In addition to registration with the BOI and the PEZA, investors that locate their operations in other special economic zones may also be entitled to incentives.
ENTERPRISES REGISTERED WITH THE SUBIC BAY METROPOLITAN AUTHORITY
The Subic Special Economic Zone (SSEZ) and Subic Free Port Zone (SFZ) were established by the Philippine government with the aim of developing the area into a self-sustaining industrial, commercial, financial and investment center in the Philippines. In addition, the SFZ was established to be operated and managed as a separate customs territory ensuring the free flow or movement of raw materials, capital, equipment and consumer items within, into, and exported out of the SFZ.
The territory of the SSEZ includes the city of Olongapo and the municipality of Subic, and the former US Naval Base at Subic Bay as well as its extensions located in the municipalities of Hermosa and Morong in Bataan Province. The SFZ is an area within the SSEZ that is fenced in and designated as a Freeport Zone.
A business enterprise may register with the Subic Bay Metropolitan Authority (SBMA) as an Ecozone Enterprise in the SSEZ, or a Freeport Enterprise in the SFZ.
A SSEZ Enterprise is a business entity located within the SSEZ that is duly registered with the SBMA to operate any lawful economic activity within the SSEZ. An SFZ Enterprise is a business entity located within the SFZ that is duly registered with the SBMA. Registration as an SSEZ/SFZ Enterprise is open to any business enterprise in any area of economic activity, subject only to limitations under the Philippine Constitution.
An SSEZ Enterprise shall be entitled to the 5% special tax on gross income earned, in lieu of national and local taxes, while an SFZ Enterprise shall be entitled to: (i) tax- and duty-free importation within the SFZ; and (ii) 5% special tax on gross income earned, in lieu of national and local taxes.
ENTERPRISES REGISTERED WITH THE CLARK SPECIAL ECONOMIC ZONE
The Clark Special Economic Zone (CSEZ) covers certain areas of Angeles City, the municipalities of Mabalacat and Porac in Pampanga province, and the municipalities of Capas and Bamban in Tarlac province.
A portion of the CSEZ has been converted into a freeport zone called the Clark Freeport Zone. The Clark Freeport Zone is operated and managed as a separate customs territory, with the following incentives available to registered business enterprises located therein: (i) tax rate of 5% on gross income earned, in lieu of national and local taxes; and (ii) tax- and duty-free importation of raw materials and capital equipment. The government agency that registers enterprises and grants and administers incentives to those enterprises is the Bases Conversion and Development Authority (BCDA), with the Clark Development Corporation (CDC) as its implementing arm.