PEZA Timelines & Minimum Export Requirements Explained

For foreign investors eyeing manufacturing in Lapu-Lapu City or IT-BPO scaling in Davao, timing and export quotas dictate when capital can be deployed.

1. How Long Does PEZA Registration Take?

Once a complete application is submitted to the PEZA board, the approval process generally takes 30 to 60 days. Under recent ease-of-doing-business initiatives and the CREATE MORE Act, processing timelines for complete submissions under ₱15 Billion in capital are handled directly by the IPA to eliminate bureaucratic bottlenecks.

2. The 70% Export Threshold Requirement

To qualify as a Registered Export Enterprise (REE) under PEZA:

• Foreign-Owned Entities: Must generate at least 70% of total gross revenue from direct foreign exports or export-service sales to other qualified ecozone entities.

• Filipino-Owned Entities: Can qualify with a minimum 60% export sales threshold.

    Total Annual Revenue
    ┌───────────────────────────────────────────┐
    │  70%+ Direct/Indirect Export Sales (PEZA) │ ──► Tax Incentives Apply
    ├───────────────────────────────────────────┤
    │  Max 30% Domestic Market Sales            │ ──► Subject to Standard Local Taxes
    └───────────────────────────────────────────┘

What If You Exceed the 30% Domestic Cap?

If your sales to the local Philippine domestic market exceed 30% of your total output, your PEZA status may be penalized or downgraded, exposing that portion of revenue to full Corporate Income Tax (RCIT).

Key Takeaway: Build your financial projections around the 70% export rule from Day 1 to ensure seamless board approval and long-term compliance.