RMC No. 23-2008: Publishes the full text of RA No. 9490 entitled “An Act Establishing the Aurora Special Economic Zone in the Province of Aurora, Creating for the Purpose the Aurora Special Economic Zone Authority, Appropriating Funds Therefore and for Other Purposes”

Key points

1. Zone and administering authority. The zone covers barangays Esteves, Dibet and Dibacong in the Municipality of Casiguran. ASEZA, created under Section 10 of RA No. 9490, manages it and administers the incentives of registered enterprises.
2. Income Tax Holiday. Registered domestic enterprises in highly developed areas get a four-year ITH (Category A). Domestic enterprises in less developed areas or with new products or strong linkages get six years (Category B), as do registered export enterprises (Category C), with eight years for those located outside Metro Manila that meet the stated conditions.
3. ITH and NOLCO conditions. Enterprises using ITH or NOLCO need an ASEZA certificate of eligibility before filing the ITR for validation. Failure to certify or file within 45 days from the last statutory filing date forfeits the availment for that period. Enterprises on ITH cannot also avail of NOLCO.
4. 5% tax on gross income earned. In lieu of national and local taxes under the NIRC, except real property tax on land, registered enterprises pay 5% of gross income earned. Three percent goes to the national government and 2% goes to the municipality or city treasurer.
5. Import and other incentives. Capital equipment imports get 100% exemption from taxes and customs duties if used exclusively in the registered activity, with ASEZA approval and the stated conditions. Other incentives cover accelerated depreciation, tax credits on raw materials for export enterprises, exemption from wharfage dues, and deferred MCIT of 2% of gross income.
6. Other provisions. A foreign national investing US $150,000.00 in a registered enterprise may get an investor’s visa, subject to the stated qualifications. Fiscal incentives end after a cumulative 20 years, except for industries deemed indispensable to national development.

Who is affected

• Enterprises registered with ASEZA
• Registered export enterprises
• Foreign investors of US $150,000.00 in a registered enterprise

Deadlines and effectivity

• ITH and NOLCO validation: within 45 days from the last day of each statutory ITR filing date
• Fiscal incentives end after a cumulative 20 years from registration or start of commercial operation