Globe secures 3G tax perk

8 May 2006

The Philippines’ second largest mobile service provider Globe Telecom looks set to receive tax benefits and other incentives from the government, in order to support its foray into the 3G arena. In a statement, the Board of Investments (BOI), the promotions and incentives-giving arm of the Department of Trade and Industry, said it had published its evaluation report on Globe’s registration as a new operator of infrastructure and telecoms telephone system on a ‘pioneer’ status. Globe earlier reported a 9% drop in profits to PHP10.3 billion (USD200 million) as a result of higher income tax provisions arising from the end of the company’s tax holiday.

Following its latest application to the BOI, Globe will be able to inject PHP5.4 billion into its 3G venture, which is expected to be operational in December this year. The project, which will be financed through 25% equity and 75% debt, could generate 368 new jobs. The BOI said Globe’s project is covered under the 2005 Investment Priorities Plan, thus its eligibility for tax and other incentives.

Philippines, Globe Telecom (incl. Innove)