Wistron secures tax perks for expansion
By RAFAEL S. SANTOS, The Manila Times
The Board of Investments (BOI), the investment promotions arm of the Department of Trade and Industry, said it approved the grant of tax perks on a nonpioneer status to a manufacturer of global positioning system (GPS) devices operating at the Subic Bay Freeport Zone.
Wistron Infocomm (Phils.) Corp. had been applying for pioneer status, but BOI ruled that three other companies were already manufacturing the GPS devices, two of them registered with the Philippine Economic Zone Authority (PEZA).
Wistron Infocomm had sought pioneer status since it would produce GPS devices on a commercial scale and ship 100 percent of its total production to Europe.
The company’s expansion in Wistron would have a production capacity of 2.08 million GPS devices.
The expansion would cost the company some P398.12 million, with commercial operations of the new facility expected to have started in July.
A Taiwanese-owned firm, Wistron Infocomm said it’s capital structure for the project will consist of 25-percent equity and 75-percent loans, mostly sourced from its mother company.
The Project Evaluation and Registration Department of BOI, however, has recommended the waiving of the required increase in capitalization requirement, because the firm’s mother company will supply all the financial requirements for the project, which the BOI unit said could be considered implied equity.
The Board of Investments (BOI), the investment promotions arm of the Department of Trade and Industry, said it approved the grant of tax perks on a nonpioneer status to a manufacturer of global positioning system (GPS) devices operating at the Subic Bay Freeport Zone.
Wistron Infocomm (Phils.) Corp. had been applying for pioneer status, but BOI ruled that three other companies were already manufacturing the GPS devices, two of them registered with the Philippine Economic Zone Authority (PEZA).
Wistron Infocomm had sought pioneer status since it would produce GPS devices on a commercial scale and ship 100 percent of its total production to Europe.
The company’s expansion in Wistron would have a production capacity of 2.08 million GPS devices.
The expansion would cost the company some P398.12 million, with commercial operations of the new facility expected to have started in July.
A Taiwanese-owned firm, Wistron Infocomm said it’s capital structure for the project will consist of 25-percent equity and 75-percent loans, mostly sourced from its mother company.
The Project Evaluation and Registration Department of BOI, however, has recommended the waiving of the required increase in capitalization requirement, because the firm’s mother company will supply all the financial requirements for the project, which the BOI unit said could be considered implied equity.
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