BUSINESS INCENTIVES

BUSINESS INCENTIVES

  1.  Tax Excemptions Tax and duty-free exemptions on imported raw materials, supplies, capital, equipment and other items for consumption within the Freeport.
  2. No National and local taxes/fees: such as value-added taxes and ad valorem taxes, property tax, franchise tax and local government fees on permits.
  3. Exemption from all local and national taxes only a 5% final tax on gross income earned from activities within the Freeport computed based on Gross Sales less the following “allowable deductions” depending on the activities such as manufacturing, infrastructure, development and service, in reference to Section 57 of the Rules and Regulations implementing R.A. 7227, as amended by R.A. 9400.

DEDUCTIBLE ITEM

  • Direct Labor
  • Indirect artificial materials
  • Factory Supplies and fuel
  • Depreciation of factory buildings and equipment
  • Loan interest loan facility
  • Semi-finished product

NON-DEDUCTIBLE ITEM

  • Administrative Staff salary
  • Management Salary line
  • Sale staff salary
  • Interest on working capital
  • Exchange of lost assets
  • Loss of advertising costs
  • Insurance fee
  • Miscellaneous expenses
  • Communication cost

100% FOREIGN OWNERSHIP AND EXCHANGE REGULATIONS

  • 100% foreign ownership (except for activities where foreign ownerships are restricted by the Philippine Constitution)
  • Liberal foreign exchange regulations.
  • Access to domestic market of up to 30% of its production.SBF enterprises may generate income from sources within the Customs Territory of up to thirty percent (30%) of its total income from all source