What Are the Benefits of Being PEZA Registered?
TL;DR Summary Box
Wondering if PEZA registration is worth it?
Being PEZA-registered in the Philippines comes with a wide range of fiscal and non-fiscal incentives. These include tax holidays, duty-free importation, simplified customs procedures, and government support. These perks are designed to help exporters, BPOs, manufacturers, and other qualified sectors reduce costs and boost operational efficiency.
Introduction: Why PEZA Registration Matters
In the competitive world of business, every advantage counts. Whether you’re a local startup or a foreign corporation, reducing costs, ensuring smooth operations, and accessing government incentives can significantly boost your success. That’s where PEZA registration benefits come into play.
The Philippine Economic Zone Authority (PEZA) offers a structured program for companies engaged in export manufacturing, IT services, logistics, agro-industrial businesses, and more. But with all the paperwork and requirements involved, many businesses wonder: *”Is it really worth it?”
Spoiler alert: For many, it absolutely is.
The Key Benefits of Being PEZA Registered
1. Tax Incentives for PEZA-Registered Companies
One of the biggest reasons why companies choose PEZA is the generous tax perks:
- Income Tax Holiday (ITH): Exemption from corporate income tax for 4 to 7 years, depending on the industry.
- 5% Special Tax on Gross Income: After the ITH expires, companies only pay a 5% tax on gross income instead of the standard 25%.
- VAT Zero-Rating: On local purchases of goods and services.
- Exemption from local government taxes, licenses, and fees (except for real property tax).
These PEZA incentives in the Philippines translate into major savings that make operations significantly more cost-effective.
2. Customs and Import-Export Perks
Another major advantage of PEZA registration is the facilitation of international trade:
- Duty-free importation of capital equipment, raw materials, and supplies.
- Simplified import/export procedures through on-site customs offices in PEZA zones.
- Special non-stop processing lanes in ports and airports.
For businesses reliant on global supply chains, this ease of access is crucial.
3. Non-Fiscal Support & Government Assistance
PEZA doesn’t just offer tax perks. It also provides:
- One-stop-shop processing for permits and licenses
- Assistance with visa processing for foreign nationals
- PEZA locators receive support from a dedicated account officer
- Infrastructure-ready zones with facilities like power, water, and telecoms
This level of support significantly reduces administrative bottlenecks.
Who Benefits from PEZA Registration?
1. Export Manufacturers
Companies that manufacture products for export are top beneficiaries. These businesses can leverage:
- Duty-free importation of raw materials
- Tax-free export income
- On-site customs processing
2. IT and BPO Companies
Many of the Philippines’ largest BPOs and IT service providers are PEZA-registered because of:
- VAT exemptions on utilities and leases
- Easy hiring of foreign nationals
- Income tax holidays
3. Logistics and Warehousing Providers
- Access to PEZA ecozones near ports and airports
- Exemption from local taxes
- Streamlined warehousing processes
4. Agro-Industrial Businesses
- Equipment and farm input importation is tax-free
- Exemption from local taxes
- Infrastructure support within PEZA agro-industrial parks
These are the core industries that benefit from PEZA registration.
Common Questions for Businesses Considering PEZA Registration
1. Is PEZA registration only for large companies?
Not at all. Even SMEs and startups can register, especially if they export at least 70% of their output. This makes it a powerful tool even for small businesses trying to scale internationally.
2. PEZA vs BOI: Which is better?
The benefits of PEZA vs BOI registration vary by business type:
| Factor | PEZA | BOI |
| Focus | Export-oriented firms | Strategic industries (domestic or export) |
| Location | Must be in PEZA zone | Anywhere in the Philippines |
| Key Perk | 5% gross income tax | Tax holidays & other incentives |
If your business is export-focused and willing to locate in a PEZA zone, PEZA is often the better fit.
Why Register with PEZA? (Is It Worth It?)
For many businesses, especially foreign investors, the PEZA registration benefits far outweigh the effort involved:
- Reduced tax burdens free up capital for reinvestment
- Ease of doing business through centralized government support
- Enhanced credibility when dealing with suppliers and clients
So if you’re still asking yourself why register with PEZA, consider this: even the process itself is streamlined by PEZA’s one-stop-shop system. And the long-term savings and operational advantages are difficult to ignore.
Business Pain Point: Is It Really Worth the Effort?
Let’s face it—going through registration requirements, preparing documents, and relocating to an ecozone can seem like a hassle. But here’s the solution:
- Many consulting firms specialize in PEZA registration support.
- The cost savings and operational benefits last for years.
- Being PEZA-registered positions your company for international competitiveness.
Whether you’re looking at tax incentives for PEZA-registered companies or just trying to run a smoother, more compliant business, PEZA can be a strategic move.
Final Thoughts
There are plenty of reasons why companies choose PEZA. For both local and foreign businesses, the benefits of being PEZA registered go beyond tax perks. You gain access to a government-backed system designed to support your growth, especially in the global market.
So, if you’re considering your next move in the Philippines, registering with PEZA might just be the smartest investment you make.
FAQ: PEZA Registration Benefits
What are the main benefits of being PEZA registered?
Tax holidays, 5% GIT incentive, duty-free importation, simplified customs, and government support.
Do PEZA-registered companies get tax breaks?
Yes. This includes ITH, 5% special tax on gross income, and VAT exemptions.
Why do foreign investors prefer PEZA registration?
Because of its streamlined processing, tax perks, and ease of doing business.
What industries benefit most from PEZA registration?
Export manufacturing, IT/BPO, logistics, and agro-industrial sectors.
How does PEZA help with business operations in the Philippines?
Through its one-stop shop, on-site customs, visa assistance, and infrastructure-ready zones.
Can local companies benefit from PEZA incentives?
Yes, if they meet the eligibility criteria, especially related to export output.
Is it worth registering with PEZA for SMEs?
Absolutely, particularly for SMEs focused on export or outsourcing.
What are the advantages of locating inside a PEZA zone?
Ready infrastructure, security, simplified processes, and logistical advantages.
How does PEZA compare to BOI in terms of benefits?
PEZA is best for exporters within ecozones; BOI suits broader industries and locations.
How long do PEZA benefits last for a registered company?
Income tax holiday lasts 4–7 years, followed by 5% GIT incentive as long as the business remains compliant.
Need help registering with PEZA? Fill out the form below today to find out how we can make the process seamless for your business.