Tax incentives are made available by the Philippines Board of Investments for certain buildings and special zones in Makati, Manila, Ortigas, and Bonifacio Global City, Philippines. We can help identify these tax incentives for certain buildings and even office units located in Special Economic Zones (PEZA) where businesses are allowed to avail of special tax breaks in these parts of the Philippines. Tax incentives typically depend on the geographic location of a business. KMC will identify PEZA buildings where businesses and individuals are allowed to avail of special tax breaks in Metro Manila and other parts of the Philippines. Most locations have ideal office space options for call centers, IT- BPO, and export companies, which are in IT or Technology Parks.
Businesses registered with the Philippine Economic Zone Authority (PEZA) are entitled to a holiday from income tax and local taxes for four to eight years. After that, they are subject to 5% tax on gross income (sales less direct costs) in lieu of all local and national taxes. Businesses that are registered with the Subic Bay Metropolitan Authority (SBMS) or Subic Bay Freeport Zone, which administers the economic zone established by the conversion of the former United States military base in Subic, are also subject to the special 5% tax, but are not entitled to tax holidays. The same benefits are accorded to qualified industries registered with the Clark Development Corporation and located in the Clark Freeport Zone.
To avail of the incentives offered by PEZA an enterprise must register with PEZA and locate their operation in one of the zones. PEZA registrants must generally be export-oriented, with enterprises located inside the zones required to export 100% of their production. In some cases PEZA may approve the sale of up to 30% of production in the domestic market. Full foreign ownership of a PEZA enterprise is allowed provided they are not engaged in activities that appear on the Foreign Investment Negative List. PEZA approval and specific incentives granted are on a case by case basis. Applicants must supply an application for providing information on capital structure, nationality of investors and a feasibility report in accordance with a PEZA prescribed format. Applicants should then expect fast turn around once the application is submitted.
Contact KMC MAG Group for Tax Incentives Buildings