Filipino Economic Zone

Please understand the advantages of Filipino economic zone where we situate.
The number of Japanese companies coming over to the Philippines are increasing. They were 468 in 2000, 517 in 2005 and 549 in July, 2009 (per Japanese Chamber of Commerce in Manila).

Most of companies having operation in PEZA are export processing type of industry which assemble parts here in the Philippines and then export. The shift of production base to offshore is also recognized here in the Philippines as accepting country. According to statistics, over 80% of total exports of the Philippines are from companies in PEZA.

There are 126 economic zones in the Philippines (as of July 2007). Many overseas companies are located in the special zone, but the number of PEZA registered companies are 1434 in 2006. They were only 331 in 1994, so it boosted more than 3 times in 12 years. Out of 126 economic zones, 55 zones are for production industry, 66 zones for IT related industry, and 5 zones for tourist-related industry. 

Taxation Incentives

>> Income tax holiday for 4 to 8 years
>> Further to corporate tax exemption, 5% of special tax in lieu of all central/local taxes
>> Import tax exemption for machinery, equipment, spare parts and materials
>> Able to employ foreign employees
>> Tax exemption for human resource development
>> Guarantee permanent visa for foreign investors and their families
>> Approve 100% overseas capital

Conditions

There are various preferential treatment as above for entering company to the economic zone, there are conditions. Since economic zones are export processing area, the entering company has to be an export company. The preferential treatment can be given if the company exports more than 70% of the production (100% in case of governmental zone).

If such conditions are all cleared, further incentives can be given.
>> Income tax holiday for 4  to 8 years
The impact is huge between 4 and 8 years, and the content of business may determine which.
>> 8 years if pioneer company
>> Pioneer company:
    - Produce items not commercially produced in the Philippines
    - Adopt design, production method, process and system to produce items new to the Philippines
    - Use non traditional fuel
    - Company qualified as pioneer enterprise under IPP issued by BOI

Out plant location in CEZ

Cavite Economic Zone

>> Electric Power
    P6.8717kwh (1Q 2015 ave.)
>> Potable Water
    P12.6183/m3 (1Q 2015 ave.)
>> Land
    P26/m2 (to lease in 2015)
>> Since all the spots in CEZ have been sold out, you may wish to use portion of our plant together with workforce which we may have.

About Cavite

3 cities and 20 towns
828 barangay
Area: 1,447.5 K㎡
Population: + 2 million

Direct investment from overseas

Direct investment from overseas in 1Q 2010 reached at PHP45.7B which was 11.4 times more year-on-year.

The largest contribution was PHP42.9B from the production industry, followed by PHP2.2B of financial and real estate industry.

For nation-wise, Korea accoutns for 52.1% of total investment, followed by Japan's 22.3% and Singapore's 11.6%.