When expanding operations into key regional hubs like Cebu Business Park or Davao City, many founders ask: Can we register with PEZA without leasing space in an accredited Economic Zone or IT Building?
The Short Answer
Generally, no. Physical location remains the core prerequisite for PEZA registration.
Under the Philippine Economic Zone Authority (PEZA) framework, registered enterprises must physically conduct their incentivized operations within a officially designated Ecozone or PEZA-accredited IT Center.
Why This Requirement Exists
PEZA was created under Republic Act 7916 to concentrate export infrastructure, customs controls, and municipal utilities into designated economic hubs. To claim tax perks like tax-free equipment importation or zero-rated local VAT, your operating site must fall within these boundaries.
What Are Your Alternatives?
If your prospective office or facility is in a non-PEZA commercial building in Cebu or Davao, you have two primary routes:
Board of Investments (BOI) Registration: Unlike PEZA, BOI does not enforce geographic site restrictions. You can operate anywhere in the Philippines while benefiting from income tax holidays and reduced tax regimes under the CREATE MORE Act.
Apply for IT Center Accreditation: Landlords or property developers can apply to accredit an entire building as a PEZA IT Center, though this process involves presidential proclamations and long lead times.
Key Takeaway: If your business requires flexibility in choosing office space across downtown Cebu or Davao without ecozone restrictions, BOI registration is almost always the better strategic fit.
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