Background:

•  The Philippine Economic Zone Authority (PEZA) was created under      Republic Act (RA) 7915 known as "The Special Economic Zone Act of      1995" as amended by RA 8748.

•  promote the flow of investors, both foreign and local, into special      economic zones which would generate employment opportunities      and establish backward and foreign linkages among industries in and      around the economic zones.

•  promotes the establishment of economic zones, IT Parks and IT Buildings to respond to     demands for ready-to-occupy locations for foreign and domestic investors who are export     manufacturers or exporters of IT-enabled services.

•  Enterprises which shall export at least 70% of their production may register with    PEZA.

Incentives for Export and IT Enterprises:

Fiscal Incentives

•   Income Tax Holiday (ITH) or Exemption from payment of Corporate Income Tax for four      (4) years, extendable to a maximum of eight (8)years; After the ITH period, the option to      pay a special 5% Tax on Gross Income, in lieu of all national and local taxes;

•  Exemption from duties and taxes on imported capital equipment, spare parts, supplies,     raw materials

•  Exemption from wharfage dues and export taxes, imposts and fees

Non-Fiscal Incentives

•  Permanent resident status for foreign investors and immediate family members with initial     investments of US$ 150,000.00 or more;

•  Employment of foreign nationals;

•  Simplified import and export procedures.