Scribd Logo
Upload

Welcome to Scribd!

  • 88 views

    PEZA Taxation Policy and Incentives

    Uploaded by

    Mar Jan Guy
    Fiscal and non-fiscal incentives are available to companies registered with the Philippine Economic Zone Authority (PEZA) that operate within PEZA economic zones. Fiscal incentives include income tax holidays for 4-6 years for non-pioneer and pioneer projects respectively, along with potential extensions up to 8 years if certain criteria are met. Additional fiscal incentives include exemptions from import and export taxes and duties, VAT and local government taxes. Non-fiscal incentives provided by PEZA include simplified import-export procedures and special visas for foreign nationals employed by PEZA registered companies.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    PEZA Taxation Policy and Incentives

    Uploaded by

    Mar Jan Guy
    88 views2 pages
    Fiscal and non-fiscal incentives are available to companies registered with the Philippine Economic Zone Authority (PEZA) that operate within PEZA economic zones. Fiscal incentives include income tax holidays for 4-6 years for non-pioneer and pioneer projects respectively, along with potential extensions up to 8 years if certain criteria are met. Additional fiscal incentives include exemptions from import and export taxes and duties, VAT and local government taxes. Non-fiscal incentives provided by PEZA include simplified import-export procedures and special visas for foreign nationals employed by PEZA registered companies.

    Original Description:

    peza taxation

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Fiscal and non-fiscal incentives are available to companies registered with the Philippine Economic Zone Authority (PEZA) that operate within PEZA economic zones. Fiscal incentives include income tax holidays for 4-6 years for non-pioneer and pioneer projects respectively, along with potential extensions up to 8 years if certain criteria are met. Additional fiscal incentives include exemptions from import and export taxes and duties, VAT and local government taxes. Non-fiscal incentives provided by PEZA include simplified import-export procedures and special visas for foreign nationals employed by PEZA registered companies.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    88 views2 pages

    PEZA Taxation Policy and Incentives

    Uploaded by

    Mar Jan Guy
    Fiscal and non-fiscal incentives are available to companies registered with the Philippine Economic Zone Authority (PEZA) that operate within PEZA economic zones. Fiscal incentives include income tax holidays for 4-6 years for non-pioneer and pioneer projects respectively, along with potential extensions up to 8 years if certain criteria are met. Additional fiscal incentives include exemptions from import and export taxes and duties, VAT and local government taxes. Non-fiscal incentives provided by PEZA include simplified import-export procedures and special visas for foreign nationals employed by PEZA registered companies.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Philippine Economic Zone Authority (PEZA) Tax Incentives

    Fiscal and Non-Fiscal Incentives are available to PEZA-registered Economic Zone


    Export as may be determined by PEZA.

    Fiscal Incentives:

    Income Tax Holiday (ITH) 100% exemption from corporate income tax
    4 years ITH for Non-pioneer Project
    6 years ITH for Pioneer Project
    ITH Extension years may be granted if Project complies with the following
    criteria, (one criterion is equivalent to one ITH extension year), provided that the
    total ITH entitlement period shall not exceed eight (8) years:

    The average net foreign exchange earnings of the project for the first three
    (3) years of operations is at least US$500,000.00 and,
    The capital equipment to labor ratio of the project does not exceed
    US$10,000.00 to 1 for the year immediately preceding the ITH extension year being
    applied for.
    The average cost of indigenous raw materials used in the manufacture of
    the registered product is at least fifty per cent (50%) of the total cost of raw
    materials for the preceding years prior to the ITH extension year.
    3 years ITH for Expansion project (ITH applies to incremental sales)
    Upon expiry of the Income Tax Holiday 5% Special Tax on Gross Income and
    exemption from all national and local taxes (Gross Income refers to gross sales or
    gross revenues derived from the registered activity , net of sales discounts, sales
    returns and allowances and minus cost of sales or direct costs but before any
    deduction is made for administrative expenses or incidental losses during a given
    taxable period)
    Tax and duty free importation of raw materials, capital equipment, machineries
    and spare parts.

    Exemption from wharfage dues and export tax, impost or fees


    VAT zero-rating of local purchases subject to compliance with BIR and PEZA
    requirements
    Exemption from payment of any and all local government imposts, fees, licenses
    or taxes. However, while under Income Tax Holiday, no exemption from real estate
    tax, but machineries installed and operated in the economic zone for
    manufacturing, processing or for industrial purposes shall be exempt from real
    estate taxes for the first three (3) years of operation of such machineries.
    Production equipment not attached to real estate shall be exempt from real property
    taxes
    Exemption from expanded withholding tax

    Non-Fiscal Incentives:

    Simplified Import Export Procedures (Electronic Import Permit System and


    Automated Export Documentation System).
    Non-resident Foreign Nationals may be employed by PEZA-registered Economic
    Zone Enterprises in supervisory, technical or advisory positions.
    Special Non-Immigrant Visa with Multiple Entry Privileges for the following nonresident Foreign Nationals in a PEZA-registered Economic Zone: Investor/s, officers,
    and employees in supervisory, technical or advisory position, and their spouses and
    unmarried children under twenty-one years of age. PEZA extends Visa facilitation
    assistance to foreign nationals their spouses and dependents.

    Philippine Advantage
    Board of Investments ("BOI") Tax Incentives

    You might also like