These are the incentives PEZA provides its registered enterprises by virtue of The Special Economic Zone Act of 1995 (RA 7916) and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act (RA 11534).
PEZA has the authority to approve or disapprove the grant of incentives to registered projects or activities with investment capital of P1 Billion and below.
- Export companies availing the 5% SCIT based on gross income shall pay and remit as follows:
- 3% to be remitted to the National Government
- 2% to be remitted to the Treasury of the host Local Government Unit
- Have high potential for job creation;
- Take place in sectors with market failures resulting in under provision of basic goods and services;
- Generate value creation through innovation, upgrading, or moving up the value chain;
- Provide essential support for sectors that are critical to industrial development; and
- Are emerging owing to potential comparative advantage
- Activities that produce supplies, parts and components and intermediate services that are not locally produced but are critical to industrial development and import-substituting activities including crude oil refining.
Activities shall include:
- Research and development resulting in demonstrably significant value-added, higher productivity, improved efficiency, breakthroughs in science and health, and high-paying jobs;
- Generation of new knowledge and intellectual property registered and/or licensed in the Philippines;
- Commercialization of patents, industrial designs, copyrights and utility models owned or co-owned by a registered business enterprise;
- Highly technical manufacturing; or
- Are critical to the structural transformation of the economy and require substantial catch-up efforts
SUNSET PROVISION: 10-year transition period for companies availing incentives prior to the passage of the CREATE Law