FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
Explanatory Note 
The creation of a Special Economic Zone in the province of Sarangani is an effective response to 
the urgent national effort to minimize, if not eradicate poverty among our citizenry, especially 
for those who live in ow country’s distant rural areas like Sarangani and its neighboring towns 
and barangays. 
This bill will fulfill the objective of providing jobs to our people, especially those in the 
countryside, increase their productivity and individual incomes, and improve the level and 
quality of their living conditions thru the creation of &e Maasim-Kiamba-Maitum Industrial 
Triangle Special Economic Zone (MAKIMA-IT) in the province of Sarangani. The Zone shall be 
developed into a self-sustaining, industrial, commercial, financial, investment and 
tourisdrecreational center, in order to create employment opportunities in and around the Zone; 
and to effectively encourage and attract legitimate foreign investment therein. 
This bill seeks to institutionalize MAKIMA-IT as a Special Economic Zone of Sarangani 
Province; establish its Management Organization to be known as the MAKW-IT Ecozone 
Authority; provide for its capitalization, development and continuing operation. Once enacted, 
great potential for socio-economic progress in Sarangani will manifest in increased economic 
activity and improved quality of life for the Sarangans. 
In view of the foregoing, the early passage of this bill is earnestly sought. 
r 
+?dl 
AN 0 IO“S0NNY F.T 
LANESIV 
I
4
 
Senator 


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“’..‘..I , * _ I  
; .  , 
FOURTEENTH CONGRESS OF THE 
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‘2 
REPUBLIC OF THE PHILIPPINES 
1 
Third Regular Session 
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c;J 
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SENATE 
Introduced bv Senator Antonio “Sonnv” F. Trillanes IV 
AN ACT 
SPECIAL ECONOMIC ZONE IN THE PROVINCE OF SARANGANI, CREATING FOR 
SPECIAL ECONOMIC ZONE AUTHORITY, APPROPRIATING FUNDS THEREFOR 
AND FOR OTHER PURPOSES 
ESTABLISHING THE MAASIIM-KLAMBA-MAITUM INDUSTRIAL TRIANGLE 
THE PURPOSE THE MAASIM-KIAMBA-MAITUM INDUSTRIAL TRIANGLE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title.- This Act shall be known as the “Maasim-Kiamba-Maitum 
Industrial Triangle Special Economic Zone Act”. 
SEC. 2. Declaration of Policy.- 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 area, 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. Creation 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 in the Province of Sarangani, hereinafter referred to as the Maasim- 
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Kiamba-Maiturn Industrial Triangle Special Economic Zone or the MAKIMA-IT Ecozone. The 
MAKIMA-IT Ecozone shall cover the entire area embraced by: Sitio Seguil, Barangay Tinoto 
and Barangays Kamanga, Malbang and Colon in the Municipality of Maasim; Kling Plantation 
and Barangays Nalu and Tambilil in the Municipality. of Kiamba; and Barangays Kalaong, 
Mabay and Old Poblacion in the Municipality of Maitum. The specific metes and bounds of the 
MAKIMA-IT Ecozone shall be more particularly described and defined as follows: 
(a) IN THE MUNICIPALITY MAASIM: 
Sitio Seguil, Barangay Tinoto with a land area of 573.9409 hectares -its perimeter 
beginning 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 4,737.5478 meters 
due north to point 3. Thence 2,598.9690 meters on the 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 Barangay Kamanga, Malabang and Colon with an aggregate land area of 
1,637.8349 hectares - its perimeter beginning at a point marked “1” (125.05, 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 1 I. Thence 2,864.7673 meters following the 
coastal line westward to the point of beginning. 
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(b) IN TNE MUNICIPALITY OF KIAMBA 
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,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 to point 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 S10- 
55E 325.30 meters to point 18. Thence S73-00E 986.32 meters to point 19. Thence N61-22W 
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 N52-47!3 320.08 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 372.12 meters to point 
34. Thence N56-09E 347.59 meters to point 35. Thence S77-26E 295.86 meters to point 36. 
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 S73- 
02E 1,355.47 meters to point 41. ThenceN81-51E 1,129.46 meters to the point ofbeginning. 
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 N38-28W 988.61 
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Meters to point 7. Thence N62-18W 2,181.01 meters to point 8. 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 SOO-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 10. Thence N60-01W 
1,702.29 meters to point 1 1. Thence N34-08E 3,900.98 meters to the point of beginning. 
(c) IN THE MUNICPALITY OF MAITUM: 
Portions of Barangay Kalaong with an aggregate land area of 151.5394 hectares -its 
perimeter beginning at a point marked “1”. Thence Nll-19E 1,381.30 meters to point 2. Thence 
S8O-16E 564.58 meters to point 3. Thence N59-27E 839.24 meters to point 4. 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 Nll-31W 783.73 meters to point 15. 
Thence N79-34W 578.38 meters to the point of beginning. 
Portions ofBarangay Mabay with an aggregate land areas 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 572-49E 395.78 
meters to point 9. Thence S73-23E 1,150.48 meters to point 10. Thence S33-22W 1,603.10 
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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-OlW 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 2,296.72 meters to point 2. 
Thence S34-47W 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 282.765 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 416.20 meters to point 12. Thence N62-42E 1,218.16 
meters to point 13. Thence NOS-26E 1,366.79 meters to the point of beginning. 
SEC. 4. Governing Principles.- The MAKIMA-IT Special Economic Zone shall he 
managed by the MAKIMA-IT Special Economic Zone Authority, hereinafter referred to as the 
MITSEZA, created under Section 10 of this Act under the ?allowing principles: 
(a) Within the framework and limitation of the Constitution and applicable provisions of 
the Local Government Code, the MAKIMA-IT Ecozone shall he developed into and operated as 
a decentxalized, self-reliant and self-sustaining industrial, commercial/trading, ago-industrial, 
tourist, banking, financial and investment center with residential areas. 
(b) The MAKIMA-IT Ecozone shall be provided with transportation, telecommunications 
and other facilities needed to attract legitimate and productive investments, generate linkage 
industries and employment opportunities for the people of Sarangani and its neighboring towns 
and cities. 
(c) The MAKIMA-IT Ecozone may establish mutually beneficial economic relations 
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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) 
and/or the Department of Trade and Industry @TI), 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 for the following purpose: (1) consolidation of lands 
for MAKLMA-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, the Bureau of Customs, and the DTI. However, in order to protect domestic industries, a 
negative list of industries shall be drawn up and regularly updated by the PEZA. Enterprises 
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engaged in industries included in such negative list shall be allowed to sell their products locally. 
(g) The national government shall maintain its ability to coordinate with the MAKIMAIT 
Ecozone and the local government units. 
SEC. 5. Incentives to Registered Enterprises.- MAKIMA-IT Special Economic Zone 
Authority (MITSEZA) may administer the following incentives to the registered enterprises 
located therein to the extent of the activityiproject: 
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(A) Income Tax Holiday (ITH) - Registered domestic enterprises shall be entitled to 
an 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 (BOI) shall be entitled to a four-year income tax 
holiday. 
Category B - Registered domestic enterprises on the following shall be entitled to a six- 
year income tax holiday; 
(1) Located in less developed areas as defined by the BOI; or 
(2) ProducinglRendering new productshervices or having strong backward or forward 
linkages. 
Category C - Registered export enterprises 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; (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 Priorities Plan (PP) shall be entitled to incentives provided 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 MAKIMA-IT Special 
Economic Zone Authority (MITSEZA) to transact business within the MAKIMA-IT Special 
Economic Zone. A registered export enterprise shall be defined as any registered enterprise 
engaged 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 service abroad for foreign currency. A registered domestic enterprise, meanwhile, 
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shall be defined as any registered enterprise not falling under the definitions of a registered 
export enterprise. 
Additional investments on 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 investment in the project 
is made; Provided, Jitrfher, That the entitlement period for additional investment 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 ITH shall not exceed twenty (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 (BE) 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 and/or 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 o\JOLCO). - Net operating loss of the business or 
enterprise during the first three years from the start of commercial operations 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 operating loss resulting from availment of incentives provided in this 
Act shall not be entitled to NOLCO. 
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Registered enterprises availing of the ITH as herein provided shall not be entitled to avail 
of the NOLCO. 
(C) Imposition of a tax rate of the five percent (5%) on Gross Income Earned (GIE) - 
Except for real property tax on land, no local and national taxes a 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 kegistered enterprises operating within 
the MAKMA-IT Ecozone. In lieu thereof, five percent (5%) of the gross income earned shall be 
paid as follows: 
(a) Three percent (3%) to the National Government; and, 
(b) Two percent (2?40) shall be remitted by the business establishments to the treasurer’s 
ofice of the municipality or city where the enterprise is located. All persons and service 
establishments in the MAKIMA-IT Ecozone shall be subject to national and local taxes under the 
National Internal Revenue Code of 1997, as amended, and Local Government Code. 
(D) Accelerated Depreciation. - Accelerated depreciation of plant, machinely 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 
been used had the annual allowance been computed in accordance with the rules and regulations 
prescribed by the Secretary of Finance and the provisionsof the National Internal Revenue Code 
of 1997, as amended. 
(E) Capital Equipment Incentives. - (1) Importations of capital equipment, spare parts, 
tools and dye, or those required for 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, firher, That the importation of machinery and 
equipment and accompanying parts shall comply with the following conditions: 
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(i) They are not manufactured domestically in sufficient quantity, of comparable quality 
and at reasonable prices: 
(ii) 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, 
(iii) 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, transfers or disposition is made within the first 
five years from date of importation, any of the following conditions must be present: 
(1) the same is made to another enterprise enjoying tax and duty exemption on capital 
equipment; 
(2) the same is made to another enterprise, upon the payment of tiny taxes and duties on 
the net book value of the capital equipment to be sold; 
(3) the exportation of the capital equipment, machinery, spare parts or source documents 
or those required for pollution abatement and control; or 
(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 paragraph other than paragaph (2) herein, the registered firm shall 
not pay the 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 
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terms and conditions has been violated. Otherwise, they shall no longer be subject 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 used in the fabrication of machinery and 
capital equipment, had these items been imported, upon submission to the 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, transfer or disposes of these machineries, capital 
equipment and spare parts, the provision in the preceding paragraph for such disposition shall 
apply. 
This incentive shall be deemed waived if application for tax credit under this subsection 
was not filed within one year from date of delivery. 
(F) The importation of source documents by information technology-registered 
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enterprises shall be eligible for tax and duty free importation 
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(G) Raw Materials 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 provided the same are not sufficient in quantity or are 
not competitively priced in the Philippines and which are used in the manufacture, processing or 
production of its export products forming part thereof, exported directly and indirectly by the 
registered export-oriented enterprise, based on the actual taxes and duties paid for such 
materialshupplies semi-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 (1) year from the date of delivery. 
(H) Exemption from Wharfage Dues, 
~ The provisions 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 as of the end of the 
taxable year shall be imposed when the MCIT is greater than the income tax computed under 
the NIRC of 1997, as amended, for the taxable year; Provided, however, That said MCIT 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. - (a) Domestic 
merchandise sent from the h4AKIMA-IT Ecozone to areas outside the said ecozone shall, 
whether or not combined with or made part of other articles likewise of local origin or 
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. 
(b) 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 while in the zone, be subject to 
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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). 
(c) 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 
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laws applicable to like articles manufactured in a foreign country. 
(d) Unless the contrary is shown, merchandise taken out of the MAKIMA-IT Ecozone 
shall be considered for tax purposes to have been 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) 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 exceeding ten (10) years from its 
registration: Provided, That when the majority of the capital stock of a registered enterprise is 
owned by foreign investors, the positions of the resident,'treasurer and general manager or their 
equivalents may be retained by foreign nationals beyond the period set forth herein and such 
officer is the owner or a 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 
therein. 
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 
Section 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 enter and leave 
the Philippines without further documentary requirements other than valid passports or other 
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travel documents in the nature of passports. The validity of the multiple entry visa shall be 
extendible yearly. 
The said foreign nationals admitted under this provision, as well as their respective spouses and 
dependents shall be exempt from: (a) obtaining alien certificate of registration and immigration 
clearance certificates; and (b) securing the Alien Employment Permit (AEP) and all types of 
clearances, permits, licenses or their equivalents required by any government department or 
agency. 
SEC. 6. Incentive to Investom- Any foreign national covered under Subsection (M) of 
Section 5 of this Act, who invests an amount of US $ 150,000.00, either in cash and/or 
equipment, in a registered enterprise 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 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 paragraph (M), Section 5,hereof. 
As a holder of investor’s visa, an alien shall be entitled to reside in the Philippines while 
his investment 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 
said alien withdraw his investments from the Philippines, then the investor’s visa issued to him 
shall automatically expire. 
SEC. I. Administration, Implemntaiion and Monitoring of Incentives.- The 
MITSEZA shall be responsible for the administration and implementation of the incentives 
granted to its respective registered enterprises shall be uniformly applied by MITSEZA. 
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The following are the duties and responsibilities of the MITSEZA in the administration 
(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 
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in accordance with the requirements established by the Department of Finance @OF) and the 
(C) To submit information on registered enterprises to the DOF and the BO1 as required 
by any of these agencies to ascertain consistency of investment policies and incentives, including 
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their implementation as provided in paragraph (a) herein, and to ensure proper implementation of 
systems and procedures affecting trade and customs policies as provided in paragraph (b) herein; 
and 
(D) To perform all other duties and responsibilities as may be required by the President 
of the Philippines. 
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 BOT in recording all incentives granted by the 
government for transparency purposes. 
SEC. 8. Extension of Period of Avai1ment.- The availment period of the incentives 
provided herein maybe extended by the MITSEZA, in the event that the registered enterprise 
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equivalent event. 
suffers operational force majeure or any event equivalent thereto, impairing its viability; 
Provided, That the availment period shall not exceed the duration of said force majeure or 
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SEC. 9. Duration ofZncent1ves.- Enterprises registered with the MlTSEZA may enjoy 
ITH or NOLCO granted by the latter prior to the availment of the five percent (5%) GIE. 
Fiscal incentives under this act shall be terminated after a cumulative period of twenty 
(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. 
The industries exempted from this provision shall be recommended by the BOI, with the 
concurrence of the Secretaries of the Departments of Finance and Trade and Industry. 
SEC. 10. Creation of the MAKIMA-ZT 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 Special Economic Zone. This 
corporate franchise shall expire in fifty (50) years counted from the first day of the fifth (5th) 
calendar year after the effectivity of this Act, unless otherwise extended by Congress. It shall be 
organized within one hundred eighty (1 80) days of effectivity of this Act. 
SEC. 11. Principal Office of the MZTSEZ4.- The MAKIMA-IT Special Economic Zone 
Authority 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 MAKIMA-ZT Special Economic Zone Authority 
(MITSEZA).- The MAKIMA-IT Special Economic Zone Authority shall have the following 
powers and functions: 
(a) To operate, administer, manage and develop the MAJSIMA-IT Ecozone in an efficient 
and decentralized manner, subject to existing laws: 
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(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 exercise 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 infrastmcture 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 competitive rates, fares, charges and prices thereof. 
(e) To construct, acquire, own, lease, operate and maintain on its own or through 
contracts, franchise, licenses, bulk purchases from the private sector or permits under any of 
the schemes allowed in Republic Act No. 6957 (the Build-Operate-Transfer Law, as amended 
by R.A. No. 771 8) or joint venture, adequate facilities and infrastructures required or needed 
for the operation and development of the MAKIMA-IT Ecozone, in coordination with 
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 tourist related 
activities, including games, amusements, recreational and sports facilities. 
(g) Subject to the approval of the President of the Philippines and the Monetary Board of 
the Bangko Sentral ng Pilipinas and upon the recommendation of the Department of Finance, to 
raise or borrow adequate and 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 MAKLMA-IT Ecozone. 
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(i) To adopt, alter and use of corporate seal; make contracts, leases, own or otherwise 
dispose of personal or real property; sue and be sued; and otherwise carry out its functions and 
duties as provided for in this Act; 
0) To issue certificates of origin for products manufactured or processes in the 
MAKIMA-IT Ecozone in accordance with prevailing rules of origin, and the pertinent 
regulations of the PEZA, the DTI and or the Department of Finance (DOF); 
(k) To issue working visas renewable every two (2) years to foreign executives and 
foreign technicians with highly specialized skills which no Filipino possesses, as certified by the 
Department of Labor and Employment: 
(1) To report to the Bureau of Immigration the names of the foreigners who have been 
granted permanent resident status and working visas within thirty (30) days after issuance of 
such grant: 
(m) TO exercise such powers as may be essential, necessary or incidental to the powers 
granted to it hereunder as well as those that shall enable it to carry out, implement and 
accomplish the purposes, objectives and policies of this Act; and 
(n) To issue rules and regulations consistent with the provisions of this Act as may be 
necessary to accomplish and implement the purpose, objectives and policies provided herein. 
SEC. 13. Banking Rules and Regulations.- Existing laws and regulations of the Bangko 
Sentral ng Pilipinas (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 deposit units, offshore 
banking units and other financial institutions under the supervision of the BSP. 
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SEC. 14. Remittance 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 of the MAhTM4-ZT Special Economic Zone Authorily.- 
The powers of the MAKIMA-IT Special Economic Zone Authority shall be vested in and 
exercised by a Board of Directors, hereinafter referred to 8s 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; 
(c) Members consisting of: 
(1) The Governor of the Province of Sarangani; 
(2) The Congressional Representative of the lone district of Sarangani Province; 
(3) The Mayors of the Municipalities of Maasim, Kiamba, and 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; and 
(5) Three (3) representatives of Industry in Sarangani Province. 
The Governor, the Congressional Representative and the Mayors and Presidents of 
Chambers and Commerce and Industry of the Municipalities of Maasim, Kiamba, and Maitum, 
Province of Sarangani, shall serve as ex-ofJicio members of the Board, whose term in the Board 
corresponds to their terms as elected officials. 
The Chairman shall be appointed by the President of the Philippines upon the nomination 
of the Board of Directors to serve for a term of six (6) years, unless separated from service due to 
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death, voluntary resignation or removal for cause. In case of death, resignation or removal for 
cause, the replacement shall serve only the unexpired portion of the term. 
A11 members of the Board, whether ex-oficzo or chosen by the Board to represent the 
Industry sector in Sarangani Province shall be appointed by the President of the Philippines to 
serve for a term of six (6) years. In case of death, resignation or removal for cause, the 
replacement shall serve only the unexpired portion of the term. 
Except for representatives of the ljusiness and labor sectors, no person shall be appointed 
by the President 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 a least ten (10) years relevant working experience preferably in the field of 
management or 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 Duties of the Administrator.- The Administrator shall be 
appointed by the President of the Philippines for a six (6) year term, upon the recommendation 
of the Board of Directors. Provided, That no person shall be appointed as Administrator 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 a least ten (8) years relevant working experience 
preferably in the field of management or public administration. 
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The Administrator shall have the following powers and duties: 
(a) To direct and manage the affairs of the MITSEZA in accordance with the policies set 
by the Board of Directors; 
(b) To establish the internal organization of MITSEZA under such conditions that Board 
of Directors my prescribe; 
(c) To submit an annual budget and necessary supplemental budget to the Board for its 
approval; 
(d) To submit within thirty (30) days after the close of each fiscal year an annual report 
to the Board and such other reports as may be required; 
(e) To submit to the Board for its approval policies, systems, procedures, rules and 
regulations that are essential to the operation of the MAKIMA-IT Ecozone; 
(It) 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 
(8) To perform such other duties as may be assigned to him by the Board or which are 
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, 
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transfer, assign or reassign officers of the MITSEZA, any provision of existing law to the 
contrary notwithstanding: Provided, further, That the Administrator may carry out removal of 
The officer or employee of the MITSEZA, including all members of the Board, shall 
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not engaged directly or indirectly in partisan activities nor take part in any election, except to 
vote. 
No officer or employee of the MITSEZA, subject to civil service rules and regulations, 
shall be removed or suspended except for cause, as provided by law. 
SEC. 18. Ipso Facto Clause.- Section 30-41 of Republic Act No. 7916 or the Special 
Economic Zone Act of 1995, shall ipso facto apply to the MAKIMA-IT Special Economic Zone. 
SEC. 19. Capitalization.- The MAKIMA-IT Special Economic Zone Authority shall 
have an authorized capital stock of One Billion (1,000,000,000.00) no pqr shares with a 
minimum issue of Ten Pesos (P10.00) each, the majority shares of which shall be subscribed 
and paid for by the National Government and the Local Government Units (LGUs) embracing 
the MAKIMA-IT Special Economic Zone. The Board of Convenors of the MITSEZA may, with 
the written concurrent of the Secretary of Finance, sell shares, representing not more than forty 
per centum (40%) of the capital stock of the MITSEZA to the general public under such policy as 
the Board and the Secretary of Finance may determine. The National Government and the LGUs 
shall, in no case, own less than sixty per centum (60%) of the total issued and outstanding capital 
of the MAKIM-IT Special Economic Zone Authority. 
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 m u d  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 Special Economic Zone shall be under the 
direct control and supervision of the Philippine Economic Zone Authority (PEZA) for purposes 
of policy direction and coordination. 
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SEC. 21. Relationship with Regional Development CounciL- The MAKIMA-IT Special 
Economic Zone Authority shall determine the development goals for the MAKIMA-IT Ecozone 
within the framework of national development plans, policies and goals. The Administrator shall, 
upon approval by the Board, submit the MAKIMA-IT Ecozone plans, programs and projects to 
the Regional Development Council for inclusion and inputs to the overall regional development 
plan. 
SEC. 22. Relationship with Local Government Units.- Except as herein provided, the 
local government units comprising the MAKIMA-IT Ecozone Zone shall retain their basic 
autonomy and identity. The Municipalities of Maasim, Kiamba and Maitum, Sarangani Province, 
and their component barangays and/or 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. InterpretatiodConstruction- The powers, authorities and functions that 
are vested in the MITSEZA are intended to decentralize governmental functions a d  authority 
and promote an efficient and effective working relationship between the MAKLMA-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 of personnel as may be necessary 
to assist said representative in the performance of hidher duties. The salaries and emoluments of 
the assigned auditor and personnel shall be in accordance with pertinent laws, rules and 
regulations. 
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SEC. 25. Trafwitov PmviSiorh- The existing .Board of Convenors of the MAKIMA 
Industrial Triangle, created by virtue of an inter-local agreement/memorandum of cooperation 
among the municipalities of Maasim, Kiamba and Maitum in Sarangani Province, shall act and 
perform the functions of the MAKIMA-IT Special Economic Zone Authority Board pursuant to 
Section 15 of this Act until such time that the members of the Board of Directors of the 
MAKIMA Industrial Triangle Special Economic Zone Authority (MI'TSEZA) are appointed by 
the President of the Republic of the Philippines and have been duly sworn-in or have entered into 
office. 
SEC. 26. Separability Clause.- If, for any reason,.any provision or part of this Act is 
declared unconstitutional or invalid, such other parts not affected thereby shall remain in full 
force and effect. 
SEC. 27. Repealing Clause. - All laws, presidential decrees, administrative orders and 
executive issuances or parts thereof inconsistent with the provisions of thm Act are hereby 
repealed or modified accordingly. 
SEC. 28. Effectivity. - This Act shall take effect fifteen (15) days after its pUlsficraion in 
at least two (2) newspapers of general circulation. 
Approved, 
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