Fiscal Incentives - PD 538 (As Amended by PD 1491) - PHIVIDEC

PD 538 [Creating and Establishing the PHIVIDEC Industrial Authority (PIA) (August 19, 1974)], as amended, provides for the establishment of strategic areas with appropriate infrastructure facilities that will encourage and facilitate the establishment of industries which in turn will contribute to economic and social growth.

The creation of the PIA shall also encourage, promote, and harness the full potential and capabilities of veterans and Armed Forces of the Philippines (AFP) retirees so that they could participate fully in the enhancement of the economic development of the country. PD 538, as amended provides for the following incentives:

1. Exemption from customs duties, internal revenue taxes, local tax ordinances, and wharfage dues of raw materials, supplies, articles, equipment, machinery, spare parts and wares of every description brought after January 1, 1997 through piers or wharves constructed by the importer with his or its private funds; and

2. In addition to tax privileges accorded to enterprises operating in the PHIVIDEC Industrial Areas which are likewise registered with the BOI, all industries or firms operating in the Areas shall be exempt from the payment of local taxes to the barrio, municipality, city or province.

Notes: Philippine Veterans Investment Development Corporation (Phividec)