The following are the incentives that the Subic Bay Metropolitan Authority (SBMA) provides to registered locators/enterprises by virtue of the Bases Conversion and Development Act of 1992 (R.A. No. 7227) and its Implementing Rules and Regulations, as updated by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act (R.A. No. 11534):

FISCAL INCENTIVES

1. Income Tax Holiday (ITH) of up to 7 years depending on industry priorities.
   1. After ITH, export enterprises, domestic market enterprises with minimum investment capital of PhP500 Million, and domestic market enterprises under SIPP engaged in activities classified as “critical” can avail a 5% Special Corporate Income Tax (SCIT) rate or Enhanced Deductions for 10 years. Export companies availing the 5% SCIT based on gross income shall pay and remit as follows:
      1. 3% to be remitted to the national government
      1. 2% to be remitted to the treasury of the local government unit

If the investor opts for enhanced deductions, the following may be allowed as deductions:

1. Depreciation allowance of the assets acquired for the entity’s production of goods and services (qualified capital expenditure) – additional 10% for buildings and additional 20% for machineries and equipment
2. 50% additional deduction on the labor expense incurred in the taxable year
3. 100% additional deduction on research and development expense incurred in the taxable year
4. 100% additional deduction on training expense incurred in the taxable year
5. 50% additional deduction on domestic input expense incurred in the taxable year
6. 50% additional deduction on power expense incurred in the taxable year
7. Deduction for reinvestment allowance
8. Enhanced Net Operating Loss Carry-Over (NOLCO)
   1. SBF enterprises, depending on the specific type of enterprise, are likewise allowed to deduct some other expenses as specified under the law.
   1. Duty exemption on importation of capital equipment, raw materials, spare parts, or accessories.
   1. Value-Added Tax (VAT) exemption on importation and VAT zero-rating on local purchases.
   1. Up to 100% foreign ownership (except for activities where foreign ownership is restricted by the Philippine Constitution).
   1. Liberal foreign exchange regulations.
   1. Domestic sales allowance of up to 30% of total sales.
   1. Exemption from payment of local government taxes and fees for the duration of the period of availment of the SCIT incentive.

NON-FISCAL INCENTIVES

1. Visa-free entry for 14 days, renewable.
   1. Special Subic-Clark visas available to expatriates.
2. Temporary Working Permit and Special Subic-Clark Working Visa
3. Special Subic Investor’s Visa
4. Permanent Residence Visa

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