Both foreign and local investors with export and/or domestic market can apply for registration and availment of incentives. APECO offers the following tax incentives:
5% TAX RATE
on Gross Income
NET OPERATING LOSS CARRYOVER
ACCELERATED DEPRECIATION
Plant, equipment, machinery, and tools essential for the production and transport of goods and services.
TAX AND DUTY FREE IMPORTATION
of source documents by information technology-registered enterprises.
WHARFAGE DUE EXEMPTION
of source documents by information technology-registered enterprises.
INCENTIVES
on capital equipment
and raw material
INCENTIVES
on breeding stocks and
genetic materials
MINIMUM CORPORATE INCOME TAX
FOREIGN NATIONALS EMPLOYMENT
INVESTOR’S VISA ENTITLEMENT
an investment amount of US$ 150,000.00 in cash and/or equipment in a registered enterprise.
In addition, investors may, under CREATE Law enjoy an Income Tax Holiday (ITH), Special Corporate Income Tax (SCIT) Rate, Enhanced Deductions (ED), Duty exemption on importation of capital equipment, raw materials, spare parts, or accessories, Value-Added Tax (VAT) exemption on importation and VAT zero-rating on local purchases.
Requirements for Availing Tax Incentives
The minimum requirements for availing of the tax incentives are:
- Letter of Intent;
- Documents of legal status (i.e., SEC Registration, Articles of Incorporation, Partnership Agreement, Board Resolution of authorized representative, or other similar documents);
- List of assets comprising the investment to be made;
- Proof of Financial Capacity (financial statements for the last 3 years or bank certificates of deposits/credit line);
- Identification documents of investors;
- Evidence of intended physical location (i.e., Certificate of Title, Lease Agreement, Deed of Sale, etc.);
- Evidence of restructuring which excludes the operations of its ASEZA enterprise from business operations outside of ASEZA (if part of a larger enterprise doing business outside the APECO);
- Certificate of Compliance to Master Plan of ASEZA; and
- Such necessary documents (permits and licenses, letters of reference, etc.).
To avail of the incentives under CREATE Law, the investors, as qualified Registered Business Enterprise, must comply with the following:
- Be engaged in a project or activity included in the Strategic Investment Priority Plan;
- Meet the target performance metrics after the agreed time period;
- Install an adequate accounting system that shall identify the investments, revenues, costs and profits or losses of each registered project or activity undertaken by the enterprise separately from the aggregate investments, revenues, costs and profits or losses of the whole enterprise; or establish a separate corporation for each registered project or activity if the Investment Promotion Agency should so require;
- Comply with the e-receipting and e-sales requirements in accordance with Sections 237 and 237(a) of the Tax Code; and
Submit annual reports of beneficial ownership of the organization and related parties.
For those who want to enjoy the natural beauty of the Province of Aurora while investing in potential and existing business ventures inside the zone, you may secure a Special Investors Residence Visa (SIRV) with a minimum investment of only USD 150,000.00.
APECO issues working visas renewable every two (2) years to foreign executives and foreign technicians with highly specialized skills which no Filipinos possesses, as certified by the Department of Labor and Employment.
It also has the authority to issue exemptions from the requirements of Alien Employment Permits (AEP) or working visas for aliens employed with, or consultants of, APECO-registered enterprises who will stay and perform work in the Philippines for less than six (6) months, subject to such rules and regulations as may thereafter be established.
