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 517 in 2005 , 1075 in 2010, 1448 in 2015 and 1469 in 2019. Due to influence of COVID-19 ,the number in 2020 slightly decreased to 1418.
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 408 economic zones in the Philippines (as of March 2019). Many overseas companies are located in the economic zone, but the number of PEZA registered companies are 4670 in 2021. They were only 331 in 1994, so it boosted more than 15 times in 25years. Out of 408 economic zones, 74 zones are for production industry, 262 zones for IT related industry, and 19 zones for tourist-related industry.
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 408 economic zones in the Philippines (as of March 2019). Many overseas companies are located in the economic zone, but the number of PEZA registered companies are 4670 in 2021. They were only 331 in 1994, so it boosted more than 15 times in 25years. Out of 408 economic zones, 74 zones are for production industry, 262 zones for IT related industry, and 19 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
>> 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
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
Our plants location in CEZ
PEZA Update
In
April 2021, the second phase of tax reform took effect and the CREATE Act came
into force. Corporate income tax will be changed from 30% to 25～20%,
and from 2023, it will be reduced by 1% every year, and to 20% by 2029. This is
retroactive to July 2020.
About Cavite
7 cities and 16 Municipalities
829 barangays
Area: 1447.5 K㎡
Population: 434 million
829 barangays
Area: 1447.5 K㎡
Population: 434 million
Direct investment from overseas
The
total amount of foreign direct investment in the Philippines in 2020 was 329
billion pesos. Among them, investment from Japan was 67.7 billion. At PEZA,
where our factories are located, Japanese companies are the largest investor.