- the Environmental Compliance Certificate (Presidential Decree No. 1586);
- the Environmental Impact Statement (EIS) System (DENR AO No. 2003-30);
- the 2004 Clean Water Act (RA No. 9275);
- the 1999 Clean Air Act (RA No. 8749);
- the 1990 Revised Effluent Regulations (DENR AO No. 35, s.1990);
- the 1990 Toxic Substance and Hazardous and Nuclear Waste Control Act (RA No. 6969);
- the Ecological Solid Waste Management Act (RA No. 8749);
- the National Integrated Protected Areas System (NIPAS) under RA No. 7586; and
- the 2020 Philippine Mineral Reporting Code.
1.2 Which Government body/ies administer the mining industry?
The DENR – Mines and Geosciences Bureau (MGB) administers the mining industry and ensures compliance with the Mining Act. The DENR-MGB administers and disposes of mineral lands and resources through the grant of exploration permits (EPs) and/or Mineral Agreements (MAs) to duly qualified entities. The DENR-Environmental Management Bureau (EMB) implements the applicable environmental laws.
Executive Order (EO) No. 79, s.2012, as amended by EO No. 130, s. 2021 (Institutionalizing and Implementing Reforms in the Philippine Mining Sector, Providing Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources) created the Mining Industry Coordinating Council (MICC). The MICC is tasked with reforms related to the mining industry including mine safety and environmental policies.
1.3 Describe any other sources of law affecting the mining industry.
Administrative rules and regulations on mining and the environment issued by the Philippine President and the DENR Secretary also affect the industry. Supreme Court jurisprudence interpreting the Constitution and the laws likewise apply.
2. Recent Political Developments
2.1 Are there any recent political developments affecting the mining industry?
The administration of the incumbent Philippine President is open to the full development of sustainable mining. The Philippine President has recently asked the Philippine Congress to approve priority legislation on the rationalisation of the mining fiscal regime to make the Philippines competitive with other countries.
2.2 Are there any specific steps the mining industry is taking in light of these developments?
The Chamber of Mines of the Philippines, composed of most of the country’s large-scale metallic mineral development companies, is working with the Philippine Congress to provide inputs on any proposed legislation on mining taxes.
3. Mechanics of Acquisition of Rights
3.1 What rights are required to conduct reconnaissance?
Reconnaissance or prospecting is considered exploration and requires an EP.
An EP is an initial mode of acquiring mining rights giving the holder the right to conduct exploration for all minerals within a specified area for a period of six years, extendable for another two years. The exploration work should be based on an approved Work Program. An EP holder has the right of first option to develop and utilise the minerals in the exploration area upon the approval of the declaration of mining project feasibility.
An EP holder must be eligible as a Qualified Person. A Qualified Person is defined as “any Filipino citizen of legal age and with capacity to contract; or a corporation, partnership, association or cooperative organised or authorised for the purpose of engaging in mining, with technical and financial capability to undertake mineral resources development and duly registered in accordance with law, at least sixty per cent (60%) of the capital of which is owned by Filipino citizens…”.
A foreign corporation, however, is deemed qualified to hold an EP, a Financial or Technical Assistance Agreement (FTAA), or a Mineral Processing Permit (MPP).
An EP application is filed with the MGB Regional Office (RO) with the following mandatory requirements:
- Location map/sketch plan of permit area.
- Two-year Exploration Work Programme.
- Proof of technical competence and financial capability.
- Certificate of Environmental Management and Community Relations Record (CEMCRR)/Certificate of Exemption.
- Environmental Work Program (EWP).
- National Commission on Indigenous Peoples (NCIP) Certification Precondition (CP).
3.2 What rights are required to conduct exploration?
Please see question 3.1.
3.3 What rights are required to conduct mining?
An MA, exclusive for Philippine Qualified Persons, grants a contractor the exclusive right to conduct mining operations and to extract all mineral resources found in the contract area. It is classified into: (a) a Mineral Production Sharing Agreement (MPSA); (b) a Co-production Agreement; and (c) a Joint Venture Agreement.
The MA requirements are:
- Corporate documents.
- Location map/sketch plan.
- Three-year Development/Utilisation Work Programme.
- Proof of technical competence and financial capability.
- Mining Project Feasibility Study.
- Final exploration report.
- Environmental report.
- Approved survey plan.
- ECC.
- Environmental Protection and Enhancement Program (EPEP).
- CEMCRR.
- NCIP CP.
An FTAA is reserved for Qualified Persons, including foreign companies, with technical and financial capability to undertake large-scale exploration, development, and utilisation of mineral resources, i.e., a minimum investment of US$50 million for infrastructure and development and minimum authorised capital stock of US$10 million.
The FTAA requirements are:
- Corporate documents.
- Location map/sketch plan.
- Two-year Exploration Work Programme.
- Proof of technical competence and financial capability.
- Posting of financial guarantee/performance bond and letter of credit.
- CEMCRR.
- EWP.
- Approved survey plan.
- ECC.
- EPEP.
- Social Development and Management Program (SDMP).
- NCIP CP.
3.4 Are different procedures applicable to different minerals and on different types of land?
The procedure for mining is uniform and applies to all mineral resources. Applications for EPs, MPSAs and FTAAs are all filed with, and processed by, the MGB.
Small-scale mining, however, which is limited to Filipino citizens, is governed by the People’s Small-Scale Mining Act. Quarry resources permits and sand and gravel permits are applied for with either the Provincial/City Mining Regulatory Board (P/CMRB), the MGB or the Provincial Governor. Mining applications on ancestral lands require compliance with the NCIP CP process.
3.5 Are different procedures applicable to natural oil and gas?
Yes. Presidential Decree No. 1857, as amended, otherwise known as the 1972 Oil Exploration and Development Act, governs the oil and gas industry. It provides rules governing service contracts for the undertaking, management and operation of petroleum operations. The Department of Energy implements this law.
4. Foreign Ownership and Indigenous Ownership Requirements and Restrictions
4.1 What types of entity can own reconnaissance, exploration and mining rights?
Natural persons and juridical entities which are Qualified Persons may own exploration and mining rights.
4.2 Can the entity owning the rights be a foreign entity or owned (directly or indirectly) by a foreign entity and are there special rules for foreign applicants?
Yes, EPs, FTAAs and MPPs are available to both Filipino and foreign mining entities. MAs or MPSAs are restricted to Filipino individuals, or companies at least 60% of the capital of which is owned by Filipinos or Philippine companies; thus, foreign parties are limited to a 40% direct equity interest.
4.3 Are there any change of control restrictions applicable?
The MA does not have any change of control provisions except that the Mining Act generally requires that the Contractor remains a Qualified Person. The administrative interpretation of the transfer or assignment of an EP, MA or FTAA includes situations where there is a change of control in the entity holding the same. This requires DENR-MGB prior approval should the same involve an MA or of the Philippine President, in the case of FTAAs.
A FTAA has a transfer of controlling interest provision that requires any direct disposition of greater than 50% of the Contractor’s legal or beneficial ownership of voting securities, by sale, voting trust, or otherwise, to have the express prior consent of the Philippine President.
The Philippine Competition Act (RA No. 10667) may also apply in certain transactions.
4.4 Are there requirements for ownership by indigenous persons or entities?
There are none, but the Constitution and the IPRA protect and give priority rights to Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) to their ancestral lands. ICCs/IPs are entitled to share the benefits from mineral resources exploration, development and utilisation found within their ancestral domain.
The Mining Act and the IPRA both require the ICCs/IPs prior consent for mining operations in ancestral lands. These laws also require royalties payments of no less than 1% of the value of Gross Output of Minerals sold by the Contractor.
4.5 Does the State have free carry rights or options to acquire shareholdings?
The State has no such rights or options.
5. Processing, Refining, Beneficiation and Export
5.1 Are there special regulatory provisions relating to processing, refining and further beneficiation of mined minerals?
Yes, an MPP grants a Qualified Person the right to engage in milling, beneficiation, leaching, smelting, cyanidation, calcination or upgrading of ores, minerals, rocks, mill tailings, mine waste, and/or other metallurgical by-products; or by similar means to convert the same into marketable products.
5.2 Are there restrictions on the export of minerals and levies payable in respect thereof?
None, but the government requires necessary transport and export permits. EO No. 79 discourages direct shipping of mineral ores and a national programme and road map is being proposed, aimed at the development of value-adding activities and downstream industries for strategic metallic ores. This direction is likely to be pursued further by the incumbent Philippine government.
The sale of minerals locally and abroad is allowed, provided that the minerals and by-products produced are sold at the highest market price and lowest commercially achievable commissions and related fees. The mining contractor may enter into long-term sales and marketing contracts or foreign exchange and commodity hedging contracts, upon the DENR Secretary’s approval as recommended by the MGB Director. These are registered with the MGB, and remain confidential.
There are no duty restrictions on mineral exports. Export sales of minerals and mineral products are now subject to 12% Value-Added Tax (VAT).
6. Transfer and Encumbrance
6.1 Are there restrictions on the transfer of rights to conduct reconnaissance, exploration and mining?
Yes. The transfer of EP rights to another Qualified Person(s) is subject to MGB approval. A mining contractor may apply for the total or partial transfer of its MPSA or FTAA to a Qualified Person(s) through a Deed of Assignment that, among others, stipulates that the transferee assumes all the transferor’s rights under the MPSA or FTAA. Any transfer of an MPSA requires DENR approval and in the case of an FTAA, Presidential approval, upon the DENR Secretary’s recommendation, which are granted if the transferor is compliant with all the MPSA/FTAA terms and conditions and the law at the time of transfer.
6.2 Are the rights to conduct reconnaissance, exploration and mining capable of being mortgaged or otherwise secured to raise finance?
Yes. The rights under an EP, MPSA or FTAA may be mortgaged to secure mine financing, subject to government approval. Moreover, the creditor/security holder can designate its assignee of the rights in case of the contractor’s default from such loan. The assignee must be a Qualified Person and the assignment needs the DENR Secretary’s approval.
7. Dealing in Rights by Means of Transferring Subdivisions, Ceding Undivided Shares and Mining of Mixed Minerals
7.1 Are rights to conduct reconnaissance, exploration and mining capable of being subdivided?
Yes, there can be partial or total assignment or subdivision of EPs, MAs or FTAAs, upon prior government approval, provided the mining rights are current and in good standing and the transferee/assignee assumes all contractual obligations of the transferor/assignor.
7.2 Are rights to conduct reconnaissance, exploration and mining capable of being held in undivided shares?
No. The mining rights of mining permittees and contractors are held by the mining corporation itself. The stockholders owning the shares of the corporation do not have a direct interest in these mining rights. Unincorporated joint ventures may, however, be entered into where the joint venture partners have undivided interests but the mining rights remain in the name of the grantee corporation.
7.3 Is the holder of rights to explore for or mine a primary mineral entitled to explore or mine for secondary minerals?
Yes, the EP holders and mining contracts are entitled to explore, develop, utilise, and process all minerals applied for and associated minerals in the permit areas. The MGB requires permittees and permit holders to include in the Annual Mineral Resource/Ore Reserve Inventory Report both primary and secondary or accessory minerals.
7.4 Is the holder of a right to conduct reconnaissance, exploration and mining entitled also to exercise rights over residue deposits on the land concerned?
Yes, they are entitled to exercise rights over mine wastes and mill tailings, provided they comply with DENR Memorandum Order No. 99 – 32 S.1999 on the Policy Guidelines and Standards for Mine Wastes and Mill Tailings Management.
7.5 Are there any special rules relating to offshore exploration and mining?
Yes, there are maximum allowable areas for offshore mining. DENR MC No. 2020-008 on the Revised Guidelines on Offshore Mining also applies to offshore exploration and mining within the Philippine territorial sea, and its Exclusive Economic Zone (EEZ) and extended continental shelf, as established under the United Nations Convention on the Law of the Sea (UNCLOS). Offshore mining operations must be conducted in a manner that will not adversely affect biodiversity, the safety of navigation at sea, and other marine activities.
Among the general guidelines are:
- delineation by buoys of permit/contract area;
- no permanent structures are allowed;
- permits/clearances for vessel and/or installation; and
- schedules put in a “Notice to Mariners”.
8. Rights to Use Surface of Land
8.1 Does the holder of a right to conduct reconnaissance, exploration or mining automatically own the right to use the surface of land?
No. The EP, MPSA and FTAA only give exploration and mining rights to mining contractors, but not title over the lands. However, they acquire auxiliary surface rights and easement rights. Thus, mining contractors have to negotiate with the surface landowners on the purchase (if purchaser is a Qualified Person to own lands) or lease of the lands to be used. The easement right disallows surface owners, occupants and concessionaires from preventing the entry of holders of mining rights into private lands when conducting mining operations.
8.2 What obligations does the holder of a reconnaissance right, exploration right or mining right have vis-à-vis the landowner or lawful occupier?
The permit holder or mining contractor is obliged to pay just compensation for land use and damages to affected surface rights owner.
8.3 What rights of expropriation exist?
The Mining Act affords mining contractors the right to freedom from expropriation of their properties, except for public use or in the interest of national welfare or defence and upon payment of just compensation. In such cases, foreign investors or enterprises have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance.
9. Environmental and Social
9.1 What environmental authorisations are required in order to conduct reconnaissance, exploration and mining operations?
The following environmental documents/programmes are required for a mining project during exploration, mine development/construction, commercial production and mine decommissioning:
- CEMCRR showing applicant’s past environmental record/performance;
- EWP describing strategies for environmental protection and enhancement;
- ECC and EIS containing environmental and social plans;
- EPEP illustrating operational link between ECC and mining contractor’s commitments; and
- Final Mine Rehabilitation and/or Decommissioning Plan (FMRDP) detailing transition programmes from active mining to eventual mine closure.
9.2 What provisions need to be made for storage of tailings and other waste products and for the closure of mines?
The Mining Act requires a duly approved FMRDP that considers all mine closure scenarios and costs, including maintenance and monitoring, and employee and other social costs, including residual care, if necessary, over a 10-year period, and the creation of a Final Mine Rehabilitation and Decommissioning Fund with a government depository bank. During mining operations, funds for contingent liabilities and rehabilitation, compensation for damages from mine wastes and tailings, and monitoring expenses are required.
9.3 What liabilities does a mining company face in the event that mining activities result in ground water or other contamination affecting third parties?
Non-compliant mining companies may face charges of violating the following laws:
- the Clean Water Act;
- the Water Code;
- the Ecological Solid Waste Management Act;
- violation of EIS and ECC terms and conditions;
- the Philippine Mining Act; and
- the Revised Penal Code (on reckless imprudence resulting in damage to property).
9.4 What are the closure obligations of the holder of a reconnaissance right, exploration right or mining right?
Please see question 9.2.
9.5 Are there any social responsibility requirements (such as to invest in local infrastructure and communities) under applicable law or regulation?
Mining companies with EP, MA or FTAA in the Exploration Stage are required to develop and implement a Community Development Program (CDP), supported by a fund equivalent to a minimum of 10% of the approved two-year Exploration Work Program budget. The CDP is developed in consultation and in partnership with host communities within the exploration area.
Operating mining companies should have an SDMP and allot annually a minimum of 1.5% of the operating costs, of which amount, 1.125% (75% of 1.5%) must be apportioned to implement the SDMP, 0.150% (10% of 1.5%) for the implementation of Program for the Development of Mining Technology and Geosciences, and 0.225% (15% of 1.5%) for the Information Education and Communication (IEC) Program.
9.6 Are there any zoning or planning requirements applicable to the exercise of a reconnaissance, exploration or mining right?
Mining applications are not allowed in the following areas:
- areas covered by valid and existing mining rights and mining applications;
- old growth or virgin forests, designated watershed forest reserves, wilderness areas, mangrove forests, mossy forests, national parks, provincial and municipal forests, tree parks, greenbelts, game refuges, bird sanctuaries and areas designated as marine reserves, marine parks and tourist zones as defined by law and identified initial components of the NIPAS, and other laws;
- areas excluded by DENR Secretary based on assessed environmental impact and sustainable land use implications;
- offshore areas within 500 metres of the mean low tide level and onshore areas within 200 metres of the mean low tide level along the coast; and
- areas expressly prohibited by law.
The expanded list therefore includes:
- prime agricultural lands, in addition to lands covered by the Comprehensive Agrarian Reform Law, including plantations and areas devoted to valuable crops, and strategic agriculture and fisheries development zones and fish refuge and sanctuaries declared as such by the Department of Agriculture Secretary; and
- tourism development areas, as identified in the National Tourism Development Plan; and other critical areas, island ecosystems and impact areas of mining as determined by current and existing mapping technologies, that the DENR may identify.
Thus, mining activities may be allowed in areas not in the foregoing lists.
The Local Government Code authorises local government units (LGUs) to classify real properties as residential, agricultural, commercial, industrial, mineral, timberland or special in accordance with their zoning ordinances, but there is nothing which requires a mining area to be classified as mineral land prior to the conduct of mining activities.
10. Native Title and Land Rights
10.1 Does the holding of native title or other statutory surface use rights have an impact upon reconnaissance, exploration or mining operations?
Yes. The laws recognise ICCs/IPs’ priority rights to develop, control and use ancestral lands and territories, and require that their Free and Prior Informed Consent (FPIC) first be obtained by mining companies. There is a required minimum royalty payment of no less than 1% of the gross output, which is part of a socioeconomic wellbeing trust fund managed and utilised by the ICCs.
11. Health and Safety
11.1 What legislation governs health and safety in mining?
The Mining Act requires strict compliance by all contractors and permittees with DENR DAO 2000-98 on Mine Safety and Health Standards, which provides rules for the safe and sanitary upkeep of mining operations and waste-free and efficient mine development. The Labour Code also provides for health and safety regulations applicable to the industry.
11.2 Are there obligations imposed upon owners, employers, managers and employees in relation to health and safety?
Mining employers should give due and equal emphasis to economic and environmental considerations, as well as health, safety, social and cultural concerns.
Also, mining permits and agreements contain a stipulation that the Contractor conform with laws, rules and regulations on labour, safety and health standards. MGB requires mining contractors/permittees to submit annual Safety and Health Programs. Likewise, MGB conduct safety inspections of all mining operations, monitor Safety and Health Programs and assess the effectiveness thereof.
12. Administrative Aspects
12.1 Is there a central titles registration office?
The MGB operates a mineral resources database system, including a mineral rights management system, through its Mining Recorder Unit, which provides information and data on: the geology and mineralisation of the Philippines; pending applications for and granted mineral rights; a list of priority projects; a mineral industry profile; environmental data; industry statistics; geologic maps, technical reports, investigations and surveys; mining rules, regulations and policies; and primers on procedures, approvals and incentives for MAs. These public data are accessible through MGB’s offices or its website.
12.2 Is there a system of appeals against administrative decisions in terms of the relevant mining legislation?
DENR, MGB and EMB administrative decisions are appealable to the Office of the President. A further review can be resorted to with the judiciary, i.e., the Court of Appeals (CA) and the Supreme Court.
For mining disputes involving rights to mining areas, MAs, FTAAs or permits, surface owners, occupants and claimholders/concessionaires, the Panel of Arbitrators in the DENR Regional Offices has exclusive and original jurisdiction. The Panel’s decision may be appealed to the Mines Adjudication Board (MAB). Decisions of the MAB are appealable to the CA.
13. Constitutional Law
13.1 Is there a constitution which has an impact upon rights to conduct reconnaissance, exploration and mining?
Yes. The Constitution states that all natural resources, which include mineral resources, are owned by the State and that the exploration, development, and utilisation thereof shall be under the State’s full control and supervision. The State may directly undertake such activities, or it may enter into MAs or FTAA with Qualified Persons, as defined in question 3.1.
13.2 Are there any State investment treaties which are applicable?
The Philippines has 42 bilateral investment treaties (BITs) with various countries that require the government to protect foreign investments, including those in mining projects.
14. Taxes and Royalties
14.1 Are there any special rules applicable to taxation of exploration and mining entities?
Mining companies are subject to income taxes, excise taxes, VAT, documentary stamp taxes, other imposts, and customs duties. Mining activities are also subject to the annual local business taxes, real property tax and occupation fees. The FTAA fiscal regime is a 50% Government Share in the form of taxes. The Total Government Share shall consist of a Basic Government Share and an Additional Government Share. The Basic Government Share shall consist of direct taxes, royalties, fees and other related statutory payments. The Additional Government Share is the amount to be paid by the Contractor when the Basic Government Share is less than 50% of the Net Mining Revenue. The Net Mining Revenue is Gross Output less Deductible Expenses. As earlier stated, however, there might be new legislation covering the tax regimes of MA’s and FTAA’s.
Mining proponents may also avail themselves of fiscal and non-fiscal incentives under the Mining Act and incentives for capital equipment under the Omnibus Investments Code, upon prior registration with the Board of Investments under its Investments Priorities Plan (IPP).
14.2 Are there royalties payable to the State over and above any taxes?
A royalty of no less than 5% of the market value of the gross output of the minerals/mineral products is paid to the government if the mining area falls within a mineral reservation. This might also be subject to the new legislation referred to earlier.
15. Regional and Local Rules and Laws
15.1 Are there any local provincial or municipal laws that need to be taken account of by a mining company over and above National Legislation?
LGUs such as provinces or municipalities may enact ordinances that may apply to mining activities and companies operating in their localities. These ordinances need to conform to the Constitution and should not contravene national laws such as the Mining Act.
15.2 Are there any regional rules, protocols, policies or laws relating to several countries in the particular region that need to be taken account of by an exploration or mining company?
16. Cancellation, Abandonment and Relinquishment
16.1 Are there any provisions in mining laws entitling the holder of a right to abandon it either totally or partially?
The Mining Act allows EP holders to relinquish the whole or a portion of the permit area. MA and FTAA mining contractors can withdraw from or abandon their rights thereto if, in their judgment, the mining project is no longer economically feasible, even after they have exerted reasonable diligence to remedy the cause or situation. The mining contractor must, however, continue to comply with and satisfy all of its financial, fiscal, environmental and legal obligations under the contracts.
16.2 Are there obligations upon the holder of an exploration right or a mining right to relinquish a part thereof after a certain period of time?
An EP holder, holding more than 5,000 hectares, shall annually relinquish at least 20% of the permit area during the first two years of exploration and at least 10% of the remaining permit area annually during the extended Exploration Period.
For FTAAs, during the Exploration Period and Pre-Feasibility Study Period, the Contractor must relinquish part or parts of the contract area up to at least 25% thereof, and at least 10% of the remaining contract area annually, during the extended Exploration Period and Pre-Feasibility Study Period. Each Mining Area after final relinquishment cannot exceed 5,000 hectares.
16.3 Are there any entitlements in the law for the State to cancel an exploration or mining right on the basis of failure to comply with conditions?
Yes. The State may cancel an EP/MA/FTAA on account of violation of any of the terms and conditions thereof, including:
- falsehood or omission of facts in the mining application;
- non-payment of taxes and fees due the government for two consecutive years;
- failure to perform all other obligations, including abandonment, under the permits or agreements; and
- violation of existing laws, policies, rules and regulations.
17. Mining Finance: Granting and Perfecting Security
17.1 In relation to the financing of mines, is it possible to give asset security by means of a general security agreement or is an agreement required in relation to each type of asset? Briefly, what is the procedure?
Security in the form of real estate mortgage on real estate under the provisions of the Civil Code and foreclosure laws and personal property security agreements on personal assets (PPS agreement) under the provisions of the Personal Property Security Act (PPSA) may be constituted to secure the financing of mines. Under the PPSA, registrable collateral include: deposit accounts; receivables; checks/negotiable instruments; shares of stock; store inventory; equipment, livestock; motor vehicles; and intellectual property rights, among others.
Documentary stamp taxes (DST) are due on the loan and security documents prior to their registration in the registry of deeds or the personal property security registry with the Land Registration Authority when in full effect.
17.2 Can security be taken over real property (land), plant, machinery and equipment (whether underground or overground)? Briefly, what is the procedure?
Please see question 17.1.
17.3 Can security be taken over receivables where the chargor is free to collect the receivables in the absence of a default and the debtors are not notified of the security? Briefly, what is the procedure?
Yes, a security can be taken over receivables of a charger without need to notify the debtors of the security created. This may be included in the PPS agreement or in a separate assignment of receivables conditioned on an event of default occurring in the loan secured.
17.4 Can security be taken over cash deposited in bank accounts? Briefly, what is the procedure?
Please see question 17.1.
17.5 Can security be taken over shares in companies incorporated in your jurisdiction? Are the shares in certificated form? Briefly, what is the procedure?
Please see question 17.1. Yes, shares in private companies are certificated. Listed shares are issued online or scripless.
17.6 What are the notarisation, registration, stamp duty and other fees (whether related to property value or otherwise) in relation to security over different types of assets (in particular, shares, real estate, receivables and chattels)?
Mortgages and PPS Agreements are required to be notarised or if executed abroad, apostilled or authenticated by the Philippine Embassy, as applicable. These need to be registered with relevant Registries of Deeds or in the case of PPS Agreements, with the Land Registration Authority, when the Registry is fully in effect.
DST are due on the loan and security. Other registration fees dependent on the value of the secured loans and based on the registry’s table of fees are likewise required to be paid.
17.7 Do the filing, notifications or registration requirements in relation to security over different types of assets involve a significant amount of time or expense?
The time and expense (i.e., DST, notarial fees, and registration fees) for the filing and registration depend on the number of collateral and the value of the secured loan.
17.8 Are any regulatory or similar consents required with respect to the creation of security over real property (land), plant, machinery and equipment at a mining operation?
No consents are required to create security over collaterals but agreements should be notarised to bind third parties.
Production Editor's Note
This chapter has been written by a member of ICLG's international panel of experts, who has been exclusively appointed for this task as a leading professional in their field by Global Legal Group, ICLG's publisher. ICLG's in-house editorial team carefully reviews and edits each chapter, updated annually, and audits each one for originality, relevance and style, including anti-plagiarism and AI-detection tools. This chapter was copy-edited by Annabelle Saunders , our in-house editor.
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