Choosing between the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) used to be straightforward: export-focused firms went to PEZA, while domestic market players chose the BOI. The expanded CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy) law changed this dynamic—making BOI registration increasingly attractive for Cebu-based tech and IT-BPM operations.
Comparing Operational Rules: BOI vs. PEZA
| Incentive/Requirement | Board of Investments (BOI) | PEZA Ecozone Registration |
| Site Location Flexibility | Location-Free: Can operate anywhere in Metro Cebu. | Zone-Restricted: Must locate inside an accredited IT Park/Ecozone. |
| Hybrid & Remote Work (WFH) | 100% WFH Compliant: No loss of tax incentives for remote teams. | Restricted by ecozone site boundaries and specific seat caps. |
| Income Tax Holiday (ITH) | Up to 7 Years (depends on SIPP Tier & Region). | Up to 7 Years (depends on SIPP Tier & Region). |
| Post-ITH Tax Rate | 5% Special Corporate Income Tax (SCIT) or Enhanced Deductions. | 5% Special Corporate Income Tax (SCIT) or Enhanced Deductions. |
| Local Purchase Duty/VAT | 0% VAT on qualified local purchases & import exemptions. | 0% VAT on qualified local purchases & import exemptions. |
The WFH Advantage for Cebu’s Tech Ecosystem
For IT-BPM companies operating across Metro Cebu, forcing staff to commute to Cebu IT Park or Cebu Business Park adds overhead and increases staff attrition. BOI registration allows companies to register a lean central administrative office while maintaining a fully distributed, compliant hybrid workforce spread across Cebu Province—all without jeopardizing their tax exemptions.
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
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