Department of Finance (DOF)-led interagency body Fiscal Incentives Review Board (FIRB) gave a thumbs up to the tax incentives application of a manufacturing company.
In a statement on Tuesday, the DOF said the FIRB approved the tax perks for TDK Philippines Corp.’s (TPC) manufacturing of microwave-assisted magnetic recording sliders (MAMR-Slider).
TPC’s P2.5-billion project was the first Philippine Economic Zone Authority (PEZA) endorsed application that the FIRB approved, the Finance Department said.
The DOF said that Finance Assistant Secretary and FIRB Secretariat Head Juvy Danofrata considered the project an export activity under the production and manufacturing of export products and is listed in the government’s 2022 Strategic Investment Priority Plan (SIPP) during the FIRB’s 17th meeting on November 29, 2022.
TPC’s project was granted an Income Tax Holiday (ITH), Special Corporate Income Tax (SCIT), duty exemption on the importation of capital equipment, raw materials, spare parts, and accessories, as well as value-added tax (VAT) exemption on importation, and VAT zero-rating on local purchases.
“The approval of TPC’s application for fiscal incentives is a boost to our semiconductor and electronics industry, which largely contributes to the Philippine economy,” said Danofrata.
The DOF said the project is expected to generate more employment opportunities as part of TPC’s performance commitments.
Finance Secretary Benjamin Diokno said that the performance commitments of registered business enterprises will be consistently monitored by the investment promotion agency (IPA) and the FIRB.
“We want to make sure that all these fiscal incentives we grant to registered business enterprises indeed will result in substantial benefits to our economy,” said Diokno. — DVM, GMA Integrated News