Understanding the Business Incentives at Subic Bay Freeport Zone

The Subic Bay Metropolitan Authority (SBMA) offers a range of incentives to qualified enterprises operating within the Subic Bay Freeport Zone. Understanding these incentives is key to maximizing your investment.

Income Tax Holiday (ITH)

New qualified enterprises may enjoy a 6-year income tax holiday, extendable depending on the project’s nature and investment size.

Duty-Free Importation

Equipment, machinery, and raw materials imported into the Freeport Zone are exempt from customs duties and tariffs.

Tax and Duty Exemption

Spare parts and materials used in the production process may be imported tax-free.

VAT Exemption

Qualified enterprises are exempt from value-added tax on local purchases of goods and services related to their registered activities.

Additional Incentives

• Exemption from local government taxes and fees
• Simplified import-export procedures
• Foreign investment allowances
• Employment of foreign nationals in certain positions

For a detailed assessment of incentives applicable to your business, contact our team.