RMC No. 84-2020: Circularizes Republic Act (RA) No. 11453 (Further Strengthening the Powers and Functions of the Authority of the Freeport Area of Bataan) and RA No. 11457 (Creating the Davao International Airport Authority)

Summary

RMC No. 84-2020 circularizes RA No. 11453 (strengthening the Authority of the Freeport Area of Bataan) and RA No. 11457 (creating the Davao International Airport Authority).

Key points

1. Five percent final tax in Bataan Freeport. Section 3 of RA No. 11453 amends Section 6 of RA No. 9728. Registered business establishments operating within the FAB pay no national or local taxes, subject to Section 10 of that Act. In lieu of them, they pay a five percent (5%) final tax on gross income earned.
2. Split of the 5%. One per centum (1%) goes to the National Government, 1% to the Province of Bataan, and 1% to the host city or municipality. Two per centum (2%) goes to the Authority of the Freeport Area of Bataan.
3. Davao International Airport Authority. Section 14 of RA No. 11457 exempts the Authority from realty taxes imposed by local governments and their subdivisions, agencies and instrumentalities for the first ten (10) years of its operations. No exemption under the Act extends to any subsidiary the Authority may organize.

Who is affected

• Registered business establishments in the Freeport Area of Bataan
• Davao International Airport Authority

Deadlines and effectivity

• Davao International Airport Authority realty tax exemption: first ten (10) years of operations

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.