AN ACT AMENDING REPUBLIC ACT NO. 7916

Case Overview and Summary

Summary of Republic Act No. 8748 Amending the Special Economic Zone Act of 1995

PEZA Board and Administration:
- Creates the Philippine Economic Zone Authority (PEZA) as a body corporate attached to the Department of Trade and Industry. (Section 1)
- Outlines the composition, qualifications, and appointment process for the PEZA Board, Director General, and Deputy Directors General. (Section 1)
- Provides for the administration and management of each ECOZONE, including the ECOZONE executive committee and autonomy of privately-owned ECOZONEs. (Sections 2, 15)
- Grants the PEZA Board authority over personnel matters, including compensation, position classification, and qualification standards. (Section 3)

Tax Exemptions and Applicable Taxes:
- Exempts business establishments within the ECOZONE from national and local taxes, except for real property taxes on land owned by developers. (Section 4)
- Imposes a 5% tax on gross income earned by business enterprises within the ECOZONE, with 3% remitted to the National Government and 2% to the local government unit. (Section 4)
- Subjects persons and service establishments within the ECOZONE to national and local taxes under the National Internal Revenue Code and the Local Government Code. (Section 5)

Eminent Domain and Relocation:
- Grants the PEZA the power of eminent domain for the establishment of publicly-owned ECOZONEs. (Section 6)
- Requires the PEZA to provide proper disturbance compensation to persons or groups evicted from the ECOZONE. (Section 6)
- Entitles displaced agrarian reform beneficiaries to benefits under the Comprehensive Agrarian Reform Law, including a homelot in the relocation site and preferential employment in the project. (Section 6)

Non-Applicability:
- Specifies that the Act shall not be applicable to economic zones and areas created or to be created under Republic Act No. 7227 or other special laws. (Section 7)

Effectivity:
- The Act shall take effect fifteen (15) days after its publication in the Official Gazette or in two (2) newspapers of general circulation, whichever comes earlier. (Section 8)