Incentives are more fun in the Philippines!
Philippines Economic Zone Authority (PEZA) is an investment promotion agency of the government directed by Lilia De Lima. Since 1995 it has been granting incentives to facilitate the business operations of investors in export oriented companies in selected areas called PEZA zones throughout the country.
Any export company consider locating in a PEZA zone as the agency offers a range of benefits enabling companies to obtain substantial savings and free flow of goods. The tax incentives are the most attractive factor and include;
– Income Tax Holiday for several years
– Exemption from export tax
– VAT zero rating
Since 1995 PEZA has attracted nearly $45 billion worth of new investments that generated more than $459 billion in export earnings. This year PEZA aims to reach Php323 billion worth of investments (+12% compared with the total new investments in 2011).
These figures show that Ms Lilia De Lima succeeded in developing an efficient and well-organized environment for foreign firms to do business in. Ms De Lima also guarantees to the investors a total absence of corruption in PEZA, one of the foreign investors’ main fears in the country. Locators can also beneficiate of a 24/7 service which they say is helpful in reducing delays in the goods flows, particularly for manufacturers practicing a just-in-time manufacturing flow.
As a conclusion we can say that PEZA is a win-win situation for both the investor and the government. On one hand PEZA offers significant savings to foreign investors while on the other hand PEZA is a great contributor in the country’s economic growth. Triple i has assisted numerous companies to register and enjoy the numerous benefits that PEZA offers.