BUSINESS INCENTIVES FOR SUBIC BAY FREEPORT LOCATORS

TAX INCENTIVES

• Exemption from all local and national taxes with only a 5% final tax on gross income earned 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.

 

• Raw Materials
• Intermediate goods & finished products
• Production/services supervision salaries
• Direct salaries, wages or labor expenses
• Financing charges associated with fixed assets
• Supplies and fuels used in the production/rendering services
• Rent and utility charges associated with buildings and equipment
• Depreciation, lease payments, or other expenditures on building and equipment

• SBF enterprises, depending on the specific type of enterprise, are likewise allowed to deduct some other expenses as specified under the law.

 

• Tax and Duty-free importations of raw materials, capital and equipment

• Up to 100% foreign ownership.

 

• No foreign exchange control; full repatriation of profit is allowed.

• Percentage of Income allowable from Sources Within the Customs Territory

SBF Enterprises may generate income from sources within the Customs Territory of up to thirty percent (30%) of its total income from all sources, provided, that should an SBF Enterprise’s income from sources within the Customs Territory exceed thirty percent (30%) of its total income from all sources, then it shall be subject to the income tax laws of the Customs Territory; provided, further, that in any case, customs duties and taxes must be paid with respect to income from sales and articles to the Customs Territory

 

OTHER INCENTIVES

• Visa-free entry for 14 days, and renewable.
• Special Subic-Clark visas available to expatriates.