REPUBLIC ACT NO.
7942 March 3, 1995 stockholders arising from dividend or interest payments to the said
AN ACT INSTITUTING A NEW SYSTEM OF MINERAL
RESOURCES EXPLORATION, DEVELOPMENT, UTILIZATION,
AND CONSERVATION
CHAPTER XIV
GOVERNMENT SHARE
Section 80
Government Share in Mineral Production Sharing Agreement
The total government share in a mineral production sharing
agreement shall be the excise tax on mineral products as provided in
Republic Act No. 7729, amending Section 151(a) of the National
Internal Revenue Code, as amended.
Section 81
Government Share in Other Mineral Agreements
The share of the Government in co-production and joint-venture
agreements shall be negotiated by the Government and the
contractor taking into consideration the:
a. capital investment of the project;
b. risks involved;
c. contribution of the project to the economy; and
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
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.
REPUBLIC ACT NO. 9136

AN ACT ORDAINING REFORMS IN THE ELECTRIC POWER

INDUSTRY, AMENDING FOR THE PURPOSE CERTAIN LAWS
AND FOR OTHER PURPOSES

Section 66. Benefits to Host Communities. - The obligations of

generating companies and energy resource developers to
communities hosting energy generating facilities and/or energy
resource developers as defined under Chapter II, Sections 289 to
294 of the Local Government Code and Section 5(i) of Republic Act
No. 7638 and their implementing rules and regulations and
applicable orders and circulars consistent with this Act shall
continue: Provided, further, That the obligations mandated under
Chapter II, Section 291 of Republic Act No. 7160, shall apply to
privately-owned corporations or entities utilizing the national wealth
of the locality.

To ensure the effective implementation of the reduction in cost of

electricity in the communities where the source of energy is located,
the mechanics and procedures prescribed in the Department of the
Interior and Local Government (DILG)-DOE Circulars No. 95-01 and
98-01 dated October 31, 1995 and September 30, 1998, respectively
and other issuances related thereto shall be pursued.

Towards this end, the fund generated from the eighty percent (80%)
of the national wealth tax shall, in no case, be used by any local
government unit for any purpose other than those for which it was
intended.

In case of any violation or noncompliance by any local government

official of any provision thereof, the DILG shall, upon prior notice and
hearing, order the project operator, through the DOE, to withhold the
remittance of the royalty payment to the host community concerned
pending completion of the investigation. The unremitted funds shall
be deposited in a government bank under a trust fund.