Tax Incentives for businesses in the Philippines – PEZA
PEZA or Philippine Economic Zone Authority is a branch of Department of Trade and Industry (DTI) that was created to help promote investments in the Philippines. To attract more foreign investors, PEZA is one of the few agencies who provide its member companies benefits and incentives.
What are the benefits?
Fiscal incentives of being a member of PEZA are the following:
- Income Tax Holiday (ITH) of specific duration (4-6 years), and subject to extension under certain conditions. This would mean no corporate income tax.
- Five Percent (5%) special income tax upon expiration of ITH
- Tax and duty free importation
- Zero Percent (0%) value added tax (VAT) on purchases of goods and services for use in the registered activity
- Exemption from withholding taxes on payment of local buyers from customs territory
- Exemption from payment of any and all local government fees, imposes, licenses or taxes
Non-fiscal incentives of PEZA Accreditation are the following:
- Simplified Import-Export Procedures
- Employment of non-resident foreign nationals in supervisory, technical or advisory positions
- Special Non-Immigrant Visa with Multiple Entry Privileges to certain officers and employees and their dependents (47a2 Visa)
How to Apply for PEZA-Accreditation?
To qualify for PEZA, the business must be located within a PEZA zone or dedicated building and may not have earned revenue prior to declaring the Start of Commercial Operations to PEZA. The proposed business must also produce at least 70% of total output to the export markets regardless of the industry.
Triple i Consulting registered and accredited hundreds of companies under PEZA and other government tax incentive program quickly and effectively. With our expertise, we can set up your company and advise which tax incentive program your business can avail.
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