The Philippine Economic Zone Authority is encouraging developers-operators of information technology projects in Bacolod City and Negros Occidental to register with them to avail of income tax holidays and the perpetual 5 percent gross income tax incentives particularly for new developments.

Emmanuel Cortero, department manager of PEZA Ecozone Development, said Wednesday in Bacolod City at the briefing on the establishment of economic zones with the Department of Trade and Industry at Planta Hotel.

He said new developments mean there is no physical construction yet and that they will have to infuse capital for the facility to be able to host PEZA locator-enterprises.

In Negros Occidental, there are 14 PEZA-registered developers, nine of which are already operating and there are still 11 developers, including the Negros First IT Park, processing their registration.

However, Cortero said the full incentive is granted to locator-enterprises. These are companies that locate inside the building like the call centers and the business process outsourcing companies.

Locator-enterprises are entitled to income tax holiday for four to six years dependent on the nature of the activity applied and after period for the ITH, they will now pay the 5 percent special tax incentives and this is in lieu of the national and local taxes, he said.

Cortero said that as a PEZA-registered entity located in a PEZA-administered special economic zone, they became entitled to incentives, among which is the exemption from national and local taxes including the local government permits, licenses, regulation fees, and the taxes demanded by the Bureau of Internal Revenue.

Instead of the exemption of the national and local taxes imposed on business establishments operation within the Ecozone, they will only pay 5 percent of their gross income where 3 percent goes to the national government and 2 percent is remitted directly to the city or municipal treasurer’s office, Cortero also said.

Other benefits of PEZ-registered establishments are automation of import and export permits where they do not have to deal with the Bureau of Customs. They just have to lodge their importation electronically, and PEZA will do the permitting, he added.

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

back to top