Investment Incentives

Mining contractors of MPSA and FTAA can avail of fiscal and non-fiscal incentives granted under the Omnibus Investment Code of 1987, as follows:

• Tax exemptions
  • Income Tax Holiday (ITH)
  • Exemption from taxes and duties on imported spare parts
  • Exemption from wharfage dues, and export tax, duty, impost and fees
• Tax Credits
  • Tax credit on raw materials and supplies
• Additional Deductions from Taxable Income
  • Additional Deduction for Labor Expense (ADLE)
  • Additional deduction for necessary and major infrastructure works
• Non-fiscal Incentives
  • Employment of foreign nationals
  • Simplification of customs importation procedures
  • Importation of consigned equipment for a period of 10 years

In addition to these incentives, the Mining Act also grants the following:

• Incentives for pollution control devices
• Incentives for income tax carry forward of losses
• Incentives for income tax accelerated depreciation on fixed assets
• Investment guarantees, such as investment repatriation, earnings remittance, freedom from expropriation and requisition of investment, and confidentiality of information