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Benefits of Operating a Business in a PEZA-Accredited Location

Benefits of Operating a Business in a PEZA-Accredited Location

Location is one of the make or break factors in operating a business, especially for foreign investors in the call center industry looking to establish business overseas. This is why it’s important for owners of bpo companies to be wary in choosing the location of their new ventures.

In the Philippines, the government has expressed full support for investors, through the varied forms of premiere real estate developments, well-developed business districts, and even laws and ordinances. Designed to attract more investors into the country and to help bpo companies flourish better, the Philippine Economic Zone Authority (PEZA) was developed.

For businesses operating in a PEZA-accredited building or area, below are the benefits awarded to the owners:

Fiscal Incentives
·         Income Tax Holiday (ITH) 100% exemption from corporate income tax;
·         Upon expiry of the Income Tax Holiday 5% Special Tax on Gross Income and exemption from all national and local taxes;

Gross Income refers to gross sales or gross revenues derived from the registered activity, net of sales discounts, sales returns and allowances and minus cost of sales or direct costs but before any deduction is made for administrative expenses or incidental losses during a given taxable period.

·         Tax and duty free importation of raw materials, capital equipment, machineries and spare parts;
·         Exemption from wharfage dues and export tax, impost or fees;

·         Tax and duty free importation of raw materials, capital equipment, machineries and spare parts;
·         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. However, while under Income Tax Holiday, no exemption from real estate tax, but machineries installed and operated in the economic zone for manufacturing, processing or for industrial purposes shall be exempt from real estate taxes for the first three (3) years of operation of such machineries. Production equipment not attached to real estate shall be exempt from real property taxes.

Non-Fiscal Incentives

·         Simplified Import – Export Procedures (Electronic Import Permit System and Automated Export Documentation System);

·         Special Non-Immigrant Visa with Multiple Entry Privileges for the following non-resident 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 twenty-one years of age.

·         PEZA extends Visa Facilitation Assistance to foreign nationals their spouses and dependents;
·         Non-resident Foreign Nationals may be employed by PEZA-registered Economic Zone Enterprises in supervisory, technical or advisory positions.

With these great benefits, business owners can indeed enjoy efficient and effective operations in the Philippines. There are lots of PEZA locations all over the country, there will surely be a perfect spot for everybody. 

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