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Incentives for Philippine Economic
Zone Authority (PEZA) and
Information Technology (IT) Parks Locators
The governing law is Republic Act 7916 otherwise known as the
Special Ecozone Act of 1995. Upon registration with PEZA, the
incentives available to investors are a combination of those granted
by BOI and BCDA:
:: Tax- and duty-free importation of capital equipment, raw
materials, spare parts, supplies, breeding stocks, and genetic materials;
:: Income tax holiday of four years for non-pioneer or six years for
pioneer projects;
:: A special tax rate of 5% of gross income in lieu of all national
and local taxes after the income tax holiday;
:: Tax credit for import substitution;
:: Exemption from wharfage dues, export tax, and import fees;
:: Tax credit on domestic capital equipment, breeding stocks, and
genetic materials;
:: Additional deduction for incremental labor expenses and training expenses;
:: Unrestricted use of consigned equipment;
:: Permanent resident status for foreign investors and immediate
family;
:: Employment of foreign nationals;
:: Remittance of earnings without prior approval from the Bangko
Sentral ng Pilipinas (BSP).
Enterprises Qualified to Locate in the Ecozone
:: Export Enterprise - manufactures, assembles, or processes
products which are 100% exported, unless a lower percentage is approved by PEZA.
:: Free Trade Zone Enterprise - imports and markets tax- and
duty-free goods within the free trade area in the Ecozone. Goods brought outside the free
trade area will be subject to customs and tariff duties.
:: Service Enterprise - is engaged in any one or a combination
of the following activities: customs brokerage, trucking/forwarding, janitorial, security,
insurance and/or banking, consulting, or any such service approved by PEZA.
:: Domestic Market Enterprise - manufacturer, assembler, or
processor of goods that cannot export at least 50% of their total output for a
period of three years if majority-owned by Filipinos and at least 70% if majority-owned by foreign nationals.
:: Pioneer Enterprise - falls under any of the following
conditions:
- Manufactures, processes, or produces goods not produced in
a commercial scale in the country;
- Uses a design, formula, scheme, method, or process which is
new
and untried in the Philippines;
- Produces non-conventional fuels or manufactures equipment
that
utilizes non-conventional sources of energy;
- Develops areas for agri-export processing development; or
- Given such a status under the annual IPP approved by the
President.
:: Utilities Enterprise - contracted to provide light and
power, water
supply and distribution,
communications, and transportation
systems in the Ecozone.
:: Facilities Enterprise - contracted to build and maintain
necessary infrastructure such as
warehouses, buildings, road
networks, ports, sewerage and drainage
systems, and other
facilities considered as necessary by PEZA in the
development
and operations of the Ecozone.
:: Tourism Enterprise - operates tourist accommodation
facilities,
restaurants, sports and recreational
facilities in the Ecozone.
:: Ecozone Developer/Operator - develops, operates, and
maintains the Ecozone, all component
sectors (i.e., IEs, EPZs,
Free Trade Zones, and Tourist/Recreational Centers) and all
related infrastructure (roads, light and power systems,
drainage
facilities, etc.).
:: ICT and IT-enabled enterprise - Information and
Communications Technology enterprise
such as Business
Process Outsourcing, Call Centers, Software Manufacturing and
Development.
:: Business enterprise under the IPP - Business Enterprise or
activity listed under the Investment
Priorities Plan (IPP).
Contact Us
_____________________________________
You're invited to call us to discuss
your company's legal matters. We shall be glad to talk with you over
the telephone, or in our office or yours, whichever is easiest for
you. You can also e-mail us at
gtalaw@gtalawphil.com and we shall get back to you
immediately.
GUZMAN TAŅEDO & ACAIN
Mile Long Building 316
Legaspi Village
Amorsolo Street
Makati City
Telephone: 8941441
TeleFax: 8124296
e-mail:
gtalaw@gtalawphil.com
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