Short answer
PEZA is the Philippine Economic Zone Authority, the government agency that develops and administers the country’s economic zones and registers the enterprises operating inside them. Registered enterprises, typically export-oriented manufacturers and IT-BPM firms located in accredited zones or buildings, become eligible for fiscal and non-fiscal incentives under Philippine investment law.
Also called: PEZA, Economic zone registration
The location requirement is the part that surprises people. Incentives attach to registered activities carried out inside a PEZA-accredited zone or IT centre, not to a company in general, which makes PEZA status a property and operating decision as much as a tax one. Businesses outside that footprint are usually not in scope at all.
The incentive regime itself was reworked by the CREATE Act and has been amended since, moving from open-ended arrangements to a defined period of preferential treatment tied to a national priorities plan and overseen by an inter-agency board. Because the terms depend on the activity, the registration date and the rules in force at the time, the specifics for any given company should come from PEZA and a tax professional rather than from a general description like this one.
Common questions
Does a small software studio qualify for PEZA incentives?
Usually not by default. Registration is tied to eligible activities performed inside an accredited zone or IT building, which rules out most home-based and ordinary-office operations, and it carries reporting obligations of its own. Whether a particular business qualifies depends on its activity and location and should be confirmed with PEZA directly. This is general information rather than legal or tax advice.
Related terms
Business Process Outsourcing (BPO)
Business process outsourcing is the practice of contracting a business function, such as customer support, finance and accounting, back-office administration or IT services, to an external provider rather than staffing it internally.
SEC Registration (Philippines)
SEC registration is the process of incorporating with the Philippine Securities and Exchange Commission.
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