GUIDELINES FOR THE REGISTRATION AND ADMINISTRATION OF INCENTIVES TO
TOURISM ECOZONE DEVELOPERS / OPERATORS AND LOCATORS,
PURSUANT TO REPUBLIC ACT NO. 7916, AS AMENDED

(Approved by the PEZA Board on 10 October 2002)

What this is For:

Registration and Administration of Incentives to Tourism Ecozone Developers / Operators and Locators

I. DEFINITION OF TERMS

1. Tourism Development Zone / Tourism Estate refers to a tract of land with defined boundaries, suitable for development into an integrated resort complex, with prescribed carrying capacities of tourist facilities and activities, such as, but not limited to, sports and recreation centers, accommodations, convention and cultural facilities, food and beverage outlets, commercial establishments and other special interest and attraction activities / establishments, and provided with roads, water supply facilities, power distribution facilities, drainage and sewage systems and other necessary infrastructure and public utilities. A Tourism Development Zone / Tourism Estate shall be under unified and continuous management, and can either be a component of an ecozone or the whole ecozone itself.

2. Tourism Ecozone refers to a Tourism Development Zone / Tourism Estate which has been granted special economic zone status, through PEZA registration and issuance of the required Presidential Proclamation, with its metes and bounds delineated by the Proclamation pursuant to R.A. No. 7916, as amended.

3. Tourism Ecozone Developer / Operator refers to the owner and/or operator of a Tourism development Zone / Tourism Estate seeking registration with PEZA and the required Presidential Proclamation of the Tourism Development Zone / Tourism Estate as a Tourism Ecozone for the availment of incentives provided under R.A. No. 7916.

4. Tourism Ecozone Locators refers to enterprises registered with PEZA for the establishment and operation, within PEZA-registered Tourism Ecozones, of sports and recreation centers, accommodation, convention, and cultural facilities and other special interest and attraction activities / establishments, with foreign tourists as primary clientele, and which are, therefore, eligible for fiscal and non-fiscal incentives.

II. COVERAGE

These Guidelines shall cover the PEZA registration of and the grant of fiscal and non-fiscal incentives to Tourism Ecozone Developers / Operators and Locators, as provided under R.A. No. 7916, as amended.

1. Location

PEZA-registered Tourism Ecozones shall be located in priority areas identified in or consistent with the DOTs Tourism Master Plans.

2. Landholding Rights

A PEZA-registered Tourism Ecozone Developer / Operator shall have proof of ownership or right / authority to use the land subject of the Tourism Ecozone and shall be responsible for the management and operation of such Tourism Ecozone. A Tourism Ecozone may serve as location for Filipino, foreign and/or joint venture enterprises engaged in tourism-oriented activities, endorsed by the DOT and subsequently registered or given locational clearance by PEZA. Location of an enterprise / establishment in a Tourism Ecozone, therefore, shall not automatically entitle the enterprise to availment of incentives provided under R. A. No. 7916, as amended.

3. Registrable Activities and Fiscal Incentives

The following enterprises, activities and facilities, established with foreign tourists as primary clientele, as may be determined through compliance with appropriate DOT standards, may, upon endorsement of the DOT, be considered for PEZA-registration for ailment of fiscal and non-fiscal incentives provided under R.A. No. 7916, as amended:

a. Tourism Ecozone Developers / Operators shall be entitled to four (4) years of Income Tax Holiday (ITH), subject to the provisions of the Investment Priorities Plan (IPP), provided that Tourism Ecozones located in Less Developed Areas shall be granted six (6) years ITH. Upon expiry of the ITH period, Tourism Ecozone Developers/ Operators shall have the option to pay a special 5% tax on gross income earned, in lieu of all national and local taxes, except real property taxes on land owned by developers (5% GIT incentive), provided, however, that PEZA-registered Tourism Ecozone Developers / Operators shall have the option to forego its ITH incentive entitlement and immediately avail of the 5% GIT incentive upon start of their commercial operations.

b. Enterprises establishing and operating sports and recreation centers, accommodation, convention and cultural facilities, theme parks, and other special interest or attraction activities / establishments shall be entitled to four (4) years ITH, as may be provided in and in accordance with the provisions of the IPP, and tax and duty-free importation of capital equipment required for the technical viability and operation of the registered activities of the enterprises. Upon expiry of the ITH period, PEZA-registered Tourism Ecozone locators shall be entitled to the 5 % GIT incentive, provided, however, that they shall have the option to forego their ITH incentive entitlement and immediately avail of the 5% tax GIT incentive upon start of their commercial operations.

c. Enterprises establishing and operating airports, seaports and / or marinas shall be entitled to the ITH incentive, as may be provided in and in accordance with provisions of the IPP, and tax and duty-free importation of capital equipment. Upon expiry of the ITH period, PEZA-registered Tourism Ecozone locators establishing and operating airports, seaports and / or marinas shall be entitled to avail of the 5 % GIT incentive, provided, however, that they shall have the option to forego their ITH incentive entitlement and immediately avail of the 5% GIT incentive upon start of their commercial operations. All PEZA-registered Tourism Developers/Operators and Locator Enterprises shall conform with the development guidelines and operating standards of the DOT, land use and zoning regulations, as well as the policies and guidelines of other concerned government agencies, provided that in the case of Ecotourism Projects, endorsement from the National Ecotourism Steering Committee shall also be secured prior to PEZA registration.

All PEZA-registered Tourism Developers / Operators and Locator Enterprises shall conform with the development guidelines and operating standards of the DOT, land use and zoning regulations, as well as the policies and guidelines of other concerned government agencies, provided that in the case of Ecotourism Projects, endorsement from the National Ecotourism Steering Committee shall also be secured prior to PEZA registration.

4. Non-Fiscal Incentives

PEZA-registered Tourism Ecozone Developers / Operators and Locators shall be entitled to the following non-fiscal incentives:

a. Employment of foreign national, as provided under R.A. No. 7916;

b. Special Investors Resident Visa, as provided under Executive Order No. 63; and

c. Incentives under the Build-Operate-Transfer Law, as may be applicable, subject to prescribed guidelines.

Where to File:

PEZA

Roxas Boulevard corner San Luis Street, Pasay City, Philippines

Tel. No.: (632) 551-3454 or 551-3455; Fax No.: (632) 891-6380; Email: info@peza.gov.ph

How to File:

MGB Form 29-11 (Series of 2000)

Department of Environment and Natural Resources

MINES AND GEOSCIENCES BUREAU

Mineral Economics, Information & Publications Division

North Avenue, Diliman, Quezon City

MONTHLY REPORT ON PRODUCTION, SALES AND INVENTORY OF QUARRY RESOURCES (EXCEPT SAND & GRAVEL) & SMALL SCALE NON-METALLIC

REPORT PERIOD: MONTH ________ YEAR ______

INSTRUCTIONS:

1. This form must be accomplished in duplicate

2. Submit the original copy to MGB Central Office through the Mineral Economics, Information & Publications Division (MEIPD) , copy furnished the Concerned Region

within 15 working days after the end of each calendar month.

3. Submission of this report is in compliance with SECTION 270, CHAPTER XXIX, OF DENR AO 96-40 or the implementing rules and regulations of REPUBLIC ACT NO. 7942.

4. Information to be supplied by the reporting Contractor/Operator/Permit Holder should cover the period from the first day to the last day of the report month.

5. This report form must be accomplished by Contractors/Operators/Permit Holder of Mineral Agreements, FTAAs or Mineral Processing Permits producing non-metallic minerals.

6. Fill-up production portion of this form on a per quarry resource produced.

7. For any non-metallic minerals not included in the list, please fill up the form and specify the mineral.

8. Do not leave any of the requirements unanswered. If a requirement does not apply, write NA (Not Applicable). If the question is applicable but you have no answer, write NONE.

9. This document should be signed by the resident manager or equivalent position thereof.

10. This report should be duly notarized.

11. Use additional sheet if necessary

12. For any comments, suggestions or clarifications regarding this form please consult your nearest MGB Regional Office in your area

DEFINITION OF TERMS:

Contractor/Operator is composed of one Head Office and one or more Quarry Sites

Quarry Site refers to the location where mineral extraction takes place (Barangay, Municipality, Province)

Capacity refers to the capacity of the mill or processing facility used by the permittee/operator expressed in Metric Ton Per Day (MTPD).

Rated Capacity refers to the maximum fixed output of a mill or processing facility expressed in Metric Tons Per Day (MTPD). It is also the measure of the theoretical amount of material that can be

handled/recovered in any given time by the mill.

Actual Capacity refers to the attained capacity of the mill or processing facility in Metric Tons Per Day (MTPD). It also refers to the constant amount of material that can be recovered/handled

in a given actual time per day

Number of days in operation refers to the total number of days the company is in operation during the reporting period

Grade Analysis refers to the grade composition of the most important components of the mineral.

Production quantity refers to the total volume of mineral extracted during the reporting period expressed in Metric Ton (MT).

Production value r efers to the total value or gross output of mineral extracted during the reporting period as defined in Chapter 1, Section 5 of the Revised IRR of the Phil. Mining Act of 1995. (under the term "Gross Output")

Estimated extraction fee payable refers to an estimate of the total extraction fee to be paid by the permittee covering the production during the reporting period and based on the prevailing extraction fee rate in the

province/city.

Sales quantity refers to the total volume of mineral sold during the reporting period expressed in Metric Tons (MT).

Sales value refers to the total value of mineral sold during the reporting period. This value includes all costs of production, taxes invoiced to purchasers, transport & trade mark-up.

Estimated excise tax payable refers to an extimate of the total excise tax on minerals to be paid by the permittee to the Bureau of Internal Revenue (BIR) covering the production during the reporting period and

based on the rate prescribed by Section 217 (b) of the Revised IRR of the Mining Act of 1995.

Page 1 of 3

MGB Form 29-11 (Series of 2000)

COVERAGE OF NON-METALLIC MINERALS

1.

2.

3.

4.

Asbestos

Barite

Bauxite

Bentonite

5.

6.

7.

8.

White clay or Kaolin

Dolomite

Feldspar

Gypsum

9. Magnesite

10. Mica

11. Limestone

12. Shale Clay

13. Silica Quartz

14. Silica Sand

15. Bull Quartz

16. Talc

17. Precious and Semi-Precious Stone

18. Pebbles

19. Others (pls. Specify) ___________

PROCESSED MINERAL PRODUCTS (Figures will not be included in totals)

1. Hydrated Lime or Slaked Lime

2. Quicklime

3. Processed Marble

4. Cement

I. ADMINISTRATIVE DATA

NAME OF CONTRACTOR/OPERATOR - If name of person, please write surname first

REPORT MONTH/YEAR

TAX IDENTIFICATION NO. (TIN)

OFFICE ADDRESS

TELEPHONE NO.

FAX. NO.

PROJECT NAME:

E-MAIL ADDRESS (if any)

DATE OF 1st OPERATION (if new)

CONTRACT NO(s)

MERIDIONAL BLOCK(s)

SITE ADDRESS: (State Barangay, Municipality, Province)

II. PRODUCTION DATA (Use additional sheet if necessary)

MINERAL PRODUCT : (Specify)

MILL CAPACITY

PRODUCTION

Quantity (M.T.)**

Value (P)

Rated

Actual

GRADE ANALYSIS

NO. OF DAYS

IN OPERATION

Content

Component

Content

Monthly Inventory

Component

Quantity (M.T.)

Value (P)

Reasons for increase or decrease in production this month compared to the previous month: (pls. check appropriate answer below and use additional sheet if necessary)

Increase was due to:

Decrease was due to:

1. Increased price of 1. Lesser operating days

the mineral being

produced

2.c Force Majeure (pls. specify)_______________________________

1.a Equipment breakdown (pls. specify)__________________________________________________

2.d Environmental Problems (pls. specify)______________________

1.b Unfavorable weather condition (state duration or other information)________________________

2.e Gov't preventive actions such as CDO (pls. specify)___________

2. Increased demand

1.c Collapse/slide in working areas (state area) )___________________________________________

2.f Financial Problems (pls. specify) ___________________________

3. Expansion

1.d Labor or other strikes (state duration)________________________________________________

3. Others (pls. Specify) ______________________________________________

4. More operating days 2. Suspension due to

5. Others (pls specify)

________________________

2.a Low price of the mineral commodity produced

2.b Market Problems (pls. specify)_____________________________________________________

Page 2 of 3

ESTIMATED EXTRACTION

FEE PAYABLE

MGB Form 29-11 (Series of 2000)

III. SALES/MARKETING DATA (Use additional sheet if necessary)

_____Export

CONSIGNEE/BUYER/ADDRESS

_____Local Sales

COUNTRY OF

MARKETING CONTRACT/

NAME OF

DESTINATION

SALES AGREEMENT NO.

VESSEL

AVERAGE GRADE

Content

Unit of Measure

VALUE

QUANTITY

(MT)**

PESO

ESTIMATED EXCISE

DOLLAR

TAX PAYABLE

Name

Address

Name

Address

TOTAL

**Use bags for cement and cubic meters for marble

IV. EMPLOYMENT DATA

Report the number of persons engaged in work at the head office and quarry site during this month

TYPE OF EMPLOYEES

HEAD OFFICE

MALE

FEMALE

MALE

1. MANAGERIAL

2. PRODUCTION

3. ADMINISTRATIVE

4. OTHERS

PREPARED BY:

OFFICIAL DESIGNATION

QUARRY SITE

TOTAL

FEMALE

MALE

FEMALE

ADDRESS

(Signature over printed name)

IV. CERTIFICATION

I hereby certify that all information in this report are complete, true and correct to the best of my knowledge and belief.

SIGNATURE OF REPORTING OFFICIAL

OFFICIAL POSITION

DATE

REPUBLIC OF THE PHILIPPINES)

) S.S.

)

Subscribed and sworn to before me this ______ day of ______________, 20 ___ , the affiant exhibiting his/her Community Tax Certificate No. ____________, issued at _______________,

on the ____________ day of __________________ 20______.

DOC NO.

PAGE NO

BOOK NO.

SERIES OF

NOTARY PUBLIC

My Commission Expires on Dec. 31, 20___

PTR No. _________

Page 3 of 3

Other Documentary Requirements:

DOCUMENTARY REQUIREMENTS FOR PEZA-REGISTRATION OF PROPOSED TOURISM ECOZONES AND LOCATOR ENTERPRISES

Applications for PEZA-registration of proposed Tourism Ecozones by Developers / Operators shall be submitted with the following documentary requirements:

1. Endorsement of the DOT (and in the case of Ecotourism Projects, together with the endorsement of the National Ecotourism Steering Committee);

2. Duly accomplished PEZA Application Form For registration as Tourism Ecozone ;

3. Board Resolution authorizing the filing of the application with PEZA and designating representative(s) authorized to transact Registration with PEZA;

4. Proof of ownership of or right to use the land subject of the proposed Tourism Ecozone;

5. Land Use Conversion Clearance Certificate or its equivalent from the Department of Agrarian Reform (DAR);

6. Certification from the Department of Agriculture (DA) that the proposed area is not covered by Administrative Order No. 20 and that such land has ceased to be economically feasible for agricultural purposes;

7. Certification from the Housing Land Use Regulatory Board (HLURB) specifying that the proposed land use is in accordance with the land use plan duly approved by the legislative council (Sanggunian) of the host municipality / city;

8. Environmental Compliance Certificate issued by the Department of Environmental and Natural Resources / Environmental Management Bureau (DENR / EMB);

9. National Water Resources Board (NWRB) Certification that establishment of the proposed Tourism Ecozone shall not cause water supply problem for adjacent communities;

10. Endorsements by the concerned Local Government Units (LGUs);

11. Site Development Plan;

12. Technical Description of the area(s) sought to be proclaimed as an ecozone including survey returns duly approved by the Land Management Bureau; and

13. Securities and Exchange Commission (SEC) Registration including Articles of Incorporation and By-Laws;

Applications for PEZA-registration of Tourism Ecozone Locator Enterprises shall be submitted with the following documentary requirements:

1. Endorsement of the DOT;

2. Duly accomplished PEZA Application Form;

3. Board Resolution Authorizing the filing of the application with PEZA and designating representative(s) authorized to transact Regis-tration with PEZA;

4. Securities and Exchange Commission (SEC) Registration including Articles of Incorporation and By-Laws;

5. Corporate Profile (including that of the parent company, if applicable):

a. Brief history of the company;

b. Principal officers and bio-data;

c. List of affiliated companies in the Philippines;

d. Audited Financial Statements (for the latest three years for existing companies); and

e. Existing business activities and projects

6. Project Brief (providing information on the proposed activity to be registered with PEZA and the corresponding market, technical, management and financial aspects of the proposed project)

IV. EFFECTIVITY

These Guidelines shall take effect thirty (30) days after publication in the Official Gazette or in a newspaper of general circulation.