Subic Bay Freeport — The Subic Bay Metropolitan Authority (SBMA) has released P147.13 million representing the first-semester 2018 revenue share for local government units (LGUs) contiguous to the Subic Bay Freeport Zone.
SBMA Chairman and Administrator Wilma T. Eisma distributed individual checks for the LGU shares on Wednesday, August 1, during a meeting with mayors and municipal treasurers at the Fortune Restaurant here.
The biggest share went to Olongapo City at P34,356,210.73; followed by Subic, Zambales with P22,438,000.32; Dinalupihan, Bataan with P18,317,950.71; and San Marcelino, Zambales with P17,652,452.62.
Next came Hermosa, Bataan with P15,292,064.02; Castillejos, Zambales with P13,656,489.21; Morong, Bataan with P12,776,665.57; and San Antonio, Zambales with P12,664,679.21.
Eisma said that the latest releases brought the cumulative LGU shares distributed by the SBMA in the last eight years to a total of P1,649,947,885.13.
This means an average release of P206.24 million every year to the eight LGUs covered by the benefit taken from the 5% tax paid by enterprises registered in the Subic Bay Freeport Zone.
Again Olongapo City received the biggest share in the eight years that the SBMA began directly releasing the shares to the LGUs.
SBMA records indicate that Olongapo has received a total of P396.79 million; Subic, Zambales had P246.42 million; Dinalupihan, P206.39 million; and San Marcelino, P198.89 million.
Meanwhile, Hermosa received a total of P169.29 million; Castillejos, P145.03 million; San Antonio, P144.06 million; and Morong, P143.05 million.
Eisma said the SBMA began directly releasing the shares to LGUs in 2010. Before this, Subic business locators paid their 5% corporate tax to the BIR, which remits payments to the national treasury. Then the Department of Budget Management released the 2% share to the LGUs concerned.
Under Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, business enterprises within the Subic Freeport Zone only pay a 5% tax on their gross income earned within the zone.
The corporate taxes are remitted as follows: 3% to the national government and 2% to the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone.
Meanwhile, the 2% share is divided according to population (50 percent), land area (25 percent), and equal sharing (25 percent).
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