- country
- Philippines
- incentives
- Enterprises registered in PEZA-accredited IT parks/special economic zones receive an Income Tax Holiday (commonly cited as 4-7 / 4-8 years depending on activity and investment), followed by a 5% Special Corporate Income Tax (SCIT) on gross income in lieu of all local and national taxes; VAT zero-rating on qualifying purchases; and tax- and duty-free importation of capital equipment, replacement parts and accessories. Typically requires physical location inside the zone and export of at least 70% of production/services. Under the CREATE MORE Act, RBEs under the Enhanced Deductions Regime have CIT reduced to 20%, 100% power-expense deduction, and additional deductions (100% for R&D and training, 50% for domestic inputs/labour).
- zone type
- sez