By: Aliahcorr Balanon
Photo by Office of the President (Presidential Communications Office)
President Ferdinand Marcos Jr. has officially signed Republic Act (RA) 12252, on Friday, Aug. 29, a law liberalizing the lease of private lands by foreign investors and extending the long-term lease contracts from 50 years up to 99 years.
RA 12252 amended and liberalized several sections of RA 7652 or the Investors’ Least Act, the measure liberalizes the lease of private lands by foreign investors and extending the stability of long-term lease contracts for industrial estates, factories, agro-industrial ventures, tourism, agriculture, agroforestry, and ecological conservation.
Under the declaration of policy, foreign investors are required to register their projects under RA 7042, or Foreign Investments Act of 1991 as amended; and RA 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), as amended by the CREATE MORE Act.
Least contracts must also be registered with the Local Registry of Deeds and recorded on the property’s title.
In addition, the law allows the Fiscal Incentives Review Board (FIRB), Board of Investments (BOI, or the Promotion Agency (PA) to require investors to explain project delays and to start their projects within a reasonable time if they fail to do so within three years of signing the lease.
RA 12252 also raises penalties for violations, from Php 1 million to Php 10 million with possible imprisonment of six months to six years depending on the court’s discretion, an increase from the previous penalty of Php 100,000 to Php 1 million.