Business Advantages In PEZA Special Economic Zone IT Park
Foreign companies, entrepreneurs, and investors can enjoy benefits and incentives that are only granted when operating in a special economic zone approved by PEZA.
PEZA, or the Philippine Economic Zone Authority, is affiliated with the Department of Trade and Industry that accredits selected áreas that are “highly developed or have potential to be developed” into Ecozones.
The creation of PEZA, the development of Special Economic Zones throughout the country, and the competitive incentives available to investments inside PEZA Special Economic Zones are embodied in the Special Economic Zones Act of 1995, or the Republic Act No. 7916.
According to the law, “Special Economic Zones (SEZ) may contain any or all of the following: Industrial Estates (IEs), Exporting Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.
As of Nov. 2017, there are 262 Information Technology Parks/Centers, 74 Manufacturing Economic Zones, 22 Agro-Industrial Economic Zones, 19 Tourism Economic Zones, and 2 Medical Tourism Parks/Centers in the country.
PEZA-Accredited IT Parks
PEZA-accredited IT Parks guarantee that business transactions in the Philippines are more amiable and lenient. It also increases credibility that is impressive to those who are visiting and helping prospective investors establish their start-up business.
Its incentives are intended to help them garner the best yield on their capital.
Additionally, the advantages of having your business in a special economic zone IT Park are as follows: spacious meeting rooms; access to education and training resources; spaces for storage warehouse facilities; and having the latest technology and equipment.
Moreover, some IT Parks have amenities, like restaurants, cafes, gyms, and shops. They also have secured free parking, and round-the-clock security.
Most of them are close to hotels, health centers, and transport links. Relaxation áreas are also nearby, keeping employees motivated and in tip-top shape to get their jobs well done.
Last July 6, 2018, PEZA Director-General Charito Plaza with Palayan City Mayor Rianne J. Cuevas, AlloyMTD Philippines Chairman Engr. Isaac David, AlloyMTD Palayan City President Nicholas David, and Senator Richard Gordon formally signed the Memorandum of Agreement that officially recognized Palayan City Business Hub, or officially known as the Palayan City Government Center and Central Business Hub, as a special economic zone.
Gordon likened the Palayan City as the new Subic and new Clark, with the presence of the Subic Bay Freeport Zone and Clark Freeport Zone, respectively in the two cities during the signing of MoA at the PEZA office in Bonifacio Global City in Taguig City.
Fiscal and Non-Fiscal Incentives in a Special Economic Zone IT Park
As a PEZA-accredited IT Park, companies operating in PCBH can enjoy Fiscal and Non-Fiscal Incentives, such as Income Tax Holiday; tax and duty-free importation of equipment and parts; and exemption from wharfage dues from shipments of equipment among others.
Companies are 100 percent exempted from Corporate Tax in Income Tax Holiday. Pioneer Project enjoys ITH for six years; Non-Pionee Project for four years; and Expansion Project for 3 years.
There is VAT zero-rating of local purchases of goods and services. This includes land-based telecommunications, electrical power, water bills, and lease on the building.
Exemption from expanded withholding tax is another Fiscal Incentive that companies operating in PCBH and other special economic zone IT Parks in the country can take advantage of.
Under Non-Fiscal Incentives, Import-Export procedures is simplified with the use of Electronic Import Permit System and Automated Export Documentation System.
A special non-immigrant visa with multiple entry privileges is granted to non-resident foreign nationals in a PEZA-registered economic zone enterprise.
Aside from fiscal and non-fiscal incentives, PEZA-accredited IT Parks further ensure that permits and other registration requirements are accomplished within a short allotted time.
PCBH is under the Special Economic Zone that maximizes the perks and benefits of outsourcing and offshoring operations in Nueva Ecija and encourages investments into the country that provides benefits and incentives to foreign commodities in the form of tax holidays and exemptions.
For the full list of Fiscal and Non-Fiscal Incentives, you may visit PEZA website.