Subic Bay Metropolitan Authority (SBMA) Tax Incentives in the Philippines

There are many tax incentive possibilities that your current or future company might be eligible for, and the SBMA could be one of them.
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What is the SBMA?

The Subic Special Economic and Freeport Zone, or Subic Bay/Subic for short, is a special economic zone and freeport area which covers part of Olongapo city, the town of Subic in Zambales, and the towns of Morong and Hermosa in Bataan. The developed area is the Subic Bay Freeport Zone (SBFZ).

The Subic Bay Metropolitan Authority (SBMA) is the government agency in charge of developing the Subic Bay Freeport (SBF) area into a commercial, financial, industrial, investment and tourism center to create work opportunities for local citizens. SBF used to be the US Naval facility. SBMA is operating under the Bases Conversion and Development Authority (BCDA). BCDA was created under Republic Act No. 727, or the Bases Conversion Act of 1992. The law boosted the development of former military base lands and promoted the economic development of Central Luzon through SBMA.

SBMA Incentives

SBMA offers fiscal and non-fiscal incentives to specific businesses to encourage enterprises to invest more in their industries, fund sectors, or make decisions that will benefit the environment. 

Fiscal Incentives

  • Exemptions from all local and national taxes with only a five percent (5%) final tax on gross income earned for manufacturing, infrastructure, and development and service of products with seventy percent (70%) export rate
  • Tax and duty-free importation of raw materials, capital, and equipment
  •  Up to a hundred percent (100%) foreign ownership
  • Four to six (4-6) year income tax holiday (ITH) for qualified industries through BOI (Board of Investments)
  • SBF businesses may earn income from sources with the Customs Territory for up to thirty percent (30%) of its total income from all sources subject to Customs Territory income tax laws

Non-Fiscal Incentives 

  • Automated import/export procedures
  • Renewable visa-free entry for 14 days
  • Special Subic-Clark visas available to expatriates
  • No foreign exchange control

Industries Supported by SBMA

  • General Aviation
    • Aircraft detailing
    • Air cargo handling & warehousing
    • Available areas for development within airport premises
    • Commercial or chartered aircraft operations
    • Fixed-based operation (FBO) 
    • Flight training
    • Maintenance, repair & overhaul (MRO)
    • Technical stop operation
  • Information Technology Communication
    • Animation
    • Business Process Outsourcing
    • Call Centers
    • Software Design & Development
    • Telecommunications
    • Other technology-based industries
  • Land Use
    • Commercial real estate development
    • General Housing Development
    • High-end Residential Estate Development
    • Industrial Park Development
    • Retirement Communities
  • Leisure
    • Bars, KTVs, discos, cinemas, and other entertainment facilities
    • Casinos and other gaming facilities
    • Convention/conference venues
    • Development and management of integrated resorts
    • Golf courses, water sports, and diving facilities, as well as sports events
    • Hotel, resort, restaurant/cafes
    • Medical tourism and healthcare services
    • Recreation and amusement centers/parks
    • Retirement villages and facilities
    • Retail and duty-free (shopping malls) shops
    • Tours and travel agencies
    • Other tourism/recreational and leisure-related businesses
  • Manufacturing 
    • Aircraft and automotive parts manufacturing
    • Electronics/components manufacturing
    • Food and consumer goods processing
    • High-technology industries
    • Renewable energy projects
    • Research and development for high-technology industries
  • Maritime
    • Shipbuilding
    • Ship Repair / Ship Conversion
    • Super Yacht Marina Development
    • Yacht Building
    • Yacht Repair / Refurbishing
  • Port Logistics
    • Available spaces for storage and warehousing
    • Cold storage facility operations for meat/ fish processing plants, meat importers, fruits/vegetable importers for local and exports, ice makers/manufacturers
    • Floating terminals
    • Industries engaged in port transshipment, freight forwarding, cargo handling, warehousing, and storage
    • International/regional/domestic passenger & cruise ship destination
    • Petroleum transshipment, storage, export, and import
    • Port users in Metro Manila and Central and Northern
    • Super Yacht Marina Development
    • Ship layups
  • Others
    • Educational Institutions (Primary/Secondary/Tertiary/Post Graduate)
    • Research & Development
    • School Complex Development
    • Skills Training Centers

Subic Bay Freezone Tax Incentive Application Requirements

  • SBF Investment Application Form 
  • Documentary Requirements
    • Business Plan
      • Company Profile
      • Scope of Operation
    • Letter of Intent 
    • Projected Financial Statements 
    • Risk and Safety Assessment Analysis Report
    • Brochures (if applicable)
    • Letter of References (optional)
    • Board Resolution of duly authorized company representative/signatory
    • Business Registration 
    • For Existing Parent Enterprises:
      • Certified True Copy of Securities and Exchange Commission (SEC) Certificate with Articles of Incorporation and By-Laws
    • For New Corporation:
      • SEC Name Reservation
    • For Sole Proprietorship:
      • DTI Registration
    • Personal Information Sheet (PIS) of Incorporators with the following attachments:
      • For Filipino citizens:
        •  Photocopy of valid IDs or passport
      • For Aliens: 
        • Photocopy of a valid passport
        • Curriculum vitae
        • Clearance from the embassy of the country 
    • For Sublease Arrangements:
      • Draft sublease agreement with technical plan and location plan
      • Letter of endorsement from the sublessor
    • For development projects only:
      • The proposed site development plan, including perspective drawings, development timetable, and development cost
      • Market study
      • Bank certificate of Deposits of Certification of approved loan/credit line
    • Permits and licenses 
    • Proof of payment of Filing Fee 
    • Proof of payment of Certificate of Registration (CR), Certificate of Tax Exemption (CTE), and Business Plate
    • Signed Lease Agreement with evidence of payment of Advanced Rental and Security Deposit 
    • A certified true copy of the Securities & Exchange Commission (SEC) Certificate with Articles of Incorporation & By-laws for newly registered corporations
    • Duly signed and notarized Certification of Conformity for CTE

How to Register for SBMA Tax Incentives

  1.  Submit the following documents:
    • Company Profile
    • Letter of Intent
    • Project Features
    • Project Requirements
  2. Assess prospective project sites and Terms of Contract provided by CDC.
  3. Apply to the SBMA Board.
  4. Wait for approval of the application and submit all the additional requirements.
  5.  Obtain a signed copy of the Lease Agreement and Certification of Registration. 

Would You Like to Register with SBMA for Tax Incentives?

Get additional savings for your enterprise and improve your company’s growth and development. Register with the country’s investment supporting agencies. Business Registration Philippines helps foreign-owned and locally-owned businesses register for the Philippine government’s tax incentive programs

Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises. Topics range from Accounting, Finance, Human Resources, Business Process Outsourcing, Product Registration, Taxation, and more. It is a microsite of Triple i Consulting Inc. 

With extensive knowledge and skills in the Philippine taxation system, Philippine business registration, and Philippine business incorporation for over 14 years, Triple i is the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients. 

Business Registration Philippines, together with Triple i, comprises Philippine business consultant experts who continuously offer professional services for local and foreign investors starting their businesses in the Philippines. We help companies apply for tax breaks and tax incentives from the Philippine government

Start saving on your corporate taxes by reaching out to us to schedule a free initial consultation with one of our tax incentive professionals:

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