Why You Should Apply for PEZA Accreditation- Business Perks and Incentives

Various reforms in the Philippine’s economic policies show government’s initiative in assuring aid and incentives to foreign investors. Department of Trade and Industry leads this initiative through different agencies, one of which is called Philippine Economic Zone Authority (PEZA).

PEZA engages in promoting competency of the country to facilitate foreign business operations specifically on manufacturing industry with export opportunities and service facilities in areas tagged as Special Economic Zones under RA 7916. Other enterprises eligible for accreditation and assistance include tourism, logistics and warehouse leasing services, IT service export, utility and facility providers. It would usually take about 21 days from the date of submission for PEZA registration to be finalized provided that all the requirements are met. Once accredited, the business could now enjoy both fiscal and non fiscal incentives which mean a profitable cut down on company’s expenses and ease of operations.

What are the requirements for accreditation?

With over 300 fully operating economic zones all over the country, there’s a wide expanse of options for companies to start their businesses. Besides the central business district in Bonifacio Global city, Manila, Quezon city, Ortigas and Makati city (with currently has the most PEZA accredited buildings and office spaces), other economic zones are situated in regional areas such as Batangas, Baguio, Cebu and Subic.

Listed below are rough listings of PEZA requirements for membership:

1. Project Brief

2. Feasibility Studies

3. Financial Outline

4. SEC certificate of Registration and Articles of Incorporation (or draft if unavailable)

5. Anti-graft certificate

What are the Fiscal and Non Fiscal privileges for PEZA membership?

Authorized Fiscal Incentives to member Companies:

1. Income tax holiday is approved for specific number of years which translates to full exemption from tax and duty-free importation of raw materials, corporate income tax, capital equipment, machineries and spare parts. After the expiration of ITH, a 5% special tax on gross Income and exemption from both local and national taxes apply.

2. Exemption from wharfage dues and export tax, impost or fees

3. Vat zero-rating on local purchases in compliance with BIR and PEZA Requirements

4. Exemption from any or all local government imposts, fees, licenses or taxes

5. Exemption from expanded withholding tax

Authorized Non Fiscal Incentives to member companies:

1. Simplified import-export procedures

2. Special Non-Immigrant Visa with Multiple Entry Privileges for foreign nationals in PEZA economic zone which include residents that are investors, officers, employees with supervisory position, technical or advisory position, their spouses and unmarried children under 21 years old.

3. Employment of non resident foreign nationals

If you’re in the early stage of business set up and still in the process of looking for PEZA accredited buildings, we are definitely here to help you. Check out http://activespacesolutions.wix.com/activespacesolutions for more information.

For your inquiries about office / commercial space or warehouse, you may click here or send an us email .