TIEZA holds investment forum in Davao

MANILA, Philippines — The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is holding an investment forum in Davao as part of efforts to attract more investors into its tourism enterprise zones (TEZs).

In a statement, TIEZA said the forum would be held on   Sept. 25 at Waterfront Insular Hotel in Davao City in partnership with the Department of Tourism (DOT).

“TIEZA invited speakers from  DOT Region XI, Philippine Retirement Authority (PRA), Trade and Investment Development Corp. and Development Bank of the Philippines to discuss the  investment situation in Philippine tourism focusing on investment opportunities to entice companies and agencies, and  emphasizing their roles in the socio-economic development of the country,” TIEZA said.

“The forum is expected to be attended by various local and foreign chambers of commerce, developers, tourism enterprises, consultancy/law firms, tourism associations, and other tourism related establishments around the region,” it added.

A TEZ is a tract of land with defined boundaries and masterplanned to be developed into an integrated tourism complex with prescribed carrying capacities to host tourism enterprise facilities and services within the property.

Any geographic area may be designated as a TEZ, provided it has historical and cultural significance with existing or potential integrated leisure facilities and at least $5 million in investment. It must also be in a strategic location with easy access to transportation and utilities.

At present, there are 14 designated and registered TEZs  and tourism enterprises.

Last year, the Bureau of Internal Revenue (BIR) clarified that the incentives for TEZs under RA 9593 or the Tourism Act of 2009 may be enjoyed by investors even beyond 2019 until these incentives are fully realized.

Under RA  9593,TEZ developers and tourism enterprises will be granted a six-year income tax holiday  that may be extended for another six years, a five percent preferential tax on gross income in lieu of national taxes except for real property tax and fees of TIEZA, a  net operating loss carry over scheme, import tax exemptions for capital goods and equipment needed for TIEZA-registered activities, and import tax exemptions for transport equipment and spare parts needed for TIEZA-registered activities.

They will also be exempted from value-added tax and excise tax goods imported by TIEZA-registered activities, tax credit equivalent to taxes paid on locally sourced goods, and tax deduction of up to 50 percent of cost of environmental protection and cultural heritage preservation activities as well as of sustainable livelihood programs of the registered tourism enterprises.