Business in Clark Freeport & Subic Bay
One of the main perks of living in Angeles is being in close proximity to Clark Freeport Zone and nearby Subic Bay Freeport. These two spots in Central Luzon are emerging business centers in the country, rivaling the scene in Makati’s CBD while maintaining competitive operational costs.
Enjoy the benefits of doing business in Clark and Subic as an expatriate living in Angeles.
About Clark Freeport Zone
Clark Freeport Zone is located in what was once the Clark Air Base in Angeles City. The redeveloped military airbase, once the largest US airbase in the country, is now one of the Philippines’ center for business, industry, tourism, aviation and education, as well as a hub for gaming and entertainment in Central Luzon. Clark is easily accessible via the Clark International Airport located inside the Freeport Zone.
The incentives can be divided into fiscal and non-fiscal incentives.
- Preferential tax rates especially for companies exporting from Clark.
- Exemption from taxes and duties on imported spare parts
- Exemption from wharfage dues and export tax, duty, impost and fees
- Reduction of the Rates of Duty on Capital Equipment,
- Spareparts and Accessories by Virtue of EO 528
- Tax exemption on breeding stocks and genetic materials
- Tax Credits
- Additional deductions from Taxable Income
- Employment of Foreign Nationals.
- Free movement of finished goods within the Zone as a separate Customs Territory
- Research and Development (R&D) is allowable as deduction for Manufacturing, Trading and Service Enterprises under RR 16-99
About Subic Bay Freeport
Subic Bay Freeport, also known as the Subic Special Economic Zone or simply Subic Bay, is the Philippines’ first free port. Established in 1992 in Zambales, Subic Bay was a former US Naval Base redeveloped into one of the country’s major economic engines. Some of the biggest companies that operate from Subic Bay include Hanjin Heavy Industries and Construction, the fourth largest shipbuilding facility in the world; fuel terminal and storage tank farm Philippine Coastal Storage and Pipeline Corp.; Sanyo Denki Phils. Inc., manufacturer of electric machineries, appliances and computer and electronic wares; Petron and PLDT to name a few.
Subic Bay Freeport has existing ties with Clark Freeport Zone and is easily accessible from Angeles via the Subic-Clark corridor of the Subic-Clark-Tarlac Expressway (SCTEx).
Some business incentives include:
- Certain Exemptions from taxes depending on your type of business.
- Duty free importation of raw materials and finished goods
- Liberalized foreign ownership requirements
- Qualified industries may also benefit from 4-6 year income tax holiday thru BOI
- Visas available to foreign nationals.
- Visa-free entry for 14 days
- No foreign exchange control
- Automated import/export procedures