PEZA Registration in Philippines

Many investors and businessmen at some point choose to offshore or outsource their jobs to reduce their operational cost. To encourage investment in the country, the government of Philippines provides benefits and incentives to foreign entities in the form of tax holiday exemptions. And this is where Philippine Economic Zone Authority (PEZA) comes into the picture.

What Is PEZA?

Philippine Economic Zone Authority (PEZA) is a Philippine government agency that promotes investment, extends assistance, grants incentives to and facilitates business operations of investors in export-oriented manufacturing and service facilities inside selected areas throughout the country. It is attached to the Department of Trade and Industry and is authorized to provide incentives to member companies.

To obtain tax breaks and incentives offered by PEZA, a company must register with it and locate their operations in one of the PEZA zones, buildings, IT parks, or technology parks. And the companies located inside the zone can export 100% of their production. In few cases, PEZA may approve the sale up to 30% of production in the domestic market.

Benefits of PEZA-Registered Companies

• Exemptions from the payment of import duties and taxes on imported machinery, equipment, and raw materials
• Income tax holidays for a certain number of years, which translates to 100% exemption from corporate income tax
• Exemption from expanded withholding tax
• Permanent resident status for foreign investors with initial investments of US$ 150,000 or more
• Exemption from branch profit remittance tax for PEZA- registered branches of foreign companies
• Exemption from payment of any and all local government imposts, fees, licenses or taxes

PEZA Eligibility

To apply for PEZA registration, one has to first complete an online registration at the Bureau of Internal Revenue (BIR). After this, you can complete the following PEZA requirements:

1. Download the notarized PEZA application form from the official website and fill in the complete details
2. Make a corporate profile. A corporate profile outlines the company’s history and the business projects and activities currently handled by the company. it should include information like not only about the current company but also about the parent company if any. The corporate profile should also include the following documents:

• Certificate of Registration with the Securities and Exchange Commission (SEC)
• Updated Articles of Incorporation
• Board Resolution that authorizes the PEZA application. This also includes the designation of the company’s authorized representative or representatives who are responsible for the PEZA registration
• Lastly, the application should include a Project Brief, which details the technical, managerial, and financial information of the project or business that is applying for PEZA incentives

3. Subsequently, the company must also submit important documents of financial statements, annual reports to the PEZA

After submitting all the necessary documents, the company has to wait for the approval for getting the PEZA incentives. PEZA registration process normally requires a minimum of 21 days to get completed.

Additional Documents Required for PEZA Registration

The additional documents include general and technical data documents. They are:

• Parent company and product brochures
• Description of the new project (include description and uses of the service)
• Detailed organizational chart
• Project timetable
• Potential market, marketing costs, marketing program
• Service process and flowchart
• List of equipment, country of equipment origin, rated capacity, and corresponding costs
• Materials, their sources and prices; supply contracts, if any; ratio of imported to local materials, if applicable
• Area requirement, office layout
• Equipment layout
• Electricity and water requirements
• Types and volume of wastes and waste disposal system
• Bio-data of principal officers
• Certificate of registration with the Securities and Exchange Commission
• Articles of Incorporation

Businesses That Can Apply for PEZA Registration

The businesses which can apply for getting incentives from PEZA registration are as follows:

• Export Manufacturing
• Information Technology (IT) Service Export
• Tourism
• Medical Tourism
• Agro-Industrial Export Manufacturing
• Agro-Industrial Bio-Fuel Manufacturing
• Logistics and Warehousing Services
• Economic Zone Development and Operation
• Facilities Provider
• Utilities

Our Offerings

Business Setup Worldwide offers the following PEZA registration services for your company:

• Determine eligibility for PEZA
• Process all required documents for PEZA
• Identify a PEZA building for you
• Register your new company with PEZA

Foreign Companies setting up an export business in the Philippines may opt to register with the PEZA for tax incentives. In addition to these incentives, locating in a PEZA-accredited facility or area also ensures that doing business in the Philippines is smoother and easier. Not only do businesses save on taxes and fees, they also ensure that permits and other registration requirements are secured in a short span of time. We at Business Setup Worldwide assist you in accomplishing the forms, presentation, and submission of other required documents to ensure that you get your accreditation as quickly as possible. Contact us to know more about the perks and benefits of being a PEZA member.