PHILIPPINE ECONOMIC ZONE AUTHORITYSpecial Economic Zone Act of 1995

Republic Act No. 7916

PEZA• A Philippine government agency tasked to promote

investments, extend assistance, register, grant incentives to and facilitate the business operations of investors in export-oriented manufacturing and service facilities inside selected areas throughout the country proclaimed by the President of the Philippines as PEZA Special Economic Zones.

• It oversees and administers incentives to developers/operators of and locators in world-class, ready-to-occupy, environment-friendly, secured and competitively priced Special Economic Zones.

ECOZONES or SPECIAL ECONOMIC ZONES

• Shall refer to selected areas with highly developed or which have the potential to be developed into agri-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds are fixed or delimited by Presidential proclamations.

• A separate custom territory though located in the same country

ADVANTAGES• 100% foreign owned company• Simplified investment procedures• Increase labor capital• Increase exports• Increase investment• Relationship with other country• Markets• Incentives• Right to remit investments

FAST TURNAROUNDSample Production cycle / semi conductor

• 96 HOURS OR 4 DAYS TO COMPLETE THE PRODUCTION CYCLE:• DAY 1• Japanese or Asian company sends raw materials to the Philippines.• Raw materials arrive in the Philippines on the same day.• Cleared by Customs on the same day.• Received by the Economic Zone Company on the same day.• DAY 2 - DAY 3• Products are manufactured.• DAY 4• Finished products brought to the Port.• Cleared by Customs on the same day.• Shipped to Japan or Asian country on the same day.• Arrive in Japan or Asian country on the same day.

PEZA IS A ONE-STOP SHOP• Building and Occupancy Permits are issued by PEZA.• Import and Export Permits are issued by PEZA.• Special non-immigrant visa processed in PEZA.• Harmonized customs processes because of PEZA-

Bureau of Customs Memorandum of Agreement.• Environment Clearance made easy because of PEZA-

Department of Environment and National Resources Memorandum of Agreement.

• Exemption from Local Government Business Permits for companies inside PEZA.

• Registration requirements simplified, registration forms made simple, approval made easy.

Competitive Incentives

Economic Zone Export, Information Technology, Tourism, Medical Tourism and Agro-industrial Enterprises

• Income tax Holiday or Exemption from Corporate Income tax for four years, extendible to a maximum of 8 years;

• After the ITH period, a special 5% Tax on Gross Income, in lieu of all national and local taxes;

• Exemption from duties and taxes on imported capital equipment, spare parts, supplies, raw materials/

• VAT-Zero Rating• Domestic Sales Allowance equivalent to 30% of total

sales;

• Exemption from export taxes, wharfage dues, imposts and fees,

• Exemption from withholding taxes• Special visa for foreign investors and immediate family

members;• Employment of Foreign nationals, and• Simplified import and export procedure

Economic zone Developers• Special 5% Gross Income Tax, in lieu of all national and

local taxes;• Special visa for foreign investors and immediate family

members;• Employment of foreign nationals; and• Assistance in the promotion of economic zones to local

and foreign locator enterprises.

Registrable Business Activies• Export manufacturing – Economic Zone Export

Manufacturing• Economic Zone IT enterprise or IT parks• Tourism Economic Zone Developers or Operators• Medical Tourism Enterprise• Agro-Industrial Bio-fuel• Economic Zone development and operation• Facilities provider• Utilities enterprise

As of December 31, 2012, there are 277 Operating Economic Zones throughout the Philippines, 108 of which are Proclaimed Economic Zones

• Agro-Industrial Economic Zone (17)• Free ports and special economic zones• IT Parks/Centers (178)• Manufacturing Economic Zone (65)• Medical Tourism Parks/Centers (2)• Tourism Economic Zone (15)

Major Investors

Samsung

Sanyo

Philips

FujitsuNEC

LexmarEpson

Toshiba

Hitachi

OFFICE• Philippine Economic Zone Authority Roxas Boulevard

corner San Luis St., Pasay City Tel.Nos. (632) 551-3454/551-3438/551-3436 Email: info@peza.gov.ph Website: www.peza.gov.ph

Registration requiremetns for Export Enterprises/IT Enterprises • 1. Duly accomplished and notarized PEZA application

form and anti-graft certificate (RA 3019). • 2. Board Resolution authorizing the filing and designation

of a representative. • 3. Securities and Exchange Commission (SEC) Certificate

of Registration, Articles of Incorporation and By Laws (if not available, submit draft of Articles of Incorporation)

• 4. Project brief. 

Registration for Ecozone Developers Requirements • 1. Duly accomplished and notarized PEZA application form and anti-graft certificate (RA 3019). • 2. Board Resolution authorizing the filing of the application with PEZA and designation of representative(s)

authorized to transact registration with PEZA.• 3. Securities and Exchange Commission (SEC) Registration including Articles of Incorporation and By

Laws.• 4. Audited financial statements for the last three (3) years, if applicable.• 5. Project description (development plan and timetable); • 6. Site development plan. • 7. Vicinity map indicating various land uses and important landmarks within a kilometer-radius of the

proposed economic zone. • 8. Proof of land ownership or any document confirming the applicant’s authority to use the land subject of

the proposed economic zone.• 9. Endorsement of the Sangguniang Bayan/Panlungsod of the proposed economic zone. • 10. DAR conversion clearance/exemption certificate or HLURB Zoning Certification, whichever is applicable. • 11. Certification from the Department of Agriculture (DA) that the proposed area is not covered by

Administrative Order No. 20 and that such land has ceased to be economically feasible. • 12. Verified Survey Returns and technical description of the proposed economic zone area. • 13. Environmental Compliance Certificate issued by the Department of Environment and Natural

Resources/Environment Management Bureau (DENR/EMB). • 14. Natural Water Resources Board (NWRB) Certification that the identified source of water shall not cause

supply problem for the adjacent communities. • 15. Other documents as may be prescribed by the PEZA Board.•  

Registration Process

Processing Time • PEZA Board meets at least twice a month. Applications

received within a day before the scheduled PEZA Board meeting will be presented in the Board meeting.

• One (1) month to secure the Presidential Proclamation for Special Economic Zone Developers provided completed documents are submitted.

Application forms

Requirements