The Fiscal Incentives Review Board (FIRB) approved the tax incentives application of TDK Philippines Corporation (TPC) for the manufacturing of microwave-assisted magnetic recording sliders (MAMR-Slider).
The P2.5 billion project was the first Philippine Economic Zone Authority (PEZA) endorsed application that the FIRB approved.
In the FIRB’s 17th meeting on November 29, 2022, Finance Assistant Secretary and FIRB Secretariat Head Juvy Danofrata reported that 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).
The 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 Assistant Secretary Danofrata.
She added that 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 Secretary Diokno.