Philippine Economic Zone Authority

Philippine Economic Zone Authority (PEZA) is a government agency in the Philippines attached to the Department of Trade and Industry created to help promote investments in the export-oriented manufacturing industry into the country by assisting investors in registering and facilitating their business operations and providing tax incentives.^[1] PEZA also assists investors who locate in service facilities inside selected areas in the country (areas are called PEZA Special Economic Zones) which are usually business process outsourcing and knowledge process outsourcing firms. Other activities also eligible for PEZA registration and incentives include establishment and operation within special economic zones for tourism, medical tourism, logistics and warehousing services, economic zone development and operation and facilities providers.^[2]

History and Organization

PEZA was enacted under Republic Act 7916 and was passed by the House of Representatives and the Senate and approved by former Philippine President Fidel V. Ramos on the 21st of February, 1995.^[3] As provided in the Special Economic Zone Act, the PEZA Board is chaired by the Secretary of the Department of Trade and Industry. Vice-Chair is the Director General (Chief Executive Officer) of PEZA. Members of the Board are Undersecretaries representing nine (9) key government Departments, to ensure efficient coordination between PEZA and their respective Departments on matters pertaining to investors’ operations inside the Special Economic Zones.^[4]

Incentives

PEZA offers both fiscal and non-fiscal incentives as well as ready-to-occupy business locations in world-class economic zones and IT parks or buildings. Fiscal incentives include: income tax holiday for a certain number of years, which translates to 100% exemption from corporate income tax; tax and duty-free importation of raw materials, capital equipment, machineries and spare parts; exemption from wharfage dues and export tax, impost or fees; VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements; exemption from payment of any and all local government imposts, fees, licenses or taxes; and exemption from expanded withholding tax. Non-fiscal incentives, on the other hand include simplified import-export procedures, extended visa facilitation assistance to foreign nationals and spouses and dependents; special visa multiple entry privileges; and more.^[5]

PEZA Firms

As of January 2014, PEZA has over 300 fully operating economic zones that are spread across the country. Aside from central business districts in Bonifacio Global City, Makati, Ortigas and Quezon City, there are also economic zones in other next-wave cities such as Batangas, Cebu, Baguio, Subic and more. Currently, PEZA-accredited buildings and office spaces are mostly in Makati with over 35 operating economic zones including Glorietta 1 and 2 BPO, PBCom Tower, and the Zuellig Building.^[6] In Fort Bonifacio or Bonifacio Global City, there are 17 operating economic zones, including Bonifacio Technology Center, Sun Life Centre, Picadilly Star, World Plaza and EcoTower.^[7] In Quezon City, there are 18 operating economic zones including the ELJ Communications Center in Diliman.

References

1. "Department of Trade and Industry, Philippines". Retrieved May 27, 2014.
2. PEZA. "Activities Eligible for PEZA Registration and Incentives". Retrieved May 27, 2014.
3. An Act Providing for the Legal Framework and Mechanisms for the Creation, Operation, Administration, and Coordination of Special Economic Zones in the Philippines, Creating for This Purpose, the Philippine Economic Zone Authority (PEZA), and for Other Purposes. Jul 29, 1994.
4. PEZA. "About PEZA". http://www.peza.gov.ph/index.php?option=com_content&view=article&id=99&Itemid=53. External link in |publisher= (help);
5. Mercado, Caren. "Why You Need to Seek PEZA-Accreditation ASAP". KMC Solutions. Retrieved May 27, 2014.
6. Kashinamilunda, Rita. "PEZA-Accredited Buildings and Office Spaces in Makati". Retrieved May 27, 2014.
7. Kashinamilunda, Rita. "PEZA-Accredited Buildings & Office Spaces in Fort Bonifacio". Retrieved May 27, 2014.