NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. B. No. 633
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■22 JUL 14 P3 40
RECEIVED BY:~7y~
Introduced by Senator SONNY ANGARA
AN ACT
ESTABLISHING A FRAMEWORK FOR FILM AND TELEVISION TOURISM IN 
THE PHILIPPINES, MARKETING THE INDUSTRY GLOBALLY AND 
PROVIDING EMPLOYMENT FOR THE SECTOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Film tourism is a growing phenomenon wherein a destination is visited by 
tourists because it was featured in a movie, television, or video. To cite as an 
example. New Zealand's international visitor arrival increased by 50% since the first 
installment showing of the trilogy, "The Lord of the Rings" In 2001, according to its 
tourism office. Meanwhile, in Korea, of the 80 tourist attractions visited by 1.6 
million foreigners in 2021, 57.6 percent were filming locations of Netflix-aired Korean 
dramas. In fact, certain shooting locations of K-drama series "Guardian: The Lonely 
and Great God" ana "Hotel Del Luna" saw a 195 percent and 178 percent surge in 
the number of their foreign visitors compared to 2020.1
By boosting the country's film tourism, the Philippines stands to increase the 
number of tourist arrival and stimulate its economy. A dollar spent by a tourist for 
accommodations is multiplied 2.1 times for the economy as it creates jobs and 
opportunities and spreads its effect In other industries as well.
Our very own local film industry has been begging attention. According to the 
Philippine Statistics Authority, from 1960 to 1999, the Philippines produced an 
average of about 140 movies each year. However, from 2000 to 2009, local film
1 https://entertainment.inQuirer.net/440214/k-drama-filminQ-locations-amona-most-DODular-attractions-in-seoul-
report#ixzz7Wuq6ohOv


output fell to an average of 73 annually with only 11 percent of the market. Last 
year, only 78 local films were made.
New Zealand, through its Large Budget Screen Production and Post Digital & 
Visual Effects Grants, offers a cash grant equivalent to 20% of the Qualifying New 
Zealand Production Expenditure (QNZPE). Association with films such as The Hobbit 
movies also offers New Zealand a wider opportunity to enhance its international 
profile business. Other countries like Singapore, Malaysia, South Korea, and UK offer 
comparative and competitive incentive schemes to garner a maiket share in the 
lucrative international motion picture production industry.
Recognizing the potential of international and local motion picture production 
to create jobs, grow the economy, and raise the nation's international profile, 
offering production tax incentives and empowering the Film Development Council of 
the Philippines (FDCP) to provide additional benefits, are necessary steps our nation 
ought to take to seize this new opportunity as levers for growth and development.
In view of the foregoing, approval of this bill is earnestly sought.
^NNY ANGARA


of tbe i-rrcliu'jp
NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
•22 JULU P 3 -40
RECEIVED BY:
SENATE
s. B. No. 633
Introduced bv Senator SONNY ANGARA
AN ACT
ESTABLISHING A FRAMEWORK FOR FILM AND TELEVISION TOURISM IN 
THE PHILIPPINES, MARKETING THE INDUSTRY GLOBALLY AND 
PROVIDING EMPLOYMENT FOR THE SECTOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Title. - This Act shall be known as the Fostering Investment
2 
through Local and International Mo vies (FILM) Act."
3 
Sec. 2. Declaration of Policy. - The State recognizes that labor is a primary
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social economic force and endeavors to provide adequate employment opportunities.
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Recognizing the potential of motion picture production to create jobs, grow the
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economy, and raise the nation's international profile, it is the policy of the State to
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encourage the local motion industry and promote international movie picture
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production within the Philippines to showcase its beauty and culture as well as
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facilitate the exchange of technical knowledge and expertise in the industry. In
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furtherance of this, the State commits to implementing production tax incentives and
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empowering the Film Development Council of the Philippines (FDCF) to provide
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additional benefits.
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Sec. 3. Program Establishment and Administration. -
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a) The FDCP shall offer tax credits to productions deemed eligible under this Act,
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which it shall issue no more than one month after tfie completion of principal
16 
photography.


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b) The FDCP/ under the auspices of its Philippine Film Export Service Office
2 
(PFESO), shall promote the Philippines as a destination for filmmakers.
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c) The FDCP shall expand its One-Stop Shop System, including creating a
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website, dedicated to promote its program and serve filmmakers who intend
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to avail of the incentives stated in this Act. The FDCP, in its capacity, will
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specifically assist foreigners who will set up film production in the country in
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securing visas, permits, certificates and other requirements related to their
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film production, including but not limited to coordination with local
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government units, scouting of locations and talents. The FDCP shall endeavor
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to reduce bureaucratic red tape pursuant to Republic Act No. 9485, or the
11 
Anti-Red Tape Act of 2007, and its implementing rules and regulations.
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d) The FDCP shall facilitate the usage and receipt of these incentives by
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production companies.
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e) While the FDCP Is In charge of promoting the country's film tourism, it Is also
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responsible in ensuring that environmental regulations are properly adhered
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to by all production companies in the process of filming.
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f) The NCCA, as an advocate of the conservation of our cultural heritage, shall
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be a resource for filmmakers looking to enrich the content of their materials
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by showcasing Filipino culture, traditions, and values.
20 
g) The Department of Tourism shall provide the FDCP with a list of locations it is
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promoting for purposes of this Act.
22 
Sec. 4. Amount of Credit -
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a) The minimum tax credit awarded to eligible productions shall be equal to 20
24 
percent of qualifying expenses.
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b) In addition to the minimum tax credit, qualifying films, television shows,
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movies of the week, mini-series, and web-series may gain further credits
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under a point-based incentive system, to be administered by the FDCP. Each
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point shall correspond with an additional 1 percent rebate on all qualifying
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expenses. Any production shall only be able to claim one rebate from the
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following subsections in their entirety:
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1. Eligible productions may receive 20 points if the final product is set
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completely or largely within the Philippines, 15 points if the final


1 
product contains 10 or more substantive scenes set within the
2 
Philippines, and 10 points if the final product contains at least 3
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substantive scenes set within the Philippines;
4 
2. Eligible productions may receive 20 points if at least one-half of filming
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within the Philippines occurs within a community recovering from a
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significant natural disaster that occurred within the preceding 3 years
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or 10 points if at least one-fourth of filming within the Philippines
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occurs within such an area;
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3. Eligible productions may receive 2 points if they dedicate at least seven
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seconds worth of screen time during the credit roll to a message
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acknowledging the film's participation in the film tax credit program of
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the Philippines and providing the internet address to a website or social
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media page where viewers can learn about tourism opportunities in the
14 
country.
15 
c) All qualifying international productions shall also receive the following tax
16 
credits. However, in no situation may the total tax credit amount received for
17 
any particular expense exceed 40 percent:
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1. 25 percent of the cost of construction of any permanent and useful
19 
infrastructure built in the Philippines for the purposes of filming,
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including likely tourist attractions, subject to approval of the DOT;
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2. 15 percent of all lodging within the Philippines booked for production
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team members, for production-related purposes;
23 
3. 10 percent of the cost all transportation to or from the Philippines for
24 
production team members conducting either production-related travel
25 
or the Tansportation cf filming equipment into the Philippines;
26 
4. 5 percent of the cost associated with the provision of utilities or
27 
technology purchased within the Philippines.
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Sec. 5. Qualified Expenses. -
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a) Qualified expenses for the purposes of determining the amount of a tax credit
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shall including any expense incurred within the Philippines directly related to
31 
pre-production, production, or post-production conducted within the
32 
Philippines, unless otherwise exempted. However, expenses must be


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to:
b)
reasonable and prices may not substantially exceed the market value of the 
procured product or service.
Qualified expenses include, but are not limited to, expenses such as or related
1. Salary, wages, or other compensation such as per diem provided to 
members of the production team or subcontractors for any services 
rendered within the Philippines;
2. Creation, decoration, or operation of sets or shooting locations and 
production offices;
3. Filming equipment or supplies;
4. Locally-sourced photography equipment or services;
5. Locally-sourced editing equipment or services;
6. Locally-sourced music;
7. Catering equipment or services;
8. Costumes, make-up, and similar products and services;
9. Lodging and domestic, or international travel; or,
10. Insurance.
The FDCP shall reserve the right to disqualify any expenses that clearly do not 
fall within the spirit of the tax credit program, subject to administrative and 
judicial appeal. As an assumption, the following shall not be recognized as 
qualified:
1. Those related to distribution of the film, including but not limited to 
marketing and promotion;
2. Such as attorney or accounting fees, incurred in the process or as a 
result of acquiring or challenging a government determination of 
eligibility for incentives later reimbursed to the production;
3. Items that are later resold by the production, minus any loss incurred;
4. Any amounts paid to members of the production as a result of profit 
participation, residual, or similar agreements; and
5. Expenses associated with the financing of production.


1 
Sec. 6. Program Eligibility. -The following requirements must be attained to
2 
be eligible for the incentives program:
3 
a) For foreign productions: Upon certification by FDCP that the production is a
4 
professional endeavor and has met the FDCP's requirements in terms of the
5 
amount of investment and the amount of jobs the production will generate;
6 
b) For local production: Upon certification by FDCP that the production is a
7 
professional endeavor and has met the FDCP's requirements in terms of the
8 
amount of investment and the amount of jobs the production will generate;
9 
c) Participating productions must agree to cooperate with any audits conducted
10 
to ensure compliance with program eligibility requirements, both during and
11 
after production;
12 
d) In addition to the abovementioned criteria, a local movie production may only
13 
avail of should any of the following criteria are met:
14 
1. If the final production is set completely or largely in a historical or
15 
cultural site as determined by the NCCA; and,
16 
2. If the final product showcases substantive scenes of traditional practice
17 
or custom.
18 
Sec. 7. Additional Incentives. -
19 
a) Unless otherwise requested by the production, all productions approved by
20 
the FDCP for rax credits shall also be:
21 
1. exempt from all fees for or associated with filming permits;
22 
2. given free access to any public lands where filming is allowed;
23 
3. provided with free police protection at filming locations where safety is
24 
a reasonable concern;
25 
4. provided free and expedited work visas for all members of the
26 
production team that meet immigration requirements; and,
27 
5. assigned a liaison at the FDCP responsible for coordinating all permits,
28 
facilitating receipt of tax credits, securing immigration visas, and
29 
assisting in whatever other bureaucratic tasks are found necessary in
30 
order for filming to occur, such that the production should not need to
31 
interact with any organ of the Philippine government other than the
32 
FDCP in making logistical and financial arrangements.


1 
Sec. 8. Transferability. -
2 
a) Motion picture tax credits assigned under this Act may be transferred, soid, or
3 
otherwise exchanged.
4 
b) A taxpayer who purchases or otherwise acquires a motion picture tax credit
5 
may apply the credit toward any tax levied by the Bureau of Internal
6 
Revenue, which shall honor any such credits at full face value.
7 
c) Productions may sell their tax credits to any taxpayer without restriction, and
8 
no element of the Philippine government, nor person meaningfully affiliated
9 
with the government, may instruct, suggest, or advice in any manner as to
10 
where the credits should be sold.
11 
d) Upon sale of a credit, a production may choose to either remit their profits
12 
abroad or retain them In the Philippines, and in neither scenario shall any
13 
additional taxes or fees be assessed.
14 
Sec. 9. Appropriations. - The amount of Twenty million Pesos
15 
(P20,000,000.00) is hereby appropriated to the FDCP for facilitating compliance with
16 
this Act. Initially, the fund may be sourced from travel taxes collected by Tourism
17 
Infrastructure and Economic Zone Authority (TIEZA). Thereafter, the sum necessary
18 
for the continued implementation of this Act shall be included in the Annual General
19 
Appropriations Act.
20 
Sec. 10. Separability Clause. - If any portion or provision of this Act is
21 
subsequently declared invalid or unconstitutional, other provisions hereof which are
22 
not affected thereby shall remain in full force and effect.
23 
Sec. 11. Repealing Clause. - All other laws, acts, presidential decrees,
24 
executive orders, presidential proclamations, issuances, rules and regulations, or
25 
parts thereof which are contrary to or inconsistent with any of the provisions of this
26 
Act are hereby repealed, amended, or modified accordingly.
27 
Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its
28 
publication in the Official Gazette or in a newspaper of genera! circulation.
Approved,