Navigating corporate taxation in the Philippines changed dramatically with the enforcement of the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy) law. For technology firms and export enterprises in Cebu, understanding how to pair SEC registration with PEZA (Philippine Economic Zone Authority) accreditation is critical to unlocking tax relief.
Core Fiscal Incentives Breakdown
| Incentive Feature | CREATE MORE Provision | Operational Impact for Cebu Firms |
| Income Tax Holiday (ITH) | 4 to 7 Years (Tier/Location Based) | 0% Corporate Income Tax during initial ramp-up. |
| Special Corporate Income Tax (SCIT) | 5% on Gross Income Earned (GIE) | Applied after ITH, replacing all national/local taxes. |
| Enhanced Deductions Regime | Up to 100% additional deductions | Higher tax write-offs on power costs, R&D, and local labor. |
| VAT Zero-Rating & Exemptions | 0% Local Purchases & Import Duty | Direct relief on local capital purchases and hardware imports. |
Navigating the Dual-Registration Path
To secure these benefits, foreign-capitalized and domestic tech enterprises setting up inside PEZA-accredited developments (such as Cebu IT Park towers or Mactan Economic Zone) follow a strict compliance sequence:
Step 1: SEC Corporate Registration via SEC ZERO Portal
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Step 2: PEZA Board Evaluation & Locator Agreement
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Step 3: Local Business Permit (Cebu City eBPLS)
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Step 4: BIR Registration (RDO 80/83) & Certificate of Tax Exemption
By completing this process early, corporate finance teams shield their business from standard local tax levies and protect capital for core software, hardware, and workforce expansions.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
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