Section 16Sec./Art. 16

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

(a) The SPV shall be exempt from income tax or 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 SPV.

(b) In case of capital infusion by the SPV to the borrower with NPLs, the SPV shall also be exempt from the documentary stamp tax.

Provided, That the abovementioned tax exemptions and fee privileges shall apply for a period of not more than five (5) years from he date of acquisition of NPLs by the SPV.