Republic of the Philippines 2
HOUSE OF REPRESENTATIVES iS RECEIVED
Quezon City Xl DATE August 24, 2022
19 CONGRESS 8, wen
First Regular Session 4 co a,
HOUSE BILL NO. _4062. Wo INDEX?

Introduced by. REP. ARJO ATAYDE

AN ACT
ESTABLISHING A FRAMEWORK FOR FILM AND TELEVISION
TOURISM IN THE PHILIPPINES, CREATING AN INTER-AGENCY COMMITTEE
ON FILM AND TELEVISION TOURISM AND FOR OTHER PURPOSES

Filipinos pride themselves when foreign films feature the Philippines. Among
the notable films partly shot in the country are: Avengers: Infinity Wars featuring
Banaue Rice Terraces, Bourne Legacy featuring El Nido, XXX: Return of Xander Cage
featuring Caramoan Island, South Korean films Romantic Island featuring Boracay,
and No Breathing featuring Pearl Farm. These films validate and make known to the
world the beauty and tourism potential of the country.

Tourists are enticed to visit the places featured in their favorite movies. As such,
the government should recognize film tourism as an opportunity to boost our tourism
industry. Its benefits are as follows:

a. Cost-efficient marketing - given the allure of movies and television, being
featured in it can be considered as an effective marketing campaign that widens
the awareness reach of our tourist destinations without incurring too much cost,

b. Enhances destination image - mass consumption of movies and television
shows have an impact on viewer's perception on featured destinations. Given
the location's association with fame, being able to visit the place is aspirational
and even treated as a status symbol for the interested audience; and



¢. Non-seasonality - Modem technology, particularly the advancement of internet
technology, allows films to be accessed and viewed at any time of the year
thereby doing away with the seasonality of tourism.’

In terms of economic benefits, international and local flm production will create
Jobs that will yield economic growth and raise our country’s international profile.

For these reasons, passage of this bill that aims to promote Philippine film
tourism is eamestly sought.

REP. ARJO ATAYDE

' Dalisay, Vee Jay, Written Report on Emerging Forms of Tourism: Film Tourism.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

19 CONGRESS
First Regular Session

HOUSE BILL NO. _4062

Introduced by. REP. ARJO ATAYDE

AN ACT
ESTABLISHING A FRAMEWORK FOR FILM AND TELEVISION
TOURISM IN THE PHILIPPINES, CREATING AN INTER-AGENCY COMMITTEE
ON FILM AND TELEVISION TOURISM AND FOR OTHER PURPOSES

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

SECTION. 1. Title. - This Act shall be known as the “Philippine Film and
Television Tourism Act."

SEC. 2. Declaration of Policy. - Itis hereby declared to be the policy of the State
to treat film and television tourism as a special investment and tourism tool for national
development.

Consistent with the national goal of creating new areas of business to generate
employment opportunities as well as to recognize Filipino talent and culture, film and
television tourism in the country is hereby made a new investment priority, including
but not limited to: making the Philippines a location for shooting or filming area,
Preserving or promoting the nation’s historical and cultural heritage and resources as.
well as artistic creations or sceneries depicted in films, and converting it into tourist
attractions; and championing Filipino film practitioners and artists and their
Participation in foreign productions.


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SEC. 3. Creation of the Philippine Inter-Agency Committee on Film and
Television Tourism (PIAC-FT7). - The Philippine Inter-Agency Committee on Film and
Television Tourism (PIAC-FTT) is hereby created, replacing the Philippine Film Export
Service Office (PFESO) under the Film Development Council of the Philippines
(FDCP), organized under Executive Order No. 674, Series of 2007.

The PIAC-FTT shalll be headed by an Executive Director, a position which shall
be equivalent to an Executive Director Ill position of the FDCP and which shall be a
career executive service officer position to be recommended by the Chairperson of the
FOCP and appointed-by the President.

It shall be composed of representatives from the following agencies
a. Department of Tourism;
b. Department of Trade and Industry;
©. Department of interior and Local Govemment:
d. Department of Finance;
©. Department of Foreign Affairs;
f. Bureau of Immigration and Deportation;
g. Department of Labor and Employment; and
h. Tourism Infrastructure and Enterprise Zone Authority

The heads of the above-stated departments of government shall designate their
regular representatives, based on their position in the organization, but not lower than
a Director-level position. The said representatives of the various government agencies
Shall, in addition to their duties provided in this Act, also serve as the direct link to
streamline, and develop a one-stop-shop system.

The Secretariat of the PIAC-FFT shall be based in the Film Development
Council of the Philippines for financial and administrative support. It shall be composed
of existing plantilla positions and new positions that the Department of Budget and


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Management may create that shall be necessary for the effective implementation of
this Act.

SEC. 4. Functions of PIAC-FTT. - The PIAC-FTT shall facilitate a one-stop-
shop system for foreign film or television production entities. It shall perform the
following

a. Facilitate the promotion and marketing of the Philippines as location site
for the production of international films and television programs, such as
but not limited to: creating and maintaining a website and/ or a manual
of Philippine Film and Television Tourism sites for overseas contract
workers; participating and exposure in World Expo, recognized
international film festivals, activities for cinema and television with global
market penetration, tourism fairs of international significance:

b. Formulate a ten-year Comprehensive Plan detailing an inventory of film
tourism sites in the country, areas for improvement, sectors to be tapped,
Partnerships, and marketing strategies both local and international in
application;

c. Offer tax credits to productions deemed eligible under this Act, which it
Shall issue no more than one month after the completion of principal
photography;

d. Formulate and recommend a reward and incentive package for foreign
film/television entities interested in shooting films/television programs in
the country and monitor the implementation thereof;

@. Provide assistance to foreign film production entities in processing
Pertinent documents and various requirements relative to the production
Of international films/television programs in the country and in complying
with environmental regulations;

f. Coordinate with various government agencies and local government
nits in assisting the entry and exit of a foreign film/television production
team, such as but not limited to producers, artists and production crew;


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g. Provide direct link between foreign production entities, producers,
filmmakers and artists with local Production manpower services, local
artists, bit players and technical crew, facilities and the like;

h. Utilize the services of tourism attaches abroad, through the Department
Of Tourism, in the promotion and marketing of Philippine locations
sites/resources and local film production manpower:

i. Maintain an inventory of areas in the country that may be utilized as a
film and television tourism site and a registry of sectors including artists,
film practitioners, technical personnel and others for ready referrals;

i. Identify key film and television tourism sites used by international or local

filmmakers and establish a PIAC-FFT mark;

k. Keep a progress report and actual impact of the initiative taking into
consideration the increase in the number of film tourists and its
Contribution to the economy;

|. Coordinate with various stakeholders and market players for research
and study on feasibility of a reward and incentive system, and other
aspects of combining tourism and film, including, but not limited to the
system of categories for the application of rewards and incentives
depending on the cinema grade and length of exposure of the identified
Philippine Film and Television Tourism site;

m. Coordinate with all Embassies and Consulates of the country to promote
film and television tourism;

1. Coordinate and partner with various associations of Filipino overseas
workers abroad in marketing, disseminating and propagating information
on Philippines as a film tourism destination, and

©. Coordinate and partner with known Filipinos of international ‘stature in
promoting the country and fulfilling the implementation of this Act.


SEC. 5. Partnership with Local Government Units (LGUs)- The PIAC-FFT shall
Partner and collaborate with Local Government Units in the performance of the
following:

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a. Identifying and promoting film and television tourism sites:

b. Facilitating and providing assistance in the easy issuance of permits,
Certificates and other documents related thereto;

©. Assisting in screening, providing, and identifying the necessary
complementary manpower requirements before, during and after film
and television production; and

d. Providing monetary and non-monetary incentives to the over-all film
Production team as far as practicable

SEC. 6. Amount of Tax Credit. -

a. The minimum tax credit awarded to eligible productions shall be equal
to twenty percent (20%) of qualified expenses, as defined in SEC. 7 of
this Act

b. In addition to the minimum tax credit, qualifying films, television shows,
movies of the week, mini-series, and web-series may gain further credits
under a point- based incentive system, to be administered by the PIAC-
FFT. Each point shall correspond with an additional one percent rebate
on all qualifying expenses. Any production shall only be able to claim
‘one rebate from the following subsections in their entirety:

1. Eligible productions may receive twenty (20) points if the final product
is set completely or largely within the Philippines, fifteen (15) points
if the final product contains ten (10) or more substantive scenes set
within the Philippines, and ten (10) points if the final product contains
at least five substantive scenes set within the Philippines;

2. Eligible productions may receive twenty (20) points if at least one-
half of filming within the Philippines occurs within a community


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recovering from a significant natural disaster that occurred within the
Preceding three years or ten (10) points if at least one-fourth of filming
within the Philippines occurs within the same areas: and

3. Eligible productions may receive two (2) points if they dedicate at
least ten (10) seconds worth of screen time during the credit roll toa
message acknowledging the films participation in the film tax credit
Program of the Philippines and providing the URL to a website where
viewers can learn about tourism opportunities in the country.

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All qualifying international productions shall also receive the following tax
credits. However, in no situation may the total tax credit amount received
for any particular expense exceed forty percent (40%):

1. Twenty percent (25%) of the cost of construction of any permanent
and useful infrastructure built in the Philippines for the purposes of
filming, including likely tourist attractions, subject to approval of the
Department of Tourism;

2. Fifteen percent (15%) of all lodging within the Philippines booked for
Production team members, for production-related purposes:

3. Ten percent (10%) of the cost of all transportation to or from the
Philippines for production team members conducting either
Production-related travel or the transportation of filming equipment
into the Philippines;

4. Five percent (5%) of the cost associated with the provision of utilities
or technology purchased within the Philippines and the employment,
as far as practicable, of local talents.

SEC. 7. Qualified Expenses. -

Qualified expenses for the purposes of determining the amount of a tax credit
Shall include any expense incurred within the Philippines directly related to pre-
Production, production, or post-production conducted within the Philippines,
unless otherwise exempted. However, expenses must be reasonable and

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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

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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;

Creation, decoration, or operation of sets or shooting locations and
Production offices;

Filming equipment or supplies;

Locally-sourced photography equipment services:

. Locally-sourced music;

Catering equipment or services;

. Costumes, make-up, and similar products and services;

|. Lodging and cosmetic, or international travel; or

Insurance.

The PIAC-FTT 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.

b.

As an assumption, the following shall not be recognized as qualified:

Those related to distribution of the film, including but not limited to
marketing and promotion;

- 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;


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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.

SEC. 8. Tax Incentives Eligibility. - The following requirements must be attained
to be eligible for the incentives program:

a. Upon certification by PIAC-FFT that the Production is a professional endeavor
and has met the PIAC-FFT's requirements in terms of the amount of investment
and the amount of jobs the production will generate;

b. Participating productions must agree to cooperate with any audits conducted to
ensure compliance with program eligibility requirements, both during and after
production;

SEC. 9. Offer Preferential Incentives. - Intemational or foreign film and
television production entities may, upon certification from the PIAC-FFT, be granted
the following

a. Multiple Entry Visa. - Foreign nationals who are members of the international
film production entities, as duly endorsed by the PIAC-FTT, shall be issued a
multiple entry special visa within seventy-two (72) hours upon submission of all
required documents, and which shall be valid for a period of one (1) year to
enter the Philippines: Provided, That a responsible officer ofthe applicant entity
Submits a duly authenticated certificate to the effect that the person who seeks
entry into the Philippines is a member of the applicant entity and will work
exclusively for film and television production

The admission and stay shall be co-terminus with the validity of the
multiple entry special visa. The stay, however, is extendible for one hundred
eighty days (180) upon submission to the Bureau of Immigration of a sworn
Certification by a responsible officer of the applicant entity, that its permit
remains valid and subsisting, and that no other source of income has been
made.


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b. Tax- and Duty-Free Importation - The intemational or foreign fim or television
Production entity shall enjoy tax- and duty-free importation of filming equipment
as determined and endorsed by the PIAC-FFT.

SEC. 10. Implementing Rules and Regulations - The Film Development
Council, Department of Tourism, Department of Finance and the Bureau of
Immigration and Deportation, shall promulgate and issue the implementing rules and
regulations within ninety (90) days upon approval of this Act.

SEC. 11. Appropriations. - The amount necessary to implement the provision
Of this Act shall be included in the Annual General Appropriations Act.

SEC. 12. Separability Clause. - Any portion or provision of this Act that is
declared unconstitutional shall not have the effect of nuliiying other portions or
Provisions hereof as long as such remaining portions can stil subsist and be given
effect in their entirety.

SEC. 13. Repealing Clause. - All laws, ordinances, rules, regulations, other
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed
or modified accordingly

SEC. 14. Effectivity. - This Act shall take effect after fifteen (15) days following
its publication in the official Gazette or ina newspaper of general circulation.

Approved