Scope of Incentives and Eligible Tourism Enterprises
- Initially, incentives under these Guidelines apply only to Primary Tourism Enterprises:
- Travel and Tour Facilities and Services
- Transport Facilities and Services (land, sea, air)
- Accommodation Establishments and accompanying facilities/services
- Convention and Exhibition Facilities and Services
- Tourism Estate Management Facilities and Services
- Other enterprises identified by the Secretary after sector consultation
Terms and Duration for the Grant of Incentives
- Incentives may be granted by TIEZA for a period not exceeding ten years from the date the Act took effect.
- Incentives granted during the 10-year period remain effective until fully utilized, even after the expiration of the ten-year period.
Discretionary Incentives for TEZ Operators and Registered Tourism Enterprises
- The Board has discretion to grant various incentives to TEZ Operators and Registered Tourism Enterprises located within TEZ.
- Specifics of these incentives are governed by the provisions in Book II, Rule XI.
Income Tax Holiday Incentives and Conditional Extensions
- Income tax holiday (ITH) may be extended, but the total extension period cannot exceed six (6) additional years.
- Extension is conditional upon undertaking a Substantial Expansion before the end of the initial six-year period.
Conditions for Availing Incentives in Brownfield Zones
- Existing enterprises in Brownfield Zones may avail of a non-extendible ITH if:
- They undertake a Substantial Expansion.
- The expansion extends the life or increases efficiency/capacity of assets benefiting current and future periods.
- A significant change in the Department of Tourism accreditation category occurs, where appropriate.
Incentives for Enterprises Outside the TEZ
- Enterprises outside the TEZ must apply in writing and register to avail of incentives.
- Eligible for a non-extendible ITH not exceeding six years from completion of expansion or upgrade.
- Must satisfy conditions:
- Undertake Substantial Expansion.
- Expansion results in extended asset life or increased efficiency/capacity.
- Significant change in tourism category accreditation where applicable.
- Import of Capital Investment and Equipment for expansion/upgrade is tax- and duty-free.
- In meritorious cases, expansions under 50% of original investment may qualify for prorated ITH.
Publication and Certification of Amended Guidelines
- The amended Guidelines are authorized for publication in the Official Gazette and general circulation newspapers.
- Filing with the Office of National Administrative Register confirmed.
- Certification affirms the accuracy, validity, and current enforceability of the Resolution and the amendments as of December 15, 2014.