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Republic of the Philippines

HOUSE OF REPRESENTATIVES (2) m
zon Ci x DATE SO JUL MS _
Quezon City TIME 6230 .
TWENTIETH CONGRESS
First Regular Session
House Bill No. 275 1

Introduced by Representative Julius Cesar “Jay” V. Vergara

EXPLANATORY NOTE

Foreign investment is essential to the economic growth and development of a country.
It plays a key role in helping a nation reach its economic potential by fostering
business activities, introducing new technologies, and improving the competitiveness
of local businesses. Moreover, foreign investment results in job creation, which boosts
income levels and helps elevate the standard of living within the receiving country.

Given these benefits, it is crucial for governments to create an economic environment
that is attractive to international investors. Policies that encourage foreign investment
can make a country more appealing globally. Governments that prioritize and
improve their investment policies not only draw in more foreign businesses but also
promote economic stability, which further enhances the country's appeal.

In line with these objectives, this bill seeks to amend Republic Act No. 7652, also
known as “Investors’ Lease Act” by extending the maximum lease period allowed for
foreign investors to ninety-nine (99) years. By increasing the allowable lease term, the
bill provides investors with the confidence to undertake long-term projects and make
strategic business decisions with a sense of security.

In view of the foregoing, approval of this bill is earnestly sought.

Se

JULIUS CESAR “JAY” V. VERGARA
Third District of Nueva Ecija

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> RECEIVED



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

2751

House Bill No.

Introduced by Representative Julius Cesar “Jay” V. Vergara

AN ACT AMENDING REPUBLIC ACT NO. 7652, OTHERWISE KNOWN AS
THE “INVESTORS’ LEASE ACT,” TO EXTEND THE MAXIMUM LEASE
PERIOD OF PRIVATE LANDS TO FOREIGNERS

Be it enacted by the Senate and the House of Representatives of the Philippines in

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Congress assembled:

Section 1. Section 3 of Republic Act No. 7652 is hereby amended to read as

follows:

“Section 4. Coverage. - Any foreign investor investing in the Philippines
shall be allowed to lease private lands in accordance with the laws of

the Republic of the Philippines subject to the following conditions:

"(1) {Ne} THE AGGREGATE PERIOD OF THE lease contract shall be

for a period NOT exceeding, [fifty-{50}-years-renewable-oncefora
period_of net-more_than-twenty-five-{25}-years] NINETY-NINE (99)

YEARS;

"(2) The leased area shall be used solely for the purpose of the

investment upon the mutual agreement of the parties;

"(8) The leased premises shall comprise such area as may reasonably be
required for the purpose of the investment subject however to the
Comprehensive Agrarian Reform Law and the Local Government

Code.

The leasehold right acquired under long-term lease contracts entered
into pursuant to this Act may be sold, transferred, or assigned: Provided,

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That when the buyer, transferee, or assignee is a foreigner or a foreign-
owned enterprise, the conditions and limitations in respect to the use of
the leased property as provided for under this Act shall continue to

apply."

Section 2. Implementing Rules and Regulations. - Upon effectivity of this Act,
the Board of Investments, the Fiscal Incentives Review Board, and the Land
Registration Authority, in consultation with other concerned government agencies
and stakeholders, shall promulgate the necessary implementing rules and
regulations for the effective implementation of this Act.

Section 3. Repealing Clause. - All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the
provisions of the Act are hereby repealed, amended, or modified accordingly.

Section 4. Separability Clause. - If any part of this Act is held unconstitutional
or invalid, other parts or provisions thereof which are not affected shall continue in
full force and effect.

Section 5. Effectivity. - This Act shall take effect fifteen (15) days following
completion of its publication in the Official Gazette or at least two (2) newspapers of

general circulation.

Approved,