Additional Incentives.
Section 18
SEC. 18. Additional Incentives. — A zone registered enterprise shall also enjoy the following incentive benefits: Net-Operating Loss Carry Over. — A net-operating loss incurred in any of the first five years of operation inside the zone may be carried over as a deduction from taxable income derived in such zone during the five years immediately following the year of such loss. The entire amount of the loss and any portion of such loss which exceeds the taxable income of such first year shall be deducted in like manner from the taxable income of the next remaining four years. The net-operating loss shall be computed in accordance with the provisions of the National Internal Revenue Code, any provision of this Decree to the contrary notwithstanding, except that income not taxable either in whole or in part under this Decree or other laws shall be included in gross income Accelerated Depreciation. — Fixed assets may be (1) depreciated to the extent of not more than twice the normal rate of depreciation or depreciated at the normal rate of depreciation if the expected life is ten years or less; or (2) depreciated over any number of years between five years and expected life if the latter is more than ten years; and the depreciation thereon allowed as a deduction from taxable income: Provided, That the taxpayer notifies the Bureau of Internal Revenue at the beginning of the depreciation period which depreciation rate allowed by this subsection will be used by it. Exemption from Export Tax. — The provisions of law to the contrary notwithstanding, foreign merchandise transhipped through the zone or any article which has been processed, manufactured or manipulated in said zone and exported therefrom, shall be exempt from any export tax, imposts or fee, including the stabilization tax imposed by Republic Act Numbered Sixty-one hundred twenty-five. Foreign Exchange Assistance. — The Central Bank of the Philippines or any or its authorized agent banks shall extend to zone registered enterprises, priority in the allocation of foreign exchange and in the availment of the assistance and resources of the Central Bank in a manner that would encourage and accelerate investment in the zone. Financial Assistance. — Notwithstanding any provisions of law to the contrary, zone registered enterprises shall be entitled to at least the same privileges accorded to enterprises approved by and registered with the Board of Investments under Republic Act Numbered Four thousand eight hundred sixty, as amended by Republic Act Numbered Six thousand one hundred forty-two, or under any existing, law, executive order, rule or regulation or which may hereafter be enacted or promulgated, insofar as obtaining financial assistance by way of loans, credits, guarantees or other forms of financial accommodations from government financial institutions, whether directly or indirectly through the medium of private banking or non-banking financial institutions: Provided, That the proceeds derived from or through such financial assistance shall be used in undertaking projects approved by the Authority: Provided, further, That in order to facilitate the payment of the foreign loans, credits and indebtedness contracted by zone registered enterprises for such projects approved by the Authority, the Central Bank shall, under such rules and regulations as it may promulgate upon recommendation of the Authority, allow the deduction of such portion of the foreign exchange earnings of said enterprises sufficient to meet the foreign exchange requirements for servicing foreign indebtedness incurred by them. Exemption from Local Taxes and Licenses. — Notwithstanding the provisions of law to the contrary, any business enterprise engaged in the production, processing, packaging, or manipulation of export products shall, to the extent of their construction, operation or production inside the zone, be exempt From the payment of any and all local government imposts, fees, licenses or taxes, except real estate taxes imposed under Commonwealth Act Numbered Four Hundred seventy and Republic Act Numbered Fifty-four hundred forty-seven: Provided, That said business enterprise shall pay in the municipality where the zone is located real estate taxes on all its real properties located therein.