First Philippine Industrial Park

PEZA

INCENTIVES FOR EXPORT AND FREE TRADE ENTERPRISES

The Philippine Economic Zone Authority (PEZA) is a government corporation tasked with the establishment, operation and management of economic zones (ECOZONE) throughout the country.

PEZA is committed to provide the highest standards of service and grant excellent benefits to registered enterprises. Development of these ECOZONEs conforms with the requirements of a modern industrial area. As a service-oriented organization, PEZA sees to it that all various services and forms of assistance are made available to ECOZONE enterprises.

Under Republic Act No. 7916, otherwise known as "the Special Economic Zone Act of 1995" , registered Export or Free Trade Enterprises operating in ECOZONES or Special Economic Zones shall enjoy the following incentives:

1.	Income Tax Holiday (ITH) for 4 years to a maximum of 8 years
2.	After the lapse of ITH, exemption from national and local taxes; in lieu thereof, special 5% tax rate on Gross Income
3.	Exemption from duties and taxes on imported capital equipment, spare parts, materials and supplies.
4.	Tax credit for import substitution
5.	Exemption from wharfage dues, export tax impost or fees
6.	Tax credit on domestic capital equipment
7.	Tax and duty-free importation of breeding stocks and genetic materials
8.	Tax credit on domestic breeding stocks and genetic materials
9.	Additional deduction for training expenses (labor and management)
10.	Permanent resident status for foreign investors and immediate members of their families
11.	Employment of foreign nationals
12.	Additional deduction for labor expense (50% of wages corresponding to increment in number of direct labor subject to certain conditions)
13.	Exemption from SGS inspection
14.	Simplified import - export procedures

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