FISCAL INCENTIVES
Both foreign and local investors with export and/or domestic market can apply for registration and availment of incentives. APECO offers the tax incentives:
Income Tax Holiday (ITH);
5% tax rate imposition on gross income;
Net Operating Loss Carryover (NOLCO) – (Net operating loss of the business or enterprise during the first three years from the start of commercial operations which have not been previously offset as deduction from gross income shall be carried over as a deduction from gross income for the next five consecutive years immediately following the year of such loss.);
Accelerated depreciation of plant, machinery and equipment that are reasonably needed and actually used for the production and transport of goods and services;
Tax- and duty-free importation of source documents by information technology-registered enterprises;
Exemption from wharfage dues;
Incentives on capital equipment and raw material;
Incentives on breeding stocks and genetic materials;
Deferred imposition of the minimum corporate income tax;
Employment of foreign nationals; and
Entitlement to an Investor’s Visa with 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.
NON-FISCAL INCENTIVES
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.