Philippine Economic Zone Authority / PEZA
The Philippine Economic Zone Authority usually referred to as PEZA, provides a range of incentives for foreign businesses establishing operations in the Philippines.
PEZA is most famously associated with the Business Process Outsourcing (BPO) industry’s rise in the Philippines. More recently, PEZA incentives have contributed to the growth of Philippine Offshore Gaming Operators or POGOs. POGOs generally cater to Chinese gamers who patronize Philippine online gambling operations because these businesses cannot operate in China legally. Philippine Economic Zone Authority also extends the same range of benefits together with tax holidays and exemptions to manufacturing, information technology, industrial agriculture, and tourism, including medical tourism.
The Philippines Economic Zone Authority administers the incentives through accredited locations (typically buildings) classified as Special Economic Zones. These are “ready-to-occupy, environment-friendly, secured, and competitively priced.” PEZA provides a map of these zones here.
- Income Tax Holiday for a certain number of years, which translates to 100% exemption from corporate income tax
- Tax and duty-free importation of raw materials, capital equipment, machinery, and spare parts
- Exemption from wharfage dues and export tax, impost or fees
- VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements
- Exemption from payment of any and all local government imposts, fees, licenses or taxes
- Exemption from expanded withholding tax
- Simplified Import-Export Procedures (Electronic Import Permit System and Automated Export Documentation System)
- Non-resident Foreign Nationals may be employed by PEZA-registered Economic Zone Enterprises in supervisory, technical or advisory positions
- Special Non-Immigrant Visa with Multiple Entry Privileges for the following non-residents: foreign nationals in a PEZA-registered Economic Zone Enterprise: Investor/s, officers, and employees in supervisory, technical or advisory position, and their spouses and unmarried children under 21 years of age
- Extended Visa Facilitation Assistance to foreign nationals their spouses and dependents