Section 16Sec./Art. 16

Additional Tax Exemptions and Fee Privileges.- To encourage the infusion of capital and financial assistance by the FISTC for the purpose of rehabilitating the borrower's business, the following additional tax exemptions and privileges shall be enjoyed:

(a) The FISTC shall be exempt from income tax on net interest income, documentary stamp tax and mortgage registration fees on new loans in excess of existing loans extended to borrowers with NPLs which have been acquired by the FISTC;

(b) In case of capital infusion by the FISTC to the borrower with NLPs, the FISTC shall also be exempt from the documentary stamp tax:

Provided,That the tax exemptions and fee privileges granted under this section shall apply for a period of not more than five (5) years from the date of acquisition of NLPs by the FISTC.