Company Registration with PEZA Accreditation

The Philippine Economic Zone Authority, or PEZA, is a bureau of the Department of Trade and Industry tasked to promote investments in designated Special Economic Zones, or Ecozones.

An Ecozone may contain one or more of the following:

• Industrial estate suitable for various industries

• Export Processing Zone – an industrial estate outside customs territory that caters specifically to export industries. Companies operating within Export Processing Zones may import raw materials and equipment without duties, taxes and other custom restrictions

• Free Trade Zone –an isolated area close to a seaport or airport where imported goods may be unloaded for transshipment, storage, repacking and other processes

• Tourist/recreational center – includes hotels, inns, resorts, sports and recreational facilities, and other tourist-targeted infrastructures and services

Benefits of operating in Ecozones

To attract businesses into Ecozones, PEZA has developed a slew of incentives that include:

Fiscal incentives:

• An income tax holiday (ITH) of four years for non-pioneer projects and six years for pioneer projects, with possibility of extensions

• 5% Special Tax on gross income, after the expiration of the ITH

• Zero taxes and duties on the importation of capital equipment, raw materials, machineries and spare parts

• Wharfage duties and export tax exemption

• VAT zero-rating on locallypurchased materials

• Exemption from local imposts, fees, taxes and licenses

• Exemption from expanded withholding taxes

Non-fiscal incentives:

• Electronically facilitated import-export procedures

• Fewer restrictions on hiring non-residents for supervisory, consultancy or technical positions

• Special visa privileges for non-resident foreign investors, officers and select employees

• Facilitation of extended visas for families of qualified foreign nationals

• Facilitation of permit and registration requirements

Ecozone requirements

Eligible Ecozone enterprises fall under the following categories:

• Export enterprise – manufactures, assembles or processes products which are 100% exported (unless PEZA approves a lower percentage)

•  IT service export such as Business Process Outsourcing, data encoding, transcribing and others, where at least 70% of the output isexported

• Agro-industrial export manufacturing

• Medical tourism

• Pioneer enterprise – businesses designated as such under the Investment Priorities Plan, as well as those which produce pioneering products, or make use of new processes or alternative sources of energy

• Utilities enterprise – provides utilities, communications and transportation systems within the Ecozone

• Facilities enterprise – builds infrastructure and facilities needed in the Ecozone’s operations

• Tourism enterprise – offers tourist-targeted services, including lodging, restaurants, and sports and recreation centers

• Ecozone developer/operator

• Ecozone requirements

If you want to take advantage of the many perks offered to Ecozone enterprises, you can apply for PEZA registration at the PEZA orEcozone Development Department office, or electronically at the PEZA website.

There’s a long list of documentary requirements for the application, which may vary according to business type. Basically, you have to show that your business is eligible to operate within an Ecozone, and you have the resources and potential to comply with the Ecozone’s operational requirements.

How filepino can help

We have helped dozens of businesses acquire PEZA registration and set up their operations within PEZA Ecozones. Whether you’re a new or existing enterprise, you can rely on our team of experts for a broad range of services, including:

• The identification of a PEZA building or zone that will best meet your business’ needs

• Determining your eligibility

• reparation and processing of all the required documents for registration

• Registration of your company with PEZA

• Compliance with regular PEZA reportorial requirements once your company is operational