Quick Guide: Tax Perks for PEZA-Registered Companies

The Philippine Economic Zone Authority (PEZA) provides powerful financial and operational incentives to businesses registered in its Ecozones.

Enterprises recognized by the Philippine Economic Zone Authority or registered in the economic zone enjoy fiscal or non-financial policy incentives and tax benefits.

Including:

Tax (Fiscal) Benefits

Benefit	What it Means	Duration
Income Tax Holiday (ITH)	0% Corporate Income Tax (No tax on income).	4 to 7 years (depends on location/industry).
Special Corporate Income Tax (SCIT)	5% tax on Gross Income (in place of all national and local taxes).	10 years (after ITH, mainly for exporters).
Duty/VAT Exemption	No taxes or duties on imported machinery, equipment, and raw materials.	For the period of registration.
VAT Zero-Rating	0% VAT on local purchases (like electricity, water, and supplies) related to the registered activity.	For the period of registration.

Operational (Non-Fiscal) Benefits

Easy Hiring of Foreign Staff: Authority to employ foreign nationals for supervisory and technical roles.
Special PEZA Visa: Simplified visa process for foreign employees and their dependents.
Simplified Customs: Streamlined import and export procedures (less bureaucracy).
Local Tax Immunity: Exemption from local business taxes (while availing of the 5% SCIT).

In short, PEZA offers an attractive tax break period (4-7 years ITH) followed by a low-tax regime (5% SCIT) plus the critical benefit of duty-free imports and simplified operations.

Source/Reference:

PEZA: Frequently Asked Questions and Fiscal Incentives

Fiscal Incentives Review Board (FIRB): Incentives Available

Philippines - Corporate - Tax credits and incentives (Specifically for the additional years for relocation/disaster areas)

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