President Rodrigo Duterte has reduced the percentage of annual net earnings that should be declared and remitted by state-owned Land Bank of the Philippines and Development Bank of the Philippines.
Duterte signed Executive Order 89 reducing the dividend rate of LandBank from 50 percent to 0 percent for 2016 and 10 percent for 2017.
DBP’s dividend rate was reduced to 0 percent for 2017.
Republic Act 7656 requires government-owned or -controlled corporations such as LandBank and DBP to remit to national government at least half of their annual net income as dividends.
“To support the viability and mandate of the LBP (sic) and DBP, their liquidity, capital position, medium-term plans and programs were considered in the determination of their respective reasonable dividend rates on net earnings for selected years,” the EO read.
“The adjusted dividend rates set forth are only applicable to the concerned GOCCs and the years stated,” it added.
Dividends remitted by state-owned and controlled corporations this year rose to P61.3 billion from P51.2 billion in 2018 and P36.5 billion in 2017.