Chinese firm Shenzhen Grandsun Electronics Co. Ltd., a sub contractor of a European company plans to expand its operation in the Philippines in one of the economic zones in Batangas City.
The Board of Investments (BOI) said the firm can get four years of income tax holiday (ITH) and even up to six to seven years because of the level of technology as well as the location of the project.
BOI managing head Ceferino Rodolfo said ITH will be followed by 10 years of either enhanced deduction (ED) or special Corporate Income Tax (CIT) of five percent on gross income earned.
Shenzhen Grandsun’s component suppliers that will establish operations in the Philippines are also entitled to the same incentives.
“It will be the choice of companies to go for either ED or the special CIT,” Rodolfo said in a statement.
Rodolfo bared this project after meeting members and officers of the Chinese Enterprises Philippines Association (CEPA) during a briefing last April 15, 2021 on the latest business environment policies in the country including the recently-enacted Corporate Recovery and Tax Incentives for Enterprises Act.
CEPA was established in the Philippines 20 years ago. The association currently has around 90 members, composed mostly of state-owned companies that are into agriculture, manufacturing, construction, and technology and have a partnership with Globe and PLDT such as Huawei, FiberHome, ZTE, Dito Telecommunity Corporation, among others.
