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Manila Bulletin devider Business devider Trade & Industry devider SBMA offers 16-year tax exemptions for ₱7-billion Subic airport modernization

SBMA offers 16-year tax exemptions for ₱7-billion Subic airport modernization

Published Aug 20, 2026 11:43 am
The winning bidder for the ₱7-billion concession to transform Subic Bay International Airport (SBIA) into a world-class logistics hub will receive a generous government incentives package, including national and local tax exemptions.
The Public-Private Partnership (PPP) Center noted that the project’s implementing agency, the Subic Bay Metropolitan Authority (SBMA), will offer a competitive slate of incentives to support long-term private investment.
Under the Special Corporate Income Tax (SCIT) regime, the winning operator may qualify for a five percent corporate income tax rate for up to 16 years, with the possibility of an extension subject to eligibility requirements.
As long as it is registered as an export enterprise with the SBMA, the concessionaire will be exempt from all national and local taxes under the SCIT regime.
It may also enjoy exemptions from customs duties and value-added tax (VAT) on imports, along with zero-rated VAT on qualified local purchases.
Beyond fiscal incentives, the project also opens up commercial opportunities outside standard airport operations. The operator can generate additional revenue through cargo handling, warehousing, commercial leasing, logistics services, and other non-aeronautical ventures.
“The SBIA project offers a compelling opportunity for the private sector to partner with the government in developing one of the Philippines’ most strategic aviation and logistics gateways,” the PPP Center said in a statement.
The SBMA recently launched a comparative challenge for the airport’s modernization and expansion, which originated from an unsolicited proposal by United States-based Cerberus Asia Pacific Investments LLC.
Under this process, interested firms may submit competing offers against the original proposal. As the original proponent, Cerberus retains the right to match or beat the best offer.
Cerberus, which has assets across transportation, real estate, and other sectors, wants to manage the SBIA under a 25-year operate-rehabilitate-add-transfer (ORAT) scheme, with an investment cost of around ₱7 billion.
The concession aims to develop the gateway, located northwest of Manila, into a strategic cargo and logistics hub that would help ease congestion at Ninoy Aquino International Airport (NAIA), especially as demand for air cargo continues to grow.
The project will focus on upgrading existing airport facilities to align them with international standards, alongside the development of new facilities to transform the airport into a higher-capacity logistics hub.
The SBIA is poised to support logistics and aviation growth through the development of the airport’s midway apron, which will consist of two warehouse buildings with a total floor area of 22,400 square meters (sqm) and a 32,000-sqm aircraft staging and parking area.
The north airport land development, meanwhile, covers an additional 88,000 sqm across four parcels of land for warehouse facilities, a hangar, a storage facility, and additional apron space.
To ensure proper development of the project, SBMA will assist the private partner in securing the necessary approvals for implementation and facilitating permits and regulatory coordination. In line with this, the agency will also provide key airport support functions throughout the concession period.
Based on a bid bulletin dated July 31, interested local and foreign firms have until Oct. 29 to submit their comparative proposals, with the bid opening also scheduled to take place on the same day.

Related Tags

Subic Bay International Airport (SBIA) Public-Private Partnership (PPP) Center
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