Title
Development fees in protected areas
Law
Administrative Order No. 2018-05
Decision Date
May 24, 2018
The Department of Environment and Natural Resources (DENR) establishes new guidelines for determining development fees and administrative processes for Special Use Agreements in Protected Areas, ensuring sustainable resource use and biodiversity protection.
A

Definition and Computation of Development Fees

  • Development fees are imposed as a fixed percentage of the zonal value of land and any improvements therein within protected areas.
  • Fee comprises:
    • Five percent (5%) of the latest zonal value of the commercial zone from the nearest barangay or municipality multiplied by the development area size.
    • One percent (1%) of the value of improvements (structures/land improvements) as a premium to the protected area.

Basis and Evaluation of Zonal Value

  • Zonal values are determined by the Bureau of Internal Revenue (BIR) in consultation with realtors and knowledgeable locals.
  • Used primarily for capital gains, transfer, donor’s, creditable withholding taxes, expropriations, and other government transactions.
  • Fees are subject to re-evaluation every five (5) years to reflect current zonal values.

Definition of Terms

  • Zonal Value: BIR-set value for tax and transaction basis in a given commercial zone.
  • Development Fee: Charge for use of land/resources for small, medium, or large-scale developments within protected areas.

Payment Procedure and Proof of Payment

  • Development fee must be paid by the proponent upon SAPA approval by the DENR Secretary and annually thereafter.
  • Payments are to be deposited into the Integrated Protected Area Fund (IPAF).
  • Proof of payment must be presented to the DENR through the Protected Area Superintendent (PASU), who will release the SAPA after confirmation.
  • Annual SAPA fees are due within 30 days from issuance.

Penalties for Late Payment

  • Late payment attracts an 8.33% monthly surcharge.
  • If payment is delayed one year or more, a 100% surcharge applies.

Administrative Fee for Application

  • A fixed administrative fee of Five Thousand Pesos (PhP5,000) is required for each SAPA application.
  • Covers examination, assessment, and processing costs of the application requirements.
  • Administrative fees collected are deposited to the IPAF.

Monitoring and Environmental Accountability

  • DENR monitors environmental and sustainability programs/projects implemented by proponents.
  • Annual accomplishment reports must be submitted to the Protected Area Management Board (PAMB).
  • Reports are used to evaluate contributions to biodiversity conservation and ecosystem sustainability.

Amendments and Transition Provisions

  • Annex B, the flow chart for SAPA processing, is amended to include fee payment steps.
  • All existing Memoranda of Agreement (MOA) on special uses within protected areas must be converted into SAPAs in accordance with DAO 2007-17 and this Addendum.

Effectivity

  • The order takes effect 15 days after publication in a newspaper of general circulation.
  • Effectivity also requires acknowledgment of receipt by the Office of the National Administrative Register (ONAR).

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