Companies can set up business in PEZA-certified Special Economic Zones (SEZs) to take advantage of government fiscal and non-fiscal incentives. PEZA provides incentives to businesses to help them minimize their tax bills and overhead expenditures.
What is PEZA, and How Can it Benefit Your Business?
PEZA, short for Philippine Economic Zone Authority, is a Department of Trade and Industry (DTI) entity tasked with encouraging foreign investment in the Philippines. It aids explicitly foreign organizations in facilitating business operations of investors in certain parts of the country known as PEZA Special Economic Zones.
Businesses holding PEZA certifications are eligible for fiscal and non-fiscal benefits once they have been accredited. This is in addition to the possibility of avoiding some fees and receiving faster processing of required permits and registrations.
What are PEZA Incentives?
Income Tax Holiday
This is applicable for a certain number of years, translating to a 100% exemption from corporate income tax.
Tax and Duty-Free for Importation
This is for the importation of IT equipment and parts.
Fees & Dues Exemption
This covers wharfage dues on import shipments of equipment.
This incentive is available for local purchases of goods and services, such as land-based telecommunications, electrical power, water bills, and building leases, as long as they meet the Bureau of Internal Revenue (BIR) requirements and PEZA.
Exemption from Government Payments
All government imports, fees, licenses, and taxes are included.
Exemption from Expanded Withholding Tax
Simplified Trade Procedures
The Electronic Permit System and Automated Export Documentation System help with import and export operations.
Employment for Foreign Nationals
Non-residents can work in supervisory, technical, or advisory positions for PEZA-registered Economic Zone Enterprises.
Special Visa Privileges
For the following non-resident foreign nationals working in a PEZA-registered Economic Zone Enterprise, this means a Special Non-Immigrant Visa with Multiple Entry Privileges. All included investors, officers, and personnel in supervisory, technical, or advising roles. Unmarried children under 21 years old and spouses are eligible for this benefit.
Apart from these benefits, doing business in the Philippines is more manageable and controllable by locating in a PEZA-accredited facility or location. Companies save on taxes and fees and the time to get permits and other registration procedures.
Apply For PEZA-Accreditation Today!
We can assist you with completing forms, giving presentations, and submitting other essential documentation to receive your accreditation as soon as possible.
We also provide a summary of our PEZA Compliance Services to help clients identify options that best fit their organization’s needs.
This involves coordinating reporting obligations, renewing PEZA accreditation for certified firms, obtaining further incentives, and asking for authorization to begin commercial operations in the Philippines.
Apply for PEZA-accreditation as soon as possible to maximize the advantages and benefits of outsourcing and offshore in the Philippines.