What Activities Qualify for PEZA Registration?

By Starlight Business Consulting Services, Inc.

Many business owners assume that registering with the Philippine Economic Zone Authority (PEZA) is simply a matter of paying for a space in an ecozone. It is not. PEZA registration is tied to what your business actually does, where it does it, and how much of its output goes abroad. A business that sells the wrong mix of products, or one whose activity does not appear in the government’s investment priority list, will not be approved for incentives, no matter how attractive the location.

This article explains which activities qualify for PEZA registration as of November 2026, the legal basis for those rules, and the checks you should make before you apply.

The Short Answer

Two conditions must line up: your activity must be registrable, and it must be carried out within a PEZA-administered economic zone.

Under the Special Economic Zone Act of 1995 (Republic Act No. 7916), as amended, business enterprises within a designated ecozone register with PEZA to avail of the incentives and benefits the law provides.

Since the CREATE and CREATE MORE reforms (Republic Act Nos. 11534 and 12066), the National Internal Revenue Code goes further. Tax incentives are granted only to the extent of the registered project or activity approved under the Strategic Investment Priority Plan (SIPP). The Code also directs that investment promotion agencies, a group that expressly includes PEZA, may not accept an application unless the project or activity is listed in the SIPP. Anything not listed is automatically disapproved.

The current SIPP is the 2026 SIPP, approved through Memorandum Order No. 47 dated May 21, 2026, published in the Official Gazette on June 2, 2026, and effective fifteen days after publication. The Board of Investments has said that the detailed general policies and specific guidelines implementing the 2026 SIPP were being finalized, and that the guidelines under the 2022 SIPP would remain in effect in the meantime. Confirm with PEZA which guidelines apply to your application.

PEZA itself states that activities qualifying for registration are those that involve manufacturing, processing, or assembling for export, as well as activities that support exports, and that with the passage of the CREATE Act, activities eligible under the SIPP, whether export-oriented or domestic market-oriented, are also allowed to register with PEZA.

Activities PEZA Recognizes

PEZA publishes a list of eligible activities, each tied to a specific type of registered enterprise. The main categories are as follows. PEZA’s category list and the SIPP are separate documents and are not identical, so confirm with PEZA that your specific activity is covered by the current SIPP before you rely on any category below.

1. Export manufacturing

Manufacturing, assembly, or processing that results in the export of at least 70% of production. PEZA defines manufacturing or processing as converting raw or semi-finished materials into a new product by changing their physical, mechanical, or electro-magnetic characteristics, or their chemical properties. Assembly means putting semi-finished parts or materials together to form a distinct product without substantially changing those characteristics. Qualifying firms register as Economic Zone Export Manufacturing Enterprises.

2. IT service export

IT service activities in which at least 70% of total revenues come from clients abroad. PEZA describes IT service activities as those that use IT software or systems for value addition. Examples include IT-enabled services such as business process outsourcing, call centers, and data encoding, transcribing, and processing; software development and application; and content development for multimedia or internet purposes. Qualifying firms register as IT Enterprises.

3. Tourism and medical tourism

Tourism enterprises establish and operate sports and recreation centers, accommodation, convention and cultural facilities, and special-interest attractions within PEZA Tourism Special Economic Zones, with foreign tourists as the primary clientele.

Medical tourism enterprises provide medical health services, endorsed by the Department of Health, with foreign patients as the primary clientele, within a Medical Tourism Special Economic Zone Park or Center.

4. Agro-industrial activities

Agro-industrial export manufacturing covers the processing or manufacturing of agricultural products that results in exportation of the production. Agro-industrial bio-fuel manufacturing covers specialized manufacturing and commercial processing of agricultural crops into clean energy such as bio-fuels.

5. Logistics and warehousing services

This category covers operating a warehouse for the storage and safekeeping of goods of PEZA-registered export manufacturers. It also covers importing or locally sourcing raw materials or semi-finished goods for resale to, or for packing, labeling, cutting, altering to customer specification, mounting, or kitting for, PEZA-registered export manufacturers, whether for their export manufacturing, for direct export, or for consignment and eventual export. Qualifying firms register as Economic Zone Logistics Services Enterprises.

6. Ecozone development and operation

Developers and operators of manufacturing economic zones, IT parks, tourism zones, medical tourism zones, agro-industrial zones, and retirement economic zones. This covers the development, operation, and maintenance of the zone together with its required infrastructure and utilities.

7. Facilities providers

Owners and operators of factory buildings inside a PEZA zone that are leased to PEZA-registered export manufacturers; buildings and facilities inside IT parks leased to PEZA-registered IT enterprises; and retirement facilities for foreign retirees, endorsed by the Philippine Retirement Authority.

8. Utilities

The establishment, operation, and maintenance of light and power systems and of water supply and distribution systems inside special economic zones.

What the 2026 SIPP Adds

Because incentives now follow the SIPP, the investment priority plan is the practical test of whether an activity qualifies. The 2026 SIPP groups preferred activities into Tier I, Tier II, Tier III, and a separate category for export activities. The tier affects how long income tax-based incentives run.

Export activities. The SIPP lists three kinds of export activity, each with a 70% export requirement where applicable:

•        production and manufacture of export products, with exports of at least 70% of output;

•        service exports, meaning services rendered to clients abroad and paid for in foreign currency, with an export requirement of at least 70%, which also covers IT-BPM activities; and

•        activities in support of exporters.

The last group is broad. It includes manufacturing parts, components, materials, and supplies that are directly or reasonably needed to produce the export product; services rendered to export producers and service exporters; product testing and inspection; repair and maintenance; integrated logistics services; development and operation of ecozones and industrial parks and buildings for exporters; and the provision of telecommunications, sewerage, waste management, water, and power support to ecozones.

Domestic-market and other priority activities. The SIPP is not limited to exporters. Tier I includes, among others, the manufacture of processed agricultural, fishery, and forestry products, pharmaceuticals, semiconductors and electronics, machinery, shipbuilding, iron and steel, and cement, as well as value-adding manufacturing; IT-BPM activities catering to the domestic market; fulfillment centers; testing laboratories; and domestic industrial zones. Tier II covers industrial value-chain gaps such as IC design, supply chain resiliency projects, electric vehicle manufacturing, and food security activities. Tier III covers science, technology, and innovation, including research and development, aerospace manufacturing, cybersecurity, and artificial intelligence and data science.

Not every SIPP activity is open to PEZA. The SIPP separately identifies activities that apply to the Board of Investments (BOI) only, including industrial tree plantations, mining and mineral processing, petroleum refining and distribution, renewable energy under Republic Act No. 9513, and energy efficiency and conservation under Republic Act No. 11285. A company in one of these fields should look to the BOI rather than PEZA.

The 70% Export Rule Deserves Special Attention

For export enterprises, the 70% threshold is not a one-time hurdle at registration. Republic Act No. 12066 provides that a registered export enterprise that fails to export at least 70% of its total annual production or output in a given year is disqualified, in the following year, from duty exemption on importation and from VAT exemption on importation and VAT zero-rating on local purchases.

In practice, this means a manufacturer that registers as an exporter should plan its sales mix carefully, and track its export ratio throughout the year rather than discovering a shortfall at year-end.

Location and Scope: Where and What Is Covered

The activity must happen inside the zone. An ecozone, in the Code’s terms, is a selected area operated and managed as a separate customs territory, whose boundaries are fixed by presidential proclamation. A registered project or activity under an agency that administers an ecozone must be conducted exclusively within that zone’s boundaries. Activity performed outside the boundaries is not entitled to incentives. The Code does allow registered enterprises to run a telecommuting program, including work-from-home arrangements, covering no more than 50% of the total workforce, subject to rules set by the investment promotion agency.

Incentives cover only the registered activity. Each registered project or activity needs its own certificate of registration. Income from activities that are not registered is taxed under the regular rules of the Tax Code. A company that mixes registered and unregistered lines of business should keep them clearly separated.

Questions Business Owners Often Ask

Does my service business automatically qualify?

No. A service business qualifies only if its activity falls within a registrable category, such as IT service export with at least 70% of revenues from clients abroad, or another service activity listed in the SIPP.

Can I register an activity that is not on the list?

Not for incentives. Under the Tax Code, applications for activities not listed in the SIPP are disapproved.

Will the list of activities change?

It can. The SIPP is valid for three years and is subject to review and amendment, so the current version should always be checked before you plan an investment.

A Practical Checklist Before You Apply

1.      Define your activity precisely. Write down what you make or deliver, who buys it, and where the customer is located.

2.      Match it to a PEZA category and to the SIPP. Your activity must fit a registrable category and appear in the current SIPP.

3.      Test your export ratio. If you plan to register as an export enterprise, confirm that at least 70% of your output or revenue can credibly go to foreign customers or to other registered export enterprises, and that you can sustain it every year.

4.      Confirm the zone. Identify a PEZA-administered ecozone that accepts your type of activity, and make sure your operations will sit within its boundaries.

5.      Check the endorsements. Some categories, such as medical tourism and retirement facilities, require endorsement from the relevant government agency.

Getting It Right the First Time

PEZA registration can offer significant advantages, but only when the business model, the location, and the registered activity match from the start. If you are weighing whether your business can qualify, Starlight Business Consulting Services can help you review your activity and export profile against the PEZA and SIPP requirements before you file, so that your application rests on the right footing.

This article is for general information only and does not constitute legal or tax advice. Eligibility depends on the specific facts of each business and on the rules in force at the time of application. The Strategic Investment Priority Plan, its implementing guidelines, and PEZA’s registration requirements are subject to change, and this article reflects them as of November 2026. Before filing an application, confirm the current requirements directly with PEZA or consult a qualified professional.