Requirements for Business Registration with Subic Bay Freeport Zone (SBFZ) and Tax Incentives for SBFZ Locators

1. Stage 1 Requirements
   1. SBF Investment Application Form
   2. Documentary Requirements
      1. Letter of Intent
      2. Business Plan
         1. Company Profile
         2. Scope of Operation
         3. Proposed site development plan (for development projects) with the following:
            1. Perspective drawings
            2. Development timetable
            3. Development cost
         4. Market Study
         5. Sources of Funds
         6. Financial Projections for the first 5 years of operations
         7. List of clients and suppliers with contact information
         8. Brochures – optional
         9. Letter of References – optional
      3. Document of Authorization stating Official Representative
      4. Business Registration
         1. For Existing Parent Corporation: Certified True Copy of  Securities and Exchange Commission (SEC) Certificate with Articles of Incorporation and By Laws
         2. For New Corporation: SEC Name Reservation
         3. For Sole Proprietor: DTI Registration
      5. Personal Information Sheet (PIS) of Incorporators with the following attachments:
         1. For Filipino citizens: Photocopy of valid identification cards or passport
         2. For Aliens:
            1. Photocopy of valid passport
            2. Curriculum Vitae
            3. Clearance from embassy of country of origin
      6. Audited Financial Statements for the last 3 years of operation of applicant company, if any.
      7. Latest income tax return of applicant parent company, if any.
      8. Bank Certificate of Deposits or Certification of approved loan or credit line
      9. For Sublease Arrangements: Draft sublease agreement with technical plan and location plan and letter of endorsement from sublessor.
      10. Permits and licenses required by law as necessary
      11. Proof of Payment of Filing Fee (US$ 50)

1. Stage 2 Requirements
   1. Signed Letter of Conformity
   2. Proof of payment of registration fee
   3. Certified true copy of SEC Certificate with Articles of Incorporation & By Laws for newly registered corporations
   4. Notice to Proceed from the SBMA Ecology Center
   5. Signed Lease Agreement with proof of payment of Advance Rental and Security Deposit
2. Requirements After Issuance of CRTE/PTO
   1. Submission of performance bond for those with development project s within 30 days
   2. For Main Lessor with existing structure, the applicant shall submit the Insurance Policy with Government Insurance Service System stating SBMA as the beneficiary with 30 days after issuance of signed and Notarized Lease Agreement.

TAX INCENTIVES

• Exemption from all local and national taxes with only a 5% final tax on gross income earned computed based on Gross Sales less the following “allowable deductions” depending on the activities such as manufacturing, infrastructure, development and service, in reference to Section  57 of the Rules and Regulations implementing R.A. 7227, as amended by R.A. 9400.

• Raw Materials
• Intermediate goods & finished products
• Production/services supervision salaries
• Direct salaries, wages or labor expenses
• Financing charges associated with fixed assets
• Supplies and fuels used in the production/rendering services
• Rent and utility charges associated with buildings and equipment
• Depreciation, lease payments, or other expenditures on building and equipment

• SBF enterprises, depending on the specific type of enterprise, are likewise allowed to deduct some other expenses as specified under the law.

• Tax and Duty-free importations of raw materials, capital and equipment

• Up to 100% foreign ownership.

• No foreign exchange control; full repatriation of profit is allowed.

• Percentage of Income allowable from Sources Within the Customs Territory

SBF Enterprises may generate income from sources within the Customs Territory of up to thirty percent (30%) of its total income from all sources, provided, that should an SBF Enterprise’s income from sources within the Customs Territory exceed thirty percent (30%) of its total income from all sources, then it shall be subject to the income tax laws of the Customs Territory; provided, further, that in any case, customs duties and taxes must be paid with respect to income from sales and articles to the Customs Territory