Tourism Infrastructure and Enterprise Zone Authority (Tieza)

Compared to Peza, Tieza theoretically can offer an even more attractive fiscal
incentive package and tourism being its overarching mandate, proponents deem it
could be the more suitable, albeit still untested, zoning framework for gaming.

Under the Tieza framework, new enterprises in greenfield and brownfield tourism
zones will, from the start of business operations, be exempt from tax on income for a
period of six years. The income tax holiday may even be extended if the enterprise
undertakes a substantial expansion or upgrade of its facilities prior to the expiration of
the first six years.

Its registered enterprises can be allowed to carry over some net operating losses as a
deduction from their gross income for a given number of years.
Except real estate taxes and such fees as may be imposed by the Tieza, a new
enterprise will be exempt from payment of all national and local taxes and license
fees, imposts and assessments. Instead, the enterprise will pay a tax of 5-percent on its
gross income earned, divided equally to the following: the affected cities or
municipalities, the national government and Tieza.
We asked Tieza general manager Mark Lapid whether this was a viable option for
Pagcor City and this was his reply: We are here to support any development project
that will attract tourists into the counter. We will definitely look into any application
by Pagcor City to be designated as a tourism ecozone and will grant them the tax
incentives provided for by law as soon as the BIR (Bureau of Internal Revenue) has
issued the revenue regulations for this.
The operative party here, however, is the BIR. We hear that the reason why Tieza is
still untested is none of its few registrants has been able to actually use the incentives
to date. That is because it is never easy to convince the BIR to issue the revenue
regulations that will make those incentives a reality. Doris C. Dumlao
Belle conglomerate

http://business.inquirer.net/123039/game-zone#ixzz4zaxwPJBN
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