Bases Conversion Act and SEZ Tax Incentives in the Philippines S

What is the primary purpose of the Bases Conversion and Development Authority (BCDA)?

To manage the conversion of military reservations into productive uses.

What military lands does the BCDA administer?

John Hay Station, Wallace Air Station, and portions of Metro Manila military camps.

What is one of the key roles of the BCDA in relation to development plans?

To adopt, prepare, and implement a comprehensive development plan for Clark and Subic military reservations.

How does the BCDA encourage private sector participation?

By actively involving the private sector in transforming the Clark and Subic military reservations.

What role does the BCDA serve in relation to subsidiary companies?

It acts as a holding company for subsidiary companies and invests in Special Economic Zones (SEZs).

What is the BCDA's responsibility regarding local government units (LGUs)?

To consult with LGUs regarding plans and projects in their regions.

What is the tax exemption for registered business enterprises within the SEZs?

They are exempt from all national and local taxes.

What tax must registered business enterprises in the SEZs pay instead of all other taxes?

A 5% tax on their gross income earned.

How is the 5% tax from SEZs distributed?

3% to the National Government and 2% to local government units (LGUs).

What is the specific tax provision for the Subic Special Economic Zone (SSEZ)?

Operates as a separate customs territory and follows the 5% tax on gross income.

What is the status of the Clark Freeport Zone (CFZ)?

The Clark Air Base proper is declared a freeport zone and follows the 5% tax on gross income.

What is the tax provision for the Poro Point Freeport Zone (PPFZ)?

Operates as a freeport and follows the 5% tax on gross income.

What tax provisions apply to the Morong Special Economic Zone (MSEZ)?

Follows the 5% tax on gross income, except for real property tax on land.

What incentives do registered business enterprises in the John Hay Special Economic Zone (JHSEZ) receive?

They are entitled to the same tax and duty incentives as those under R.A. 7916 (PEZA Law).

Who is responsible for monitoring the incentives granted in the SEZs?

The Department of Finance (DOF) is tasked with monitoring and reviewing the granted incentives.

What does the DOF create to manage the incentives in SEZs?

A single database of all incentives and submits an annual report to the President.

What is the role of the BCDA in managing projects?

To manage and operate development projects through private companies outside its subsidiaries and SEZs.

What is the significance of the Bases Conversion and Development Act (R.A. 7227)?

It accelerates the conversion of military reservations into productive uses.