Sec. 2
Sec. 2. Without prejudice to such other incentives as they may avail under any other laws, the Association and its members, the participants, the landowners and contributors (hereinafter referred to as Participants) may henceforth avail of, and are hereby granted the following incentives and benefits:
1. To the extent of the amounts actually spent and invested for the Projects as verified by the PCA to be in accordance with the Farm Development Plan, the participants shall be exempt from any and all taxes, duties, fees and the like due to the National Government.
The exemption herein authorized shall be evidenced by an exemption certificate which shall be issued by the Minister of Finance upon certification by PCA of the progress of development in accordance with the Farm Development Plan. PCA shall verify on quarterly basis the progress of work on the Project and shall certify the extent of completion thereof and the amount of contribution paid by the Participants.
Within fifteen (15) days from every end of quarter, the PCA shall certify to the Ministry of Finance the amount of exemption to which the Participants are entitled.
The certification by PCA shall be final and conclusive for the Ministry of Finance to issue exemption certificates within ten (10) days from receipt hereof.
No exemption certificate shall be issued until and unless the PCA certification states that the particular work for a given quarter has been completed and no exemption shall be granted for the cost of maintenance of a portion or portions of the Project area which have been brought to peak production as defined in the Farm Development Plan.
The exemption certificate shall be negotiable and may be used or applied against any or all taxes including but not limited to income taxes, specific taxes, ad valorem taxes, sales taxes, percentage taxes, duties, charges, wharfage fees and the like due the National Government. The exemption granted hereunder shall not form part of the gross income of the grantee or transferee and is therefore not taxable and shall be valid only for a period of ten (10) years from the date of the exemption certificate.
2. At this option, a Participant which invests in the Project may be given a refund in lieu of an exemption. A corresponding refund certificate shall be issued by the Ministry of Finance upon certification by PCA of the amounts actually spent and invested in the Project upon certification by PCA of the progress of development in accordance with the Farm Development Plan. PCA shall verify on quarterly basis the progress of work on the Project and shall certify the extent of compliance with the Farm Development Plan.
Within fifteen (15) days from every end of quarter, the PCA shall certify to the Ministry of Finance the amount of refund to which the Participants are entitled.
The certification by PCA and COA shall be final and conclusive for the Ministry of Finance to issue refunds within ten (10) days from receipt thereof subject to the usual auditing regulations.
In no case shall be refund exceed the amount spent or invested on the development in progress and no refund shall be issued after the lapse of four (4) years from field planting or seven (7) years from the date of issuance of the certificate of eligibility, whichever comes first.
3. Within the development period of the Project as shown in the Farm Development Plan, and upon certification of the PCA that the capital equipment to be imported shall be utilized for the development of a Project, all importations of a Project for machinery and equipment including the initial supply of spare parts thereof shall be fully exempted from payment of tariff duties and taxes. Importations of oil palm planting materials are similarly exempted from all import duties and taxes.
4. Any amount contributed to the Project shall be exempted from the payment of donor's and donee's taxes. Receipt by the Participants of evidence of participation in the Project such as but not limited to associational rights, partnership interests, cooperative shares of stock, shares of stock in a corporation shall not form part of the gross income of the recipient participants and shall likewise be exempted from payment of all taxes and duties.
5. For a period of ten (10) years from date of approval of the Project, no real property taxes shall be imposed and collected on the lands included in the Project as well as on all improvements introduced therein and all machinery and equipment therein located.