Philippine Economic Zone Authority Tax Incentives
Fiscal and Non-Fiscal Incentives are available to PEZA-registered Economic Zone Export as may be determined by PEZA.
- Income Tax Holiday (ITH) – 100% exemption from corporate income tax
- 4 years ITH for Non-pioneer Project
- 6 years ITH for Pioneer Project
ITH Extension years may be granted if Project complies with the following criteria, (one criterion is equivalent to one ITH extension year), provided that the total ITH entitlement period shall not exceed eight (8) years:
- The average net foreign exchange earnings of the project for the first three (3) years of operations is at least US$500,000.00 and,
- The capital equipment to labor ratio of the project does not exceed US$10,000.00 to 1 for the year immediately preceding the ITH extension year being applied for.
- The average cost of indigenous raw materials used in the manufacture of the registered product is at least fifty per cent (50%) of the total cost of raw materials for the preceding years prior to the ITH extension year.
- 3 years ITH for Expansion project (ITH applies to incremental sales)
- Upon expiry of the Income Tax Holiday – 5% Special Tax on Gross Income and exemption from all national and local taxes (“Gross Income” refers to gross sales or gross revenues derived from the registered activity , net of sales discounts, sales returns and allowances and minus cost of sales or direct costs but before any deduction is made for administrative expenses or incidental losses during a given taxable period)
- Tax and duty free importation of raw materials, capital equipment, machineries and spare parts.
- Exemption from wharfage dues and export tax, impost or fees
- VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements
- Exemption from payment of any and all local government imposts, fees, licenses or taxes. However, while under Income Tax Holiday, no exemption from real estate tax, but machineries installed and operated in the economic zone for manufacturing, processing or for industrial purposes shall be exempt from real estate taxes for the first three (3) years of operation of such machineries. Production equipment not attached to real estate shall be exempt from real property taxes
- Exemption from expanded withholding tax
- Simplified Import – Export Procedures (Electronic Import Permit System and Automated Export Documentation System).
- Non-resident Foreign Nationals may be employed by PEZA-registered Economic Zone Enterprises in supervisory, technical or advisory positions.
- Special Non-Immigrant Visa with Multiple Entry Privileges for the following non-resident Foreign Nationals in a PEZA-registered Economic Zone: Investor/s, officers, and employees in supervisory, technical or advisory position, and their spouses and unmarried children under twenty-one years of age. PEZA extends Visa facilitation assistance to foreign nationals their spouses and dependents.
Why choose Science Park of the Philippines?
SPPI was established in 1989, and through the years, has gained the reputation of being a cutting edge developer of industrial estates through its Light Industry & Science Park projects.
Today, SPPI is highly regarded as one of the pioneers and leaders in private industrial estate development in the country and has the largest hectarage of industrial estates developed, and being developed with almost 800 hectares of aggregate area.