Published — December 18, 2020
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: WHAT IS TOURISM ENTERPRISE ZONE?
-
The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) may grant incentives to registered tourism enterprises
-
TEZs are being administered and supervised by TEZ operators
-
In general, there are two kinds of incentives available to TEZ operators and registered tourism enterprises
Martin Parr, a British documentary photographer said, “Tourism is the biggest industry in the world”.
In our previous article, we wrote about TEZs. This time, allow us to talk about incentives for TEZ operators and registered tourism enterprises.
Tourism enterprises within a TEZ needs to register with the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to avail of the incentives provided under the “Tourism Act of 2009”. These TEZs are being administered and supervised by TEZ operators. TEZ operators refer to any entity duly incorporated under the Corporation Code (now Revised Corporation Code) of the Philippines, and other relevant laws.
What are the incentives available to TEZ operators and registered tourism enterprises within TEZs?
The law says:
There are two kinds of incentives available to TEZ operators and registered tourism enterprises within TEZs. They are fiscal and non-fiscal incentives. Fiscal incentives refer to “monetary benefits” while non-fiscal incentives are those that are simply “non-monetary” value.
For fiscal incentives, they are the following:
- Income Tax Holiday which refers to exemption from tax on income from the start of business operation for a period of six (6) years. This income tax holiday may be extended;
- In lieu of all other national and local taxes, license fees, imposts and assessments except real estate taxes as may be imposed by the TIEZA, a new enterprise shall pay a tax of five (5%) percent on its gross income earned;
- An exemption of one hundred percent (100%) of all taxes customs duties on importations of capital investment and equipment;
- An exemption from customs and national taxes on importation of transportation and the accompanying spare parts of new and expanding registered enterprises;
- A tax credit or exemption from all taxes and customs duties on goods and services necessary for various kinds of tourism enterprises subject to rules and regulations; and
- A tax deduction not exceeding fifty percent (50%) of the cost of environmental protection or cultural heritage preservation activities, sustainable livelihood programs for local communities, and other similar activities.
For non-fiscal incentives, they are the following:
- A registered enterprise may employ foreign nationals under such terms and conditions as may be provided by the TIEZA Board;
- A foreign national who made an investment with a value of at least Two hundred thousand dollars (USD200,000.00) in a registered enterprise is entitled to a special investor’s resident visa;
- They are also to enjoy transactions involving foreign currency subject to the provisions of the New Central Bank Act.
How about tourism enterprises outside TEZs, do they enjoy the same incentives? A related article will be posted in a few days.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.
SUBSCRIBE NOW FOR MORE LEGAL UPDATES!
[email-subscribers-form id=”4″]