The Subic Bay Metropolitan Authority (SBMA) is the operating and implementing arm of the Government of the Philippines for the development of the 262 square mile (670 square kilometer) area of Subic Bay Freeport (SBF) into a self-sustaining tourism, industrial, commercial, financial, and investment center to generate employment opportunities. This area was the former US Naval facility in Subic Bay.


  • Industries engaged in port transshipment, freight forwarding, cargo handling, warehousing and storage
  • Available spaces for storage and warehousing
  • Cold storage facility operations for meat/ fish processing plants, meat importers, fruits/vegetables importers for local and exports, ice makers/manufacturers
  • Port users in Metro Manila, and Central and Northern Luzon
  • Ship layups
  • Floating terminals
  • Petroleum transshipment, storage, export and import
  • International/regional/domestic passenger & cruise ship destination


  • Commercial or chartered aircraft operations
  • Air cargo handling & warehousing
  • Maintenance, repair & overhaul (MRO)
  • Aircraft detailing
  • Flight training
  • Fixed based operation (FBO)
  • Technical stop operation
  • Available areas for development within airport premises


  • Shipbuilding
  • Ship Repair / Ship Conversion
  • Super Yacht Marina Development
  • Yacht Building
  • Yacht Repair / Refurbishing


  • Call Centers
  • Business Process Outsourcing
  • Software Design & Development
  • Animation
  • Telecommunications
  • Other technology-based industries


  • Exemption from all local and national taxes with only a 5% final tax on gross income earned computed based on Gross Sales less the following “allowable deductions” depending on the activities such as manufacturing, infrastructure, development and service, in reference to Section – 57 of the Rules and Regulations implementing R.A. 7227, as amended by R.A. 9400.
    • Raw Materials
    • Intermediate goods & finished products
    • Production/services supervision salaries
    • Direct salaries, wages or labor expenses
    • Financing charges associated with fixed assets
    • Supplies and fuels used in the production/rendering services
    • Rent and utility charges associated with buildings and equipment
    • Depreciation, lease payments, or other expenditures on building and equipment


  • SBF enterprises, depending on the specific type of enterprise, are likewise allowed to deduct some other expenses as specified under the law.
  • Tax and Duty-free importations of raw materials, capital and equipment
  • Up to 100% foreign ownership.
  • No foreign exchange control; full repatriation of profit is allowed.
  • Percentage of Income allowable from Sources Within the Customs Territory
    SBF Enterprises may generate income from sources within the Customs Territory of up to thirty percent (30%) of its total income from all sources, provided, that should an SBF Enterprise’s income from sources within the Customs Territory exceed thirty percent (30%) of its total income from all sources, then it shall be subject to the income tax laws of the Customs Territory; provided, further, that in any case, customs duties and taxes must be paid with respect to income from sales and articles to the Customs Territory



  • Visa-free entry for 14 days, renewable.
  • Special Subic-Clark visas available to expatriates.
Business and Investment Proposals & Registration Processing

Authority of the Freeport Area of Bataan (AFAB)

The registered enterprises operating within the FAB are entitled to fiscal and non-fiscal incentives as provided for under Republic Act No. 9728 or The FAB Act of 2009.

There shall be no imposition of taxes, local and national, on business establishments operating within the FAB. In lieu thereof, said business establishments shall pay a 5% preferential tax rate.

There shall be no imposition of taxes, local and national, on business establishments operating within the FAB. In lieu thereof, said business establishments shall pay a 5% preferential tax rate.

Any foreign national who invests an amount of One Hundred Fifty Thousand US Dollars (US$ 150,000.00) in either cash and/or equipment, in a registered enterprise shall be entitled to special visa for foreign workers.

Enterprises registered with AFAB may enjoy the Income Tax Holiday (ITH) of 4-8 years or the Net Operating Loss Carryover (NOLCO) granted by the authority prior to the availment of the 5% gross income earned.

Fiscal incentives after a cumulative period of twenty (20) years from date of registration or start of commercial operation; whichever is applicable shall be terminated, except that it could be extended with regard to industries deemed indispensable to national development.

Philippine Economic Zone Authority

PEZA Incentives for Locator Companies such as export enterprises and I.T. companies are the following:

  • Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four years, extendable to a maximum of eight years;
  • After the ITH period, the option to pay a special 5% Tax on Gross Income, in lieu of all national and local taxes;
  • Exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw materials.
  • Domestic sales allowance of up to 30% of total sales;
  • Exemption from wharfage dues and export taxes, imposts and fees;
  • Additional deduction of 50% of the total cost of manpower training
  • Permanent resident status for foreign investors and immediate family members;
  • Employment of foreign nationals and dependents; and
  • Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as may be determined by the PEZA Board.
  • PEZA registers 100% foreign-owned export-oriented companies.

Board of Investments

The Board of Investments (BOI) is the lead agency of the government in the promotion of investment in the Philippines for high-priority projects catering to both the local and export markets. BOI’s mandate is spelled out in Executive Order No. (E.O.) No. 226, or the Omnibus Investment Code of 1987. Enterprises availing investment incentives under E.O. No. 226 need to register with the BOI first.

The Board of Investments (BOI) is the lead agency of the government

Fiscal Incentives:

Income Tax Holiday

Newly registered pioneer projects are exempt from income taxes for six years from the start of commercial operations, and non-pioneer firms for four years from the start of commercial operations. The exemptions period may be extended for another year in each of the following cases:

  • The project uses indigenous raw materials;
  • The project meets the BOI-prescribed ratio of capital equipment to number of workers; and
  • The net foreign exchange savings or earnings amount to at least US$500,000 annually during the first three years of the project’s commercial operations.


Non-Fiscal Incentives:

Simplification of Customs Procedures

Under E.O. 226, customs procedures for the importation of equipment, spare parts, raw materials and supplies, and the export of products by BOI-registered enterprises have been simplified by the Bureau of Customs (BOC).


Unrestricted Use of Consigned Equipment

There are no restrictions on the use by BOI-registered enterprises of consigned equipment provided a re-export bond is posted. E.O. No. 226 provides further that if the consigned equipment and spare parts were imported tax- and duty-free, the re-export bond may be waived.


Employment of Foreign Nationals

Foreign nationals may be employed in supervisory, technical, or advisory positions within five years from a registered project’s registration, extendible for limited periods to be determined by the BOI. The positions of president, general manager, and treasurer of their equivalents, of foreign-owned registered firms may be retained by foreign nationals for a longer period.