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PEZA Registration Services for Foreign Enterprises in the Philippines
Foreign enterprises seeking to establish an export-oriented company in the Philippines, such as outsourcing and offshoring operations, may opt to register with the Philippine Economic Zone Authority (PEZA) to maximize the tax incentives provided by the investment promotion agency.
What We Offer
Our large pool of experienced business consultants and legal compliance specialists are dedicated to helping you determine your eligibility for such incentives while providing assistance in securing the necessary documentation to help speed the process of your application with PEZA.
What is the Philippine Economic Zone Authority (PEZA)?
The Philippine Economic Zone Authority (PEZA) is an investment promotion agency (IPA) responsible for administering and regulating tax incentives to foreign enterprises willing to set up or establish their business in Special Economic Zones (SEZs). It is one of the main regulating bodies for tax incentives other than the Board of Investments (BOI).
Foreign enterprises engaged in export-manufacturing or export-oriented business activities can register with PEZA to enjoy tax incentives such as:
- Income tax holiday (ITH) of four to eight years
- ITH bonus of years under certain conditions
- Special corporate income tax (SCIT) rate of 5% based on gross income in lieu of national and local tax rates
- Enhanced deductions (ED) for expenses on production of goods and services, labor, research and development, training, power generation, and domestic input
- Value-added tax (VAT) zero-rating and exemptions on importation or local purchases of goods and services directly and exclusively used on the registered project.
- Duty exemption on imported capital equipment, raw materials, spare parts, or accessories
- Exemption from wharfage dues and export tax, duty, impost, and fees
- Tax credits on imported raw materials
- Tax and duty-free importation of consigned equipment
- Additional deduction for labor expenses
- Employment of foreign nationals in supervisory, technical, or advisory positions
Allow us to do the work for you while you focus on your business activities
With a full suite of business registration and corporate compliance services, our team is dedicated to ensuring that you secure complete and proper documents for your registration with PEZA.
Our pool of experts can also assist you in determining which incentives are best suited for your business in the Philippines. We can help you do the following:
- Determine eligibility for PEZA
- Process all required documents for PEZA
- Identify a PEZA building for you
- Register your new company with PEZA
How to Register Your Business with PEZA
Generally, PEZA follows a 7-step registration process:
- Submit application documents for pre-screening
- Pay application fee of ₱3,600 and secure official receipt
- Submit duly accomplished application form along with other required documents
- Wait for receipt of Board Resolution
- Submit Pre-Registration requirements as stated in Board Resolution
- Pay registration fee of ₱6,000
- Sign registration agreement with PEZA
Registration procedures and documentary requirements may vary depending on the type of business and industry your company will venture into.
Documentary Requirements for PEZA Registration
When registering with PEZA, foreign enterprises must ensure that their company is located within the designated SEZs to be eligible for the incentives. Entrepreneurs who wish to claim full foreign ownership of their business in the Philippines must adhere to the Foreign Investments Negative List provided by the Philippine government.
With the enactment of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act in March 2021, PEZA released Memorandum Circular (MC) No. 2021-47 providing guidelines for a uniform manner of registration with various IPAs.
The memorandum mandates all local and foreign enterprises seeking to register with PEZA must register through the PEZA Electronic Application Registration System (eARS).
Under Section 4, Rule 6 of CREATE Implementing Rules and Regulations (IRR), local and foreign enterprises seeking to register with PEZA must submit the following documents:
For enterprise-level Information:
- DTI or SEC Certificate of Registration, whichever is applicable
- Bureau of Internal Revenue (BIR) Certificate of Registration
- Tax Identification Number (TIN)
- General Company Information
- Business capitalization and Ownership Structure
- Authorized Business Representative Details
- Latest Audited Financial Statement (AFS), is applicable
For Project or Activity-level Information:
- Location address, contacts, activity representative details
- Description, classification, and type of activity
- Project or activity set-up timetable
- Committed investment capital and other related details
- Facility or utility requirements
- Projected financial performance
- Projected sales, raw materials, and production
- Projected employment, by type
PEZA may require additional documents depending on the nature of your business or application, such as:
- Articles of Incorporation and By-Laws
- Board Resolution of a duly authorized company representative/signatory
- Project Brief
- Anti-Graft Certificate
- Project Feasibility Study
Generally, the approval time for PEZA registration takes up to 21 days, depending on the requirements submitted and the type of industry you wish to invest into.
Additionally, PEZA Memorandum Circular (MC) No. 2021-48 requires new and existing enterprises in the following economic zones to register their business in the PEZA Information System on Compliance to Environmental Standards (PISCES):
- Cavite Economic Zone
- Mactan Economic Zone & Mactan Economic Zone-II-SEZ
- Baguio City Economic Zone
- Pampanga Economic Zone
- Laguna International Industrial Park-SEZ
- Gateway Business Park-SEZ
- Subic Shipyard-SEZ
- Clark TI-SEZ
PEZA Reportorial Requirements
Once you have registered your company with PEZA, the agency requires PEZA-registered companies to comply with its reportorial requirements on a regular basis. Failure to comply to such requirements may result in fees or penalties on your business.
To help you, provided below is an in-depth list of the applicable dates and requirements as stated under Rule XXI, Section 4 of the PEZA Rules and Regulations to Implement R.A. No. 7916, as Amended:
Where to Submit Reports: Enterprise Services Division
|Report Type||Due Date|
|Economic Zone Monthly Performance Report (EZMPR)||Every 20th day of the following month|
|Annual Report||90 Days after the end of the accounting period|
|* Audited Financial Statement (AFS)||30 Days after filing with BIR|
|Quarterly Income Tax Returns (Including a copy of O.R. of payment of 3% of the 5% GIT to the BIR and the O.R. of payment of 2% of the 5% GIT to the LGU)||15 Days after filing with BIR|
|Annual Income Tax Return (ITR) (Including a copy of O.R. of payment of 3% of the 5% GIT to the BIR and the O.R. of payment of 2% of the 5% GIT to the LGU) Breakdown/Schedule of sales per activity |
Breakdown and schedule of other income, data on revenues and taxes paid (Together with the AFS & Annual ITR)
|30 Days after filing with BIR|
|COA Annual Audit Report||After the end of the year with Audited Certificate|
|Notice of Start of Commercial Operations||7 days after date|
|Replacement of Director/Member or Board officer||30 days after date|
|Amendment of Articles or By-Laws||30 days after registration|
|Change of Name or equity ownership||30 days after change|
|Basic Fine||Daily Fine|
Incentives may be withdrawn for non-compliance- basis of the incentives is PEZA registration agreement
- Administrative Fines – The following schedule of fines and/or administrative sanctions shall apply to all ECOZONE Enterprises and/or to any person or group of persons who have committed violations of these Rules and pertinent circulars/memoranda issued thereunder:
- For late filing of financial statements, income tax returns, performance reports, annual reports, and all other reports / documents as specifically enumerated under Section 4 Rule XXI or required under existing circulars of the PEZA:
Basic Fine Daily Fine
- 1st Violation: ₱500.00
- 2nd Violation: ₱1,000.00
- 3rd Violation: ₱2,000.00
Failure to wear or display openly the prescribed ECOZONE identification cards/passes:
- 1st Violation – Reprimand
- 2nd Violation – Confiscation of ECOZONE identification cards/passes with denial of access to specific areas in the ECOZONE for ten (10) days.
- 3rd Violation – Permanent confiscation of identification cards/zone passes with perpetual denial of access to specific areas in the ECOZONE.
For violation of Rules X and XI of these Rules: Inventory of Goods, Finished Products, Materials, and other assets/Entry and Exit of Goods)
- 1st Violation – a fine ranging from 50% to 100% of the value of the goods or merchandise
- 2nd Violation – a fine ranging from 101% to 150% of the value of goods or merchandise
- 3rd Violation – a fine ranging from 151% to 200% of the value of the goods or merchandise
For purposes of this rule, the value of the goods shall mean the average valuation appearing in the invoices, commercial documents or records on file with the PEZA for the same or similar goods or merchandise for the last three (3) years reckoned from the date of violation or in the absence thereof, the latest CIF valuation of the Bureau of Customs on the subject goods or merchandise.
- Suspension of Permits – The PEZA may suspend, withhold, disapprove or revoke import or export permits, authority to engage in local sale, authority to farm-out, to avail of any incentive or privilege being administered by the PEZA for failure to comply with these Rules, any provision of the Registration Agreement between the PEZA and the ECOZONE Enterprise, the terms and conditions of the permits/franchises issued by the PEZA and/or for violation of the Act and the pertinent provisions of the Code and the Decree within a stipulated or reasonable period of time.
- Cancellation / Revocation – Registration, permit, and/or franchise of an ECOZONE enterprise may be canceled for any of the following grounds:
- Failure to maintain the qualifications of registration/permit/franchise as required.
- Violation of any pertinent provision of the Act / Code and/or Decree; and
- Violation of any of these Rules and Regulations, the corresponding implementing memoranda or circulars, or any of the general and specific terms and conditions of the Registration Agreement between the PEZA and the ECOZONE enterprise or violation of the terms and conditions of the permit/franchise issued by PEZA.
However, delay by the ECOZONE enterprise in the implementation of the timetable of its project as set by the PEZA shall result in the automatic cancellation of the certificate of registration/permit/franchise unless extended or a different period is set by the PEZA or these Rules.
The imposition of the above penalties shall be without prejudice to the assessment and collection of customs duties and taxes and/or forfeiture in accordance with the applicable provisions of the Tariff and Customs Code of the Philippines.
Register Your Next Business Venture With PEZA
With its robust consumer market, competitive industry players, and strong regional connections, the Philippines is an ideal investment location for enterprises seeking to penetrate the lucrative Asian market. Registering your business with PEZA allows you to enjoy numerous tax incentives, helping you increase your chances of securing a successful business venture in the Philippines and Asia-Pacific.