PEZA FAQ

4. What are the incentives offered by PEZA?

• Fiscal and non-fiscal incentives are given by PEZA to registered business enterprises depending on the location and industry priority.

• Fiscal incentives include:

  • For Export-oriented Enterprises, Income Tax Holiday (ITH) of 4-7 years and availment of Special Corporate Income Tax (SCIT) rate of 5% OR Enhanced Deductions (ED) for 10 years

  • For Domestic Market Enterprises, Income Tax Holiday (ITH) of 4-7 years and availment of Enhanced Deductions (ED) for 5 years.

• Non-fiscal incentives include:

  • Tax- and duty-free importation of capital equipment, raw materials, spare parts or accessories

  • Domestic sales allowance of up to 30% of total sales

  • VAT exemption on importation and VAT zero-rating on local purchases for goods and directly related to its registered activity to include telecommunications, power and water bills

  • Exemption from payment of national and local government taxes and fees for the period of availment of the 5% SCIT incentive

  • Employment of foreign nationals

  • Long-term land lease of up to 75 years

  • Issuance of a 2-year PEZA Visa for foreign nationals employed by PEZA-registered companies and their dependents

  https://www.peza.gov.ph/frequently-asked-questions