REVENUE MEMORANDUM CIRCULAR NO. 84-2020 issued on August 27, 2020 circularizes Republic Act (RA) No. 11453 (An Act Further Strengthening the Powers and Functions of the Authority of the Freeport Area of Bataan [AFAB], Amending for this Purpose RA No. 9728, Otherwise known as the ‘Freeport Area of Bataan [FAB] Act of 2009) and RA No. 11457 (An Act Creating the Davao International Airport Authority, Transferring Existing Assets of Francisco Bangoy International Airport to the Authority, Vesting the Authority with Power to Administer and Operate the Francisco Bangoy International Airport and Appropriating Funds Therefor).

Section 3 of RA No. 11453 amends Section 6 of RA No. 9728 to read as follows:

“Sec. 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned. – No taxes, local and national, shall be imposed on registered business establishments operating within the FAB. In lieu thereof, and subject to Section 10 of this Act, said business establishments shall pay five percent (5%) final tax on their gross income earned in the following percentages:
“(a) One per centum (1%) to the National Government;
“(b) One per centum (1%) to the Province of Bataan;
“(c) One per centum (1%) to the to the host city/municipality; and
“(d) Two per centum (2%) to the Authority of the Freeport Area of Bataan.”

Section 14 of RA No. 11457, on the other hand, exempts the Davao International Airport Authority from realty taxes imposed by the local government or any of its political subdivisions, agencies and instrumentalities for the first ten (10) years of its operations: Provided, That no tax exemption granted under the Act shall extend to any subsidiary which may be organized by the Authority.