TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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JL -9 P4 .13
SENwfq
S. No.
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
PROMOTING THE LOCAL ARTS AND ENTERTAINMENT INDUSTRY BY 
PROVIDING THE LOCAL FILM INDUSTRY CORPORATE TAX BREAKS AND 
EXEMPTING VENUE OPERATORS FROM THE PAYMENT OF AMUSEMENT 
TAX WHEN SHOWING LOCALLY PRODUCED FILMS AND MUSIC EVENTS
FEATURING FILIPINO ARTISTS
EXPLANATORY NOTE
The Constitution, Art. XIV, Sections 15 and 16 provide:
SECTION 15. Arts and letters shall enjoy the 
patronage of the State. The State shall conserve, 
promote, and popularize the nation’s historical and 
cultural heritage and resources, as well as artistic 
creations.
SECTION 16. All the country’s artistic and historic 
wealth constitutes the cultural treasure of the nation and 
shall be under the protection of the State which may 
regulate its disposition.
The past few decades presented several challenges to our film industry, as well 
as the music events industry featuring Filipino artists.


First among these are the piracy that deprived our artists and those involved in 
the creation of the arts to be deprived of their hard-earned livelihood.
Another is the advent of readily available streaming media, which resulted in 
less attendance in movie theaters and live performances.
Finally, there is the COVID-19 pandemic, which caused devastating effect in 
our local arts and entertainment industry by forcing the cinemas, concert halls, and 
the like, to suspend their operations; thereby making many Filipinos in the industry 
without a steady means of livelihood.
It will take years, even decades, before our economy returns to the pre­
pandemic levels. It is the hope of this representation that the local arts and 
entertainment industry will recover faster as our country eases the COVID-19-related 
restrictions.
In order to encourage Filipinos to return to the theaters and watch our local 
films and performances by local artists, we need to give the industry the necessary 
support by giving them the necessary tax breaks that would let them create good art 
while still having competitive pricing that are affordable to our countrymen.
Ang pagbabaHk po ng ating mga kababayan sa ating mga sinehan at teatro ay 
makapagbibigay ng tubng sa ating ekonomiya hindi lamang sa pamamagitan ng 
pagbibigay ng trabaho sa mga nasa industriya, kundi sa mga karatig na economic 
activities sa pagiikha ng mga peiikuia at iive performance. Kasama pong benepisyo 
nito ay ang pagbibigay buhay sa ating sining ng mismo nating mga kababayan.
The economic and cultural gains brought about by this proposed measure far 
outweighs the expected loss in revenue.
In view of the foregoing, immediate approval of this bill is earnestly sought.
MANUEL "LITO" M. LAPID
Senator


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
JIJL -9 
:)4
SENATE
S. No. 313
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
PROMOTING THE LOCAL ARTS AND ENTERTAINMENT INDUSTRY BY 
PROVIDING THE LOCAL FILM INDUSTRY CORPORATE TAX BREAKS AND 
EXEMPTING VENUE OPERATORS FROM THE PAYMENT OF AMUSEMENT 
TAX WHEN SHOWING LOCALLY PRODUCED FILMS AND MUSIC EVENTS
FEATURING FILIPINO ARTISTS
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. -This Act shall be referred to as "Local Arts and
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Entertainment Industry Promotions Act."
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SECTION 2. Declaration of Policy. - It is hereby declared policy of the State
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to protect the local arts and entertainment industry and raise its competitiveness in
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both the local and international marketplace, by providing them the necessary income
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tax breaks, and exempting exhibitors from the payment of amusement tax, thus
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assisting producers, film companies, and local artists in reducing their costs and
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improving the quality of their craft.
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It is likewise the policy of the State to make locally produced films and
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performances of local artists available to Filipinos of all economic classes to preserve
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and protect our arts and culture.
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SECTION 3. Tax exemption. - Any local producer of a film of movie utilizing
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at least eighty percent (80%) of the budget for talent and staff may claim the total
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expenses incurred in the execution, production, and showing of the film: Provided,
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that the claim for exemption shall be allowed as deduction from the company's gross
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income for the same taxable year: Provided further, that the total amount of the
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claimed tax exemption shall be included in their gross income or revenues and shall
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be subject to proper documentation and to the provisions on allowable deductions
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covered by Chapter IX of the National Internal Revenue Code (NIRC), as amended.
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SECTION 4. Section 140 of the Republic Act No. 7160, otherwise known as
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the Local Government code of 1991 is hereby amended to read as follows:
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Section 140. Amusement Tax. - (a) The Province may levy an 
amusement tax, to be collected from the proprietors, lessees, or 
operators of theaters, cinemas, concert halls, circuses, boxing 
stadia of amusement at a rate of not more than thirty percent 
(30%) of gross receipts from admission fees.
EXHIBITIONS IN LOCAL CINEMAS OF FILMS BY FILIPINO 
PRODUCERS THAT FEATURE A PREDOMINANTLY FILIPINO CAST 
AND CREW OF AT LEAST EIGHTY PERCENT (80%) THAT HAVE 
BEEN CLASSIFIED BY THE MOVIE AND TELEVISION REVIEW AND 
CLASSIFICATION BOARD (MTRCB) AS FIT FOR COMMERCIAL 
VIEWING SHALL BE EXEMPT FROM THE TAX HEREIN IMPOSED.
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(c) The holding of operas, concerts, dramas, recitals, painting, 
and art exhibition, flower shows, musical programs, literary and 
oratorical presentations [except] INCLUDING pop, rock, or similar 
concerts FEATURING FILIPINO ARTISTS AS THE MAIN ACT, shall 
be exempt from the tax herein imposed."
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SECTION 5. Implementing Rules and Regulations. - The Department of
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Interior and Local Government and the Bureau of Internal Revenue, in consultation


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with the Film Development Council of the Philippines, MTRCB, and the National
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Commission for Culture and the Arts, within sixty (60) days from the effectivity of Acts,
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issue the necessary rules and regulations governing this Act.
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SECTION 6. Separability Clause. — In the event that any part, section or
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provision of this Act shall be declared unconstitutional or invalid by a competent court,
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the remaining provisions thereby shall remain valid and in full force and effect as if
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the sections or provisions so annulled or voided had never been incorporated herein.
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SECTION 7. Repealing Clause. — All laws, decrees, executive orders,
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issuances, rules and regulations, or parts thereof not consistent with the provisions of
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this Act are hereby repealed or modified and/or superseded as case may be by this
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Act accordingly.
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SECTION 8. Effectivity. — This Act shall take effect fifteen (15) days after its
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complete publication in the Official Gazette or in at least two (2) newspapers of general
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circulation, whichever comes earlier.
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Approved,