PEZA Locator Status – Application Requirements & Ecozone Benefits

For foreign and domestic export-oriented enterprises expanding into economic hubs like Cebu and Davao, registering with the Philippine Economic Zone Authority (PEZA) remains a primary route for maximizing tax efficiency. PEZA grants fiscal and non-fiscal incentives to businesses located within designated Special Economic Zones, IT Parks, and IT Buildings.

1. Who Qualifies for PEZA Locator Status?

• Export Service Enterprises: BPO companies, IT/software developers, shared service centers, and engineering design firms that export at least 70% of their services.
• Export Manufacturing Enterprises: Factories producing electronic components, medical devices, or automotive parts within an ecozone.
• Ecozone Developers & Logistics Service Providers: Entities operating ecozone facilities or third-party logistics (3PL) support.

2. Application Requirements & Process

To apply for PEZA locator status, companies must submit their application to the PEZA Board alongside the following documentation:

1. Project Brief & Feasibility Study: Details on investment capital, projected export revenues, 5-year financial projections, and job creation numbers.
2. Entity Documents: SEC Certificate of Incorporation, Articles of Incorporation, and By-Laws.
3. Site Agreement: Proof of location within a PEZA-accredited IT building or ecozone (e.g., Cebu IT Park, Mactan Economic Zone, or Davao’s accredited IT centers).
4. Board Resolution: Designating an authorized representative to deal with PEZA.

3. Key Incentives Unlocked

• Income Tax Holiday (ITH): 4 to 7 years of 100% income tax exemption depending on industry tier and location under the Strategic Investment Priority Plan (SIPP).
• Special Corporate Income Tax (SCIT): A 5% SCIT rate on gross income earned in lieu of all national and local taxes upon expiration of the ITH (or chosen outright under CREATE MORE).
• Local Business Tax Exemption: Relief from paying local government taxes during the SCIT period.

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.