TIEZA OFFERS EXCITING PERKS, LURES INVESTORS
Tourism Infrastructure and Enterprise Zone Authority said property owners who own at least five hectares of land and who will invest at least $5 million for the development of the property may apply as Tourism Enterprise Zones and enjoy fiscal and non-fis
A bolder and bigger tourism industry awaits the Philippines with the government pledging more tourism enterprise zones (TEZ) in the coming years.
The promise is reinforced by the recent approval of the Bureau of Interal Revenue (BIR) to provide fiscal incentives to select tourism establishments, said Atty. Joy Bulauitan, Tourism Infrastructure and Enterprise Zone Authority (Tieza) assistant chief operating officer in a forum on Tuesday at the Waterfront Cebu City Hotel and Casino.
Under BIR Revenue Regulation No. 7-2016, signed on Nov. 15 last year, fiscal incentives can be given to firms operating inside tourism enterprise zones (TEZs), as provided by Republic Act (RA) No. 9593, or the Tourism Act of 2009.
The perks, which can be enjoyed until 2019, include a sixyear income tax holiday that may be extended for another six years; import tax exemptions for capital goods and equipment needed for Tieza-registered activities; import tax exemptions for transport equipment and spare parts; as well as an exemption from value-added tax (VAT) and excise tax goods imported for Tieza-registered activities.
Other fiscal incentives also include tax deduction of up to 50 percent of cost of environmental protection and cultural heritage preservation activities, as well as sustainable livelihood programs of the registered tourism enterprises (RTEs).
Moreover, those outside TEZ may also enjoy income tax holiday, and tax exemption on importation of capital investment and equipment provided they undertake substantial expansion or upgrade of facility.
“We waited for this for seven years and now it’s here,” Bulaui-
We have waited for this for seven years, and now it is here. ATTY. JOY BULAUITAN
tan said, adding that it is high time for investors to invest in tourism-related facilities from hotels, resorts, restaurants, theme parks, museums, and tour services, among others.
The Tieza official said private investors who own at least five hectares of land, and who will invest at least $5 million for the development of the property, may apply as TEZ.
As a reward, establishments
inside the TEZ will enjoy fiscal and non-fiscal incentives.
Tieza, an attached agency of the Department of Tourism (DOT), has already approved private sector-led TEZs namely Ciudad de Victoria in Bulacan, Bravo Golf Resort in Dumaguete, Hijo Plantation in Davao, Queen’s Castle Golf and Resort in Medellin, Cebu, Resorts World in Parañaque and King Dome in Davao.
It also designated five flagship TEZs, including San Vicente in Palawan, Rizal Park in Manila, Mount Samat Shrine in Bataan and South Palms in Panglao, Bohol. Flagship TEZ is Tieza’s joint initiative with DOT in developing areas within the country that have viable tourism potentials.
Tieza is currently looking for two more flagship TEZs.