SPECIAL ECONOMIC ZONES IN THE PHILIPPINES

The SPECIAL ECONOMIC ZONE ACT OF 1995 (R.A. NO. 7916) was passed in 1995 to encourage economic growth through the development of special economic zones called Ecozones. The Philippine Economic Zone Authority (PEZA) implements this law and grants incentives to qualified enterprises under the auspices of this law.

What are PEZA Ecozones?
Ecozones are earmarked by the government for development into balanced agricultural, industrial, commercial, and tourist/recreational groups. The types of ecozones are export processing zones, industrial estates, free trade zones, tourist and recreational centers and IT parks.
What are the incentives granted to PEZA to PEZA-registered enterprises?

- Tax and duty-free importation of capital equipment, raw materials, spare parts, supplies, breeding stocks and genetic materials
- Income tax holiday of 4 to 6 years for non-pioneer or pioneer projects, respectively
- A special tax rate of 5% of gross income in lieu of all national and local taxes after the income tax holiday
- Tax credit for import substitution
- Exemption from wharfage dues, export tax, and import fees
- Tax credit on domestic capital equipment, breeding stocks, and genetic materials
- Unrestricted use of consigned equipment
- Additional deduction for incremental labor expenses and training expenses
- Permanent resident status for foreign investors and immediate family
- Employment of foreign nationals, and
- Remittance of earnings without prior approval from the BSP


Important Contact Numbers :

PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA)
Address: Roxas Boulevard corner San Luis Street, Pasay City
Tel. Nos.: (632) 551-3432, 551-3455
Fax No.: (632) 891-6380
Email: [email protected] or [email protected]
Director General: Ms. Lilia de Lima


The BASES CONVERSION AND DEVELOPMENT ACT OF 1992 (R.A. No. 7227) which was passed in 1992, created two of the more attractive investment sites in Southeast Asia today - the Subic Bay Freeport and Special Economic Zone (SBF) and the Clark Special Economic Zone.). These sites are former U.S. military facilities converted for civilian use. Both the SBMA and CDC grant essentially the same incentives to registered SBF and CSEZ enterprises, such as 1) tax and duty-free importation of machineries, equipment, raw materials, and all other articles including finished products 2) no local and national taxes

IMPORTANT CONTACT NUMBERS:
SUBIC BAY METROPOLITAN AUTHORITY (SBMA)
Address: SBMA Center Bldg., 229 Waterfront Road
Subic Bay Freeport Zone, Olongapo City
Tel. Nos.: (047) 252-4849, 252-3737
Fax No.: (047) 252-5278
Email: [email protected]
Chairman: Mr. Felicito C. Payumo

CLARK DEVELOPMENT CORPORATION (CDC)
Address: Bldg. 2122, E. Quirino Street, Clark Special Economic Zone, Pampanga
Tel. Nos. (045) 599-2042, 599-2092
Fax No.: (045) 599-2507
Chairman: Mr. Rizalino S. Navarro