FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
) 
/ 
1 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
This bill seeks to create the Maasim-Kiamba-Maitum Industrial Triangle (MAKIMA-IT) 
Special Economic Zone in Sarangani Province. Sarangani is the southernmost province in 
mainland Mindanao, cut midway by the city of General Santos and surrounded by the 
Celebes Sea, Sarangani Bay, and the provinces of South Cotabato, Sultan Kudarat and 
Davao del Sur. It is composed of seven municipalities: Alabel, Malapatan, Glan, Malungon, 
Maasim, Kiamba and Maitum. 
The creation of the MAKIMA-IT Special Economic Zone will bring huge benefits to 
the province in terms of increased economic activity not only in the member municipalities 
but also province-wide and within the region, where raw materials for production and 
support services shall come from resulting in increased incomes and gross domestic 
product. Furthermore, the MAKIMA-IT Special Economic Zone shall result in the creation of 
jobs in the region, through the attraction of foreign direct investment. Linkages among the 
member towns shall be enhanced, and Sarangani, regional and national government 
agencies and private business enterprises shall be able to develop better relations towards 
the overall progress of this area in Mindanao. 
The bill proposes that locators to the special economic zone be granted an income 
tax holiday for six up to 20 years and allowed to enjoy tax-free importation of capital 
equipment, machineries, parts, supplies and breeding stocks, among others. 
The national policy of encouraging the creation of ecozones has seen its surge in the 
past decades, with the need to cope with the increasingly competitive environment of the 
global market. First, they are to provide a country with foreign exchange earnings by 
promoting nonOtraditional exports. Second, they are to create jobs, provide for a standard 
quality of management and facilities, and thus generate income. Lastly, they are to attract 
foreign direct investment, engendering technology 
transferlknowledge spillover, 
demonstration effects, and backward linkages. 
Given the aforementioned reasons and in light of the need to stimulate the national 
economy, the passage of this measure is earnestly sought./ 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session ,: 
) 
SENATE 
S. No. 
." 
1 
Introduced by Senator Richard J. Gordon 
AN ACT ESTABLISHING THE MAA~~M-KIAMBA-MAITUM 
INDUSTRIAL 
TRIANGLE SPECIAL ECONOMIC ZONE IN THE PROVINCE OF SARANGANI, 
CREATING FOR THE PURPOSE OF MAASIM-KIAMBA-MAITUM INDUSTRIAL 
TRIANGLE (MAKIMA-IT) SPECIAL ECONOMIC AUTHORITYl APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - Short Title. - This act shall be known as the "Maasim- 
Kiamba-Maitum Industrial Triangle Special Economic Zone Act". 
SEC. 2. Declaration of P o k y .  - It is hereby declared the policy of the State to 
actively encourage, promote, induce and accelerate the 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 their productivity and their individual and family 
income, and thereby improve the level and quality of their living conditions through the 
establishment, among others, of special economic zones in suitable and strategic locations 
in the country and through measures that shall effectively attract legitimate and productive 
foreign investments. 
SEC. 3. Creafion of the Maasim-Kiamba-Maitum Industrial Special Economic 
Zone. - In pursuit of the foregoing declared policy and subject to the concurrence of the 
concerned local government units (LGUs) of Sarangani Province affected by the zone, there 
is hereby established a special economic zone, hereinafter referred to as MAKIMA-IT 
Ecozone. The MAKIMA-IT Ecozone shall cover the entire area embraced by: Sitio Seguil, 
Barangay Tinoto and Barangay Kamanga, Malbang and Colon in the Municipality of 
Kiamba; and, Barangays Kalaong, Mabay and Old Poblacion in the Municipality of Maitum. 
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The specific metes and bounds of the MAKIMA-IT Ecozone shall be more particularly 
described and defined as follows: 
(A) IN THE MUNICIPALITY OF MAASIM 
Sitio Seguil, Barangay Tinoto with a land area of 573.9409 hectares - its perimeter 
at a point marked "1" on the mouth of Tampat creek (125.15,5.55) following its course 
upstream to point 2 with a distance of 1,398.1924 meters. Thence 2,598.9690 meters on a 
course downstream to point 4 at the mouth of Seguil River. Thence 4,558.4607 meters 
following the coastal line southward to the point of beginning. 
Portions of Barangays Kamanga, Malbang and Colon with an aggregate land 
area of 1,637.8349 hectares - its perimeter beginning at a point marked "1" 
9125.05,5.416666) 336.1009 meters due north to point 2. Thence N76-00W 
3,409.0859 meters to point 3. Thence 647.7688 meters due north to point 4. Thence 
4,684.8956 meters due east to point 5. Thence N65-00E 3,281.8566 meters to point 
6. Thence S65-00E 2,148.52 meters to point 7. Thence 3,433,6432 meters following 
the coastal line westward to point 8. Thence 383,8778 meters due north to point 9. 
Thence 1,129,2888 meters due west to point 10. Thence 430.3896 meters following 
Kamanga River downstream to point 11. Thence 2,864.7673 meters following the 
coastal line westward to the point of beginning. 
(B) IN THE MUNICIPALITY OF KIAMBA: 
Kling Plantation, Barangay Kling, with a land area of 458.6395 hectares - its 
perimeter beginning at a point marked "1" thence S22-50W 2,380.06 meters to point 
2. Thence N69-40E 592.87 meters to point 3. Thence S23-09E 571.11 meters to 
point 4. Thence N39-53W 848.33 meters to point 5, Thence S27-06W 1,401.22 
meters to point 6. Thence S89-58W 417.78 meters to point 7. Thence S57-55W 
300.86 meters point to 8. Thence S45-02E 269.33 meters to point 9. Thence S59- 
31W 666.45 meters to point 10. Thence S85-19W 416.08 meters to point 11. Thence 
S63-52E 390.16 meters to point 12. 
Thence S04-57W 354.57 meters to point 13. Thence N88-04W 448.77 meters to 
point 14. Thence S76-37E 754.78 meters to point 15. Thence S59-39W 480.49 
meters to point 16. Thence S26-22W 428.59 meters to point 17. Thence SIO-55E 
325.30 meters to point 18. Thence S73-00E 986.32 meters to point 19. Thence N61- 
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22W 1,204.25 meters to point 20. Thence N61-29W 1,272.89 meters to point 21. 
Thence N17-46E 522.61 meters to point 22. Thence N49-48E 524.77 meters to point 
23. Thence N27-14E 1,261.13 meters to point 24. Thence S80-55W 292.41 meters 
to point 25. Thence N57-30W 834.24 meters to point 26. Thence N59-39W 1,135.82 
meters to point 27. Thence N31-11E 373.53 meters to point 28. Thence N52-47E 
320.08 meters to point 29. Thence N08-33E 226.76 meters to point 30, Thence N44- 
35E 314.95 meters to point 31. Thence N87-34W 716.37 meters to point 32. Thence 
N10-20E 359.07 meters to point 33. Thence N19-46E 373.12 meters to point 34. 
Thence N79-32E 356.06 meters to point 37. Thence S67-03E 417.05 meters to point 
38. Thence N70-41E 781.05 meters to point 39. Thence S48-50E 195.91 meters to 
point 40. Thence 573-02E 1,355.47 meters to point 41. Thence N81-51E 1,129.46 
meters to the point of beginning. 
Portions of Barangay Nalus with an aggregate land area of 249,1030 hectares - its 
perimeter beginning at a point marked "1" thence N33-35W 361.33 meters to point 2. 
Thence S89-23E 3,435.03 meters to point 3. Thence S84-32E 806.26 meters to 
point 4. Thence S00-51E 2,478.97 meters to point 5. Thence S73-03W 379.35 
meters to point 6. Thence N62-12W 1,317.44 meters to the point of beginning. 
Portions of Barangay Tambilil with an aggregate land area of 503.791 1 hectares - its 
perimeter beginning at a point marked "1" thence S76-36E 1,641.96 meters to point 
2. Thence S33-23E 603.15 meters to point 3. Thence S00-42W 1,477.55 meters to 
point 4. Thence S60-35E 2,468.84 meters to point 5. Thence SO5-44W 1,379.94 
meters to point 6. Thence N81-32W 2,332.38 meters to point 7. Thence N47-54W 
517.59 meters to point 8. Thence N89-53W 1,425.27 meters to point 9. Thence N71- 
29W 550.76 meters to point IO. Thence N60-01W 1,702.29 meters to point 11. 
Thence N34-08E 3,900.98 meters to the point of beginning. 
(C) IN THE MUNICIPALITY OF MAITUM: 
Portions of Kalong with an aggregate land area of 151.5394 hectares - its perimeter 
beginning at a point marked "1" thence N11-19E 1,381.30 meters to point 2. Thence 
S80-16E 564.58 meters to point 3. Thence N59-27E 839.24 meters to point 4. 
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Thence N48-38E 524.90 meters to point 5. Thence S34-38E 1,400.29 meters to 
point 6. Thence N78-16W 494.26 meters to point 7. Thence S19-28E 700.50 meters 
to point 8. Thence S32-40W 587.22 meters to point 9. Thence S83-32W 597.25 
meters to point 10. Thence SO5-03W 666.02 meters to point 11. Thence Sol-31E 
801.96 meters to point 12. Thence N76-26W 262.49 meters to point 13, Thence 
N46-30W 910.83 meters to point 14. Thence N11-31W 783.73 meters to point 15. 
Thence N79-34W 578.30 meters to the point of beginning. 
Portions of Barangay Mabay with an aggregate land area of 168.7388 hectares - its 
perimeter beginning at a point marked "1" thence S02-45E 507.39 meters to point 2. 
Thence N31-40E 328.29 meters to point 3. Thence N86-15E 560.80 meters to point 
4. Thence N70-58W 744.74 meters to point 5. Thence N54-04E 1,940.88 meters to 
point 6. Thence N19-00E 321.55 meters to point 7. Thence N88-54W 162.98 meters 
to point 8. Thence S72-49E 395.78 meters to point 9. Thence 573-23E 1,150.48 
meters to point I O .  Thence S33-22W 1,603.10 meters to point 11. Thence N86-37W 
1,102.62 meters to point 12. Thence S18-57W 464.35 meters to point 13. Thence 
N26-01W 567.47 meters to point 14. Thence N35-09W 101.43 meters to point 15. 
Thence N83-37W 609.47 meters to the point of beginning. 
Portions of Barangay Old Poblacion with an aggregate land area of 164,9358 
hectares - its perimeter beginning at a point marked "1" thence S52-24E 1,296.72 
meters to point 2. Thence 534-47W 792.71 meters to point 3. Thence S74-20W 
386.33 meters to point 4. Thence N89-59W 212.16 meters to point 5. Thence S34- 
33W 2,050.56 meters to point 6. Thence N62-28E 784.01 meters to point 7. Thence 
N17-03W 282.76 meters to point 8. Thence N77-41W 2,394.85 meters to point 9. 
Thence N31-21E 981.65 meters to point 10. Thence S23-58E 121.02 meters to point 
11. Thence N77-14E 416.209 meters to point 12. Thence N62-42E 1,218.16 meters 
to point 13. Thence N05-26E 1,366.79 meters to the point of beginning. 
SEC. 4. Governing Principles. - The MAKIMA-IT Ecozone shall be managed by 
the MAKIMA-IT Special Economic Zone Authority, hereinafter referred to as the MITSEZA, 
created under Section 10 of this Act under the following principles: 
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(A) Within the framework and limitations of the Constitution and applicable provisions 
of the Local Government Code of 1991, the MAKIMA-IT Ecozone shall be 
developed into and operated as a decentralized, self-reliant and self-sustaining 
industrial, commercialhading, tourist, banking, financial and investment center 
with residential areas. 
(6) The MAKIMA-IT Ecozone shall be provide with transportation, communications 
and other facilities needed to attract legitimate and productive investments, 
generate linkage industries and employment opportunities for the people of the 
province of Sarangani and its neighboring town and cities. 
(C) The MAKIMA-IT Ecozone may establish mutually beneficial economic relations 
with other entities or enterprises within the country or, subject to the 
administrative guidance of the Department of Foreign Affairs (DFA), the 
Philippine Economic Zone Authority (PEZA) andlor the Department of Trade and 
Industry (DTI), with foreign entities or enterprises. 
(D) Foreign citizens and companies owned by non-Filipinos in whatever proportions 
may set up enterprises in the MAKIMA-IT Ecozone, either by themselves or in 
joint venture with Filipinos in any sector of industry, international trade and 
commerce within the MAKIMA-IT Ecozone. 
(E)The areas comprising the MAKIMA-IT Ecozone may be expanded or reduced 
when necessary. For this purpose, the MITSEZA, in consultation with the LGUs, 
shall have the power to acquire either by purchase, negotiation or condemnation 
proceedings, any private land within or adjacent to the MAKIMA-IT Ecozone 
development; (2) acquisition of right of way to the MAKIMA-IT Ecozone; and (3) 
the protection of watershed areas and natural assets valuable to the prosperity of 
the MAKIMA-IT Ecozone. 
(F) Goods manufactured by a MAKIMA-IT Ecozone enterprise shall be made for 
immediate retail sale in the domestic market, subject to the payment of 
corresponding taxes on raw materials and other regulations that maybe 
formulated by the MITSEZA, together with the PEZA, Bureau of Customs (BOC) 
and the DTI. However, in order to protect domestic industries, a negative list of 
industries shall be dawn up and regularly updated by the PEZA. Enterprises 
engaged in industries include in such negative list shall not be allowed to sell 
their products locally. 
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(G) The national government shall maintain its ability to coordinate with MAKIMA-IT 
Ecozone and the local government units. 
SEC. 5. henfives to Registered ,Enterprises. - The MITSEZA may administer the 
following incentives to the registered enterprises located therein to the extent of the 
activitylproject: 
(A) Income Tax Holiday (ITH). - Registered enterprises shall be entitled to income tax 
holiday from the start of their commercial operations to the extent of their activity 
under the following categories: 
Category A - Registered domestic enterprise located in highly developed areas, 
as determined by the Board of investments (601) shall be entitled to a four-year 
income tax holiday. 
a six-year income tax holiday: 
\ 
Category B - Registered domestic enterprise on the following shall be entitled to 
(1) Located in less developed areas as defined by the BOI; or 
(2) ProducinglRendering new productslservices or having strong backward or 
forward linkages. 
Category C - Registered export enterprise shall be entitled to a six-year Income 
tax holiday: Provided, however, That if the export enterprise complies with the 
following: (1) large capital investments or sizeable employment generation, or (2) 
use high level of technology; or (3) located outside Metro Manila, it shall be entitled 
to an eight-year income tax holiday. 
Registered enterprises embarking on new investments that are listed in the current 
Investment Priority Plan (IPP) shall be entitled to incentives provide herein pertaining to the 
new investments and subject to such terms and conditions as the BO1 may determine. 
For this purpose, a registered enterprise shall be defined as any person, natural or 
juridical, licensed to do business in the Philippines and registered with the MITSEZA to 
transact business within the MAKIMA-IT Ecozone. A registered export enterprise engage 
directly or indirectly in the production, manufacture or trade of products or services which 
earns at least seventy percent (70%) of its normal operating revenues from the sale of its 
products or services abroad for foreign currency. A registered domestic enterprise, 
meanwhile, shall be defined as any registered enterprise not falling under the definition of a 
registered export enterprise. 
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Additional investments in the project shall be entitled to the income tax holidays 
corresponding to such investments as may be determined by the BOI, Additional income tax 
holiday may be granted for as long as the investment is made on the same project: 
Provided, that the project is listed in the IPP at the same time the additional investments in 
the project is made: Provided, further, that the entitlement period for additional investments 
shall not exceed three times the period provided under this subsection: Provided, however, 
that the total ITH period for an export enterprise availing of an eight-year income tax holiday 
shall not exceed 20 years. Any unused incentives shall therefore be deemed forfeited if not 
used during the incentive period. 
Enterprises registered with the MITSEZA are required to share in the special 
development fund of the BO1 for investment promotion projects of the government 
equivalent to one percent (1%) of the ITH granted for every application. 
The Bureau of Internal Revenue (BIR) shall require a registered enterprise availing of 
ITH or Net Operating Loss Carryover (NOLCO) to secure a certificate of eligibility from the 
MITSEZA before submitting its income tax return (ITR) with the MITSEZA for validation. 
Failure to secure certification andlor file the ITH or NOLCO availment for validation by 
the MITSEZA within forty-five (45) days from the last day of the statutory filing date for ITR 
shall cause the forfeiture of the availment for the taxable period. 
(B) Net Operating Loss Carryover (NOLCO). - Net operating loss of the business or 
enterprise during the first three years from the start of commercial operation which 
have not been previously offset as deduction from gross income shall be carried over 
as a deduction from gross income for the next five consecutive years immediately 
following the year of such loss: Provided, however, that the operating loss resulting 
from avaiiment of incentives provided in this Act shall not be entitled to NOLCO. 
A registered enterprise availing of the ITH as herein provided shall not be 
entitled to avail of the NOLCO. 
(C) Imposition of a tax rate of five percent (5%) on Gross Income Earned (GIE) - Except 
for real property tax on land, no local and national taxes as prescribed under 
Republic Act No. 8424, also known as "The National Revenue Code of 1997, as 
Amended "such as income tax, excise tax and franchise taxes, shall be imposed on 
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registered enterprises operating within the MAKIMA-IT Ecozone. In lieu thereof, five 
percent (5%) of the gross income shall be paid as follows: 
(a) Three percent (3%) to the National Government; and, 
(b) Two percent (2%) shall be remitted by the business establishments to the 
treasurer’s office of the municipality or city where the enterprise is located. 
All persons and services establishments in the MAKIMA-IT Ecozone shall be 
subject to national and local taxes under the National Internal Code of 1997, as 
amended, and the Local Government Code. 
(D) Accelerated Depreciation. - Accelerated depreciation of plant, machinery and 
equipment that are reasonably needed and actually used for the production and 
transport of goods and services may be allowed using a rate not exceeding twice the 
rate which would have used had the annual allowance been computed in 
accordance with rules and regulations prescribed by the Secretary of Finance and 
the provisions of the National Internal Revenue Code of 1997, as amended. 
(E) Capital Equipment Incentives. - Importations of capital equipment, spare parts, tools 
and dye, or those required for the pollution abatement and control, cleaner 
production and waste reduction including consignment thereof by registered 
enterprises upon effectivity of this law, shall be exempted to the extent of one 
hundred percent (100%) of the taxes and customs duties: Provided, that the 
imported items thereof shall be used exclusively by the registered enterprise in its 
registered activity: Provided, further, that the importation of machinery and 
equipment and accompanying parts shall comply with the following conditions: 
(I) 
They are not manufactured domestically in sufficient quantity, of comparable 
quality and at reasonable prices; 
(2) They are reasonably needed and will be used exclusively by the registered 
enterprise in the manufacture of its products, unless prior approval of the 
MITSEZA is secured for the part time utilization of said equipment in a non- 
registered activity to maximize usage thereof or the proportionate taxes and 
duties are paid on a specific equipment and machinery being permanently 
used for non-registered activities; and, 
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(3) Approval of the MITSEZA was obtained by the registered enterprise for the 
importation of such machinery, equipment and spare parts. 
Approval of the MITSEZA must be secured before any sale, transfer or 
disposition of the imported capital equipment, machinery or spare parts is made: 
Provided, that if such sale, transfer or disposition is made within the first five years 
from the date of importation, any of the following condition must be present: 
(1) The sale, transfer or disposition is made to another enterprise enjoying tax 
and duty exemption on capital equipment; 
(2) The sale, transfer or disposition is made to another enterprise, upon the 
payment of any taxes and duties on the net book value of the capital 
equipment to be sold; 
documents or those required for pollution abatement and control; or 
(3) The exportation of the capital; equipment, machinery, spare parts or source 
(4) Proven technical obsolescence of the said equipment, machinery or spare 
parts. 
When the aforementioned sale, transfer or disposition is made under any of the 
conditions provided for in the foregoing paragraphs (2) herein, the registered firm shall not 
pay taxes and duties waived on such items: Provided, further, that if the registered 
enterprise shall sell, transfer or dispose the aforementioned imported items without prior 
approval within five years from the date of importation, the registered enterprise and the 
vendee, transferee or assignee shall be solidarily liable to pay twice the amount of taxes 
and duties based on the net book value of the capital equipment, machinery or spare parts if 
any of the registration terms and conditions has been violated. Otherwise, they shall no 
longer be subjected to the payment of the taxes and duties waived thereon. 
The purchase of machinery, capital equipment, raw materials, supplies, parts and 
semi-finished products to be used in the fabrication of machinery and capital equipment by 
a registered export oriented enterprise from a domestic manufacturer shall be subject to 
zero percent (0%) value-added tax. 
The registered export-oriented enterprise shall be granted a tax credit equivalent to 
the amount of duties that would have been waived on the machinery, capital equipment, raw 
materials, supplies, parts and semi-finished products are used in the fabrication of 
machinery and capital equipment, had these items been imported, upon submission to the 
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Department of Finance (DOF) of the bill of materials evidencing the transaction value of 
such and other documents, for verification and proper endorsement. 
The availment by a registered export enterprise of the incentive stated under the 
immediately preceding two paragraphs shall be subject to the following conditions: (a) that 
said capital equipment, machinery and spare parts will be used exclusively by the registered 
enterprise in its registered activity; (b) that the capital equipment or machinery where the 
raw materials, supplies, parts and semi-finished products were used would have qualified 
for tax and duty-free importation; and, (c) that the approval of the MITSEZA is obtained by 
the registered enterprise. If the registered enterprise sells, transfers or disposes of these 
machineries, capital equipment and spare parts, the provision in the preceding paragraphs 
for such disposition shall apply. 
(F) The importation of source documents of source, documents by information 
technology related registered enterprises shall be eligible for tax and duty-free 
importation. 
(G) Raw Material Incentives.- Every registered export-oriented enterprise shall enjoy a 
tax credit equivalent to the internal revenue taxes and customs duties paid on the 
supplies, raw materials and semi-manufactured products provide the same are not 
sufficient in quantity, quality or are not competitively priced in the Philippines and 
which are used in the manufacture, processing or production of its export forming 
part thereof, exported directly and indirectly by the registered export-oriented 
enterprise, 
based 
on 
the 
actual 
taxes 
and 
duties 
paid 
for 
such 
materialslsupplieslsemi-manufactured products by the registered enterprise. 
This incentive shall be deemed waived if application for tax credit under this 
subsection was not filed within one year from the date of exportation of the final 
product. 
Incentives on Breeding Stocks and Genetic Materials.- Importation of breeding 
stocks and genetics materials within ten (IO) years from the date of registration of 
commercial operation of the enterprise shall be exempt from all taxes and duties: 
Provide, that such breeding stocks and genetics materials are reasonably needed in 
the registered activity, and approved by the MITSEZA. 


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The availment of the incentives by the registered enterprise shall be subject to the 
following: (a) that said breeding stocks and genetic materials would have been 
qualified for tax and duty-free importation under the preceding paragraph; (b) that the 
breeding stocks and genetic materials are reasonably needed in the registered 
activity; (c) that the approval of MITSEZA has been obtained by the registered 
enterprise; and, (d) that the purchase is made within 10 years from the date of 
registration of commercial operation of the registered enterprise. 
The incentive shall be deemed waived if application for tax credit under this 
subsection is not filed within one year from the date of delivery. 
(H)Exemption from Wharfage Dues. - The provision of law to the contrary 
notwithstanding, exports by a registered enterprise shall be exempted from wharfage 
dues. 
(I) Deferred Imposition of the Minimum Corporate Income Tax. - The Minimum 
Corporate Income Tax (MCIT) of two percent (2%) of the gross income at the end of 
the taxable year shall be imposed when the MClT is greater than the income tax 
computed under the NlRC of 1997, as amended, for taxable year; Provided, 
however, that said MClT shall be imposed only after the enterprise's entitlement 
period to the income tax-based incentives has expired, 
(J) Tax Treatment of Merchandise in the MAKIMA-IT Ecozone. - 
(1) Domestic merchandise sent from the MAKIMA-IT Ecozone to areas outside 
the said ecozone shall, whether or not combined with or made part of other 
articles likewise of local origin of manufactured in the Philippines while in the 
export processing zone, be subject to internal revenue laws of the Philippines 
as domestic goods sold, transferred or disposed of for local consumption. 
(2) Merchandise sent from MAKIMA-IT Ecozone to areas outside the said 
ecozone shall, whether or not combined with or made part of other articles 
while in the zone, be subject to rules and regulations governing imported 
merchandise. The duties and taxes shall be based on the value of said 
imported materials (except when the final product is exempt). 
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(3) Articles produced or manufactured in the MAKIMA-It Ecozone and exported 
therefrom shall, on subsequent importation into the customs territory, be 
subject to the import laws applicable to like articles manufactured taken out of 
the MAKIMA-IT Ecozone shall be considered for tax purposes to have sent to 
customs territory. 
(K) Tax Treatment of Raw Materials and Capital Equipment in the MAKIMA-IT Ecozone. 
- Importations of raw materials and capital equipment shall be treated as in the 
Omnibus Investment Code. 
(L) Importations of raw materials and capital equipment shall be treated as in the 
Omnibus Investment Code. Registered export-oriented enterprises shall have 
access to the utilization of the bonded warehousing system in accordance with the 
rules and regulations of the BOC. 
(M) Employment of Foreign Nationals. - Subject to the provisions of Section 29 of 
Commonwealth Act No. 613, as amended, a registered enterprise may employ 
foreign nationals in supervisory or technical positions for a period not extending ten 
(IO) years from its registration: Provided, That when the majority of the capital stock 
of the registered enterprise is owned by foreign investors, the position of the 
president, treasurer and general manager or their equivalents ma be trained by 
foreign nationals beyond the period set forth herein and such officer is the owner or 
stockholder owning at least ten percent (10%) of the outstanding capital stock of the 
registered enterprise and he remains the owner or maintains his stockholdings 
herein. 
Foreign nationals under employment contract within the purview of this 
incentive, their spouses and unmarried children under twenty-one (21) years of age, 
who are not excluded by Sec. 29 of Commonwealth Act. No. 613, as amended, shall 
be permitted to enter and reside in the Philippines during the period of employment 
of such foreign nationals. They shall be entitled to a multiple entry visa, valid for a 
period of three years, and shall be allowed to leave and enter the Philippines without 
further documentary requirements other than valid passports or other travel 
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documents in the nature of passports. The validity of the multiple entry visa shall be 
extendible yearly. 
SEC. 6. Incentive to Investors- Any foreign national covered under subsection (M) 
of Section of this Act who invests an amount of US $ 150,000.00 either in cash andlor 
equipment, in a registered enterprises shall be entitled to an investor's visa; Provided, That, 
1. He is at least eighteen (1 8) years of age; 
2. He has not yet been convicted of a crime involving moral turpitude; 
3. He is not afflicted with any loathsome, dangerous or contagious disease; and, 
4. He has not been institutionalized for any mental disorder or disability: Provided, 
further, That in securing the investor's visa, the alien applicant shall be entitled to 
the same privileges provided for under subsection (M), Section 5 hereof. 
As a holder of investor's visa, an alien shall be entitled to reside in the Philippines 
while his investments subsists. For this purpose, he should submit an annual report, in the 
form duly prescribed for the purpose, to prove that he has maintained his investment in the 
country. Should the alien withdraw his investments from the Philippines, the investor's visa 
issued to him shall automatically expire. 
SEC, 7. Administration, Implementation, and Monitoring of Incentives- The 
MITSEZA shall be responsible for the administration and implementation of incentives 
granted to its respective registered enterprises: Provided, That any incentive administration 
policy adopted by the BO1 for registered enterprises shall be uniformly applied by the 
MITSEZA. 
The following are the duties and responsibilities of the MITSEZA in the administration of 
incentives: 
(A) To adopt consistent procedures of administering incentives in accordance with the 
guidelines established by the BOI; 
(B) To adopt and implement systems and procedures affecting trade and customs 
policies in accordance with the requirements established by the DOF and the 801; 
(C) To submit information on registered enterprises to the DOF and the BO1 as required 
by any of these agencies to as certain consistency of investment policies and 
incentives, including their implementation as provided in paragraph (A) herein, and to 
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ensure proper implementation of systems and procedures affecting trade and 
customs policies as provided in paragraph (8) herein. 
(D) To perform all other duties and responsibilities as may be required by the President 
For proper monitoring, the BO1 shall create a single database of all incentives 
provided by all incentives granting agencies including the MITSEZA, and all the information 
thereto. Double entry accounting shall be done by the BO1 in recording all incentives 
granted by the government for transparency purposes. 
of the Philippines. 
SEC. 8. Extension of Period Availment. - The availment period of the incentives 
provided herein maybe extended by the MITSEZA, in the event that the registered 
enterprise suffers operational force majeure or any event equivalent thereto, impairing its 
viability: Provided, That the availment period shall not exceed the duration of the said force 
majeure or equivalent event. 
SEC 9. Duration of Incentives- Enterprises registered with the MITSEZA may enjoy 
Fiscal incentives under this act shall be terminated after the cumulative period of 20 
years from the date of registration or start of commercial operation, whichever is applicable, 
except that it could be extended with regard to industries deemed indispensable to national 
development. 
ITH or NOLCO granted by the latter prior to the availment of the five percent (5%) GIE. 
The industries exempted from this provision shall be recommended by the BOI, with 
the concurrence of the Secretaries of the DOF and DTI. 
SEC. 10. Creation of MAKIMA-IT Special Economic Zone Authority- There is 
hereby created a body corporate to be known as the MAKIMA-IT Special Economic Zone 
Authority, hereinafter referred to as the MITSEZA, which shall manage and operate, in 
accordance with the provisions of this Act, the MAKIMA-IT Ecozone. This corporate 
franchise shall expire 50 years counted from the first day of the fifth calendar year after the 
effectivity of this Act, unless otherwise extended by Congress. It shall be organized within 
180 days from the effectivity of this Act. 
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SEC, 11, Principal Office of the IMITSEZA- The MITSEZA shall maintain its 
principal office in the Municipality of Kiamba, but it may establish branches within the 
Philippines as may be necessary for the proper conduct of its business. 
SEC.12. Powers and Functions of the MITSEZA. - The MITSEZA shall have the 
following powers and functions: 
(A) To operate, administer, manage and develop the MAKIMA-IT 
Ecozone according to the Principles and provisions set forth in this 
Act; 
(B) To register, regulate and supervise the enterprises in the MAKIMA- 
IT Ecozone in an efficient and decentralized manner, subject to 
existing laws; 
(C) To coordinate with local government units and excise general 
supervision over the development plans, activities and operations 
of the MAKIMA-IT Ecozone; 
(D) To regulate and undertake the establishment, operation and 
maintenance of utilities, other services and infrastructure in the 
MAKIMA-IT Ecozone such as but not limited to heat, light and 
power, water supply, telecommunications, transport, toll roads and 
bridges, port services, etc., and to fix just, reasonable and 
uncompetitive rates and fares, charges and prices thereof; 
(E) To construct, acquire, own, lease, operate and maintain on its own 
or through contracts, franchises, licenses, bulk purchases from the 
private sector or permits under any of the schemes allowed in the 
Republic Act No. 6957 (the Build-Operate-Transfer law, as 
amended by R.A. No. 7718), or joint venture, adequate facilities 
and infrastructures required or needed for the operation and 
development of the MAKIMA-IT Ecozone, in coordination with the 
appropriate national and local government authorities and in 
conformity, with applicable laws thereon; 
(F) To operate on its own, either directly or through a license to other 
tourism-related 
activities, 
including 
games, 
amusements, 
recreation and sports facilities; 
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(G)Subject to the approval of the President of the Republic of the 
Philippines and the Monetary Board of the Bangko Sentral ng 
Pilipinas (BSP) and upon the recommendation of the Department 
of Finance, to raise and borrow necessary funds from local or 
foreign sources, to finance its projects and programs under this 
Act, and for that purpose to issue bonds, promissory notes and 
other forms of securities, and to secure the same by a guarantee, 
pledge, mortgage, deed of trust, or an assignment of all or part of 
its property or assets; 
(H) To protect, preserve, maintain and develop the virgin forests, 
beaches, coral and coral reefs and maintain ecological balance 
within the MAKIMA-IT Ecozone; 
(I) To create, operate andlor contract tom operate such functional 
units and offices of the MITSEZA as it may deem necessary; 
(J) To adapt, alter, and use a corporate seal; make contracts, leases, 
own or otherwise dispose of personal or real property; sue and be 
sued; and other carry out its functions and duties as provided for in 
this Act; 
(K) To issue certificates or origin for products, manufactured or 
processed in the MAKIMA-IT Ecozone in accordance with 
prevailing rules of origin, and the pertinent regulations of the PEZA, 
the DTI andlor the DOF; 
(L) To issue working visas renewable every two years to foreign 
executives and foreign technicians with highly specialized skills 
which no Filipino possesses, as certified by the Department of 
Labor and Employment 
(M) To report to the BO1 the names of the foreigners who have been 
granted resident status and working visas within 30 days after 
issuance of such grant; 
(N)To exercise such powers as may be essential, necessary or 
incidental to the powers granted to it here under as well as those 
that shall enable it to carry out, implement and accomplish the 
purposes, objectives and policies of this Act; and, 
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(0)To issue rules and regulations consistent with to the provisions of 
this Act as may be necessary to accomplish and implement the 
purposes, objectives and policies herein. 
SEC 13. Banking Rules and Regulations. - Existing laws and ruleslregulations of the 
BSP shall apply to banks and financial institutions. to be established in the MAKIMA-IT 
Ecozone, such as those governing foreign exchange and other concurrent account 
transactions (trade and non-trade), local and foreign borrowings, foreign investments, 
establishment and operation of local and foreign banks, foreign currency and deposit units, 
offshore banking units, and other financial institution under the supervision of the BSP. 
SEC 14. Remiffance of Earnings- In the case of foreign investments, a registered 
enterprise in the MITSEZA shall have the right to remit earnings from the investment in the 
currency in which the investment was originally made and at the exchange rate prevailing at 
the time of remittance, subject to the provisions of Section 74 of Republic Act No. 265, as 
amended. 
SEC. 15. Board of Directors offbe MITSEZA. - The powers of the MITSEZA shall be 
vested in and exercised by a Board of Directors hereinafter referred to as the Board, which 
shall be composed of the following: 
(A) The Chairman who shall come from among the members of the Board of Directors; 
(B)A Vice Chairman who shall come from among the members of the Board of 
Directors; 
(C) Members consisting of: 
1) The Governor of the Province of Sarangani; 
2) The Congressional Representative of the Province of Sarangani; 
3) The Mayors of the municipalities of Maasim, Kiamba, Maitum, all in the 
province of Sarangani; 
4) The Presidents of the Chambers of Commerce and Industry in the 
municipalities of Maasim, Kiamba and Maitum, all in the province of 
Sarangani; 
5) Three representatives of Industry in Sarangani Province. 
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The Governor, the Congressional Representative, the Mayors and Presidents of the 
Chambers of Commerce and Industry of the municipalities of Maasim, Kiamba and Maitum, 
Province of Sarangani, shall serve as ex officio members of the Board, whose term in the 
Board corresponds to their terms as elected officials. 
The Chairman shall be appointed of the President of the Republic of the Philippines 
upon the nomination of the Board of Directors to serve for six years, unless separated from 
service due to death, voluntary resignation or removal for cause, the replacement shall 
serve only the unexpired portion of the term. 
Except for the Representative of the Industry sector, no person shall be appointed by 
the President of the Republic of the Philippines as member of the Board unless he is a 
Filipino citizen, of good moral character, of proven probity and integrity and a degree holder 
in any of the following fields: economics, business, public administration, law, management 
or their equivalent, and with at least ten (IO) years relevant working experience preferably in 
the field of management and public administration. 
The members of the Board shall each receive per diem at a rate to be determined by 
the Department of Budget and Management in accordance with existing rules and 
regulations: Provided, however, That the total per diem collected each month shall not 
exceed the equivalent per diem for four (4) meetings. Unless and until the President of the 
Philippines has fixed a higher per diem for the members of the Board, such per diem shall 
not be more than Ten thousand pesos (Pl0,OOO.OO) for every Board meeting. 
SEC.16. Powers and Dufies of the Administrator. - The MITSEZA Administrator, 
who shall be appointed by the President of the Philippines upon the recommendation of the 
Board of Directors, shall have the following powers and duties: 
(A) To direct and manage the affairs of the MITSEZA in accordance with the policies set 
(B) To establish the internal organization of MITSEZA under such conditions that the 
by the Board of Directors; 
Board of Directors may Prescribe; 
(C) To submit an annual budget and necessary supplemental budget to the Board for its 
(D) To submit within thirty (30) days after the close of each fiscal year an annual report 
approval; 
to the Board and such other reports as maybe required; 
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(E) To submit to the Board for its approval policies, systems, procedures, rules and 
regulations that is essential to the operation of the MAKIMA-IT Ecozone; 
(F) To create a mechanism in coordination with relevant agencies for the promotion of 
industrial peace, the protection of the environment, and the advancement of the 
quality of life in the MAKIMA-IT Ecozone; and, 
(G)To perform such other duties as may be assigned to him by the Board or which are 
be necessary or incidental to his office. 
SEC.17. Organization and Personnel. - The Board of the MITSEZA shall provide for 
an organization and staff of its officers and employees. Upon the recommendation of the 
Administrator, the Board shall appoint and fix the remuneration and other emoluments of its 
officers and employees in accordance with existing laws on compensation and position 
classification: Provided, That the Board shall have the exclusive and final authority to 
promote, transfer, assign, reassign officers of the MITSEZA, any provision of the existing 
law to the contrary notwithstanding: Provided further, That the Administrator may carry out 
removal of such officers and employees. 
The officers and employees of the MITSEZA, including all members of the Board, 
shall not engage directly or indirectly in partisan activities nor take part in any election, 
except to vote. 
No officer or employee of MITSEZA, subject to civil service rules and regulations, shall 
be removed or suspend except for cause, as provided by law. 
SEC.18. lpso Facto Clause. - Sections 30-41 of Republic Act No. 7916 or the 
Special Economic Zone Act of 1995, shall ipso facto apply to the MAKIMA-IT Ecozone. 
SEC.19. Capitalization. - The MITSEZA shall have an authorized capital stock of 
One Billion (?,OOO,OOO,OOO) 
no par shares with a minimum issue of Ten Pesos (P 10.00) 
each, the majority shares of which shall be subscribed and paid for by the National 
Government and the Local Government Units of the MITSEZA may, with the written 
concurrence of the secretary of Finance, sell shares, representing not more than fuify per 
centum (40%) of the capital stock of the MITSEZA to the general public under such policy 
as the Board and the Secretary of the DOF may determine. The National Government and 
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the LGUs shall, in no case, own less than sixty per centum (60%) of the total issued and 
outstanding capital of the MITSEZA. 
The amount necessary to subscribe and pay for the shares of the national 
government to the capital stock of the MITSEZA shall be included in the annual General 
Appropriations Act. For LGUs, the funds shall be taken from their internal revenue allotment 
and other local funds. 
SEC, 20. Supervision. - The MAKIMA-IT Ecozone shall be under the direct control and 
supervision of the PEZA for purposes of policy direction and coordination. 
SEC. 21. Relafionship with the Regional Development Council. - The MITSEZA 
shall determine the development goals for the MAKIMA-IT Ecozone within the framework of 
national development plan, policies and goals. The Administrator shall upon approval of the 
Board, submit the MAKIMA-IT Ecozone plans, ,programs and projects to the Regional 
Development Council for inclusion and inputs to the regional development plan. 
SEC.22. Relationship with Local Government Units. - Except as herein provided, the 
local government units comprising the MAKIMA-IT Ecozone shall retain their basic 
autonomy and identity. The Municipalities of Maasim, Kiamba, and Maitum, Sarangani 
province, and their component barangays andlor sitios where the MAKIMA-IT Industrial 
Parks are located shall continue to operate and function in accordance with the Local 
Government Code of 1991. In case of any conflict between the MITSEZA and the province 
of Sarangani and the Municipalities of Maasim, Kiamba and Maitum, on matters affecting 
the MAKIMA-IT Ecozone other than defense and security matters, the decision of MITSEZA 
shall prevail. 
SEC.23. InterprefationlConstcfion. - The powers, authorities and functions that are 
vested in the MITSEZA are intended to decentralize governmental functions and authority 
and promote an efficient and effective working relationship between the MAKIMA-IT 
Ecozone, the national government, and the local government units. 
SEC.24. Auditing. - The Commission on Audit shall appoint a representative who shall 
be full time auditor of the MITSEZA and assign such number or personnel as may be 


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necessary to assist said representative in the performance of hislher duties. The salaries 
and emoluments of the assigned auditor and personnel shall be in accordance with 
pertinent laws, rules and regulations. 
SEC.25. Transitory Provision. - The existing Board of Convenors of the MAKIMA 
Industrial Triangle, created by virtue of an internal-local agreementlmemorandum of 
cooperation among the municipalities of Maasim, Kiamba and Maitum in Sarangani 
Province, shall act and perform the functions of the Board pursuant to Section 15 of this Act 
until such time that the members of the Board of Directors of the MITSEZA are appointed by 
the President of the Republic of the Philippines and have been duly sworn-in or have 
entered into office. 
SEC.26. Repealing Clause. - All laws or parts thereof, decrees, orders, rules and 
regulations inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SEC.27. Separability Clause. - If any of the provisions of this Act is declared invalid, 
the other provisions not affected thereby shall remain in full force and effect. 
SEC. 28. Effectivity. -This Act shall take effect fifteen (15) days following its publication 
in the Official Gazette or in at least two newspapers of general circulation. 
Approved, 
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