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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SBMA extends grace period for rents, business fees

Business locators in this Freeport received yet another relief from the effects of the Covid-19 lockdown when the Subic Bay Metropolitan Authority (SBMA) extended the suspension of rentals and other payments due since the start of the enhanced community quarantine (ECQ) in March.

SBMA Chairman and Administrator Wilma T. Eisma said the SBMA board of directors passed a resolution on June 30 that gave a 119-day grace period for the collection of all due accounts, thereby moving the payment date for such collectibles to October 28.

The extended suspension period covered the March to September 2020 billings for lease rentals, common use services area fees, port charges, garbage collection fees, sublease shares, and gross revenue shares.

Eisma said the measure took off from Memorandum Circular 20-29 of the Department of Trade and Industry (DTI), which provided for a minimum 30-day grace period for the cumulative amount of residential and commercial rents that fell due during the quarantine.

“But to better assist the businesses here in Subic, the SBMA opted for a longer time when payments could be deferred to give the local businesses enough time to recover,” Eisma explained on Tuesday.

“This is actually the third extension we granted since the ECQ was imposed last March,” Eisma pointed out. “There is really a need to cushion the impact of the lockdown and provide economic relief to Subic stakeholders in support of RA 11469, or the Bayanihan to Heal as One Act,” she added.

Under the approved measure, the SBMA management also allowed amortized payments of all the unpaid billings from March to September 2020 in six monthly installments, or from October 2020 to March 2021.

Said billings will not earn any interest or penalty until March next year if the installment is completed, Eisma added.

Those who will benefit from the payment grace period include business locators leasing lands, buildings and other infrastructure from the SBMA, and residents paying lease on a monthly basis.

Eisma added that while sub-lessees are not covered by the suspension because only sub-lessors have contracts with the SBMA, the latter are encouraged to extend the same benefit to their tenants.

The SBMA official also clarified, however, that the regular policy on credit and collection applies to billings issued prior to the March ECQ, although interest and other charges are waived for such billings for the period July 1 to October 27, 2020.

Interests and other penalties will also be applied to installments that were not paid on time, and all unpaid bills by the end of the October 27 grace period will start earning interests, charges, and penalties the following day, Eisma added.

According to SBMA deputy administrator for finance Dea Sanqui, those who want to avail of the six-month installment scheme would have to apply by filling out a pro-forma promissory letter addressed to the SBMA chairman and administrator not later than September 30, 2020.

Companies availing of the installment scheme should attach a Secretary’s Certificate authorizing the signatory of the promissory note. Application forms may be obtained by sending an email to accounting@sbma.com, treasury@sbma.com, or oda.finance@sbma.com or from the account offices assigned to companies registered in the Subic Bay Freeport.

Sanqui said the SBMA Treasury Department will compute and determine the schedule of the six monthly installments and will notify the applicants before payment date. (MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma addresses business concerns during a meeting with representatives of Subic Bay Freeport locators at the start of the ECQ in March. (MPD-SBMA)

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House OKS proposed law to revitalize SBMA

The House of Representatives has passed on third and final reading a measure that primarily aims to strengthen the administration and operational governance of the Subic Bay Metropolitan Authority (SBMA).

Approved by the chamber in plenary via vote of 200-6 (yes-no), without abstention, was House Bill (HB) no.8720, or the proposed Act Revitalizing the Bases Conversion Development.

The bill was principally authored by former President and now House Speaker Gloria Macapagal-Arroyo (2nd District, Pampanga), Reps. Geraldine Roman (1st District, Bataan), and Emi Calixto-Rubiano (Lone District, Pasay City).

It seeks to amend two sections of Republic Act (RA) 7227 or the “Bases Conversion and Development Act of 1992.”

In particular, HB no.8720 amends Section 13 of RA 7227 to mandate that the SBMA shall have authority and jurisdiction over all economic activities within the Subic Special Economic Zone. This covers the power to inspect and register leisure ships and pleasure yachts of any ship owner.

For this purpose, the SBMA shall administer and maintain an open register of leisure ships and pleasure yachts subject only to such rules and regulation to be promulgated by the SBMA in consultation with the Department of Transportation (DOTr) without prejudice to the requirements of the Constitution.

The bill also mandates the SBMA to administer and implement incentives granted to its registered business enterprises.

Likewise, the SBMA shall fix and impose just and reasonable rates and prices for the establishment, operation and maintenance of infrastructure, services and businesses in the Subic Special Economic Zone pertaining to electronic, web and cloud data operators and providers and telecommunications; shipping and maritime business and activities; airport operations; and all other similar matters inside the economic zone.

The bill also aims to improve the revenue collection of SBMA and thereby increase the shares of the local government units (LGUs) affected and the share of the national government. Specifically, the measure fortifies the territorial jurisdiction of the Subic Special Economic Zone by amending Section 12 of RA 7227.

Among the changes introduced by HB 8720 to Section 12 is the inclusion of a provision that the municipalities of San Antonio, San Marcelino, and Castillejos of the province of Zambales and the municipalities of Morong, Hermosa, and Dinalupihan of the province of Bataan may cede in whole or in part their entire municipal territory to the Subic Special Economic Zone for a period of not less than 50 years.

The measure also seeks to ensure and strengthen the public safety and security of SBMA through further amendments to Section 12 of RA 7227.

It revises the section to state that in the event that an assistance of the military is necessary, the expenses shall be borne by the national government. HB 8720 adds that military shall not interfere in the internal affairs of SBMA except to provide necessary security and defense.

The bill designates one seat each in the board of directors of the SBMA to represent Olongapo City, the municipalities of Castillejos, San Antonio, San Marcelino, and Subic of the province of Zambales, and the municipalities of Morong, Hermosa, and Dinalupihan of the province of Bataan.

It also provides for one representative for the Board of Director of Bases Conversion Development Authority from the indigenous peoples (IPs) residing within the Subic Bay Freeport Zone. (Ellson Quismorio, Manila Bulletin)

https://news.mb.com.ph/2018/12/24/house-oks-proposed-law-to-revitalize-sbma/

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Subic Freeport business permits now valid for 3 years

To further promote the business-friendly atmosphere in this free port and boost government efforts on transparency, the Subic Bay Metropolitan Authority (SBMA) extended the validity of business registrations here from one to three years.

SBMA Chairman and Administrator Wilma T. Eisma recently released the first batch of Certificate of Registration and Tax Exemption (CRTE) that are valid for three years, and cited the agency’s streamlining of business processes to better serve the needs of business locators.

“This has long been overdue. The previous board under Chairman Garcia promised this to locators, but nothing happened. So we made it a priority project for our 2018 program and we’re proud that after all the hard work, it finally materialized now,” Eisma said.

Eisma added that her administration’s drive for a more investor-friendly climate in Subic is in keeping with President Duterte’s orders for transparency and good governance.

“We want to make life easy for our investors, and the SBMA will continuously work towards improving its system,” she pointed out.

The three-year CRTE was approved by the SBMA Board of Directors on January 26 this year. Then a public hearing to gain acceptance by stakeholders was successfully held on February 28. The announcement of the approved measure was subsequently published on May 9.

Eisma’s office had also taken over the approval and release of CRTEs to further speed up the issuance of this important business document.

According to Kenneth Rementilla, SBMA Deputy Administrator for Business and Investments, business locators were previously required to renew their CRTE annually. But under the new system, businesses with lease terms of more than three years can avail of a three-year registration, or opt for an annual renewal.

Rementilla added that CRTE-holders in the Subic Bay Freeport can enjoy waived value-added tax (VAT), ad valorem and excise tax on internal revenue taxes, customs and import duties, and national revenue taxes, among others.

However, the business locators would have to pay a final tax of 5 percent of the gross income earned (GIE), as required by law. Of the 5 percent final tax, 2 percent is allocated for revenue shares to local government units, while 3 percent goes to the national treasury.

Among those who received the three-year CRTEs from the SBMA are Dongyang Food Machinery Philippines Corp.; Johnson Controls-Hitachi Air Conditioning Philippines Inc.; Juken Sangyo (Phils.) Corp.; and UPower Building Corporation. (RFD/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma joins representatives of Subic-registered companies that received their 3-year CRTE from the Subic agency. (AMD/MPD-SBMA)

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SBMA waives $200 accreditation fee for container shippers

The Subic Bay Metropolitan Authority (SBMA) has waived the $200 accreditation fee for all port-related businesses for a limited period as part of its efforts to turn Subic into a major transhipment center in the country.

SBMA Chairman and Administrator Wilma T. Eisma said port users could avail of the free accreditation program if they will guarantee to bring in at least one container within one month from filing of application or renewal of accreditation certificate.

The offer is good from October 18 to December 31, 2017 only.

With the hashtag #GoSubicBay, the SBMA began offering its open-window access initiative for container port-related businesses during the 43rd Philippine Business Conference and Exposition at the Manila Hotel on Wednesday.

Eisma said the agency’s port marketing program aims to showcase and broaden industry awareness of the use of the container terminal at the Port of Subic, as well as increase container port traffic and utilization rate.

“Subic Freeport has a faster turnaround time, there’s no red tape, has reduced processing time, no congestion, no traffic and no truck ban,” she told prospective port users during the program launch.

Eisma also pointed out that vessels using the Port of Subic can immediately dock upon their arrival, and gain from Subic’s built-in advantages of lower tariff and higher efficiency with ISO quality service by the SBMA.

“The hashtag #GoSubicBay actually has two meanings: first, it is an invitation to go to Subic Bay to use our port facilities, and second, it is a clarion call to let the industry know that the Port of Subic is ready to serve their businesses,” Eisma explained.

Eisma added that the SBMA’s port marketing program would also help decongest the Port of Manila and accommodate small and medium enterprises (SMEs) in pursuance of the agency’s commitment to promote inclusive business (IB).

SBMA Seaport Promotions Manager Ronnie Yambao said that under the SBMA’s open window access program, the agency will waive the $200 accreditation fee for the first 80 new business entrants and the first 20 accredited entities due for renewal of accreditation certificate.

The promotion covers ship agents, freight forwarders, brokerage firms and trucking services related to container movement.

Yambao stressed, however, that failure by applicants to guarantee the entry of at least one container would cause the Port of Subic to require the payment of the $200 accreditation fee.

Yambao also assured port users of the quality of service at the Port of Subic, pointing out that container port here is managed by the Subic Bay International Terminal Corporation (SBITC).

The SBITC, he added, is an affiliate of International Container Terminal Services Inc. (ICTSI), which is acknowledged as one of the best port management firms in the world. (JRR/MPD-SBMA)

PHOTO:

SBMA Chairperson and Administrator Wilma T. Eisma meets with PBC Chairman Jose Leviste Jr. (left) and PCCI President George T. Barcelon at the SBMA booth during the 43rd Philippine Business Conference and Expo at the Manila Hotel on Wednesday. The SBMA launched the "#GoSubicBay" open access program for container port-related businesses at the PBC exposition. (JRR/MPD-SBMA)

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Subic eyeing to be port of choice for North and Central Luzon

With lower rates, faster turnaround time, and 15 piers and wharves to choose from, the Subic Bay Freeport is angling to be the port of choice for shippers and port users in Northern and Central Luzon today.

Atty. Wilma T. Eisma, administrator and chief executive officer of the Subic Bay Metropolitan Authority (SBMA), said during the Northern Luzon Investors’ Conference at the Makati Shangri-La Hotel last Thursday that Subic provides the best solution in terms of the ease and cost of doing shipping and related maritime business.

Eisma told business leaders and prospective investors in the region during the conference that along with its strategic location, the country’s premier free port provides 10 built-in advantages that could spell the difference for players in the shipping business,” Eisma told business leaders and prospective investors in the region during the conference.

She added that Subic’s has 10 plus factors that make for successful shipping operations: faster turnaround time, absence of red tape, short processing time, absence of congestion, absence of traffic, immediate docking upon vessel arrival, no truck ban, lower port tariff, higher efficiency, and ISO quality service.

To start with, the Subic Freeport has a total of 15 piers and wharves that can support the transhipment of a wide range of cargoes. Eisma said the two wharves in Subic’s former Ship Repair Facility are ideal for passenger ships, as well as military vessels because they are located near the Central Business District, while the two other piers further inside the facility would be ideal for repair and boat services.

On the other hand, the two jetties at the former Naval Supply Depot are perfect for break-bulk cargoes and shipments bound for Subic’s industrial parks and manufacturing centers in Central and Northern Luzon, while the three docks at the Boton Logistics Center would best be suited for petroleum products.

Those at Cubi Point, meanwhile, could accommodate containerized cargo, as well as grains and fertilizer, while the single landings at Nabasan, Camayan and Grande could be used for specialized purposes, including tourism.

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Eisma also pointed out that Subic is already the port of choice for Hanjin, the fourth largest shipbuilder in the world; China’s Jovo Group, which operates the country’s first ship-to-ship transfer of liquefied petroleum gas; as well as Subic Bay Int’l Terminal Corp., an affiliate of the International Container Terminal Services Inc., which is one of the five major maritime terminal operators in the world.

“We have also attracted nine container shipping lines that now connect Subic Bay to major commercial centers in the United States, Europe, Middle East, and Southeast Asia, and this is because we have some of the lowest rates in stevedoring and arrastre, as well as export, import and transshipment fees,” Eisma said.

She cited as an example Subic’s stevedoring charges for a loaded 40-footer container that is only $94.33, while that for Manila goes for $137.87 excluding VAT, or a difference of $43.54 or 31.58%. On the other hand, Subic’s arrastre rates for the import of a 40-footer container is just P4,787.05, while that for Manila is pegged at P9,235.00 excluding VAT, or a difference of P4,447.95 (48.16%).

As a center for maritime operations, Subic also offers key port services like cargo handling, pilot and tugboat services, ship chandling, bunkering and tendering, ship agents, onboard repair, cargo survey, underwater survey, and vessel lay-up and line handling. It likewise provides facilities for fuel storage and handling, grains storage, maritime training, ship repair, warehousing, and vessel lay-up.

Eisma also said that because the Port of Subic is uniquely accessible by sea, land and air, more and more manufacturers and export producers, as well as importers in Luzon are shipping through this free port.

Among the top exporters using the Port of Subic now are Yokohama Tires Phils., which is located at the Clark Freeport; Juken Sangyo (Subic), Petron Freeport Corp. (Bataan), HLD Clark Steel (Clark), Tong Lung Phil Metal Industry (Subic), Johnson Control-Hitachi (Subic), Limech Manufacturing and Trading (Subic), Orica Phils. Inc. (Bataan and Subic), Hitachi Terminal Mechatronics (Subic), and Philip Morris Int’l (Subic).

On the other hand, the top 10 importers through the Port of Subic are: Foton Motors Phils (Subic), Yokohama Tires Phils (Clark), TIPCO (Pampanga), Nestle Phils (Bulacan), San Miguel Brewery (Pampanga), United Auctioneers Inc. (Subic), Tong Lung Phil Metal Industry (Subic), Masinloc Power Plant (Subic), HHIC-Phils Inc. (Subic), and Transam Waste and Rags (Clark).

In the same occasion, Transportation Secretary Arthur Tugade spoke on the government’s “Build, Build, Build” program for Subic and Clark, while Bases Conversion and Development Authority President Vivencio Dizon discussed the proposed Clark Green City, among other speakers.

On the other hand, Roberto Locsin, SBITC president and general manager, talked about Subic Port and how it facilitates trade for Northern Luzon shippers. (HEE/MPD-SBMA)

PHOTO:
Aerial view of the Subic Bay Freeport Zone with its container terminals, piers and warehouse facilities.

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Subic is cost-effective for businesses – SBMA

THE Subic Bay Metropolitan Authority (SBMA) said coursing cargo and shipments through the Subic Bay International Terminal Corp. (SBITC) is cost-effective.

“Subic is not expensive,” Roberto Garcia, SBMA chair said in a statement, explaining that transporting goods and shipments through the Subic port is cost-efficient due to the port’s strategic location.

Businesses will find themselves saving more because of the roads connecting to Subic, he added.

Garcia further explained that trucker costs are now more competitive in Subic as truck owners bank on the cargo volume that flows through the port.

“Travel time from the port to any point in Luzon has been cut in half because NLEX and SCTEX provide good roads. With that, truckers can complete two trips instead of one which means more business for truck owners in the region,” he explained.

Attesting to the port’s competitive and attractive rates, the costs incurred for trucking from Subic to nearby cities is about as much as the costs, if not cheaper, of transporting goods from other ports in Luzon. “Our advantage lies in our location,” Garcia emphasized.

“Travel time is one resource we cannot disregard, and by using the Subic port, the cargo owners are assured that their cargoes are transported in the most efficient way. Our location and road links will prove that,” he added.

“Cost is down by as much as one-third of the previous price, assuming you are traveling from Subic to Bulacan,” Garcia said.

According to Garcia, the decrease in trucking costs was made possible by the surge of cargos directed to the growing next wave cities in the provinces of Bulacan and Pampanga.

The Subic terminal has recently established port efficiencies such as the creation of a one-stop-shop for brokers and forwarders and investing in new equipment to ensure that the terminal delivers world-class service to its clients, the SBMA pointed out. (Raadee S. Sausa, Manila Times)

PHOTO:
Container ships docking at  NCT-1 of the Port of Subic (photo c/o SBITC)

http://www.manilatimes.net/subic-is-cost-effective-for-businesses-sbma/279520/

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Subic now key logistics hub for industries in Regions 1, 3

THE Subic Bay Freeport Zone is primed and ready to accommodate the increasing demands of both local and international trade by serving as the main logistics hub for business and industries based in northern and central Luzon.

The Subic Bay Metropolitan Authority (SBMA) highlighted the free-port zone’s metamorphosis into one of the nation’s strategic gateways for international and local cargo shipping and handling, capabilities seen to boost efficiencies of business enterprises in Northern and Central Luzon provinces.

The free port is the largest in the Philippines and is supported by the Subic Bay International Terminal Corp. (SBITC), a subsidiary of the International Container Terminal Services Inc. , which operates New Container Terminals (NCT) 1 and 2. These terminals are dedicated to providing the most cost-effective logistics solutions for foreign and local industries and the burgeoning tourism industry.

While SBMA continued to deliver seamless service as a partner in providing international cargo shipping services for multinational companies here in the region over the past years, it has recently shown eagerness in providing services to small and medium enterprises (SMEs). This interest is caused by the increasing opportunities for businesses and industries to capitalize on the nation’s continuing economic growth, along with various well-established locators and entrepreneurs who want to operate at a much faster, more efficient and highly productive way.

SBITC President Roberto Locsin said, “A lot of developments are happening now in Subic that provide immense business opportunities for SMEs, especially in the northern and central Luzon regions. Companies looking to broaden their networks and connect with markets and suppliers anywhere in the country, or the world for that matter.”

The opportunities for entrepreneurs and businesses have the definite potential to usher in logistical improvements in the country and provide a seamless transport of goods from Subic to other parts of the country. This would then spur much higher growth and make business operations more sustainable, allowing productivity improvements and other innovative solutions.

Originally, free ports were only intended to provide space to store goods in transit, but this role soon grew to include the complete conduct of trade and business both inside and outside the country.

Located in Olongapo, Zambales, the Subic Freeport allows for the rapid and highly efficient transfer of a wide range of export and import products and other valuable items. It offers efficient and effective logistic services, storage rooms and business solutions ranging from big-bulk item and small cargo transportation to providing access to fully managed exclusive industrial parks.

Subic’s port operator, SBITC, has terminals with a combined area of 28 hectares and an annual capacity of 600,000 20-foot equivalent units or the total number of container vans ships can carry in the terminal. SBITC’s NTC-1 and 2 have a combined 11.14-hectare container yard with a very modern fleet of mobile container-handling units for moving and hauling duties.

Subic Freeport terminals can be accessed via the Subic-Clark-Tarlac Expressway and soon, through a planned new connector and bypass road running through Bataan and into other parts of Luzon.

SBMA chairman Roberto Garcia said Subic’s facilities stand as the most advanced of their type in the country. Its available services give all locators in Asia and around world the perfect venue for exports and imports while offering dealers, institutions, SMEs, and other companies an efficient, stable, and secure location to store and trade products.

Garcia said, “Some of the best-known and biggest freeports like those located in Geneva, Singapore, and Luxembourg have effectively attracted investments from small, medium, and large industries through seamless logistics solutions. These are the same solutions available now in Subic and we expect more and more companies to come here to take advantage of what we can offer them.”

Subic Bay Freeport has become an emerging trade hub in the Philippines with its roster of resident companies that directly ship their goods to the many different parts of the country. It also allows the export of locally made products and the provision of logistics support to companies that export their products abroad. Truly, this is an ideal situation not only for many well-established companies but also for SMEs that need to reliably get their products to their clients while getting access to the best supplies from around the world.

“We’ve consistently provided cost-effective logistics for foreign and local industries in Central and Northern Luzon. That is necessary for the country’s competitiveness so that we can attract more foreign direct investments and propel the Philippines towards continued growth. More than that, we want to provide the necessary support to all companies in the Philippines that need access to the rest of the world,” Garcia said, adding SBMA has been consistent in its efforts to push the participation and presence of SMEs in regional and global markets as part of the Freeport’s commitment to the goals of the Asia-Pacific Economic Cooperation or APEC of 2015 on building inclusive growth in the region. (BusinessMirror)

PHOTO:
A cargo ship full of container vans leaves the New Container Terminal in the Subic Bay Freeport, as authorities project the Port of Subic to surpass its record-breaking performance last year with more cargo transshipment from nearby economic zones. (AMD/MPD-SBMA)

http://www.businessmirror.com.ph/subic-now-key-logistics-hub-for-industries-in-regions-1-3/

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Subic Bay cited by Forbes as top retirement haven in PH

Forbes Magazine, well known for its lists and rankings, cited Subic Bay as a top retirement destination in the Philippines.

Forbes' latest list of 20 best foreign retirement havens includes the Philippines, particularly mentioning Subic Bay as one of only two locations in the country that are popular retirement spots, the other one being Tagaytay.

Screen grab from Forbes' gallery of the 20 Best Foreign Retirement Havens for 2015. 

Source: http://www.forbes.com/pictures/fgmi45mmdd/the-philippines/

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Roberto V. Garcia said Forbes Magazine bolstered the marketing efforts of the agency in promoting the Freeport as the best retirement haven in the country.

“Subic is a very attractive place for tourists and retirees alike, providing both an eco-friendly environment and a cost-effective locality,” Garcia said.

“Aside from scenic views and friendly environment, Subic is a much secured area,” Garcia said, noting that the Subic Bay Freeport is securely bounded by perimeter fences and has a very good law enforcement unit that is well-known for its expertise and alertness.

Garcia added that Subic is also primed to push its advantage in medical tourism, having recently opened two world-class hospitals that cater to retirees and provide excellent medical services at very affordable rates.

Forbes ranked the top 20 best foreign retirement havens in 2015 by looking into issues such as cost of living, cultural attractions and scenery, safety, tax matters (especially breaks for retirees), local hospitality, weather, availability of adequate healthcare and prevalence of English.

In appraising the Philippines as a retirement destination, Forbes noted the appeal of the country to U.S. retirees due to its low cost of living in a tropical environment, and permanent residency that can be had on a minimal showing of retirement income.

Popular locations include Tagaytay because of its cooler climate, and Subic Bay with an infrastructure from the old U.S. Navy base, Forbes said.

International Living Magazine, an Ireland-based publication catering to retirees all around the world, also put the Philippines on the 17th spot in its shortlist of 23 best countries to retire in 2016.

The magazine’s rankings are based on its Annual Global Retirement Index that considers a number of composite factors such as real estate costs, special benefits for retirees, cost of living, leisure amenities, healthcare services, infrastructure, and climate. (RBB/MPD-SBMA)

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BSP conducts Conference on Gearing Up for External Competitiveness in Subic

Bangko Sentral ng Pilipinas (BSP) recently held a Conference on Gearing Up for External Competitiveness in Subic Bay in a bid to prepare the business sector inside and within the peripheries of the Freeport for the Association of Southeast Asian Nations (ASEAN) economic integration come 2015.

Among the topics discussed include key global economic developments and their impact to global growth and Philippine exports; trends, issues and policies concerning foreign exchange rate; strategies for managing foreign exchange risks; BSP regulations on hedging and measures to improve the competitiveness of Filipino exporters; and strengths of selected countries in achieving external competitiveness.

“The upcoming ASEAN Economic Community in 2015 highlights further the need to take serious measures in implementing reforms. The ASEAN markets could provide domestic firms with market opportunities for greater trade and investment,” BSP Deputy Director Tomas Cariño Jr. said.

Carino added that the discussions would help build a stronger macroeconomic and institutional environment, which is crucial in elevating competitiveness in a larger playing field. (CLJD/MJLS-PIA 3)

http://news.pia.gov.ph/index.php?article=2661401670693

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JPEPA talks focus on use of ports

The further utilization of the Subic and Batangas ports emerged anew as one of the key points pressed by Japanese investors in the Philippines.

The Philippines and Japan yesterday convened the 8th meeting of the Sub-Committee on Improvement of Business Environment convened under the Japan-Philippines economic partnership agreement (JPEPA). the embassy of Japan said in a statement.

The embassy said that during the meeting, both sides noted the progress made on issues such as refund of value-added tax, the common carriers tax and gross Philippine billings (CCT/GPB) among other issues.

So far, the budget department has allocated funds to refund the VAT paid by Japanese investors. A law has been recently passed scrapping the foreign carriers’ tax.

Also discussed were topics on consistency of tax-related issues, sustainability of affordable and reliable supply of electricity, further utilization of Batangas and Subic ports, additional surcharges introduced by the Subic Bay Metropolitan Authority, development of the Philippines as Human Resource Development (HRD) hub, and other issues and initiatives.

Batangas and Subic ports, both funded by the Japan Bank for International Cooperation have remained under-utilized.

The meeting was led by Ambassador of Japan Toshinao Urabe, and Undersecretary of the Department of Trade and Industry, Adrian S. Cristobal, Jr. co-chaired the meeting.

Representatives from various Philippine government agencies, Embassy of Japan in the Philippines, Japan International Cooperation Agency (JICA), and Japan External Trade Organization (JETRO) attended the meeting. The private sector was represented by Mr. Takashi Ishigami, President, Japanese Chamber of Commerce and Industry of the Philippines, Inc. for the Japanese side.

Among the JPEPA framework, the Sub-Committee on Improvement of Business Environment is of significant importance because it provides a forum for dialogue between public and private sectors of both countries to discuss specific issues in order to ensure transparent, predictable and consistent business environment. This regular semi-annual dialogue with parties concerned is indispensable for further improvement of business environment which is constantly evolving.

The next meeting of the Sub-Committee is scheduled in September 2014.

JPEPA, which entered into force in December 2008, is an important framework for enhancing economic ties between the two countries.

Both sides noted that recent trade and investment figures had been very encouraging. The existence of JPEPA has successfully promoted Japanese investment to the Philippines.

The abundant, diligent, and English-speaking workforce in the Philippines are finding jobs in and out of the country. Such win-win relationship is expected to be further enhanced by the adoption of Integrated Services Digital Broadcast-Terrestrial (ISDB-T) by the Philippines late last year, two and a half fold increase of bilateral air services including direct links to Haneda Airport, Japan’s on-going cooperation in Yolanda relief and rehabilitation projects, as well as other ODA projects. (Reuters)


http://www.malaya.com.ph/business-news/business/jpepa-talks-focus-use-ports

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SBMA, San Antonio to jointly develop 10,000-ha. ecozone

SUBIC BAY FREEPORT – The municipal council of San Antonio, Zambales formally turned over to the Subic Bay Metropolitan Authority (SBMA) an area covering 10,000 hectares for development into an economic zone.

The turnover was made possible by virtue of Sangguniang Bayan Resolution No. 13-080, which declared over 10,000 hectares of land and water as the San Antonio Economic Development Area, and allowing it for conversion as an additional secured area of the Subic Bay Freeport Zone.

The resolution further declared that the areas of Sitio Silangin, Nagsasa and Talisayin in the Redondo Peninsula be included within the additional area and entitled to the tax- and duty-free privileges of the Subic Freeport.

The resolution was passed by the San Antonio town council on November 19, 2013.

SBMA Chairman Roberto V. Garcia formally received a copy of the resolution from San Antonio municipal mayor Estela Antipolo during a turnover ceremony here on Monday, December 2.

Garcia said that he was pleasantly surprised by the swift action of the San Antonio municipal council in passing the resolution.

He added that the decision is very timely, since the Freeport is already lacking available land area for development.

“Many foreign investors are inquiring, and we are having a hard time to respond to them due to the lack of available land,” Garcia said, pointing out that there are only less than 300 hectares of land available within Subic’s fenced area.

The SBMA official, who just returned from an investment mission in Japan to promote the Subic-Clark Corridor, related that Japanese investors are very interested in doing business in the country.

“So the resolution comes at a very good time because of the high interest of foreign investors in the Philippines in spite of the difficulties that we are having right now because of Yolanda. We should take advantage of this,” Garcia said, stressing that investor confidence in the country remains strong.

Antipolo, for her part, said that the town council came up with the resolution to ensure the progress of San Antonio.

“We are doing this for the welfare of the people, to ensure economic prosperity, increase revenue for the local government, and provide employment opportunities for the people of San Antonio,” she said.

Antipolo assured everyone that the local government of San Antonio will do its part in attracting investors through programs that will promote transparency in government and cut red tape in business transactions.

“On behalf of the people of San Antonio, I look forward to an enhanced cooperation between our offices,” Antipolo told Garcia and other SBMA officials. (FMD/MPD-SBMA)

PHOTO:
Mayor Estela Antipolo of San Antonio, Zambales hands over to SBMA Chairman Roberto V. Garcia a copy of the resolution declaring a portion of the town's southern coastal tip as economic development zone. The area is being eyed for development by the Subic Bay Metropolitan Authority under its expansion program. Also in photo are members of the San Antonio town council led by Vice-Mayor Lugil Ragadio and other SBMA officers.

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SBMA tax break guidelines out

THE SUBIC Bay Metropolitan Authority yesterday released the registration guidelines for aviation and logistics companies in the economic zone that are seeking import tax breaks.

According to Resolution No. 13-05-4772 published yesterday, locators in Subic Bay Freeport Zone (SBFZ) “shall be allowed admissions of TEDFA (tax-exempt and duty-free aircraft), engines, parts and accessories on the premise that the units shall be used primarily in support of and in furtherance to the business operations of the locator in the SBFZ.”

“The minimum condition set by SBFZ is that the units are principally based in SBFZ ... and that these TEDFA return [to], stay [in], and use SBFZ as their core base of operations such that at the end of each flying sortie, these TEDFA return [to], stay [in], use and maintain physical presence at the SBIA (Subic Bay International Airport),” read the notice.

If these conditions are not met, locators will have to pay duties and taxes for their aircraft, engines, parts and accessories.

Another condition is that locators should have “sufficient, reasonable hangar space [to] justify the need for admission of aircraft units in relation to their business operation in Subic.”

Otherwise, locators will have to prove that they have put up actual investment of at least P100 million, read the notice.

Locators are also prohibited from transferring ownership of TEDFA within three years of admission.

Those who fail to observe the guidelines will have to pay P250,000 as well as duties and taxes if TEDFA units were sold to an entity not entitled to tax incentives. Another fine of P250,000 will also be charged to those who fail to prove active hub presence in Subic.

The SBFZ, 110 kilometers north of Manila, was established in 1992 as the country’s first freeport zone after the closure of the American naval base there. (Daryll Edisonn D. Saclag, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=SBMA-tax-break-guidelines-out&id=78263

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Budget allocation eyed for locators’ subsidy

The government will seek budget allocation to continue the subsidy enjoyed by three big projects in Clark and Subic.

Outgoing Trade Undersecretary Cristino Panlilio said the government is preparing a program that would effectively continue the industry competitiveness fund (ICF), providing it with a strong legal support like including it in the succeeding general appropriations act (GAA) of the country.

The ICF, which expired in March 2011, was granted to Hanjin Heavy Industries Corp. Philippines in Subic Freeport, Texas Instruments Philippines in Clark Freeport Zone and Phoenix Semiconductors Philippines Corp.

Panlilio said the program is very specific to these projects and is not open-ended.

The subsidy was a quid pro quo and as an incentive for these big projects which hired a lot of workers.

One of the companies, Phoenix Semiconductors, is entitled up to 2020.

He said the plan is to allocate it in the GAA.

Panlilio added that government is trying to negotiate a rate acceptable to both parties. The suggested rate has to be approved by the Department of Budget and Management, after which it would have to be approved by President Aquino.

“The reason why we are (extending) that is because we want to ramp up manufacturing,” Panlilio said.

The three were given cheap power under the ICF support under executive orders signed by then President Arroyo.

The government is now looking for other hydropower plants like Bakun and Casecnan to source fuel from on a subsidized rate following the privatization of Angat. These two operate more expensively than Angat per reports from the Power Sector Assets and Liabilities Management and the National Power Corp.

But the government still finds these two power plants as liable for the ICF but the power that they would produce would be more expensive than if the power is sourced from Angat.

This means government would have to shell out more to continue the ICF.

Based on computations, with Angat as the source of power, all-in cost would be below P5 per kilowatt-hour and above P5 for the two other hydropower plants.

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Judge halts VAT collection on econzone oil imports

Business locators in this free-port zone rejoiced after a regional trial court (RTC) issued a temporary restraining order (TRO) stopping the Bureau of Internal Revenue (BIR) from implementing additional taxes on petroleum products imported into special economic zones.

The order, which was issued on Friday by RTC Branch 58 in Angeles City, Pampanga, directed Finance Secretary Cesar Purisima and BIR Commissioner Kim Jacinto-Henares “to cease and desist from implementing/enforcing the assailed Revenue Regulation No. 2-2012 for the duration of 20 days.”

Presiding Judge Philbert Iturralde also set a hearing on a plea for a writ of preliminary injunction for March 21, and presentation of the petitioner’s evidence on March 29.

The court issued the TRO on a petition filed by Rep. Carmelo Lazatin of the First District of Pampanga and found merit in the motion because of its urgency as the assailed regulation would have taken effect 15 days after its publication.

Danny Piano, president of the Subic Bay Freeport Chamber of Commerce (SBFCC), said Subic Bay Freeport businessmen objected to the imposition of additional tax on petroleum products because the new regulation was in conflict with the tax-free regime in Subic under Republic Act (RA) 7227.

If implemented, the new regulation would have increased gasoline pump prices here by about 12 percent and also resulted in a bureaucratic nightmare, Piano added.

“The good news, albeit temporary, is that there is now a temporary restraining order on the revenue regulation,” he told SBFCC members in a letter on Friday. “The chamber will continue to work to have the revenue regulation rescinded or revoked permanently.”

The Subic chamber wrote a letter to President Aquino on March 7 expressing its opposition to the BIR regulation, saying that RA 7227, which created the Subic Bay Freeport Zone, specifically provided that the Subic Special Economic Zone shall be operated and managed as a separate customs territory.

This provision ensured the “free flow or movement of goods and capital within, into and exported out of the Subic Special Economic Zone, as well as provide incentives such as tax and duty-free importations of raw materials, capital and equipment,” the SBFCC said.

It added that RA 7227 stated that aside from the 5-percent tax on gross income, “no taxes, local and national, shall be imposed within the Subic Special Economic Zone,” and that, “in case of conflict between national and local laws with respect to tax exemption privileges in the Subic Special Economic Zone, the same shall be resolved in favor of the latter.”

The Subic chamber also told the President that RR 2-2012’s provision calling for a “joint supervision over the facilities with the BIR, through the assignment of revenue officers,” simply adds another layer of bureaucracy, which has the potential for more corruption. (Henry Empeño, Business Mirror)

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SBMA adopts new scheme for release of LGU share from corporate taxes

The Subic Bay Metropolitan Authority (SBMA) will soon be collecting the two percent share of contiguous local government units (LGUs) from corporate taxes paid by business locators in this free port, instead of the Bureau of Internal Revenue (BIR).

This was announced by Subic authorities during a forum held under the auspices of the Department of Finance (DOF) for some 300 representatives of companies in the Subic Bay Freeport Zone.

“We are doing this to make sure that the LGU shares are distributed quickly,” SBMA administrator and CEO Armand Arreza explained.

He said that previously, Subic locators forward their corporate tax, or five percent of their gross income earned, straight to the BIR, which automatically remits payments to the national treasury.

Thereafter, the Department of Budget Management (DBM) releases the two percent share to the LGUs concerned.

Arreza also said that since the creation of the SBMA, the 2 percent share was only distributed for a few years, resulting to a lot of complaints from LGUs.

“The funds could have been used to finance LGU development projects and provide for basic support services in health, education, and peace and order,” Arreza noted.

“So it is but right and lawful that the LGUs receive their share on a regular basis,” he stressed.

According to Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, no national and local taxes shall be imposed within the Subic Special Economic Zone except for a five percent tax on gross income earned by business enterprises within the zone.

Accordingly, the corporate tax shall be remitted as follows: three percent to the National Government, and two percent to the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone.

The two percent share is divided according to population (50%), land area (25%), and equal sharing (25%).

The contiguous communities include the City of Olongapo and the municipalities of Subic, San Antonio, San Marcelino and Castillejos in Zambales, and Morong, Hermosa and Dinalupihan in Bataan.

In the forum, Arreza said that there will be no other changes in the computation of the corporate taxes, except for splitting the check into two: 60 percent to be forwarded to the BIR and 40 percent to the SBMA Treasury Department.

Aside from Arreza, BIR assistant revenue district officer Maglangit Dicampong was present to address concerns raised by business locators. The forum speakers also included SBMA senior deputy administrator for internal services Ramon Agregado, SBMA deputy administrator for finance Cristina Millan, and SBMA treasury department manager Paulita Yee.

For her part, Millan assured the locators that the SBMA will issue guidelines to address matters regarding the new collection scheme for corporate taxes.

The new scheme will be implemented starting with the locators’ second quarter tax payments. (SBMA Corporate Communications)

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Freeport schools to get more subsidy from SBMA

The Subic Bay Metropolitan Authority (SBMA) has increased its subsidy to schools operating in this free port under a program designed to continuously improve the skills of Subic’s growing workforce and enable them to meet future requirements of various industries here.

SBMA administrator Armand Arreza said the program, “Producing a More Globally-Competitive Workforce in the Subic Bay Freeport”, which was approved by the SBMA board in January, would raise SBMA’s grants to schools here by up to P30 million annually, from the current annual subsidy of P16.3 million through discounts on property leases.

Under the program, the SBMA will offer a 100 percent “no lease consideration” to, initially, six of the 11 schools operating inside the Subic Bay Freeport.

The supposed SBMA income from these leases will be translated to scholarship grants through the SBMA Scholarship Foundation, which will formulate the program’s guidelines and policies, Arreza explained.

Instead of going to SBMA coffers, the waived leases will instead go back to the schools, which are only required to maximize their commitment to improve their faculty and facilities in order to avail of the program.

“We shall only ask the schools to develop initiatives to use the additional income to continually improve their students’ academic excellence, and to support the SBMA in its socio-civic undertakings in the Subic Bay Freeport,” Arreza said.

“In the long run, we hope to see a constant increase in enrolment at all levels,” Arreza added. “We also want to see the enhancement and inclusion of courses and fields of studies that are required in this free port,” he said.

Arreza said a memorandum of agreement is being drafted to specify the commitments needed from both parties in order for the program to push through.

For this project, he added, the SBMA would be building on the gains achieved by the Subic Bay Workforce Development Foundation Inc. (SBWDFI), which was established by the SBMA to promote workforce development among public and private entities here.

“It’s hitting multiple birds with one stone — the academe gets its much-needed financial support; the various industries here are assured of a globally-competitive workforce; and the community reaps the resulting benefits,” Arreza further explained.

For starters, SBMA has offered the 100 percent “no lease consideration” to the following schools: Casa Kalayaan International School, FIRST School of SBFZ, Subic Montessori School, Lyceum Subic Bay, Comteq Computer and Business College, and Mondriaan Aura College.

The said schools are now being audited in accordance with the criteria for the SBMA program.

Beatrix Anagaran , head of the SBMA General Business and Investment Department, said the program to produce globally-competitive workforce sprung from the SBMA strategic planning session held last October, wherein Arreza took note of the “very sad statistics of Philippine education.”

Anagaran said that Arreza then directed her department to come up with a study on Subic’s educational institutions, all the while emphasizing the role SBMA has to play in the advancement of education within the Subic Bay area and the neighboring communities of Olongapo, Zambales and Bataan.

“This is a manifestation of the SBMA’s walking its talk,” she added. (SBMA Corporate Communications)

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SBMA readies expansion outside secured areas

The Subic Bay Metropolitan Authority (SBMA) is now ready to implement its expansion program, following the release of the Implementing Rules and Regulation (IRR) covering the extension of the boundaries of secured areas of the Subic Bay Freeport.

The IRR was drafted after a series of consultations between the SBMA, Bureau of Customs (BoC) and local government units within the Subic Special Economic and Freeport Zone (SSEFPZ), which may be declared as additional secured areas, or additional areas, as provided under Executive Order No. 675.

These areas include the municipalities of Subic and San Antonio in Zambales; Morong, Dinalupihan and Hermosa in Bataan; and Olongapo City.

Under EO 675, areas within the LGUs may be developed through local government or private sector initiative and become part of the SSEFPZ. These may then avail of appropriate tax, duty-free, and fiscal investment incentives and privileges, upon application and after approval by the SBMA.

SBMA administrator Armand Arreza said that the expansion of the secured areas of SSEFPZ is necessary in order to address the shortage of space for lease to investors.

“This is necessary to push development into communities outside Subic’s ‘secured area’, and also to guarantee the realization of the Subic-Clark economic corridor as a world-class logistics and service hub,” Arreza said.

Under the IRR, areas contiguous to the Subic Bay Freeport may be declared by the SBMA for inclusion as additional secured area after proper consultation with local officials and approval of a resolution by the concerned city or town council.

In addition, any business individual or organization may also apply with the SBMA for inclusion within the SSEFPZ as privately-owned additional secured area or additional area, provided that they submit pertinent documents, clearances and registration certificates.

Meanwhile, lands and buildings in the additional secured areas, whether privately owned or not, may only be leased to SBMA-registered enterprises, subject to the approval or ratification of the SBMA Board of Directors.

Once declared as additional secured areas by SBMA, the areas concerned will be classified either as industrial, tourism, recreational, investment or financial center, or a mix of these developments.

These areas shall be organized, administered, managed and operated directly by the SBMA through an area manager, appointed by the SBMA administrator.

The IRR also provides that privately owned areas shall be managed by a Property Management Board composed of the president of the association of investors, representative of the municipality concerned, two independent private sector representatives chosen by SBMA and LGU, and an official of SBMA.

To prevent smuggling and abuse of duty-free privileges, the SBMA shall establish secured fence-in perimeters for the additional areas within which tax- and duty-free articles and merchandise shall be limited.

According to Arreza, duty-free shop operators shall be allowed within the additional secured areas, provided that they establish their own control system in coordination with the SBMA and the Bureau of Customs.

“In addition, if the LGU concerned agrees, the SBMA Law Enforcement Department shall also provide and establish security forces for the additional secured areas to police and maintain law and order there,” Arreza said.

Arreza also disclosed that as the SBMA seeks to spread development outside the controlled area of the Freeport towards Olongapo, Zambales and Bataan, it will also put in place significant infrastructure investments like roads, schools and bridges that are considered essential in convincing investors to establish operation in these areas. (SBMA Corporate Communications)

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No more need for visas for locators at freeports

Foreign locators at the Subic Bay Freeport and at the Clark Economic Zone can now enjoy a visa-free entry to the Philippines.

An agreement signed recently between the Bureau of Immigration (BI) and the Subic Bay Metropolitan Authority (SBMA) and Clark Development Corporation (CDC) allows visa-free entry to foreign investors visiting the two free ports.

Under the agreement signed by BI Commissioner Marcelino Libanan with SBMA Administrator Armand Arreza and CDC president Benigno Ricafort, officers and personnel of a foreign locator in the two freeports may now enter and stay in the country without a visa for a period of 14 days.

The privilege will only be extended to those arriving through the Diosdado Macapagal International Airport (DMIA) or the Subic Bay International Airport (SBIA).

Arreza said the agreement will help attract more foreign investors to do business in Subic and Clark as well as send a signal to other foreign investors that the government is serious in courting more foreign investments that will create more jobs and improve the economy.

“More than the convenience that the agreement will provide foreign locators in Subic and Clark, the visa-free entry will encourage more investments from Taiwan – which is now one of the biggest in Subic – and invite other foreign investments to do business in the freeport zones,” Arreza said.

Libanan said the visa-free entry privilege for foreign locators in Subic and Clark is part of the BI’s ongoing thrust to attract more tourists and investors to the Philippines, aside from merely guarding against the entry of terrorists, transnational criminals and other undesirable aliens.

Aside from tightening the BI’s guard against the entry of undesirable aliens, Libanan introduced reforms, like cutting red tape and providing visa incentives to foreign investors to encourage them to visit and invest in the country.

The agreement provides that the foreign locator will vouch for their officers and personnel coming here and will notify the SBMA chairman or CDC president who will approve the grant of the visa-free entry privilege. (Jun Ramirez, Manila Bulletin)

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Duty-free privileges key to Ayala Land’s Olongapo development plan

The tax- and duty-free regime that has made this free port one of the biggest generators of foreign direct investment in the country would also be crucial to the realization of a 7,000-sq-meter Ayala Land development project in this free port and nearby Olongapo City.

Armand Arreza, administrator of the Subic Bay Metropolitan Authority (SBMA), said the project proponent has stressed that Subic’s tax- and duty-free privileges would be “a key component in realizing the P3-billion development project proposed by Ayala Land Inc. [ALI].”

According to ALI president and CEO Anthony Aquino, fiscal incentives like Subic’s minimal 5-percent gross income tax, if successfully extended to the 7,000-sq-meter Olongapo City Central Business District (CBD) Triangle, “would set the stage for robust trade in the area.” He added that the tax- and duty-free incentives would be part of the package that the developer could offer to prospective investors and business locators.

Aquino also said that the developer is eyeing the participation of businessmen from Olongapo for the proposed CBD Triangle project, adding that local investments would be the “lifeblood of this development.”

Arreza said he has assured Aquino that tax- and duty-free perks will be applied to the CBD project as soon as President Arroyo approves the implementing rules and regulations (IRR) of Executive Order (EO) 675.

Arreza also said that the IRR for EO 675 has become a collaborative work of the SBMA and the Bureau of Customs (BOC) office in this free port.

The IRR details the process of identifying, administering and regulating the areas where said incentives can be extended, he added.

Arroyo signed the said EO on Nov. 5, 2007, citing the need to expand the area where Subic’s tax- and duty-free privileges would apply.

Arreza said that EO 675 provides that tax- and duty-free privileges within the Subic Special Economic and Free Port Zone “shall apply within the secured area consisting of the presently fenced-in former Subic Naval Base and such other areas that may be identified, fenced, secured, or declared as additional secured area by the SBMA.”

“Once the President gives her approval, it is up to the city of Olongapo to decide what particular incentives to offer,” he said.

Arreza, Aquino and Olongapo City Mayor James Gordon Jr. signed a Memorandum of understanding last week for the proposed Olongapo CBD Triangle project.

Under the agreement, ALI will commission the master plan for free, granted that the Olongapo government would give ALI the option to develop or purchase, subject to applicable laws, the city’s properties inside the 7,000-sq-meter project area.

Arreza, who has pushed for the expansion of Subic’s free-port regime to nearby communities, said the proposed project will be the first step in the agency’s push to develop areas beyond Subic’s secured area.

The CBD Triangle project aims to develop adjoining portions of the Subic Bay Free Port and Olongapo City “into a green, environment-friendly residential, commercial and institutional area.”

The project is expected to boost Subic’s drive to gain more investments and create more livelihood opportunities for local residents.

Arreza also said that among the incentives offered to Subic business locators are tax- and duty-free importation; exemption from all local and national taxes, with only a 5-percent corporate tax on gross income; unrestricted entry of foreign investments; no foreign exchange control; visas for foreign nationals; and expanded allowable deduction and higher percentage of income allowable from sources within the Customs territory for regional enterprises. (Henry Empeño, Business Mirror)

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