SBMA sees more investments with CREATE MORE Act

Subic Bay Metropolitan Authority (SBMA) is now looking forward to more global investments after the bill on Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) was signed into law. 

SBMA Chairman and Administrator Eduardo Jose L. Aliño said that CREATE MORE, also known as Republic Act 12066, will make Subic Bay Freeport (SBF) a prime location for global investments. 

Aliño made this statement after the implementing rules and regulations (IRR) of the CREATE MORE Act was signed by Finance Secretary and Fiscal and Incentives Review Board (FIRB) chair Ralph Recto and Department of Trade and Industry (DTI) Secretary and FIRB co-chair Ma Cristina Roque at the Department of Finance on February 17, 2025. 

Senator Sherwin Gatchalian and FIRB Board Member Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, and National Economic and Development Authority Secretary Arsenio Balisacan witnessed the signing. 

“Now that the IRR for the CREATE MORE Act is signed, it's back to work for us here in Subic Bay Freeport as we can now expect more foreign companies to invest here. This is certainly monumental since the IRR clarifies and refines the law’s smooth implementation provisions,” Aliño added.

The official cited that the CREATE MORE Act includes provisions for investors, giving them the option to choose either the Special Corporate Income Tax of 5% or Enhanced Deductions.

He said that more incentives would also be given to high-value investments with capitalization of more than P15 billion and in sectors that are considered import-substituting or export sales. 

He added that the CREATE MORE Act also provides additional relief to Registered Business Enterprises (RBEs) by reducing the Corporate Income Tax or CIT rate to 20% from 25%, with the law increasing the additional deduction on electricity from 50% to 100%.

“Tourism-related investments in the SBF will also benefit from the CREATE MORE Act, with the SBMA providing an additional 50% deduction for expenses related to trade fairs and tourism reinvestments until 2034,” Aliño said.

The law also maximizes the benefits of the Net Operating Loss Carry-Over by changing the reckoning period from “year of loss” to the “last year of the project’s income tax holiday (ITH) entitlement period.

Other provisions include tax and duty exemption on donations to public schools and government-owned and controlled corporations (GOCCs) and flexible work arrangements for call centers operating within economic zones and Freeports, without compromising their tax incentives.

Upon approval, local purchases of export-oriented enterprises become VAT zero-rated, while importations are VAT-exempt. VAT incentives will also be liberalized by shifting from “direct and exclusive use” to “directly attributable” requirements for goods and services. (MPD-SBMA)

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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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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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SBMA conducts inspection of future Agila Subic facility

The Subic Bay Metropolitan Authority (SBMA), along with local and foreign dignitaries, conducted a site inspection of the future Agila Subic facility last May 15 at the Redondo Peninsula here in this premier Freeport Zone.

SBMA Chairman and Administrator Rolen C. Paulino led the delegation along with Olongapo City Mayor Lenj Paulino, and the Philippine Navy.

Paulino said that one of the mandates given to him by President Rodrigo Duterte is to ensure a smooth transition of the company to the former Hanjin shipyard facility, and bring to fruition what the former administration of the agency had started.

Now called Agila Subic, the former Hanjin shipyard will be housing two tenants.

One tenant Vectrus, will be occupying most of the shipbuilding area of the facility, including the quays.  Meanwhile, the Philippine Navy is currently occupying the former Hanjin administrative office, mess hall, and barracks.

Vectrus is a global service solutions provider to the United States government and across the world, which offers facility and base operations, supply chain and logistics services, information technology (IT) mission support, and engineering and digital integration services.

Former Hanjin workers who have been skills-trained will be hired by the company since it will require skilled workers.

29 workers have already been hired and the company hopes to employ more workers who used to work for the shipbuilding company.

Meanwhile, Mayor Lenj Paulino said that the city government plans to provide skills training to its residents as the re-elected official sees a boom in employment in the ship repair industry in the area. He added that companies, who are looking for skilled workers, would only need to contact the city government.

Recently, the Department of Finance stated that the Fiscal Incentives Review Board (FIRB) has approved the proposed tax perks as endorsed by the SBMA, for the rehabilitation of the ageing shipyard.

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

The total project cost is estimated at Php17 Billion. (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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