Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaFourteenth Congress
Second Regular SessionBegun and held in Metro Manila, on Monday, the twenty seventh day of July, two thousand nine.
Republic Act No. 9728
AN ACT CONVERTING THE BATAAN ECONOMIC ZONE LOCATED IN THE MUNICIPALITY OF MARIVELES. PROVINCE OF BATAAN, INTO THE FREEPORT AREA OF BATAAN (FAB), CREATING FOR THIS PURPOSE THE AUTHORITY OF THE FREEPORT AREA OF BATAAN (AFAB), APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled.
Section 1. Short Title. - This Act shall be known as the "Freeport Area of Bataan (FAB) Act of 2009.
Section 2. Declaration of Policy. - It IS hereby declared the policy of the State to actively encourage, promote, induce and accelerate a sound and balanced Industrial, economic and social development of the country In order to provide jobs to the people especially those in the rural areas, increase productivity and individual and family income, and thereby improve the level and...
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Republic Acts
AN ACT CONVERTING THE BATAAN ECONOMIC ZONE LOCATED IN THE MUNICIPALITY OF MARIVELES
Republic Act No. 9728
Summary of Republic Act No. 9728 (Freeport Area of Bataan Act of 2009)
Conversion of Bataan Economic Zone into Freeport Area of Bataan (FAB)
- Section 3: The existing Bataan Economic Zone located in Mariveles, Bataan is converted into a special economic zone and freeport called the Freeport Area of Bataan (FAB).
- Section 4: Governing principles for the management and operation of the FAB.
Fiscal Incentives
- Section 5: Registered enterprises in the FAB may be entitled to fiscal incentives under existing laws.
- Section 6: Business establishments in the FAB shall pay a 5% final tax on gross income earned, distributed as follows:
- 1% to the National Government
- 1% to the Province of Bataan
- 1% to the Municipality of Mariveles
- 2% to the Authority of the Freeport Area of Bataan (AFAB)
Investor's Visa
- Section 7: Foreign nationals investing at least $150,000 in a registered enterprise shall be entitled to an investor's visa, subject to certain qualifications.
Administration and Monitoring of Incentives
- Section 8: The AFAB shall administer and implement incentives for registered enterprises, while the Department of Finance shall monitor the incentives granted.
Extension and Duration of Incentives
- Section 9: The AFAB may extend the availment period of incentives if the registered enterprise suffers operational force majeure.
- Section 10: Fiscal incentives shall be terminated after 20 years from registration or start of commercial operation, except for industries deemed indispensable to national development.
Creation and Powers of the Authority of the Freeport Area of Bataan (AFAB)
- Section 11: Creation of the AFAB to manage and operate the FAB.
- Section 13: Powers and functions of the AFAB, including regulating enterprises, providing utilities and infrastructure, borrowing funds, providing security, and issuing rules and regulations.
Board of Directors and Administration
- Section 14: Composition and appointment of the AFAB Board of Directors.
- Section 15: Powers and duties of the AFAB Chairman-Administrator.
- Section 16: Organizational structure and personnel of the AFAB.
- Section 17: Establishment of a labor center within the FAB.
Banking, Remittances, and Applicability
- Section 18: Existing banking laws and regulations of the Bangko Sentral ng Pilipinas shall apply to banks and financial institutions in the FAB.
- Section 19: Registered enterprises shall have the right to remit earnings from foreign investments.
- Section 20: Certain provisions of the Special Economic Zone Act of 1995 shall apply to the FAB.
Capitalization and Supervision
- Section 21: Authorized capital stock of the AFAB and government contributions.
- Section 22: The AFAB shall be under the direct control and supervision of the Office of the President.
Relationship with Local Government Units and Legal Counsel
- Section 24: Relationship between the AFAB and local government units, with the AFAB's decision prevailing in case of conflict.
- Section 25: The AFAB shall have its own internal legal counsel.
Interpretation, Audit, and Transitory Provisions
- Section 26: Interpretation of the AFAB's powers and functions.
- Section 27: The Commission on Audit shall appoint a full-time auditor or assign personnel to the AFAB.
- Section 28: Transfer of properties, assets, funds, rights, obligations, and liabilities from the Bataan Economic Zone to the AFAB, and provisions for personnel.
Implementing Rules and Regulations, Separability Clause, Repealing Clause, and Effectivity
- Section 29: Formulation of implementing rules and regulations within 90 days after approval.
- Section 30: Separability clause.
- Section 31: Repealing clause for inconsistent laws and issuances.
- Section 32: Effectivity clause upon publication in a newspaper of general circulation.
Conversion of Bataan Economic Zone into Freeport Area of Bataan (FAB)
- Section 3: The existing Bataan Economic Zone located in Mariveles, Bataan is converted into a special economic zone and freeport called the Freeport Area of Bataan (FAB).
- Section 4: Governing principles for the management and operation of the FAB.
Fiscal Incentives
- Section 5: Registered enterprises in the FAB may be entitled to fiscal incentives under existing laws.
- Section 6: Business establishments in the FAB shall pay a 5% final tax on gross income earned, distributed as follows:
- 1% to the National Government
- 1% to the Province of Bataan
- 1% to the Municipality of Mariveles
- 2% to the Authority of the Freeport Area of Bataan (AFAB)
Investor's Visa
- Section 7: Foreign nationals investing at least $150,000 in a registered enterprise shall be entitled to an investor's visa, subject to certain qualifications.
Administration and Monitoring of Incentives
- Section 8: The AFAB shall administer and implement incentives for registered enterprises, while the Department of Finance shall monitor the incentives granted.
Extension and Duration of Incentives
- Section 9: The AFAB may extend the availment period of incentives if the registered enterprise suffers operational force majeure.
- Section 10: Fiscal incentives shall be terminated after 20 years from registration or start of commercial operation, except for industries deemed indispensable to national development.
Creation and Powers of the Authority of the Freeport Area of Bataan (AFAB)
- Section 11: Creation of the AFAB to manage and operate the FAB.
- Section 13: Powers and functions of the AFAB, including regulating enterprises, providing utilities and infrastructure, borrowing funds, providing security, and issuing rules and regulations.
Board of Directors and Administration
- Section 14: Composition and appointment of the AFAB Board of Directors.
- Section 15: Powers and duties of the AFAB Chairman-Administrator.
- Section 16: Organizational structure and personnel of the AFAB.
- Section 17: Establishment of a labor center within the FAB.
Banking, Remittances, and Applicability
- Section 18: Existing banking laws and regulations of the Bangko Sentral ng Pilipinas shall apply to banks and financial institutions in the FAB.
- Section 19: Registered enterprises shall have the right to remit earnings from foreign investments.
- Section 20: Certain provisions of the Special Economic Zone Act of 1995 shall apply to the FAB.
Capitalization and Supervision
- Section 21: Authorized capital stock of the AFAB and government contributions.
- Section 22: The AFAB shall be under the direct control and supervision of the Office of the President.
Relationship with Local Government Units and Legal Counsel
- Section 24: Relationship between the AFAB and local government units, with the AFAB's decision prevailing in case of conflict.
- Section 25: The AFAB shall have its own internal legal counsel.
Interpretation, Audit, and Transitory Provisions
- Section 26: Interpretation of the AFAB's powers and functions.
- Section 27: The Commission on Audit shall appoint a full-time auditor or assign personnel to the AFAB.
- Section 28: Transfer of properties, assets, funds, rights, obligations, and liabilities from the Bataan Economic Zone to the AFAB, and provisions for personnel.
Implementing Rules and Regulations, Separability Clause, Repealing Clause, and Effectivity
- Section 29: Formulation of implementing rules and regulations within 90 days after approval.
- Section 30: Separability clause.
- Section 31: Repealing clause for inconsistent laws and issuances.
- Section 32: Effectivity clause upon publication in a newspaper of general circulation.