Business Incentives Packages in Batangas

Groundwork on Investment Liberalization

Land lease loan extended from 50 to 75 years
Opening up of banking industry for foreign participants
100 percent foreign ownership in selected investment areas

Fiscal Incentives

Income tax holiday of 4 to 6 years
Tax and duty-free importation of capital equipment and spare parts
Tax credit on domestic capital equipment
Tax credit for taxes and duties on raw materials used in the manufacture, processing or production of products for export

Non-Fiscal Incentives

Simplified customs procedures
Unrestricted use of consigned equipment
Employment of foreign nationals waiving of nationality requirements for regional ASEAN of multilateral financial institution

If you decide to put up your facility in what the government classifies as a less-developed area, you will receive additional incentives including:

Enjoyment of pioneer incentives
Full deduction from taxable income of the cost of necessary infrastructures and public facilities constructed in the area
Double deduction of labor expenses

Incentives in Export Processing Zones

If you are able to locate in one of the export processing zones, you will be entitled to BOI incentives and the following other privileges:

Exemption from local taxes (except real estate tax), licenses, and fees
Exemption from real estate tax on production equipment and machinery
Exemption from the 15 percent branch profit remittance tax
100 percent foreign ownership
Simplified import and export procedure
Exemption from SGS inspection

Incentives under the Export Development Act

Qualified enterprises earning at least 50 percent of its revenues from export are entitled to the Board of Investments (BOI), the Philippine Export Zone Authority (PEZA) or special economic zone incentives and the following other privileges:

Exemption from advance payment of customs duties
Zero percent duty on imported machinery and equipment, and spare parts
Tax credit on imported raw materials for a period of five years
Tax credit for increase in current year
Tax credit of 25 percent of duties on local raw materials, capital equipment and/or spare parts for a period of three years extendible for another three years

Philippine Mining Act Additional Incentives

100 percent foreign equity (Financial or Technical Assistance Agreement with the government)
Incentives for pollution control devices
Accelerated depreciation