FILIPINO
INVENTORS 
FILIPINO
INVENTORS
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PROTOTYPE DEVELOPMENT ASSISTANCE PROGRAM
PROGRAM DESCRIPTION
The programs aims to make commerciable technologies/inventions available to consumer/industry sectors at the shortest time by providing financial support for the fabrication of working prototype models for promotion/demonstration/testing.
OBJECTIVES:
Challenge inventors to generate economically viable technologies/invention addressing industry needs; and
Hasten technology transfer of inventor-generated technologies
ASSISTANCE COVERAGE
The financial assistance shall cover the fabrication cost of one (1) commercial prototype model not to exceed P 250,000 in the form of grant
WHO ARE ELIGIBLE FOR THE ASSISTANCE
Inventor must be a Filipino citizen or in the process of acquiring Filipino citizenship;
Must be of good moral character and have not been convicted of any case involving moral turpitude;
Must be in good health and not more than 57 years old. Inventor over 57 years old should assign a co-project implementor with equal responsibility of the project;
Must have no outstanding obligation with TAPI; and
Must understand his contractual obligation with the government.
OPERATING PROCEDURES FOR PROTOTYPE ASSISTANCE
Proponents submits request for assistance to the TAPI Director. For proponents from the Region, submit also endorsement of DOST Regional Director
Program Manager pre-evaluates the proposal. If the technology/invention is workable, TAPI provides the checklist of requirements
Should the applicant fails to comply with the requirements within 45 calendar days, his application shall be deemed withdrawn
Upon submission of the completed requirements, TAPI creates a Technical Working
Committee (TEC) composed of TAPI technical staff to evaluate/review the project
proposal
If project proposal is favorably considered by TEC, the Program Manager presents
project to TAPI Execom for decision
If the TAPI Execom has questions regarfing some technicalities of the proposal,
a TEC is formed composed of experts from other DOST agencies or the private
sector. The TEC submits its findings to the TAPI Execom
If approved by TAPI Execom, TAPI nforms the proponent of the approval of the
project with attached Memorandum of Agreement (MOA) for signature of the parties
involved
TAPI release funds to the proponent/inventor
TAPI monistors progress of project implementation
Upon completion of the fabrication, the model shall be subjected to a performance
testing by corresponding testing institution
CHECKLIST OF REQUIREMENTS
Endorsement letter from DOST Regional Office. (If applicant is from the region);
Project Proposal using the suggested format;
Fabrication drawings with complete specifications indicating the materials used
for each part
Details of activities and expense items intended for TAPI's financial assistance
with the corresponding counterpart of the proponent, if any;
Assigned co-implementor for inentors over 57 years old;
Test results if already available;
Personnel bio-data of the proponent/inventor or company profile if applicant
is a juridical person; and
Certification of Residency from Barangay Center or Barangay Clearance
INVENT SCHOOL PROGRAM (ISP)
PROGRAM DESCRIPTION
The invent school (ISP) involves the conduct of a two-day seminar workshop to help awaken young people's interest in creativity and inventiveness. The program provides an opportunity for students not only to further hone their creativity and potentials but also to realize their tru ingenuity. ISP serves as a caralyst and training ground for future young Filipino inventors. Selected inventors and resource speakers share their collective ideas and expriences on how creative thinking could be developed and translated into tangible and useful tools for technological development. Lectures are organized and designed to open the minds of students on the importance of inventions and techniques for developing one's creative knowledge. At the end of each lecture, a workshop is conducted for hands-on projects challenging students' imagination and ingenuity. For each workshop, Institute for creativity and Inventiveness, Inc. and selected fucges (from TAPI-DOST offices) and the co-partner institution will select three (3) outstanding outputs/winners for excellent projects ideas.
OBJECTIVES
To inculculate creative thinking and bring about inventiveness among students in the hope of enticing them to pursue science and engineering courses in the long run;
To promote the establishments and develop young inventors clubs that are expected to be the source of viable inventions in the future
The invent school program is being conducted once in every quarter or depending on the needs of the requesting party. There are 50-targeted students/participants per activity coming from both public and private high schools with one (1) adviser per school
Invitation of participants is coordinated closely with DOST Regional Office, if the activity will be conducted at the regional level. If LGU's or schools are requesting it, they initiate the invitation of students;
TAPI takes charge of logostics with a corresponding counterpart expense from the requesting party such as the venue, facilities and school supplies and equipment.
The Speakers are xclusively members of ICII, the inventor's organization who initiated the ISP
PROMOTION/MARKETING ASSISTANCE RA7459
PROGRAM DESCRIPTION
The program aims to support promotion/marketing assistance of the Filipino invented products thru tie-up with other government agencies, private sector and various assciations in promotional activities for invnetor.
ASSISTANCE COVERAGE
Participation in the exhibit/trade fairs during the National Inventors Weeks and major nationwide festivals;
Publication thru tri-media (radio television and newspaper); and
Posters/streamers, brochures and related promo collaterals
OBJECTIVES
To promote increase awareness on Filipino inventions;
To highlight the investment potential of these inventionsand attract local potential inventors who may be enticed to be joint venture partners of inventors; and
To establish linkages with suitable partners from both private and government agencies.
WHO CAN AVAIL THE ASSISTANCE
Filipino inventors with patented inventions or at least with registered utility model applications and patent pending applications;
Inventors organization requesting for institutional assistance; and
Agencies and universities with institutional potentials
REQUIREMENTS FOR AVAILING PROMOTION/MARKETING ASSISTANCE
The letter of request for assistance should be submitted to TAPI with corresponding proposals highlighting the budgetary requirements for appropriate funding and the copy of the letters patent of the proponent
If the proponent is an individual inventor. He/she could directly apply with TAPI. A recommendation letter from the DOST regional office and/or regional inventors organization is required for the inventors residing the regions with disclosures indicated in number 1
For institutional proponent, the letter request should be signed by the President of the organization with complete disclosures indicated in number 1
For agencies and universities, the letter should be signed by the President or head of the office with disclosures indicated in number 1
The proponent must be of good moral character and have not been convicted of any case involving moral turpitude
The proponent has no fraudulently delinguent account with TAPI
DUTIES/CHARGES ON IMPORT EXEMPTION ASSISTANCE PROGRAM
PROGRAM DESCRIPTION
The program facilitates issuance of tax exemption certification for customs duties and charges on imports of necessary machineries, equipment, spare parts and raw materials used to produce the technology including invention to the Department of Finance (DOF) pursuant to Article III Section 6 of RA No. 7459.
Issuance of certification that the proposed importations are not locally/economically available and indispensible in the manufacture of the invention.
OBJECTIVES
To facilitate the acceleration of manufacturing inventions and/or technologies that require import components
SCOPE/AREAS OF ASSISTANCE
Locally developed technologies
Patented Inventions
Inventions
Utility Models
Industrial Designs
Layout Designs (Topographies of Integrated Circuit)
Plant Varieties
Adapted technologies from abroad
Product or process exclusively manufactured and sold by a developer or technologist/inventor including patent pending
These duties and charges on import shall include but not limited to the following:
Tariff/Cusom Duties
Import VAT
Ad Valorem/Excise Tax
All other taxes related to importation
ELIGIBILITY
Inventor
Must be Filipino citizen; and
Must own and/or part owner of a registered business entity and/or company currently manufacturing the technology/invention in the Philippines
Invention
Must have an active Letters Patent
Articles/mateirals to be imported:
The applicant inventor shall submit an itemized import components corresponding to the projected finish product;
Actually, directly and exclusively needed in the production of the invention
Adapted technologies from abroad:
New product or process exclusively manufactured and sold by an authorized Filipino Developer or technologist/inventor, including patent pending
CHECKLIST OF REQUIREMENTS
Request letter to DOF;
Complete copy of Letters Patent;
Manufacturing process flow with detailed material balance
Full disclosure of quantity and specification of the raw materials corresponding to projected volumes of finished product
Certification/test results as may be required
PENALTY CLAUSE
Revocation of the duties and charges on import exemption privilege upon violation of the same as stipulated in the conditions in the importation of raw materials, machineries and equipment for the actual manufacture of the patented
REPORTORIAL REQUIREMENTS
Importation report (in 30 days from the date of arrival of shipment)
Airway Bill / Bill of lading
Cargo Manifest
Purchase Order or Domestic/International Letters of Credit;
Quarterly sales report
Actually, directly and exclusively used in the production of the invention with
the corresponding volume of finished products;and
Audited Reconciliation Report (Import=Production)
OPERATING PROCEDURES
Inventor shall request TAPI for an authority to import machinery, equipment,
spare parts and raw materials that are indespensable in the manufacture of the
invention
TAPI checks the completeness of the requirements. If incomplete, TAPI notifies
the applicant and request to submit the needed documents within 15 calendar
days. Should the applicant fail to submit the requirements within the 15-day
period, the application is deemed withdrawn/dropped from the pipeline of projects
Upon submission of complete requirements TAPI shall:
Constitute a Technical Evaluation Committee (TEC) to conduct plant visit, evaluation
and validation of the documents together with technical expert from RDI as necessary.
Inform proponent to shoulder the cost of laboratory/technical services if needed.
The TAPI Executive Committee deliberates the TEC evaluation and recommendation
including the comments of RDI and test results and make appropriate recommendation
to the Director of TAPI.
TAPI will issue a certification or letter of findings on the request of the
inventor to the DOF
RA 7459 INVENTION GUARANTEE FUND (IGF) LOAN ASSISTANCE PROGRAM
PROGRAM DESCRIPTION
For the effective implementation of the Republic Act No. 7459, the Invention Guarantee Fund (IGF) created under Republic Act No. 3850, as ammended which is deposited with the Development Bank of the Philippines, and the interest earnigns thereof shall be made available to finance and guarantee the loan assistance of any technology including patented Filipino invention duly certified by the Filipino Inventors Society ans by the Screening Committee.
OBJECTIVE
To accelerate the development, commercialization, promotion and market of Filipino technologies including inventions by providing access to loan financing and guarantee.
SCOPE/AREAS OF ASSISTANCE
Purchase of machinery and/or equipment and raw materials for production;
Verified and guaranteed Purchase Order (PO) or Letters of Credit;
Providing working capital for the commercial production of patented inventions and other areas such as lot and building on very meritorious cases;
Debt equity ratio shall be at 70/30
The 30% shall be inventor's equity and the 70% shall be secured by the Invention Guarantee Fund (IGF)
The interest cost of money shall be 6% per annum and the penalty for teh unpaid account shall not be more than 6% per annum, peovided however after a one (1) year period of non-payment of any account not including the grace period, foreclosure proceedings shall be instituted immediately
ELIGIBILITY FOR FINANCIAL ASSISTANCE
Must be a Filipino and/or juridical person;
Must be of good moral character;
Must be in good health. For single proprietorship applicant and for an applicant who will not be able to manage the business and those beyond the age of 70 shall execute a deed of assignment of the patent to qualified assignee. Such loans under this category shall be covered with Mortgage Redemption Insurance (MRI);
The inventor should be able to offer collateral for loan in the form of:
Titled real estate property of commercial value for loans over P200,000
chattel mortgage
patent valuation and technology adopted/locally developed to cover not more
than 50% of the collateral
Shall issue Post Dated Checks (PDCs) yearly to cover the full loan amount including
interest. Repayment schedule on the principal loan shall start after one year
from the date of release except the interest on the same (subject to appropriate
provision in the proposed revision of the IRR); and
the inventor has a good credit standing
CHECKLIST OF REQUIREMENTS
Letter of request with duly accomplished application form (See Annex A);
Complete copy of Letters Patent/Registration and other documents pertaining to technology and photographs of working model
FIS Certification;
Business Plan/Feasibility Study;
Certified true copy of the proponent's title to properties or proof of ownership to movable assets offered as collateral;
Audited financial statement for the last three (3) years (if applicable)
Income tax returns for the last three (3) years (if applicable)
Patent valuation from accredited patent appraisers (if applicable);
Business permits and licenses e.g. DTI, Mayor's permit, etc.;
SEC Registration including brief resume of applicant/major stockholder/officers;
Board resolution authorizing the borrowing and designating authorized signatories for the financial assistance (if a corporation/cooperative);
Deed of Assignment of Letters Patent at IPO (if applicable);
Co-maker's affidavit (for single proprietorship);
Quotation from at least three (3) reputable suppliers of machinery and/or equipment and raw materials (if applicable);
Test results (if applicable)
Other information such as the following:
SEC/CDA/DTI Registrations;
Bank/credit references;
Medical Certificate
Additional documents that maybe required to ensure thorough evaluation of the proposal.
PENALTY CLAUSE
Considering that the interest cost of money is 6% per annum under this program, the penalty shall be foreclosure as stated earlier in the scope/area of assistance.
REPORTORIAL REQUIREMENTS
Quarterly progress report (production, inventory and sales);
Any licensing and/or joint venture agreement including marketing arrangement with any party; and
Income tax returns
OPERATING PROCEDURES FOR LOAN ASSISTANCE
Proponent shall write a letter of request for loan assistance under R.A. No. 7459 to the director of TAPI attaching all the requirementsenumerated in teh checklist;
TAPI shall pre-evaluate the proposal for loan assistance to determine if the documents submitted are complete and prepare initial comments on the project within five (5) working days from the date of receipt of the request for loan assistance;
If incomplete, TAPI shall inform the proponent. TAPI shall hold in abeyance the evaluation of request until all requirements are submitted;
If documents are complete, TAPI Director shall create a Technical Evaluate Committee (TEC) composed of representatives from TAPI and expert(s) in the field to evaluate the project. The TEC may require the proponent to submit additional documents within fifteen(15) calendar days from date of receipt of letter/notice;
TAPI Executive Committee (EXECOM) shall deliberate on the TEC report and recommendation(s). If approved, the project is endorsed for Screening Committee consideration. If disapproved, TAPI shall inform the proponent of the EXECOM's decision, copy furnished the Screening Committee;
Upon approval by TAPI Execom, TAPI shall request DBP to conduct Credit Investigation
(CI) and
The Screening Committee shall decide on the project;
If recommended favorably by the SC, TAPI shall prepare loan contract for conforme of the proponent. TAPI approves and then forwards the proposal to DBP:
The repayment period shall be at least five(5) years with provisions for restructuring, if qualified;
Repayment schedule on the principal loan shall start after one year from the date of release except the interest on the same
TAPI shall submit schedule of fund release to DBP
TAPI shall monitor the project after the release of the loan and reports to SC
A rider/addendum may be instituted in the contract as stated above to pass the same approval mechanism of the project
CRITERIA FOR EVALUATION
I Technical Aspect 20%
Production/Process/Performance Efficiency
Novelty of Design/Process
Product Life
Appearance/Acceptability
Certainty of Supply
Potential for Development
Efficiency Utilization of Resources
Waste Management
II Market Aspect 40%
Acceptability of the Product/Service/Process
Supply/Demand Ratio
Competitive position (Maket Share)
Potential Market
Product Life/Sustainability
III FINANCIAL ASPECT 35%
Profitability
Capacity to pay
Reasonable Cost
IV SOCIAL BENEFITS 5%
Within DOST priority
Employment Generation
Total Score (100%)
To qualify for assistance, the proposal must garner at least 85% of
INVENTORS' FORUM
PROGRAM DESCRIPTION
The inventors' forum aims to provide avenue for inventors to present their ideas to a selected group of technical and economic panel of experts who could help provide directions for the revision and/or improvement of the concept. The procedure will not only be educational for the participants it can also lead to the identification and development of collaborative work. This forum is conducted on a need basis
ASSISTANCE COVERAGE
TAPI provides the venue, food during the forum and honoraria of the members of the panel reactors outside of TAPI
PROPONENTS/INVENTORS ENTITLED TO AVAIL INVENTORS' FORUM ASSISTANCE ARE THOSE:
Who have negative reaction of the result of evaluation of his invention; and
Who needs suggestions from particular experts
OPERATING PROCEDURES
Proponent must submit request to the TAPI Director including the following information of the invention:
Technical description
Drawing with specification
Manner of operation
If the information is not complete, TAPI request inventors for the submission of the complete requirements. If the documents are complete, Program Manager will prepare a TAPI Administrative Order (AO) that will constitute the members of the Panel of Reactors for the Forum. Panelists could be from other DOST/government agencies, private sectors and inventors who experts on the field of who experts on the field of the invention to be presented
TAPI will inform the proponent of the schedule of the Forum and invite mebers of the panel of rectors to attend the Forum and/or submit their comments/suggestions for the invenntion
Program Manager facilitates processing of honoraria for the experts
Results/Hoghlights of the Forum will be submitted to OD not later one (1) week after the conduct of the forum
TAPI provides consolidated comments of the experts to the proponent for his consideration in the improvement of his invention if necessary
Program Manager will facilitate the payment of the food (snack) expenses for the Forum
PILOT PLANT ASSISTANCE PROGRAM (IDAF-RA7459)
PROGRAM DESCRIPTION
The program aims to establish the economic and technical viability of selected technologies under field conditions, thus, enhancing the technologies commerciability. It provides financial/technical assistance for the establishment and operation of pilot plants prior to full commercialization og the same.
COMPONENTS OF ASSISTANCE
The Program provides:
Financial Assistance to Filipino Individuals or juridical persons, for the purchase/ fabrication of major equipment/machineries needed in the commercialization of piloted technologies.
Technical and consultancy services to pilot technologies
Assistance in the marketing of products from piloted technologies.
HOW TO AVAIL OF THE ASSISTANCE
The proponent must submit an application letter addressed to the TAPI Director;
The proponent must submit a detailed project proposal incorporating among others, the following:
Specific product lines/technologies to be adopted identifying target market;
Project implemtation plan focusing on management aspect and sustainability of income generation of the plant and including a repayment mechanism to recover cost of equipment provided;
Assurance from proponent of the availability of pilot plant building, facilities, manpower including project management and supervision, other production inputs and sufficient working capital for pilot plant operation.
Detailed line-item budget for equipment and other expenses and the sources of funds; and
Schedule of activities and duration of project implementation.
The proponent must also submit the following requirements:
Endorsement letter from DOST Regional Office
If the proponent is a corporation/partnership, resolution from the board of directors approving the availment of TAPI's financial assistance and authorizing specific officers to transact and enter into binding agreement with TAPI;
If the proponent is a cooperative, registration papers of the cooperative and certification of good standing from the Cooperative Development Authority. Board members/ Directors shall be held jointly and severably liable for the financial assistance;
List of members of the Board of Directors with brief bio-data;
Track record of the proponent in similar or related projects (equivalent to two years if cooperative with constant capital build-up);
Copy of business permits and licenses;
Projected Income Statement for the pilot project for five (5) years;
Details of income and expenses; and
Projected cash flow statement for five (5) years
INTELLECTUAL POPERTY RIGHTS ASSITANCE PROGRAM (IPR)
PROGRAM DESCRIPTION
The program provides assistance in securing property protectionthrough the patent/utility model registration system for meritorious inventions and utility models.
OBJECTIVES
To encourage creative and inventive activities and investments in research and development by securing for the inventors/makers the protection of the rights and interests related to their inventions or utility models
To facilitate assignment/licensing and availment of incentives
FORMS OF ASSISTANCE
Consultancy Services Free advisory services on itellectual property protection particularly rules of practice in patent/ utility model registration cases. Consultancy services may be availed of through phone calls, e-mails, letters or visit to TAPI.
Complete package of patenting/ utility model registration assistance through the services of the Philippine Association of Certified Patent Agents or other IPO-recognized patent attorneys/agents including payment of professional, filing, examination, issuance and publication fees.
Screening Criteria
Status of Development
Invention/utility model must have passed the R&D stage and must be ready for commercializatio
Commerciability
Invention/utility model must have a high commercialization potential to satisfy consumer's needs and to be competitive with existing ones
Prospects for Obtaining Patent/Utility Model Registration
Invention/ utility model must be industrially applicable and novel. It must not have been publicly disclosed for more than one year
Relevance to Naional Development Thrust
The invention utility model must be within government priority areas as follows:
Agriculture, Forestry and Natural Resource
Health Medical Scienc
Biotechnolog
Information and Communications Technolog
Microelectronic
Material Science and Engineerin
Earth and Marine Science
Fisheries and Aquacultur
Environmen
Natural Disaster Mitigatio
Energy
Manufacturing and Process Engineer
To avail of this assistance, interested party should submit to TAPI a formal request including accomplished forms (IPR-001 and IPR-002-06, drawings (when applicable) and complete/detailed description of the invention/ utility model. The invention/utility model must satisfy all of the above criteria to eb eligible for assistance.
A patent agent duly registered at the Intellectual Proerty Office (IP Philippines) may avail of funding support for the payment of the following fees at IP Philippine for his/her own invention or utility model:
Filing fees for application for local patent or utility model registration
substantive examination
issuance and publication
Funding support shall be on a reimbursement basis but prior approval of TAPI before filing at the Itellectual Property Office (IPO) is required to avail this form of assistance.
The invention/ utility model shall be subject to the same screening criteria as for complete package (Assistance No. 2)
To avail of this form of assistance, interested party should seek TAPI's approval prior to filing at the Intellectual Property Office (IP Philippines) by submitting a formal request and a way of the final draft og specification and formal drawings (where applicable). For processing of claims for reimbursement, the party should submit the following:
Original Official receipt (OR) from IPO
A copy of the specification and claim/s and drawings (where applicable) stamped received by IP Philippines
A copy of other documents from IPO
A copy of the letter of approval from TAPI prior filing
OPERATING PROCEDURES
The requesting party submits application for patenting/utility model registration assistance to TAPI
The program staff checks completeness of requirements. If complete, receipt of the application is acknowledged. Otherwise, teh requesting party is notified and requested to complete the requirements.
The program evaluates the application with respect to the criteria and makes recommendation to TAPI EXECOM/ Director for decision.
If approved, a Memorandum of Agreement (MOA) is prepared for signature of all covered. If disapproved, TAPI informs the inventor of the decision in writing
TRAVEL ASSISTANCE TO INVENTORS
PROGRAM DESCRIPTION
The program provides financial supports for travel of winners of Presidential Awards for countries where their winning inventions or areas of interest are advanced pursuant to Article II, Section 4 of RA No. 7459.
ASSISTANCE COVERAGE
Participation for prestigious and recognized international invention related expositions. The international invention contest/exhibition must be prestigious as determined by the Philippine Government (TAPI) and duly recognized by the World Intellectual Property Office (WIPO).
The Assistance shall be limited to a round trip economy plane ticket, participation fee and booth rental. TAPI shall not fund any travel that has not been recommended by the Screening Committee.
In case several inventors are recommended to participate in the international exhibitions/contests, TAPI shall provide a travel coordinator/supervisor to head the Philippine delegation.
WHO ARE ELIGIBLE
Inventor with winning inventions in the National Invention Contests organized by DOST-TAPI subject to the following conditions:
Inventor must be a Filipino citizen, in good health and has not been convicted of any case involving moral turpitude.
Travel Assistance must be availed of within two (2) years after winning.
The inventor has not availed of any assistance from TAPI for his winning invention. A winner in several categories of the national contest may only avail of one travel assistance for all his/her winning inventions for a particular year within the prescribed period.
In case of several inventors for one winning invention, only one inventor will be sent.
The winning inventions must not be the results of government funded projects
Non-transferable
LIST OF REQUIREMENTS
Request/application letter from concerned inventor/s
Official invitation with confirmation/acceptance from the event's organizers that the inventor is qualified to join or participaate in a certain international event.
Complete set of exhibition announcement/information packages
Three (3) quotations from airline companies or travel agencies for the plane fare (economy)
Copy of Letters Patent/Registration Certificate
Documents indicating that the event is prestigious and our country stand to benefit
OPERATING PROCEDURES
The inventor submits letter request for travel assistance with complete requirements to the Office of the Director (OD) at least four (4) months prior to the travel date
TAPI verifies if teh inventor is included in the list of winners recommended by Screening Committee (SC) for foreign travel. If yes, PM checks requirements and validates documents. If no, inform the inventor that he/she is not in the list of winners recommended by SC for foreign travel
If qualified present to SC for evaluation. SC endorses recommendation to TAPI for approval /disapproval
For approved travel assistance, TAPI (PM) prepares the following:
Approval letter indicating TAPI's commitment; and
Memorandum of Agreement (MOA) between TAPI and the inventor indicating obligations of both parties
Request to DBP for the release of funds to TAPI for the specific travel expenses
Upon receipt of cash from DBP, TAPI pays ticket, participation fee and booth rental
TAPI (PM) follows-up submission of travel documents (travel report, official receipt/s, original plane used ticket/boarding pass (if issued thru E-ticketing), certificate of appearance/participation, photo of invention exhibited and xeroxed copy of stamped passport) needed for liquidation of cash advance
TAX EXEMPTION ASSISTANCE PROGRAM
PROGRAM DESCRIPTION
Pursuant to Article III Section 5 and 6 of RA No. 7459, the Program facilitates evaluation and processing of requests for tax exemption of inventions for endorsement by the Screening Committee for RA No. 7459 to the Bureau of Internal Revenue (BIR)
OBJECTIVE
To encourage, inspire and support the commercialization of technologies including inventions of the Filipino citizens.
SCOPE/AREAS OF ASSISTANCE
Locally developed technologies
Patented Inventions
Inventions
Utility Model
Industrial Designs; and
Layout Designs (Topographies of Integrated Circuits) and Plant Varieties as provided for in the IP Code (RA No. 8293)
Adapted technologies from abroad
New product or process exclusively manufactured and sold by an authorized Filipino developer or technologist/inventor, including patent pending
These tax exemption privilege shall include but not limited to the following:
Income tax
Expanded Tax
Excise Tax
Business/Mayor's Permit Fees
Real Estate Tax on machineries
Other similar fees related to business operations
ELIGIBILITY
Inventor
Must be a Filipino citizen; and
Must own and/or part owner of a registered business entity and/or company currently manufacturing the technology/invention in the Philippines
CHECKLIST OF REQUIREMENTS
Official letter request addressed to TAPI Director for tax exemption
Supporting documents required per BIR Revenue Regulation No. 19-93, Section 4:
Certification issued by the FIS that the invention is new or original and the technology is newly developed by local researches or adaptec locally from foreign sources and that the manufacture and/or sale of the invention products from technology developed are produced on a commercial scale;
Confirmation by the Screening Committee;
Taxpayer Identification Number (TIN) and registration as non-VAT taspayer;
Formula required in the manufacture and fabrication of the invention/technology to attain the status of commercial scale;
Certificate of registration of business name/ SEC registration papers/mayors permit;
Complete copy of letters Patent/document of patent pending application;
Copy of the [approval] of BIR company registration;
Company profile which include number of employees, recent company sales (if applicable), expected growth rate of the company within five (5) years;
License to operate from Regulatory bodies (i.e DENR, BFAD, etc.)
PENALTY CLAUSE
Revocation of the tax exemption privilege upon violation of the same.
REPORTORIAL REQUIREMENTS
Copy of semi-annual sales report ass required by SEC/DTI and BIR; and
Volume of materials for manufacture and corresponding production output
OPERATING PROCEDURE
Inventor submits apllication/request with complete reqquirements to TAPI. Same should be done on requests for additional and renewal of tax
TAPI checks the completeness of the requirements. If incomplete, TAPI notifies the applicant and request to submit the needed documents within 15 calendar days. Should the applicant failed to submit the requirements within the 15day period, the application is deemed withdrawn/dropped from the pipeline of projects
Upon submission of complete requirements, Technical Evaluation Committee (TEC) conducts appraisal visit for evaluation and validation which shall be submitted to TAPI Execom in 15 working days
TAPI executive committee (TAPI Execom) considers the TEC Evaluation and recommendation;
If qualified, application is endorsed by the TAPI Execom to the Screening Committee (SC) for RA 7459 as soon as possible;
SC may require additional information/documents and during its deliberation the presence of the inventor is required;
If application is denied, TAPI informs the inventor of SC decision as soon as possible;
If application is approved, a resolution is prepared for SC's signature;
SC Chairman recommends to TAPI the request for tax exemption privileges for BIR approval
TAPI monitors application endorsed to BIR/DOF
RA 7459 - TESTING ANALYSES
POGRAM DESCRIPTION
The program aims to assist technologist, inventors, and researchers avail of the laboratories and the facilities of Research and Development Insitute (RDIs), including regional offices and other government agencies, offices and instrumentalities upon recommendation of the Director of the Institute (Article IV, Sec. 8 of RA 7459).
ASSISTANCE COVERAGE
Financial assistance in the form of grant for laboratory testing and analyses including performance testing to be undertaken by the DOST RDIs or other testing laboratories/institutions not exceeding P50,000. Cost in excess of P50,000 shall be considered as a venture financing project.
Availment of the laboratrories and facilities of Research and development Institute (RDIs), including regional offices and other government agencies, offices instrumentalities.
ELIGIBILITY FOR FINANCIAL ASSISTANCE
Filipino technologists, inventors and researchers actually residing in the Philippines
Must be of good moral character and has not been convicted of any case invlolving moral turpitude
Must be in good health
The proposal must pass the standard criteria for testing assistance
The proponent must have no outstanding obligation with TAPI
The testing assistance shall be limited to one (1) product/invention per proponent per year on a first-come-first-serve basis.
TAPI shall not fund any test that has not been pre-approved by the institute
Projects considered as venture financing are subject to certain conditions
OPERATING PROCEDURES FOR TESTING ANALYSES ASSISTANCE
The proponent must submit a detailed project proposal to the TAPI Director attaching
the requirements enumerated in the Checklist
TAPI pre-evaluates the proposal to determine if the documents submitted are complete
If incomplete, TAPI informs the proponent to submit the requirements within the 45 calendar days. Should the applicant fail to submit the requirements within the specified date, the application is deemed withdrawn/dropped from the pipeline
If complete, TAPI inquires with the RDIs or testing laboratories to determine capability, cost, scope and duration of testing
TAPI Execom deliberates on the request for decision
If approved, TAPI endorses the project to the RDIs/testing laboratories/institutions for testing. TAPI prepares an agreement/conforme among TAPI, RDIs/testing laboratories/institutions and the proponent incorporating among others the following provisions:
Detailed budgetary requirements for funding
Exit mechanism (if applicable)
Schedule of activities and duration of project implementation; and
Monitoring Scheme
TAPI releases funding directly to the RDIs/testing laboratories/institutions upon billing
For projects considered as venture assistance should be covered by MOA
TAPI monitors the project after the release of fund
CHECKLIST OF REQUIREMENTS
Highlights of project study/proposal indicating the purpose(s) for which such analyses are needed
Samples for testing to be submitted upon request of the institutes in-charge for the testing
Other information
Copy of Letters Patent, or copy of patent applicationif any;
Brief business profile
Proof of sales (If applicable)
RECOVERY SCHEME OF TESTING ASSISTANCE EXCEEDING P50,000
Any amount in excess of the grant is subject for the repayment without interest
Excess amount shall be payable within twelve (12) months
Repayments starts one (1) month after release of complete test results
For inquiry and comments : Call: +632 3811777.8377850 Mobile : + 63 9193352111. 9228996840, info@filipinoinventors.org