Fiscal Terms for PCECP
| Governing Laws and Regulations | PD 972 | Provides for the award of Coal Operating Contracts through direct negotiation or public bidding | |
| PD 1174 | Act granting additional incentives to Coal Operators | ||
| DOE Circular No. DC2017-09-0010 | Existing circular through PCECP which intends to implement a simpler and faster public contracting program by nomination through publication to facilitate the acceptance of applications for COC from interested applicants at any given time | ||
| Contract Area | Onshore | Maximum of 15,000 hectares per coal region | |
| Nationality of Operator | Local (at least 60% Filipino capitalization, maximum of 40% Foreign capitalization) | ||
| Contract Duration | Exploration | 2 years (extendible up to 2 years) | |
| Development & Production | 10 years (extendible for another 10 years and renewable for a series of 3-year periods, not exceeding 12 years) | ||
| Production Sharing | Government | 30% of net proceeds | |
| Contractor | 70% of net proceeds | ||
| Financial Obligations | Signature Bonus | Php 150,000.00 | |
| Development Assistance | Minimum of Php 250,000.00 | ||
| Training Assistance | Exploration Phase | Minimum of Php 75,000.00/year | |
| Development and Production Phase | Php 200,000.00/year | ||
| Training & Development Assistance (for host communities) | Php 250,000.00/year | ||
| Fiscal Incentives | Taxes | Exempted from all taxes except income tax | |
| Importation | Tax exemption for equipment, machinery, spare parts and materials to be imported | ||
| Cost Recovery | 90% of gross income from coal production in any calendar year with the unrecovered costs for recovery in succeeding calendar year(s); capital expenditures depreciated over 5-10 years | ||