Investors in the Clark Special Economic Zone (CSEZ) enjoy investments incentives designed to be highly competitive with the free zones around the world.

  • Tax and duty-free importation of machinery, equipment, raw materials, supplies, and all other articles including finished goods.
  • No local and national taxes. In lieu of taxes, CSEZ enterprises shall pay a fee of five percent (5%) of gross income earned (GIE)*
  • 100% foreign equity is allowed for many types of industries including manufacturing, tourism, and service-oriented businesses.
  • CSEZ managed as a separate customs territory, ensuring free flow of articles within the zone.
  • Unlimited purchase and consumption of tax and duty-goods within the CSEZ.

*GIE refers to gross revenues derived from any business activity, less cost of sales, cost of production or direct cost of production or direct cost of services (depending on the nature of the business - refer to Allowable Deductions by Industry), excluding any deduction for administrative expenses and incidental losses during a given taxable year.

ALLOWABLE DEDUCTIONS BY INDUSTRY

For trading and infrastructure development enterprises:

  • Direct salaries
  • Production supervision salaries
  • Raw materials used in manufacture of products
  • Goods in process (intermediate goods)
  • Finished goods
  • Supplies and fuel used in production
  • Toll manufacturing fees*
  • Commission Expenses*
  • Distribution expenses*
  • Depreciation of machineries and equipment used in production and building owned and/or constructed by CSEZ-registered enterprises
  • Equipment lease payments*
  • Rent and utility charges associated with building, equipment and warehouses, or handling of goods
  • Financing charges associated with fixed assets
  • Corporate management salaries*
  • Administrative salaries*
  • Marketing and sales salaries*
  • Advertising*
  • Research and Development*
  • Royalty fees*
  • Travel Expense*
  • Outside Professional Services*
  • Interest and financial charges on working capital*
  • Loss on foreign exchange translation*
  • Loss on disposal of merchandise inventory*

Service Enterprise:

  • Direct salaries
  • Services supervision salaries
  • Direct Materials, supplies used or resold to another CSEZ registered enterprises
  • Depreciation of machineries, equipment and building owned and/or constructed
  • Equipment lease payments*
  • Financing Charges associated with fixed assets
  • Rent and utility charges for buildings and capital equipment
  • Corporate management salaries*
  • Administrative salaries*
  • Advertising*
  • Research and Development*
  • Royalty Fees*
  • Travel and Entertainment expenses*
  • Communication expenses*
  • Outside Professional Services*
  • Interest and financial charges on working capital*
  • Loss on foreign exchange translation*

Financial Enterprises:

  • Depreciation
  • Equipment and lease payments*
  • Financing charges associated with fixed assets*
  • Rent and Utility*
  • Corporate Management salaries*
  • Administrative salaries*
  • Marketing and sales salaries*
  • Materials and supplies used*
  • Advertising*
  • Royalty Fees*
  • Travel and Entertainment expenses*
  • Communication expenses*
  • Outside Professional Services*
  • Insurance*
  • Cost of securities*
  • Bad debts actually ascertained to be worthless and written-off*
  • Interest and Financial charges*
  • Loss on foreign exchange translation*
  • Additional Deductions for Regional Enterprises