What are the benefits of working with a PEZA-recognized industrial park?
- Tax incentives
- Streamlined processes
- Infrastructure and utilities
- Enhanced security and environment
Overview
- PEZA-recognized industrial parks offer fiscal benefits like Income Tax holidays, preferential tax rates, exemptions from national and local taxes, and duty-free importation.
- These incentives create a favorable environment for business growth and sustainability, giving your business a competitive edge in the dynamic Philippine market.
- Choosing a PEZA-accredited industrial park can streamline your operations with optimized facilities, shared services, simplified permits, and regulatory procedures.
- Near transportation hubs, these parks ease importing and exporting, enhancing supply chain efficiency and contributing to overall success.
Businesses face numerous challenges in the industrial parks industry. From navigating complex regulatory landscapes to coping with inadequate infrastructure and limited access to incentives, the journey toward success can be fraught with obstacles.
This is where the Philippine Economic Zone Authority (PEZA) comes in as a partner, providing guidance, support, and incentives to help businesses overcome these challenges and thrive in the competitive market.
In this article, we will explore the benefits of working with a PEZA-recognized industrial park and why it can be a game-changer for businesses looking to establish a strong presence in the market.
Who is PEZA?
The Philippine Economic Zone Authority (PEZA) is a government agency responsible for promoting investments in the Philippines by creating economic zones that offer incentives to both local and foreign businesses.
Established in 1995, PEZA aims to attract investments, generate employment, and stimulate economic development through the establishment and regulation of special economic zones, industrial parks, export processing zones, and free trade zones. PEZA provides various incentives to registered enterprises, including tax holidays, duty-free importation of equipment, and simplified customs procedures, to encourage business growth and industrialization.
Tax Incentives
PEZA-recognized industrial parks offer a chance to operate within vital economic hubs in the Philippines and provide registered business enterprises (RBEs) with various fiscal incentives. These include an Income Tax Holiday (ITH) extending up to six years, a preferential tax rate of 5% on gross income following ITH, and exemption from national and local tax obligations.
RBEs also enjoy tax exemptions and duty-free importation of machinery, raw materials, and equipment. They also receive VAT zero-rating on local purchases and are exempt from wharfage dues on imported equipment shipments. Additionally, they have reduced withholding tax requirements.
Streamlined Processes
Choosing a PEZA-accredited industrial park can significantly streamline your business processes by providing a designated and optimized operational environment. These parks are designed to meet your needs, offering facilities and infrastructure conducive to efficient operations.
You can also benefit from shared services such as security, utilities, and maintenance, which can help you reduce operational costs and streamline your processes. These parks also often have simplified permits and regulatory compliance procedures, making setting up and operating within the park easier.
Moreover, PEZA-accredited industrial parks are often near transportation hubs, making importing and exporting goods easier. This can further streamline your supply chain processes and contribute to your business’s overall success.
Infrastructure and Utilities
Another hallmark benefit of working with a PEZA-recognized industrial park is access to a comprehensive ecosystem of support services that cater to businesses’ diverse needs. From utility management to security services and even transportation solutions, these parks offer an array of amenities tailored to enhance operational efficiency and convenience for tenants.
For instance, companies operating within these parks can benefit from shared facilities such as warehousing spaces, conference rooms, and recreational areas, enabling them to optimize their resources and infrastructure without incurring excessive costs.
This comprehensive support system fosters a collaborative and synergistic environment where businesses can thrive and grow sustainably.
Enhanced Security and Environment
Industrial parks under PEZA’s regulation can enhance security and environmental sustainability for their locators by implementing robust security measures such as perimeter fencing, CCTV surveillance, and security patrols to deter unauthorized access and criminal activities.
They can also invest in environmental management systems, waste treatment facilities, and green spaces to minimize pollution, conserve natural resources, and create a healthy environment conducive to business operations. These efforts contribute to a safe, secure, and eco-friendly ecosystem within the industrial park, fostering tenant satisfaction and long-term sustainability.
Key Takeaway
The benefits of working with a PEZA-recognized industrial park provide a conducive environment for growth and success. As businesses navigate their expansion plans, considering a PEZA-accredited facility can be a game-changer, unlocking opportunities for prosperity, innovation, and sustainable development.
Discover the unparalleled advantages of partnering with a PEZA-recognized industrial park at the Science Park of the Philippines. From lucrative tax incentives and streamlined processes to top-notch infrastructure and unparalleled support services, our PEZA accreditation ensures your business thrives in a conducive environment.
Experience the difference and unlock endless opportunities for growth and success. Join us today and elevate your business to new heights!
