What are the Benefits of PEZA Accreditation?

• Learn more about the benefits of PEZA accreditation.
• Identify the fiscal and non-fiscal benefits of PEZA accreditation.
• Invest in the Philippines to grow your business in the Asia Pacific region.

The Philippines is one of the go-to destinations for outsourcing whether it’s for finance and accounting or IT. English speaking countries choose the Philippines because of Filipinos’ proficiency in using the language. They’ll be hiring a skilled workforce that can start working on their tasks immediately because companies no longer have to train them in communicating in English. The workforce can also do skilled work in various fields such as marketing, sales, customer service, engineering, IT, and others. You’ll have a deep talent pool to tap into when you decide to invest in the country. The Philippines is one of the fastest growing economies in Asia in 2024. This economic outlook makes the country a possible investment destination for businesses that want to expand in the region.

Investing in the country also comes with incentives. The government is implementing laws such as the Ease of Paying Taxes Act and the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. These make it easier for investors and companies to do business in the country. Foreign-owned companies can apply for a Philippine Economic Zone Authority or PEZA accreditation to leverage the incentives that the agency offers.

The Philippine government established PEZA in 1995. The government entrusted PEZA to supervise, endorse, and support foreign-owned companies and their operations in the country. Accreditation provides access to several incentives. 

What are the benefits of PEZA accreditation?

The benefits of PEZA accreditation include fiscal and non-fiscal incentives. These entice and encourage foreign-owned companies to do business in the Philippines.

What are the non-fiscal benefits of PEZA accreditation?

1. Simpler procedures for import-export activities.
2. The agency will provide visa support to foreigners, their spouses, and assistance also includes their dependents.
3. Up to 7.5 decades of long-term land lease.
4. An accredited company can employ foreign nationals.

What are the fiscal benefits of PEZA accreditation?

One of the biggest reasons to get PEZA accreditations is that it provides fiscal incentives. These allow companies to reduce spending, fully utilize their resources, and boost their profits.

1. Duty and tax-free imports of spare parts, raw materials, accessories, or capital equipment.
2. Imports get a VAT exemption.
3. PEZA accredited companies get a VAT zero-rating on locally purchased goods that are directly relevant to the activities they registered with the agency. This includes power, telecommunications, and water bills.
4. A PEZA accredited company can benefit from income tax holidays of up to seven years.

These are just some of the benefits of PEZA accreditation. It’s easy and convenient to file an application for registration and accreditation. You can fill out the form which you can access through the agency’s website: https://www.peza.gov.ph/. Once you have completed the requirements you need to submit, you can file the application at PEZA. The PEZA board assesses and decides on the accreditation applications sent to them. They conduct a board meeting twice a month.

What activities qualify for PEZA registration and accreditation?

The benefits of PEZA accreditation are enticing, but your company still has to qualify before you plan on registering your business. These are some of the activities that qualify:

1. Export Activities
2. Manufacturing
3. Agriculture, Fisheries, and Forestry
4. Infrastructure and Logistics
5. Environment
6. Energy
7. Tourism
8. Medical Tourism
9. Information Technology Service Export

There are other qualified activities that allow companies to gain PEZA accreditation. If your business falls under any of the abovementioned activities, you can begin the process of accreditation.

What are the requirements for PEZA accreditation?

You can start the accreditation process once you acquire all the requirements. Some of the documents you need to submit include:

1. Certificate of Registration from the Bureau of Internal Revenue (BIR)
2. SEC Certificate of Registration
3. Company Profile
4. Details of the authorized business representative
5. Classification and description of activities
6. Anti-Graft Certificate
7. Latest audited financial statements

There are other requirements that you need to submit. Consider hiring a consultant to assist you in the process of registration and accreditation.

Why should your company be located in a PEZA economic zone?

PEZA has designated economic zones that companies can set up a business in. Staying in such zones allows companies to maximize the benefits of PEZA accreditation. Some of the advantages of a PEZA economic zone include:

1. The economic zone provides ease of doing business opportunities.
2. One-Stop-Shop procedures
3. No red-tape
4. No graft and corruption
5. Uninterrupted power supply
6. Secured area perimeter
7. First-rate telecommunications network and facilities
8. Factory buildings that are ready for occupation
9. Banks accessible to companies in the economic zone
10. World-class and environment-friendly economic zone

PEZA accreditation and setting up your business in an economic zone comes with a lot of advantages for your company. These are more than enough reasons to invest in the Philippines and possibly use the country as a base for your regional operations.

The Philippines’ Roadmap to Digitalization

Other than PEZA-related incentives, the Philippines is pushing for the digitalization of some of its government services. The Anti Red-Tape Authority or ARTA is an agency that’s a part of the Philippine government’s push for digitalization. ARTA and other agencies are shifting to digital platforms such as payments, registration, and release of some permits, licenses, and invoices. These changes allow taxpayers to pay their dues at home, their office, an affiliate bank, or at any government agency that processes payments. These simplified and digitalized options address one of the pain points of taxpayers, which is long queues and wait times when it’s time to pay taxes. The Philippines is slowly but surely moving towards digitalization. However, there are still challenges when it comes to implementation and consistency.

The Manila Bookkeepers Difference

You’ll need assistance from an experienced company when doing business in the Philippines. Choose Manila Bookkeepers as your business partner in the country. Our team has years of experience in the finance and accounting industry. We can assist you get PEZA accreditation so that you can maximize the incentives the agency offers. We can also provide you with accounting and bookkeeping services, transfer pricing assistance, tax compliance, and other related services. You can visit our website www.ManilaBookkeepers.com for more information.