Choosing between the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) used to be confusing due to conflicting tax rates. Following the CREATE MORE Act (RA 12066), the incentive structure has been unified under the Strategic Investment Priority Plan (SIPP).
Here is how they compare today:
Incentive Regime Breakdown
| Feature | PEZA | BOI |
| Primary Focus | Export Enterprises ($\ge 70\%$ foreign export) | Priority SIPP industries & Domestic Market projects |
| Location Mandate | Inside PEZA Ecozone / IT Building | Flexible (Anywhere in the Philippines) |
| Income Tax Holiday (ITH) | 4 to 7 years (based on SIPP Tier & location) | 4 to 7 years (based on SIPP Tier & location) |
| Post-ITH Tax Option | 5% Special Corporate Income Tax (SCIT) OR Enhanced Deductions | 5% SCIT (for Export) OR Enhanced Deductions (for Domestic) |
| 0% Duty & VAT Perks | Exemptions on direct capital equipment & raw materials | Exemptions on direct capital equipment & raw materials |
How to Decide for Your Region
Choose PEZA if: You are setting up an IT-BPO office in a established tech park in Cebu or an export processing plant in an industrial ecozone, and you value integrated customs assistance.
Choose BOI if: You are opening a cold-chain logistics facility in Davao, a renewable energy plant in Visayas, or an office outside an ecozone that targets domestic clients.
Key Takeaway: Taxes are no longer the deciding factor—location constraints and target market (export vs. domestic) dictate whether BOI or PEZA is right for your corporate structure.
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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