Article 50p. 50

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

d. other factors that will provide for a fair and equitable

sharing between the Government and the contractor.

The Government shall also be entitled to compensations

for its other contributions which shall be agreed upon by

the parties, and shall consist, among other things, the

contractor's income tax, excise tax, special allowance,

withholding

tax

due

from

the

contractor's

foreign

stockholders arising from dividend or interest payments

to the said foreign stockholders, in case of a foreign

national, and all such other taxes, duties and fees as

provided for under existing laws.

The

Government

share

in

financial

or

technical

assistance agreement shall consist of, among other

things, the contractor's corporate income tax, excise tax,

special

allowance,

withholding

tax

due

from

the

contractor's foreign stockholders arising from dividend

or interest payments to the said foreign stockholder in

case of a foreign national and all such other taxes, duties

and fees as provided for under existing laws.

The

collection

of Government share in financial or

technical assistance agreement shall commence after

the

financial

or

technical

assistance

agreement

contractor

has

fully

recovered

its

pre-operating

expenses, exploration, and development expenditures,

inclusive.

Section 82

Allocation of Government Share

The Government share as referred to in the preceding

sections shall be shared and allocated in accordance

with Sections 290 and 292 of Republic Act No. 7160

otherwise known as the Local Government Code of 1991.

In case the development and utilization of mineral

resources is undertaken by a government-owned or

-controlled corporation, the sharing and allocation shall

be in accordance with Sections 291 and 292 of the said

Code.

CHAPTER XV Taxes and Fees

Section 83

Income Taxes

After the lapse of the income tax holiday as provided for

in the Omnibus Investments Code, the contractor shall

be liable to pay income tax as provided in the National

Internal Revenue Code, as amended.

Section 84

Excise Tax on Mineral Products

The contractor shall be liable to pay the excise tax on

mineral products as provided for under Section 151 of the

National Internal Revenue Code: Provided, however, That

with respect to a mineral production sharing agreement,

the

excise

tax

on

mineral

products

shall

be

the

government share under said agreement.

Section 85

Mine Wastes and Tailings Fees

A semi-annual fee to be known as mine wastes and

tailings fee is hereby imposed on all operating mining

companies in accordance with the implementing rules

and regulations. The mine wastes and tailings fee shall

accrue to a reserve fund to be used exclusively for

payment for damages to:

a. Lives and personal safety;

b. Lands, agricultural crops and forest products, marine

life and aquatic resources, cultural resources; and

c. Infrastructure and the revegetation and rehabilitation

of

silted

farm

lands

and

other

areas

devoted

to

agriculture and fishing caused by mining pollution.

This is in addition to the suspension or closure of the

activities of the contractor at any time and the penal

sanctions imposed upon the same.

The Secretary is authorized to increase mine wastes and

tailings fees, when public interest so requires, upon the

recommendation of the Director.

Section 86

Occupation Fees

There shall be collected from any holder of a mineral

agreement, financial or technical assistance agreement

or exploration permit on public or private lands, an

annual occupation fee in accordance with the following

schedule:

a. For exploration permit - Five pesos (P5.00) per hectare

or fraction thereof per annum;

b. For mineral agreements and financial or technical

assistance agreements - Fifty pesos (P50.00) per hectare

or fraction thereof per annum; and

c. For mineral reservation - One hundred pesos (P100.00)

per hectare or fraction thereof per annum.

The Secretary is authorized to increase the occupation

fees

provided

herein

when

the

public

interest

so

requires, upon recommendation of the Bureau Director.

Section 87

Manner of Payment of Fees

The fees shall be paid on the date the mining agreement

is registered with the appropriate office and on the same

date

every

year

thereafter. It shall be paid to the

treasurer of the municipality or city where the onshore

mining areas are located, or to the Director in case of

offshore mining areas. For this purpose, the appropriate

officer shall submit to the treasurer of the municipality

or city where the onshore mining area is located, a

complete list of all onshore mining rights registered with

his office, indicating therein the names of the holders,

area in hectares, location, and date registered. If the fee

is not paid on the date specified, it shall be increased by

twenty-five per centum (25%).

Section 88

Allocation of Occupation Fees

Thirty per centum (30%) of all occupational fees collected

from holders of mining rights in onshore mining areas

shall accrue to the province and seventy per centum

(70%) to the municipality in which the onshore mining

areas are located. In a chartered city, the full amount

shall accrue to the city concerned.

Section 89

Filing Fees and Other Charges

The Secretary is authorized to charge reasonable filing

fees

and

other

charges

as

he

may

prescribe

in

accordance

with

the

implementing

rules

and

regulations.

CHAPTER XVI Incentives

Section 90

Incentives

The contractors in mineral agreements, and financial or

technical assistance agreements shall be entitled to the

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