Philippine Economic Zone Authority (PEZA) Board of Investments (BOI)

Requirements for Export Enterprises Requirements

1. Duly accomplished and notarized PEZA 1. SEC Certificate (Articles of
application form and anti-graft certificate (RA Incorporation/Partnership and By-Laws); DTI
3019). Registration (Sole Proprietorship)
2. Board Resolution authorizing the filing and 2. Audited Financial Statement and Income Tax
designation of a representative. Return (past three years)
3. Securities and Exchange Commission (SEC) 3. Board Resolution to authorized company
Certificate of Registration, Articles of representative
Incorporation and By Laws (if not available, submit 4. Accomplished Application Form 501 and Project
draft of Articles of Incorporation) Report
4. Project brief.
Requirements for IT Enterprises
1. Application Form (notarized)
2. Corporate Profile (including that of parent
company, if applicable) which should
include:
 Brief company history
 Existing or proposed business activities
and projects
 List of affiliated companies registered
with PEZA
 List of affiliated companies registered
with the Board of Investments (BOI)
 and copies of the Certificates of
Registration with Terms and
Conditions
 and annual reports submitted, if
applicable
 Principal officers and bio-data
 Audited Financial Statements (for the
last 3 years for existing companies)
3. Certificate of Registration with SEC and updated
Articles of Incorporation
4. Board Resolution authorizing the filing of
application with PEZA and designating
the representative(s) authorized to transact
registration with PEZA
5. Project Brief
Registration Procedure Registration Procedure
1. Submission of accomplished application form. 1. File BOI Form 501 with supporting documents
2. Evaluation and recommendation for approval to and filing fee
the PEZA Board. 2. Evaluation of Application and Preparation of
3. PEZA Board approval. Evaluation Report (incl. Publication
4. Issuance of the PEZA Board Resolution of of Notice of Filing of Application, plant visit)
approval. 3. Presentation to the BOI Management
5. Submission of pre-registration requirements. Committee
6. Preparation of the Registration Agreement.
7. Signing of the Registration Agreement and
Issuance of Registration Agreement.
Incentives
(a) Income Tax Holiday (ITH) – 100% exemption
from corporate income tax
4 years ITH for Non-pioneer Project
6 years ITH for Pioneer Project
(b)ITH Extension years may be granted if Project
complies with the following criteria, provided that
the total ITH entitlement period shall not exceed
eight (8) years:
(c) Upon expiry of the Income Tax Holiday - 5%
Special Tax on Gross Income and excemption 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)
(d) Tax and duty free importation of raw materials,
capital equipment, machineries and spare parts.
(e) Exemption from wharfage dues and export tax,
impost or fees
(f) VAT zero-rating of local purchases subject to
compliance with BIR and PEZA requirements
(g) 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
(h) Exemption from expanded withholding tax
Non-fiscal incentives
Simplified Import – Export Procedures (Electronic
4. BOI Governing Board Confirmation
5. Letter advice to Applicant of Board Action
6. If Approved, send letter of approval including
pre- registration requirements
7. Applicant complies with the pre-registration
requirements
8. Preparation and issuance of Certificate of
Registration upon payment by
applicant of Registration Fee
9. Release of Certificate of Registration.
Incentives
(a) Income Tax Holiday.
(b) Additional Deduction for Labor Expense
(c) Tax and Duty Exemption on Imported Capital
Equipment.
(d) Tax Credit on Domestic Capital Equipment
(e) Exemption from Contractor's Tax.
(f) Simplification of Customs Procedure.
(g) Unrestricted Use of Consigned Equipment.
(h) Employment of Foreign Nationals.
(i) Exemption on Breeding Stocks and Genetic
Materials.
(j) Tax Credit on Domestic Breeding Stocks and
Genetic Materials.
(k) Tax Credit for Taxes and Duties on Raw
Materials.
(l) Access to Bonded Manufacturing/Trading
Warehouse System.
(m) Exemption from Taxes and Duties on Imported
Spare Parts.
(n) Exemption from Wharfage Dues and any Export
Tax, Duty, Impost and Fee.
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
Enterprise : 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.
Export Commitment Export Commitment

There are no export commitments for registrable
IT services
For Filipino citizens, at least 50% of total services
must be exported
For foreigners, at least 70% of total services must
be exported
For Filipino citizens, there is no export
commitment
For more than 40% foreign-owned companies, at
least 70% of total services must be exported
For firms that engage in pioneer activities, 100% of
activities may be invested in domestic markets
provided that the firm complies with requirements
under the Foreign Investments Act (FIA). [paid-up
capital of at least USD 200,000 which may be
lowered to USD 100,000 for projects that involve
advanced technology as determined by the
Department of Science and Technology and hire at
least (50) direct employees]