any transfer of the
property referred to in paragraph (e) to any other person, firm,
corporation or any other entity affected within three years following
its entry into the national territory, then the taxes, due thereon but
payment of which were exempted, must be paid. The Board may, by
regulation, prescribed the applicable rules in case of total loss of
said articles or household furniture.
f. Importation
of one automotive vehicle for personal or family use, free of all
importation, customs, sales, and economic stabilization taxes shall be
allowed. Such vehicles may be sold or transferred to third parties,
exempt from the aforementioned taxes, after seven years have elapsed
from the date of entry of said vehicle into the country. The value
which corresponds to this item shall not be taken into account
computing the exemption established in the preceding paragraph.
With prior authorization from the SYSTEM, the beneficiaries of the
SYSTEM’s projects/programs, may substitute their vehicle abroad, at any
time, and shall continue to enjoy the same exemptions established in
the paragraph.
The beneficiaries of the SYSTEM’s projects/programs may, however, at
any time import vehicles with the same benefits herein specified, after
prior payment of the taxes due on any vehicle has been previously
imported tax-free.
In case of loss of said vehicle, by theft or total destruction by fire,
collision or accident occurring within the period of five years from
date of entry of said vehicle into the country, the beneficiary under
this law may acquire another vehicle free of the taxes herein before
specified;
Should the beneficiary withdrew from the programs/projects of the
SYSTEM within 7 years, he must pay all the programs/projects of the
SYSTEM taxes for which he has been exempted from paying by virtue of
the provisions of this Section .
The BOARD is hereby authorized and empowered to promulgate such rules
and regulations as may be necessary to implement the provisions of this
Section .
The grant of the foregoing incentives shall not preclude the
entitlement, if applicable, of any enterprise invested in by said
foreign nationals and overseas Filipinos, to the incentives and
benefits under the Omnibus Investment Code (P.D. 1978), the Tourism
Incentives Program of 1974 (P.D. 535) and the Investments Promotion Act
in Less Developed Areas (B.P. 44).
Sec. 10. Capitalization of the SYSTEM. — The
SYSTEM shall have an authorized capital of TWO (2) HUNDRED MILLION
PESOS (P200,000,000.00) divided into ten million shares with a par
value of one hundred pesos per share which shall be fully subscribed
and paid for the Government of the Republic of the Philippines. For the
pre-operating expenses, marketing, operational and other requirements
of the SYSTEM, an initial release of TEN MILLION PESOS (P10,000,000.00)
is hereby authorized for the SYSTEM chargeable against the Special
Activities Fund of the President. Thereafter, such amount as may be
necessary to support the continued operation, maintenance and expansion
of the SYSTEM shall be included in the General Appropriations Act.
The Central Bank is hereby directed to pay the SYSTEM the peso
equivalent of 2% of the foreign exchange generated by the SYSTEM, by
the same to be paid upon actual remittance into the country of said
foreign exchange.
Sec. 11. Donation to the SYSTEM. — The SYSTEM is
hereby authorized to solicit and receive donations, grants,
contribution, gifts or endowments from all sources whether foreign or
domestic, and whether government or private, without the need of
securing a permit, approval or registration from any government agency,
to support its operations and development projects. Notwithstanding any
provision of law to the contrary, all donations, grants, contributions
gifts or endowments received by the SYSTEM pursuant hereto, shall be
exempt from income, gift and all other kinds of taxes, and shall
further be deductible in full from the gross income of the donors under
the National Internal Revenue Code, as amended.
Sec. 12. Exemption from Fees, Duties and Taxes. —
The SYSTEM is hereby declared exempt from all income and other internal
revenue taxes, tariff and custom duties and all other kinds of taxes,
fees, charges and assessments levied by the government and its
political subdivisions, agencies and instrumentalities.
The President of the Philippines, upon recommendation of the Minister
of Finance, may partially or entirely lift the exemptions herein
granted, if he shall find that the SYSTEM is already self-sustaining
and finally capable of paying such taxes, customs duties, fees, charges
and other assessments, after providing for the debt service
requirements and the projected capital and operating expenditures of
the SYSTEM.
Sec. 13. Merit System. — All officials and
employees of the SYSTEM shall be selected and appointed on the basis of
merit and fitness in accordance with a comprehensive and progressive
merit system to be established by the SYSTEM upon its organization. The
recruitment, transfer, promotion and dismissal of all its personnel,
including temporary workers shall be governed by such merit system. In
this connection, the officers and employees of the SYSTEM shall be
exempt from the application of the Civil Service Law, rules and
regulations and from the rules and regulations of the Office of
Compensation and Position Classification.
Sec. 14. Auditor. — The SYSTEM shall have its own
Auditor who shall not be subject to the supervision and control of the
Commission on Audit, and who shall be appointed by the BOARD.
The Chairman of the Commission on Audit shall, however, conduct an
annual audit to check the financial statements and to comment on the
efficiency and effectiveness of the operation of the SYSTEM and submit
its findings to the President.
Sec. 15. Legal Counsel. — The Office of the
Government Corporate Counsel shall be the legal Counsel of the SYSTEM.
For the services of the staff of the Office of the Government Corporate
Counsel, the SYSTEM shall appropriate and pay such amount as may be
assessed by the Government Corporate Counsel to defray the maintenance
of the office and transportation and representation expenses of the
lawyers in the Office of the Government Corporate Counsel who may be
assigned to handle the legal matters and problems of the SYSTEM. The
SYSTEM may, however, hire or contract the services of other lawyers
and/or law offices in specific areas specialization.
Sec. 16. Annual Report. — The SYSTEM shall render
to the President of the Philippines, through the Ministry of Human
Settlements, an annual report on its operations and accomplishments not
later than March 15.
Sec. 17. Applicability of the Corporation Code. —
The provisions of the Corporation Code, insofar as they are not
inconsistent with the provisions of this Executive Order, or with the
purposes and objectives of the system, shall apply to the SYSTEM.
Sec. 18. Repealing Clause. — All laws, executive
orders, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed, amended or modified accordingly.
The provisions of this Executive Order shall not be repealed, amended
or modified, unless expressly so provided in subsequent general or
special laws.
Sec. 19. Separability Clause. — The provisions of
this Executive Order are hereby declared to be separable, and if any
provision or section of this Executive Order or application thereof of
any person or circumstances should for any reason be held invalid or
unconstitutional such invalidity or unconstitutionality shall not
affect the other provisions or sections of this Executive Order.
Sec. 20. Effectivity. — This Executive Order shall
take effect immediately.
Done in the City of Manila,
this 4th day of July, in the year of Our Lord, Nineteen Hundred and
Eighty-five.