Are there Economic Zones in the Philippines?
The answer is yes. The Philippines has its own Economic Zones established through Republic Act 7916 on February 21, 1995, known as the Philippine Economic Zone Authority or the Special Economic Zone Act.
It aims to promote rapid economic growth through its specialized or different economic regulations or competitive incentives to attract Foreign Direct Investments (FDI). PEZA Incentives:
1. Fiscal Incentives a. Income Tax Holiday (ITH) or 100% tax exemption for 4 years for non- pioneer projects and 6 years for pioneer projects; b. 5% special tax on gross income and exemption from all national and local taxes upon the expiration of the ITH period; c. Duty-free importation of raw materials and capital equipment; d. Export tax exemption;
e. VAT Zero on local purchases
f. Exemption from payment of local government fees g. Exemption from expanded withholding tax 2. Non-Fiscal Incentives a. Simplified import-export procedures
b. Extended Visa facilitation for foreign nationals, their spouses, and dependents
c. Special Non- Immigrant Visa with multiple entry Privileges extended to spouse and unmarried children
What are the business activities eligible for PEZA Registration? 1. Export Manufacturing
2. Information Technology Service Export 3. Tourism 4. Medical Tourism
5. Agro-Industrial Export Manufacturing
6. Agro-Industrial Bio-fuel Manufacturing 7. Logistics and warehousing services 8. Economic Zone Development
9. Facilities provider
10. Utility provider
Where are these Economic Zones located?
Manufacturing Economic Zone CAR- Baguio City (1) Region I-Pangasinan (1) Region III-Bataan (2), Bulacan (1), Pampanga (6), Tarlac (2), Zambales (1) NCR (6) Region IV- Batangas (10), Cavite (11), Laguna (14), Palawan (1) Region V- San Carlos City (1) Region VII- Cebu (7) Region VIII-Leyte (1) Region X- Misamis Oriental (3), Lanao Del Norte (1) Region XI- Davao City (1), Davao Del Norte (1) Region XII-General Santos City (1) CARAGA- Surigao del Norte (1)
IT Parks CAR- Baguio City (3) Region I-Pangasinan (1), Ilocos Norte (2) Region III-Bulacan (2), Pampanga (4), Tarlac (2), Bataan (1) NCR (155) Region IV- Batangas (3), Cavite (3), Laguna (5), Rizal (3) Region V- Camarines Sur (4), Albay (1) Region VI- IloIlo (5), Negros Occidental (13) Region VII- Cebu (35), Negros Oriental (4) Region VIII-Leyte (2) Region X- Misamis Oriental (2) Region XI- Davao City (11) Region XII-South Cotabato (1)
Agro-Industrial Economic Zone Region II- Isabela (1) Region IV- Quezon (1), Cavite (1), Palawan (1), Batangas (1), Laguna (1) Region V- Albay (1) Region VI- Negros Occidental (1) Region VII- Cebu (1), Negros Oriental (1) Region VIII-Leyte (2) Region IX- Zamboanga del Norte (1) Region X- Misamis Oriental (1), Lanao del Norte (1), Bukidnon (1) Region XI- Davao City (2), Davao del Sur (1) Region XII-South Cotabato (4), Sarangani (2)
Tourism Economic Zone CAR- Baguio City (1) Region I-Ilocos Norte (1) NCR (5) Region IV- Batangas (1), Palawan (2), Rizal (1) Region V- Albay (2) Region VI- Iloilo (1), Aklan (1) Region VII- Cebu (2), Lapu-Lapu City (1) Region X- Cagayan de Oro City (1)
Medical Tourism Park (2) NCR (1) Region IV- Batangas (1) For further reference, please visit http://www.peza.gov.ph/index.php/about-peza
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