MANILA, Philippines — Expansion and new projects to be undertaken by the business units of Cirtek Holdings Philippines Corp. (CHPC) at the Laguna Technopark–Special Economic Zone are set to receive tax perks from the Philippine Economic Zone Authority (PEZA).
CHPC said the PEZA board approved the application of its semiconductor arm segment, Cirtek Electronics Corp. (CEC), for the registration of its expansion project for the manufacture of plastic and ceramic leadless chip carrier package at the Laguna Technopark-Special Economic Zone.
The project will be entitled to three years income tax holiday (ITH) on incremental sales and the five percent special corporate income tax (SCIT) for 10 years, as provided for under the provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
CHPC said this is still subject to CEC’s signing of a supplemental agreement with PEZA, under standard registration terms and conditions and to the additional conditions as required by the agency.
Meanwhile, CHPC’s wireless broadband business segment Cirtek Advanced Technologies and Solutions Inc. (CATSI) has also received PEZA approval for the application for registration of its two new projects.
CATSI’s first approved new project will engage in the assembly of quintel multi-port antennas for 5G application, commercial operations of which will start on January next year.
CHPC said the project woulf be entitled to five years ITH and the five percent SCIT for 10 years, as provided for under the provisions of CREATE Act, subject to the signing of a supplemental agreement with PEZA.
The second approved new project of CATSI is for the manufacture of Analog Device Inc. (ADI)’s RF load boards and other ADI products.
CATSI will commence the commercial operations of the approved project on April 2023.
CHPC said approved project would be entitled to the incentives, as provided for under the provisions of CREATE Act, subject also to CATSI’s signing of a supplemental agreement with PEZA.
“The company is glad for the continuous support and assistance of PEZA. Now that our country is attaining herd immunity and reopening its economy, the company is very optimistic that it will hit a significant increase in its export revenues,” CHPC said.
“The approval of the two new projects and expansion project would culminate Cirtek Group’s continuing capability to open more business opportunities and to deliver relevant, complex, full turnkey solutions, and technological advancement of the company and its products for the benefit of our customers and most importantly for the benefit of our employees as this will allow Cirtek to create and maintain jobs for thousands of Filipino families despite the challenging times ahead of a global economic downturn where many companies are actually laying off and cutting back on spending,” it said.