The Fiscal Incentives Review Board (FIRB), chaired by the Department of Finance, has approved the tax incentive application of TDK Philippines Corp. (TPC).
In a statement Tuesday, Dec. 6, Finance Assistant Secretary Juvy Danofrata said the FIRB approved the fiscal incentives for TPC’s P2.5 billion project for the manufacturing of microwave-assisted magnetic recording sliders (MAMR-Slider).
Danofrata, who is also the FIRB Secretariat head, said the TPC project was endorsed by the Philippine Economic Zone Authority (PEZA).
“The project is considered an export activity under the production and manufacturing of export products and is listed in the government’s 2022 Strategic Investment Priority Plan (SIPP),” Danofrata said.
The project was granted an Income Tax Holiday, Special Corporate Income Tax, 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,” the DOF official said.
She added that the project is expected to generate more employment opportunities as part of TPC’s performance commitments.
Finance Secretary Benjamin E. Diokno said 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,” Diokno said.