---
source-file: raw/_htmltext/executive-orders/eo-2023-036.md
cleaned: 2026-07-23
attribution: Source text from The LawPhil Project, Arellano Law Foundation (lawphil.net); collection licensed CC BY-NC 4.0. The statutes and issuances themselves are works of the Philippine Government.
source: https://lawphil.net/executive/execord/eo2023/eo_36_2023.html
pdf: https://lawphil.net/executive/execord/eo2023/pdf/eo_36_2023.pdf
signed-date: 2023-07-25
effective-date: 2023-07-25
effective-date-basis: derived. Sec. 6 (Effectivity) states the Order takes effect "immediately upon publication in the Official Gazette or in a newspaper of general circulation" but the text does not state the actual publication date. effective-date is set equal to the Order's own issuance/signing date (2023-07-25, per the "Date:" header, the bracketed EO citation, and the "DONE, in the City of Manila, this 25th day of July... Two Thousand and Twenty-Three" closing clause) as the best available anchor. This matches the existing wiki/digest value; no mismatch found.
---
<!-- source: htmltext (lawphil.net) -->

<!--
CLEANING NOTES (2026-07-23)

1. effective-date/signed-date/effective-date-basis added to frontmatter
   (absent from the raw scrape, which carries only `source:`/`pdf:`). Sec. 6
   gives no calendar date, only "immediately upon publication"; publication
   date is not in the text. Anchored to the Order's own issuance date
   (2023-07-25). Matches wiki/digest/executive-orders/eo-2023-036.md's
   existing effective-date; no mismatch.
2. RAW-SCRAPE CROSS-CONTAMINATION, FIXED (metadata only, not body text):
   raw/_htmltext/executive-orders/eo-2023-036.md itself already carries
   EO 35's data bled into EO 36's header block —
   `pdf: https://lawphil.net/executive/execord/eo2023/pdf/eo_35_2023.pdf`
   (wrong number) and a `**Subject:**` line reading "...Government-Owned
   or-Controlled Corporations Executive Order No. 35July 25, 2023
   Constituting the Inter-Agency Council for the Pasig River Urban
   Development" (EO 35's full date+subject appended to EO 36's own). This is
   metadata assembled by the fetch/scrape tool, not text from lawphil's own
   EO 36 page body — the WHEREAS clauses and Sections 1-6 that follow are
   entirely and only about RPT condonation, with zero Pasig River /
   Inter-Agency Council content anywhere in the operative text, so this is
   scrape contamination, not a defect in the published Order. Corrected here:
   - `pdf:` changed to `eo_36_2023.pdf`, matching the exact
     source-URL-to-pdf-URL naming convention verified across every sibling
     EO file already cleaned in this corpus (eo_NNN_YYYY.html ->
     pdf/eo_NNN_YYYY.pdf, same number both places) — not a guess, a pattern
     match against working examples.
   - `**Subject:**` line trimmed to end at "...Government-Owned
     or-Controlled Corporations," which is independently confirmed as EO 36's
     complete, correct subject by the ALL-CAPS title restated verbatim two
     lines below it in the document body itself
     ("REDUCTION AND CONDONATION OF REAL PROPERTY TAXES AND
     INTERESTS/PENALTIES ASSESSED ON POWER GENERATION FACILITIES OF
     INDEPENDENT POWER PRODUCERS UNDER BUILD-OPERATE-TRANSFER CONTRACTS WITH
     GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS").
   FLAGGED FOR THE ORCHESTRATOR: this is evidence of a fetch/scrape-tool bug
   (whatever tool produced raw/_htmltext/executive-orders/eo-2023-036.md
   picked up EO 35's date/subject/pdf metadata alongside EO 36's own, most
   likely from an index/listing page where adjacently-numbered EOs run
   together). Worth auditing the rest of the corpus for the same
   adjacent-EO bleed-through, particularly other same-day or
   sequentially-numbered EO pairs like 35/36 here.
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# Executive Order No. 36

**Date:** July 25, 2023
**Subject:** Reduction and Condonation of Real Property Taxes and Interests/Penalties Assessed on Power Generation Facilities of Independent Power Producers under Build-Operate-Transfer Contracts with Government-Owned or-Controlled Corporations

---

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ EXECUTIVE ORDER NO. 36, July 25, 2023 ]

REDUCTION AND CONDONATION OF REAL PROPERTY TAXES AND INTERESTS/PENALTIES ASSESSED ON POWER GENERATION FACILITIES OF INDEPENDENT POWER PRODUCERS UNDER BUILD-OPERATE-TRANSFER CONTRACTS WITH GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS

WHEREAS, various local government units (LGUs) have taken the position that Independent Power Producers (IPPs) operating within their territories are not entitled to exemptions and privileges enjoyed by government-owned or -controlled corporations (GOCCs) with respect to real property taxes (RPTs) on their property, machinery and equipment used in the generation and distribution of electric power, and have threatened enforcement action against IPPs, including the levy and sale at public auction of affected properties;

WHEREAS, while IPPs are the taxable entities liable to pay the said RPTs, a substantial portion of the RPT being charged has been contractually assumed by the National Power Corporation/Power Sector Assets and Liabilities Management Corporation under a Build-Operate-Transfer scheme and similar contracts, and therefore carry the full faith and credit of the National Government;

WHEREAS, the closure or non-operation of these IPPs will entail substantial losses to the government, force the public to resort to more costly electric power sources alternatives, and cause rotating power outrages;

WHEREAS, Section 277 of Republic Act No. 7160 or the "Local Government Code of 1991" provides that the President may, when public interest so requires, condone or reduce the RPT and interest for any province or city, or a municipality within the Metropolitan Manila Area; and

WHEREAS, Section17, Article VII of the 1987 Constitution provides that the President shall have control over all Executive departments, bureaus or offices, and ensure the faithful execution of laws:

NOW, THEREFORE, I, FERDINAND R. MARCOS, JR., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

### Section 1. Reduction and Condonation.

All liabilities for RPT for Calendar Year (CY) 2023, including any special levies accruing to the Special Education Fund on property, machinery and equipment actually and directly used by IPPs for the production of electricity under Build-Operate-Transfer scheme and similar contracts, whether denominated as Power Purchase Agreements, Energy Conversion Agreements or other contractual agreements, with GOCCs, assessed by LGUs and other entities authorized to impose RPT for all years up to CY 2023, are hereby reduced to an amount equivalent to the tax due if computed based on assessment level of fifteen percent (15%) of the fair market value of said property, machinery and equipment depreciated at the rate of two percent (2%) per annum, less any amount already paid by the IPPs. All interests and penalties on such deficiency RPT liabilities are also hereby condoned and the concerned IPPs are relieved from payment thereof.

### Section 2. Application to Future RPT Liabilities.

All RPT payments made by the IPPs over and above the reduced amount under Section 1 of this Order shall be applied to their RPT liabilities for succeeding years.

### Section 3. Compliance by all Government Entities.

All concerned departments, agencies and instrumentalities of the government, including concerned GOCCs and LGUs, are hereby directed to strictly comply with this Order. Any violation of this Order shall be dealt with in accordance with civil service laws, rules and regulations.

### Section 4. Separability.

If any part or provision of this Order shall be held invalid or unconstitutional, the provisions not affected thereby shall remain in full force and effect.

### Section 5. Repeal.

All orders, rules and regulations, and other issuances or parts thereof which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.

### Section 6. Effectivity.

This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE, in the City of Manila, this 25th day of July, in the year of Our Lord, Two Thousand and Twenty-Three.

(SGD.) FERDINAND ROMUALDEZ MARCOS, JR.

By the President:

(SGD.) LUCAS P. BERSAMIN
Executive Secretary