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.
Leave a Reply