Requirements for Registration with Clark Freeport Zone and the Corresponding Incentives for Locators
1. Letter of intent
2. Board Resolution designating the authorized person to negotiate with Clark Development Corporation (CDC)
3. Company profile & preliminary project data
4. Complete Project Study – to be submitted only when CDC considers the proposed project in the letter of intent.
5. Duly signed Lease Agreement – issued by CDC upon approval of the project study
Fiscal Incentives:
1. Preferential tax rate of five percent (5%) based on Gross Income
2. Earned provided that seventy percent (70%) of products are to be exported.
3. Income Tax Holiday (ITH) for six (6) years extendible up to a total of eight (8) years may be availed through the Board of Investments (BOI).
4. Zero Value Added Tax (VAT) rating on local purchases. 5. Exemptions from Real Property Tax.
Non-fiscal Incentives
1. Duty Free importation of capital equipment, raw materials and even finished goods subject to seventy percent (70%) minimum export requirement.
2. Free movement of finished goods within the Customs Territory
3. Special Visas for Investors
4. Unlimited purchase and consumption of tax and duty free goods within the Freeport Zone
5.Research and Development (R&D) is allowable as deduction for Manufacturing, Trading and Service Enterprises
Companies Eligible for Registration
One hundred percent (100%) foreign equity is allowed for many types of industries including manufacturing, tourism and service-oriented businesses.
Regional Enterprises may:
Generate revenues locally up to 50% of its total revenues with only 5% tax based on gross income earned
Allowable Deductions by Industry
– For Trading and Infrastructure Development Enterprises
– For Service Enterprises
– For Financial Enterprises
Additional Deductions
– For trading and Infrastructure Development Enterprises
– For Service Enterprises
– Financial Enterprises
