Subic companies briefed by the SBMA, FIRB on amended CREATE Act

Locators in the country’s premier Freeport were briefed on the latest amendments on the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act by the Subic Bay Metropolitan Authority (SBMA) and the Fiscal Incentives Review Board (FIRB) of the Department of Finance on May 15. 

 According to SBMA Chairman and Administrator Eduardo Jose L. Aliño, the said Locators’ Briefing held at the Subic Bay Exhibition and Convention Center (SBECC) aims to provide information and updates on the CREATE Act to companies here.

The FIRB delegation is composed of Legal Group OIC and Deputy Executive Director Atty. Michael Ricaza, Legal Group Attorney IV Atty. Brandon L. Berad, Monitoring and Evaluation Group Division Chief Lois Ruth Santiago, Financial Analyst II Atty. Ria Mariz Nadora and Financial Analyst II Jessa Mae Rapisora. 

 

The FIRB is an inter-agency government body authorized by the Philippine law to grant tax incentives to registered business enterprises, whose powers and functions were enhanced under CREATE Act.

 

Meanwhile, Aliño said that the forum participants consisted of company representatives of Subic Freeport companies engaged in general business, logistics, import/ export, and trading. 

 

“The feedback we gather from our locators will provide better insight to the agency on its operations, relative to the CREATE Act,” Aliño added.

 

Last year, Nidec Subic Philippines Corporation gained the unanimous approval of the FIRB, and passed the scrutiny of the eight agency-member FIRB Technical Committee.

 

With the approval of the FIRB en banc, Nidec Subic is now entitled to Income Tax Holiday for six years, Special Corporate Income Tax for ten years, Duty-Exemption on Importation for 16 years, Value-Added Tax (VAT) Exemption on Importation for 16 years, and VAT Zero-Rating on Local Purchase for 16 years. 

 

Nidec’s application for the said incentives is synchronized with the CREATE Act that aims to steer the national economy towards global competitiveness by implementing tax policies that are instrumental in attracting investments. (MPD-SBMA) 

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Senate gives SBMA's 2024 budget a speedy nod

Without any hesitation, the Senate has approved the proposed budget of P681 Million for fiscal year 2024 of the Subic Bay Metropolitan Authority (SBMA) during a plenary session at the Senate of the Philippines on Tuesday.

The proposed budget sponsored by Senator Joseph Victor Ejercito was approved without further interpolation by the Senate during Plenary Session No. 30 presided by Senate President Senator Juan Miguel Zubiri.

According to Ejercito, the recommended appropriations for the SBMA for fiscal year 2024 will focus primarily on the rehabilitation of Subic Bay Freeport and its facilities, and will fund two continuing projects, mostly road and infrastructure projects.

Minority Floor Leader Senator Koko Pimentel readily approved the proposed budget citing that he will no longer post questions regarding the said budget stating that it was a reasonable amount of subsidy.  

Senator Pimentel also expressed his admiration for SBMA Chairman Jonathan D. Tan noting the official’s friendly, pleasant and unassuming disposition, and as a former mayor, Sen. Pimentel said that Tan is competent to run the Freeport zone.

Pimentel also shared that the SBMA Chief also revealed his plans on how to fight smuggling “to the fullest extent of his authority as SBMA Chairman and Administrator.”

Meanwhile, Senate President Zubiri said that the Senate is in the process of amending the CREATE law purposely to return the powers to the economic zones which is now a priority measure of President Ferdinand Marcos Jr.

He added that the Ways and Means committee of the House has just passed and approved the version, “which basically brought it back to the old regime, because the new regime was not working unfortunately.”

He then congratulated the SBMA for the two-minute interpellation and approval of the Agency budget. (MPD-SBMA)

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₱4-B Nidec Subic Investment to generate close to 5,000 jobs in the Freeport

Nidec Subic Philippines Corporation will soon be opening approximately 5,000 jobs from its expansion here in Subic Bay Freeport.

This was disclosed by Nidec President Takeshi Yamamoto in a simple awarding ceremony of the Certificate of Registration (COR) with Incentives under the CREATE law to Japanese company Nidec Subic Philippines Corporation for its ₱4.2-billion expansion project.

While Nidec Subic currently has a workforce of 622 employees, the company’s expansion project is expected to generate close to 5,000 job opportunities until the last incentivized year.

Yamamoto proudly shared that the company chose Subic Bay Freeport for its expansion due to its strategic location, making it possible for them to market their product to the European Union, United States, Brazil, Korea and China.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan led the simple ceremony, together with Senior Deputy Administrator for Business and Investment (SDA) Renato Lee III and Business and Investment Department (BID) for Manufacturing and Maritime manager Karen Magno, in awarding the COR to Nidec Subic President Yamamoto and General Manager Marissa Tamayo.

Tan explained that Kinematix is a new product that is a high accuracy gearbox used as base, arm or shoulder for industrial robots for auto tool changer/ loader of machines. He added that the aim of the expansion of Nidec Subic Philippines is to produce these gearboxes outside of Japan.

“This is certainly a milestone for Subic Freeport as this new product will be solely manufactured by Nidec Subic,” the official cited, adding that these gearboxes will be “Gawang Pinoy.”

He further stated that this is the first expansion of the company outside of Japan which was made possible due to the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) law, revealing that the tax incentives have made it easier for them to expand in the Philippines.

Lee explained that the CREATE law has enabled the granting of the company tax incentives namely: a six-year income tax holiday; ten-year special corporate income tax; 16-year Customs Duty Exemption on Importation of Capital Equipment, Raw Materials, Spare Parts and Accessories; 16-year value-added tax (VAT) zero-rating on local purchase; and a 16-year VAT exemption on importation.

Meanwhile, Tamayo also averred that the company decided to expand its operations in the Philippines because of its highly-skilled and resilient Filipino labor force, plus the fact that the Philippines is an English-speaking country.

Nidec Subic is a Japanese manufacturing company that was established inside Subic Freeport on July 14, 1998. It is located at the Subic Technopark, Argonaut Highway, Boton Area, occupying a total of 96,472 square meters of land area.

The expansion project dubbed as Project Kinematix aims to manufacture and assemble medium to large size gearboxes for industrial robotics gears. Valued at ₱5.065 billion, Nidec will be directly exporting 100% of its annual production of 288,000 gearboxes overseas. (MPD-SBMA)

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Subic locator gets FIRB nod for duties, tax incentives

Nidec Subic Philippines Corporation, a registered enterprise here, gained the unanimous approval of the Fiscal Incentives Review Board (FIRB) in an en banc meeting last Friday, May 26.  

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan reported that Nidec Subic had previously passed the scrutiny of the eight agency-member FIRB Technical Committee on May 18. 

He said that with the approval of the FIRB en banc, Nidec Subic will be entitled to Income Tax Holiday for six years, Special Corporate Income Tax for ten years, Duty-Exemption on Importation for 16 years, Value-Added Tax (VAT) Exemption on Importation for 16 years, and VAT Zero-Rating on Local Purchase for 16 years. 

Tan added that Nidec’s application for the said incentives complies with Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which aims to “develop the national economy towards global competitiveness by implementing tax policies instrumental in attracting investments.” 

The FIRB is an inter-agency government body authorized by the Philippine law to grant tax incentives to registered business enterprises, whose powers and functions was enhanced under CREATE law.

Meanwhile, SBMA Senior Deputy Administrator for Business & Investment Renato Lee III disclosed that the FIRB-approved incentives would be applicable to Nidec Subic’s Project Kinematex, which would involve the manufacture and assembly of medium- to large- size gearboxes for industrial robotics gears. 

Lee added that the ₱4.2-billion project’s product line is a high accuracy gearbox used as base, arm or shoulder for industrial robots and for auto tool changer/loader of machines. For this project alone, Nidec Subic will employ a maximum of 1,074 workers.

“We are taking this investor confidence as an opportunity to attract more foreign investors to make it happen in the Philippines while it is the top 10^th in the world’s most promising destinations of foreign investments in the next three years, according to the United Nations Conference of Trade and Development (UNCTAD),” Lee said. 

He said that this project would immediately commence this June to produce and export 288,000 pieces annually at the peak of production, valued at ₱ 5.064 billion.

Project Kinamatex is an expansion project of Nidec Subic, which landed the top four biggest expansion project in SBF in terms of additional investments in 2022. 

Nidec Subic is primarily engaged in manufacturing and assembly of reducer gears for robotic application and home appliances since 1999, and currently employs 622 workers. (MPD-SBMA) 

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FIRB approves tax perks for Project Agila, supports Hanjin shipyard rehabilitation

The Fiscal Incentives Review Board (FIRB), upon the endorsement of the Subic Bay Metropolitan Authority (SBMA), has approved the grant of tax incentives to Project AGILA for the redevelopment and operations of the Hanjin shipyard in the Subic Bay freeport zone.

This project is funded by United States (US)-based private equity firm Cerberus Capital Management.

Finance Secretary and FIRB Chairman Carlos Dominguez III supported the approval of the tax perks for Project AGILA with a total project cost of P17 billion as the rehabilitation of the Hanjin shipyard presents economic potential, given its strategic location near the West Philippine Sea (WPS).

The project was granted special corporate income tax (SCIT), value-added tax (VAT) exemption from importation, VAT zero-rating on local purchases, and duty exemption on importation.

“We expect the project to create jobs in the adjacent communities, increase economic activity as well as support the national government’s economic recovery efforts,” said Dominguez.

He added, “The resumption of operations in the shipyard will also prompt development and productivity in the area, which can attract more investment opportunities into the country.”

Furthermore, the project will cater to both the Philippine Navy (PN) and potential export locators.

It will be beneficial, specifically to the Navy, as it will involve the safety and efficiency of the Philippine government ships’ performance and, consequently, strengthen national security. (PR)

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