Conditions for Availment of Tourism Incentives.
Section 6
SEC. 6. Conditions for Availment of Tourism Incentives. — No registered tourism enterprise shall be entitled to any incentive under this Decree until its registration shall have been approved by the Authority, which approval shall retroact to the date of filing of the application for registration. To be entitled to registration, an applicant must satisfy the Authority— that in case the applicant is a natural person, that he is a citizen of the Philippines; and in case the applicant is a partnership or other association, that it is organized under Philippine laws and that at least 60% of its capital is owned and controlled by citizens of the Philippines; or in case of a corporation or a cooperative, that it is organized under Philippine laws and that 60% of the capital stock outstanding and entitled to vote is owned and held by Philippine nationals as defined in Section 3 (f) of Republic Act No. 5186, and at least 60% of the members of the Board of Directors are citizens of the Philippines; that applicant before engaging in any of the activities reserved by the Constitution or statutes to Filipino citizens or corporations owned and controlled by Filipino citizens applicants shall first comply with the requirements of the Constitution or statutes; and that if the applicant will engage in an activity other than that for which it is registered, it undertakes to install an adequate accounting system to segregate the investments, revenues, sales, receipts, purchases, payrolls, costs, expenses and profits and losses of the registered operations. In the case of registered tourism enterprises located in or whose sphere of activity is in Greater Manila, an average of seventy percent (70%) of its revenues must be in foreign currency, never falling below fifty percent (50%) in any given year within the period for which the incentives are granted and in the case of registered tourism enterprises located outside Greater Manila, or whose sphere of activity is outside the same, an average of fifty percent (50% ) of revenues shall be in foreign currency, never falling below thirty-five percent (35%) in any given year within the period for which incentives are granted. Upon receipt of the application for registration, the Authority shall, within thirty (30) days, notify the applicant of all pertinent requirements not complied with and it shall act on said application within sixty (60) days after submission thereof.