1.How does one file an application with PEZA?
- A fill-in-the blanks application form is the only document required by PEZA to be submitted for application evaluation. This form is downloadable from the PEZA website: www.peza.gov.ph
2. How long will it take to get PEZA approval once all the requirements are submitted?
- If a company files its application three (3) daysbefore a Board Meeting, its application will be included in the agenda for approval. The PEZA Board meets twice a month usually on the second and fourth week of the month.
3. What are the activities that may qualify for registration with PEZA?
- Activities that qualify for registration with PEZA are those that involve manufacturing, processing or assembling for export as well as those activities that support exports. Export activity includes among others, IT/BPO Services, tourism, medical tourism, agro-industrial, as well as supporting industries such as utilities and facilities providers.
- With the passage of the CREATE Act, activities eligible under the SIPP, whether export-oriented or domestic market-oriented,are also allowed to register in PEZA.
4. What are the incentives offered by PEZA?
- Fiscal and non-fiscal incentives are given by PEZA to registered business enterprises depending on the location and industry priority.
- Fiscal incentives include:
- For Export-oriented Enterprises, Income Tax Holiday (ITH) of 4-7 years and availment ofSpecial Corporate Income Tax (SCIT) rate of 5% OR Enhanced Deductions (ED) for 10 years
- For Domestic Market Enterprises,Income Tax Holiday (ITH) of 4-7 years and availment ofEnhanced Deductions (ED) for 5 years.
- Non-fiscal incentives include:
- Tax- and duty-free importation of capital equipment, raw materials, spare parts or accessories
- Domestic sales allowance of up to 30% of total sales
- VAT exemption on importation and VAT zero-rating on local purchases for goods and directly related to its registered activity to include telecommunications, power and water bills
- Exemption from payment of national and local government taxes and fees for the period of availment of the 5% SCIT incentive
- Employment of foreign nationals
- Long-term land lease of up to 75 years
- Issuance of a 2-year PEZA Visa for foreign nationals employed by PEZA-registered companies and their dependents
5. What are the advantages of locating in a PEZA economic zone?
- The primary advantage in locating inside a PEZA Economic Zone is the Ease-of-Doing-Business inside PEZA Economic Zones which includes One-Stop-Shop; Non-Stop-Shop; No Red-Tape, Only Red-Carpet Treatment for Investors; and No Graft and Corruption.
- Other Advantages of locating in a PEZA economic zone include: world-class, environment friendly; fully secured area perimeter; adequate, clean and uninterrupted power supply; adequate water supply; state-of-the-art telecommunications facilities; ready-to-occupy standard factory buildings; waste water treatment facilities; computer security and building monitoring system; and presence of banks, fire fighting facilities and sports facilities.
