After meeting the specified requirements, the application is then evaluated and submitted to the PEZA Board of Directors for approval. After approval, the application is accompanied by a resolution of the PEZA Board of Directors. Then, if necessary, additional requirements can be requested from the agency. Additional documentation requirements can be found on the PEZA website. The eligibility requirements for PEZA incentives, both inside and outside Metro Manila, include: Foreign companies starting an export business in the Philippines can register with PEZA to obtain tax incentives. In addition to these incentives, moving to a PEZA accredited facility or area also ensures that doing business in the Philippines is smoother and easier. Businesses not only save on taxes and fees, but also ensure that permits and other registration requirements are obtained in a short period of time. At Business Setup Worldwide, we help you create the forms, presentation and submission of other documents required to ensure you receive your accreditation as soon as possible. Contact us to learn more about the benefits and benefits of being a PEZA member.
Before a company can operate in an ecozone, it must first meet the PEZA registration requirements. Registration requirements vary depending on the type of activity to be performed. Medical tourism, tourism and agro-industrial enterprises, for example, need to be supported by relevant government agencies such as the Ministry of Health, the Ministry of Tourism and the Ministry of Agriculture. IT companies can apply for PEZA registration to take advantage of the incentives by submitting the following requirements: What is PEZA? PEZA, also known as the Philippine Economic Zone Authority, is an agency of the Department of Trade and Industry (DTI) established to encourage investment in the Philippines. In particular, it provides support to foreign companies to facilitate the business activities of investors in certain regions of the country called PEZA Special Economic Zones. After accreditation, companies holding PEZA certificates are entitled to tax and non-tax incentives. Added to this is the prospect of avoiding certain taxes and benefiting from more efficient processing of permits and required registration requirements. To apply for a PEZA registration, you must first register online with the Bureau of Internal Revenue (BIR).
After that, you can meet the following PEZA requirements: For an IT services export company to be eligible for PEZA incentives, the following requirements must be submitted (information from the PEZA website): Companies operating in PEZA ecozones receive a number of tax incentives, as well as benefits such as simpler import/export and exchange processes. and less stringent requirements when hiring foreign employees. An income tax holiday (ITH) from the beginning of commercial exploitation: 6 years for new projects with pioneer status; 4 years for new projects without pioneer status; 3 years for expansion projects; 6 years for construction or expansion projects in less developed areas; and 3 years for modernization projects. Companies that meet certain requirements can also claim a bonus ITH year. The most important requirements that a company must meet to qualify for PEZA registration are the location – it must be located in an area or building that is an area designated by PEZA – and the eligibility of the activity. Eligible activities include export manufacturing, export of information technology (IT) services, tourism, medical tourism, agro-industrial manufacturing for export, and so on. Documentation requirements for registration include a project description and feasibility study, as well as a financial overview. A minimum paid-up capital is also required for certain types of activities.
Documentation requirements for registration also vary depending on the type of activity. We`ll help you determine your PEZA eligibility, process all registration requirements, and identify a PEZA building for your Philippine office. Companies can register with the BOI if they carry out one of the activities listed in the Priority Investment Plan (IPP), which lists the country`s priority investment areas. The PPI is established annually. However, for non-pioneer industries, foreign ownership is limited to 40% or less, unless the company can commit to export sales of at least 70% of its total turnover. Other requirements include a project plan and feasibility report, as well as other supporting documents. These requirements may vary from industry to industry. For the IT sector, this is: To benefit from tax breaks and incentives from PEZA, a company must register with PEZA and locate its operations in one of PEZA`s areas, buildings, IT parks or technology parks. PEZA registrants should generally be export-oriented. Companies located in the zones must export 100% of their production.
In some cases, PEZA may authorise the sale of up to 30% of production on the domestic market. Full foreign ownership of a PEZA company is allowed as long as it is not involved in activities on the negative list for foreign investment. PeZA permits and specific incentives are granted on a case-by-case basis. Applicants must submit an application to provide information on the capital structure, nationality of investors and a feasibility report in a format prescribed by PEZA. Applicants can expect a quick turnaround time once the application is submitted. In January 2019, President Rodrigo Duterte signed the proclamation to create another special economic zone in Cavite called Cavite IT Ecozone or VistaHub BPO Molino. It is founded with the continued purpose of encouraging foreign investors to create jobs and connect with various industries in the Philippines. .
