Incentives await tourism zone investors – TIEZA

MANILA, Philippines – After years of waiting, the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) said it may finally be able to grant incentives to tourism investors with the expected release of a revenue regulation on tourism enterprise zones (TEZs).

TIEZA chief operating officer Guiller Asido said the BIR has committed to come up with the revenue regulation that will provide fiscal and non-fiscal incentives to TEZs after being questioned by the Senate earlier.

“We had a Senate hearing the other day, chaired by Sen. (Richard) Gordon. The BIR and the Department of Finance were called to the hearing...Everyone has committed to the release of the revenue regulation by Nov. 10,” Asido said on the sidelines of the Tourism and Hospitality Career Fair 2016 in Pasay City.

The delay in the issuance of the revenue regulation from the BIR has resulted in the failure of the Department of Tourism and TIEZA to implement the provisions of RA 9593 or the Tourism Act of 2009, particularly the provisions on the creation of TEZs.

Section 86 of RA 9593 provides for incentives, such as income tax holidays spanning six, gross income taxation of five percent, 100 percent exemption on all taxes and customs duties on the importation of capital equipment, and the exemption of transportation and spare parts from tariffs and duties.

TIEZA has identified six flagship tourism zones all over the country to enjoy infrastructure support from the government.