the tourism act of 2009 (republic act no. 9593) special economic zone act (republic act no. 7916) ...

The Tourism Act of 2009 (Republic Act No. 9593)The Tourism Act of 2009 (Republic Act No. 9593)

Special Economic Zone Act (Republic Act No. 7916) Special Economic Zone Act (Republic Act No. 7916)

The Omnibus Investment Code of 1987The Omnibus Investment Code of 1987 (Executive Order No. 226)(Executive Order No. 226)

Act Granting of Special Investors Resident Visa (SIRV)Act Granting of Special Investors Resident Visa (SIRV)(Executive Order No. 63)(Executive Order No. 63)

The Foreign Investments Act of 1991The Foreign Investments Act of 1991 (Republic Act No. 7042)(Republic Act No. 7042)

Investors’ Lease ActInvestors’ Lease Act(Republic Act No. 7652)(Republic Act No. 7652)

TOURISM RELATED INVESTMENT LAWS

TOURISM ENTERPRISE ZONES

THE TOURISM ACT OF 2009 (R.A. 9593)

Designation, operation and administration of incentives to the establishment of tourism enterprise zones (TEZ)

CRITERIA

• Defined into one contiguous territory;

•Must have historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it;

•Strategic access through transportation infrastructure, utilities, infrastructure system


• At least five (5) hectares and sufficient in size. • It is in a strategic location such as to stimulate the

sustainable socio-economic development of neighboring communities.

• The area must be situated where controls can easily be established to curtail illegal activities.


THE TOURISM ACT OF 2009 (R.A. 9593)

Incentives Available to Tourism Enterprises outside of designated TEZs

CRITERIA

•Registered Tourism Enterprise undertakes a substantial expansion/upgrade of facilities

•Cost of expansion/upgrade of physical assets amounts to at least 50% of the original investment

• There is a significant change in its category classification under the DOT’s accreditation system


Incentives to TEZs and tourism enterprises within the zone

•Income Tax Holiday (6 years, extendible for another 6 years)•Net Loss Carry Over (Deduction from gross income for 6 years) •Gross Income Taxation (5% GIT Rate)•Importation of Capital Investment and Equipment •Importation of Transportation Equipment and Spare Parts•Importation of Goods and Services


•Tax credit •Social Responsibility Incentive •Employment of Foreign Nationals•Special Investor’s Resident Visa•Foreign Currency Transactions•Requisition of Investment•Lease and Ownership of Land


Incentives to Tourism Enterprise located outside of TEZ

•Income Tax Holiday (6 years, non-extendible)

•Importation of capital equipment free of taxes and duties


Classification of TEZs

•Cultural Heritage Tourism Zone

•Health & Wellness Tourism Zone

•Eco-tourism Zone

•General Leisure Tourism Zone

•Mixed Use Tourism Zone


Ciudad De Victoria, BulacanCiudad De Victoria, Bulacan

Newport City, ParanaqueNewport City, Paranaque

DESIGNATED TEZs.DESIGNATED TEZs.

TOURISM ECONOMIC ZONES

SPECIAL ECONOMIC ZONE ACT (R.A. 7916)

• MOA between DOT and PEZA Signed October 7, 2002

• Guidelines for Registration of TEZs Effective November 12, 2002



Registrable Activities

• Tourism Ecozone Developers/Operators• Tourism Ecozone Locators

Sports and Recreational Centers Accommodation Convention & Cultural Facilities Theme Parks Special Interest Attraction/Activities/Establishments



Registrable Activities

• Enterprises establishing and operating airports, seaports/marinas



Incentives to Tourism Ecozone Developers• Exemption from national and local

taxes, in lieu thereof, 5% Gross Income Rate



Incentives to Tourism Ecozone Locators• Tax and duty free importation of Capital

Equipment• Income Tax Holiday • Employment of foreign nationals• Exemption from national and local taxes, in lieu

thereof, 5% Gross Income Tax Rate• SIRV under E.O. 63


DECLARED ECOZONES UNDER PEZA

Camarines Sur Tourism ParkCamarines Sur Tourism ParkBoracay Eco-Cultural Village Boracay Eco-Cultural Village

ResortResort

Ilawod Estates CabatuanIlawod Estates CabatuanIloiloIloilo

Paseo Del Rio De CagayanPaseo Del Rio De CagayanCagayan De Oro CityCagayan De Oro City

SYMPOSIUM ON PROPERTY DATA BANKING FOR TOURISM INVESTMENTS

Tourism Investments Promotion GroupOffice of Tourism Standards and RegulationDepartment of Tourism

DECLARED ECOZONES UNDER PEZA

Embarcadero de LegazpiEmbarcadero de LegazpiLegazpi CityLegazpi City

Pangulasian Island GreenPangulasian Island Green Tourism Economic ZoneTourism Economic Zone

Bagong Nayong PilipinoBagong Nayong Pilipino Entertainment CityEntertainment City

Manila Bay ResortsManila Bay Resorts

INVESTMENT INVESTMENT PRIORITIES PLAN PRIORITIES PLAN

(IPP)(IPP)

OMNIBUS INVESTMENTS CODE OF 1987 under (EO 226)Accommodation Facilities (P/NP)(Hotels, Resorts, Condotels ,Tourist Inns, Apartels/Serviced Apartments, Pension Houses, Motels,Private Homes for Homestay, Ecolodges, Bed & Breakfast facilities)

• Convention and exhibition facilities (MICE)• Adventure and Eco-tourism facilities• Sport facilities and recreational centers• Agri-tourism farms and facilities• Theme parks/Amusement Parks• Tourist Transport Services• Development of Retirement Villages• Health/Medical Tourism Facilities (Spas, tertiary hospitals, ambulatory

clinics)• Tourism Training Centers/Institutes• Restoration/preservation and operation of historical shrines, landmarks and

structures

INVESTMENT PRIORITIES PLAN

OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)

PIONEER STATUS CRITERIA Hotel projects/apartment hotels/serviced apartments/condotels

classified as First Class or Deluxe costing at least US $100,000 / roomResort projects classified as Class “AAA” with project cost of at least

US $ 10 million per project Projects located in LDAs Modernization of hotels classified as First Class or De Luxe with a project

cost of at least US$ 10,000/room Amusement parks/theme parks with a minimum project cost of US$ 10

million involving the development sites or attractions considered as novel in the Philippines

Adventure and ecotourism facilities/agri-tourism farms and facilities with a project cost of at least the Philippine Peso equivalent of USD 5 million.


OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)

INCENTIVES TO TOURISM PRIORITY PROJECTS• Income Tax Holiday• Importation of Capital Equipment (pursuant

to E.O. 70)• Employment of foreign nationals


INCOME TAX HOLIDAY UNDER EO 226

• New Projects (Pioneer) - 6 years• New Projects (Non-Pioneer) - 4 years• Expansion Projects - 3 years• Projects in Less Developed - 6 years Areas (regardless of status)• Modernization Projects - 3 years


IMPORTATION OF CAPITAL EQUIPMENT (pursuant to E.O. No. 70)

•0% duty on equipment granted to enterprises registered with BOI •Can be availed for five (5) years or until May 2017.


INCENTIVES UNDER E.O. # 63

• Special Investor’s Resident Visa (SIRV) to investor, wife and unmarried minor children• Remittance of Earnings• Repatriation of Capital• Right of succession

INCENTIVES UNDER E.O. # 63

• He has not been convicted of a crime involving moral turpitude

• He is not afflicted with AIDS or any loathsome, dangerous or contagious disease

• He has not been institutionalized for any mental disorder or disability

• He is willing and able to invest at least US $50,000 in a tourism related project

QUALIFICATIONS:


FOREIGN INVESTMENTS ACT OF 1991 (RA 7042 AS AMENDED BY RA 8179)

Domestic market is open to foreign investors as long as the activity is not restricted in the Foreign Investment Negative List (FINL)

Ownership of private lands (up to 40% foreign equity) Tourist Transport Operation (up to 40% foreign equity)

Tourism Capability Building Seminar

OWNERSHIP OF PRIVATE LANDS

General Rule

Nationality Requirement under the Philippine Constitution up to 40% foreign equity


LEASING OF PRIVATE LANDS General Rule per PD 471

25 years - original 25 years - renewable

Exception per RA 7652 or Investor’s Lease Act Minimum investment of US $5 million for tourism

projects 50 years - original 25 years - renewable


SUMMARY

At present, the Philippine tourism industry is very dynamic and fast growing .... more and more investments are needed to sustain its growth...

Focus on the National Tourism Development Clusters for tourism investments

Invest in Philippine tourism. When? NOW.

Investments. More fun in the Philippines

the tourism act of 2009 (republic act no. 9593) special economic zone act (republic act no. 7916) ...

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tourism act

tourism enterprises

tourism economic zones

foreign investments

zone income tax holiday

original investment

tez income tax holiday

years gross income taxation