Fiscal Incentives - RA 9490, as amended by RA 10083 - ASEZA

RA 9490 enacted on June 29, 2007 creates the Aurora Special Economic Zone to be managed and operated by the Aurora Special Economic Zone Authority (ASEZA). Registered enterprises located therein, to the extent of their activity/project, can avail of the following incentives:

1. ITH;

2. Net Operating Loss Carryover (NOLCO);

3. Exemption from the payment of all national and local taxes, except the real property tax on land owned by developers. In lieu thereof, they shall pay a tax equivalent to five percent (5%) of their gross income;


4. Accelerated Depreciation;

5. Exemption from the payment of tariff and duties on the importation of capital equipment, spare parts, tools and dye;

6. Tax and duty free privilege on the importation of source documents by information technology-registered enterprises;

7. Tax credit equivalent to the internal revenue taxes and customs duties paid on the supplies, raw materials and semi-manufactured products;

8. Exemption from all taxes and duties on the importation of breeding stocks and genetic materials;

9. Exemption from wharfage dues; and

10. Deferred Imposition of the Minimum Corporate Income Tax (MCIT)

Enterprises registered with the ASEZA may enjoy the ITH or NOLCO granted by the latter prior to the availment of the five percent (5%) tax on gross income earned. However, fiscal incentives provided under RA 9490 shall be terminated after a cumulative period of twenty (20) years from the date of registration or start of commercial operation.

RA 10083, renamed and converted the Aurora Special Economic Zone into the Aurora Pacific Economic Zone and Freeport which shall be managed and operated as a separate customs and taxation territory by the Aurora Pacific Economic and Freeport Authority (APECO).