President Ferdinand Marcos Jr. signed Republic Act (RA) No. 12252 on Sept. 3 extending the maximum duration of lease of private lands by foreign investors from 75 years to 99 years.

The President, upon the recommendation of the Fiscal Incentive Review Board (FIRB) and other relevant government agencies, may impose a shorter lease period for investors engaged in vital services or industries.

Prior to this law, the lease contract for foreign investors lasted only for 50 years, which may be extended by not more than 25 years.

The longer lease period comes with additional conditions before it can be availed by foreign investors.

They will be required to have an approved and registered investment under the Corporate Recovery and Tax Incentives for Enterprises Act and their lease contract should be recorded in the Registry of Deeds in the area where investors will set up business.

The law also allows foreign investors to sublease their leased lands if it is allowed in their contracts, approved by their lessor, and complied with the necessary registration requirements.

The Board of Investments of the Department of Trade and Industry and the Land Registration Authority were tasked to release the implementing rules and regulations of RA 12252 within 90 days from its effectivity. DMS