Triple i Consulting can help you with process of registering with either the CDC or SBMA to avial of tax incentives in the Philippines. If you register your business and are looking for a location to receive benefits, Clark and Subic offer great possibilities.

Clark Development Corporation and Subic Bay Metropolitan Authority created the Bases Conversion Development Authority (BCDA) while carrying out its primary mission went a step further by accelerating the conversion and development of base-lands as well as promoting the social and economic development of Central Luzon via the Clark Development Corporation (CDC) and the Subic Bay Metropolitan Authority (SBMA). These sites were former US military facilities.

The 4,400- hectare Clark Air Base Proper to be made as a Freeport Zone. This places Clark on equal legal footing with the Subic Freeport Area, especially in the areas of tax and other fiscal incentives which can be offered to current and potential investors. Both CDC and SBMA grant essentially the same sets of incentives to registered Clark Freeport Zone (CFZ) and Subic Bay Freeport (SBF) enterprises. They are managed as separate custom territories, ensuring free flow of articles within the zones.

Contact Us if you would like more information or to register with the CDC or SBMA.

Qualification

One hundred percent (100%) foreign equity is allowed for many types of industries including manufacturing, tourism and service-oriented businesses. Business must be located within either zone to qualify.

Fiscal Incentives

• Preferential tax rate of five percent (5%) based on Gross Income Earned provided that seventy percent (70%) of products are to be exported.

• Income Tax Holiday (ITH) for six (6) years with possibility to extend up to a total of eight (8) years through the Board of Investments (BOI).

• Zero Value Added Tax (VAT) rating on local purchases.

• Exemptions from Real Property Tax

Non-fiscal Incentives

• Duty Free importation of capital equipment, raw materials and even finished goods subject to seventy percent (70%) minimum export requirement.

• Free movement of finished goods within the Customs Territory Special Visas for Investors Unlimited purchase and consumption of tax and duty free goods within the Freeport Zone

• Research and Development (R&D) is allowable as deduction for Manufacturing, Trading and Service Enterprises.

Requirements

i Letter of intent accompanied by Project Evaluation Form

ii Letter of Endorsement of Lessee (Sub-lessor)

iii Signed and Notarized Sub-lease Agreement

iv Board Resolution of duly authorized representative / signatory

v Certified true copy of Business Registration (Securities and Exchange Commission Papers, License to transact Business in the Philippines, DTI Registration) exclusively to handle Clark or Subic Operations

vi Resume of stock holders & Key Management Officers

vii Proof of Financial Capability (any or all of the following):

viii Latest audited financial Statements of applicant firm (or parent/management company if applicable) stamped “Received ” by the Bureau of Internal Revenue

ix Latest income tax return of applicant firm (or parent/management company if applicable)

x Bank certification of deposits or approved loan or credit line; if equity financing is less than total project cost

xi Proposed site development plan (with perspective drawings) and Construction timetable/financial schedule.

xii Production Process Flow Chart, if applicable (Copy of Systems/Schematic Diagram/Basic Network configurations)

xiii Company brochures, if any

xiv Environmental Impact Statement (for environmentally-critical projects or those to be located in environmentally critical areas)

xv Formalities (licenses, permits, etc..) with National Telecommunications Commission (NTC) and franchises from Congress, if applicable.

Procedure

i Investor submits Letter of Intent and Required Documentation detailing Company Profile, Project Features, and Project Requirements

ii CDC identifies potential project site/s and submits Terms of Contract for review of Investor or Meet with SBMA board

iii If proposal and Terms of Contract is approved, a Lease Agreement is signed and a Certification of Registration is issued.

Total Process time for SBMA or CDC is 3-4 weeks