COMPARISON OF INCENTIVES

BOI Registered PEZA Registered SEZ Registered Enterprises

Enterprises Enterprises
Subic Clark Poro Point John Hay Morong

FISCAL INCENTIVES

(1) Separate Customs Territory

N/A ECOZONE to be The Subic Special The CFZ shall The Poro Point N/A N/A
Operated and Managed Economic Zone shall be be operated and Special Economic
as Separate Customs operated and managed managed as a and Freeport Zone
Territory (RA 7916, Sec. as a separate customs separate shall be operated
8) territory ensuring free customs territory and managed as a
flow or movement of ensuring free freeport and
goods and capital flow or separate customs
within, into and exported movement of territory ensuring
out of the Subic Special goods and free flow or
Economic Zone. (R.A. capital movement of goods
7227, Sec. 12(b) as equipment and capital
amended by RA 9400) within, into and equipment within,
exported out of into and exported
the CFZ. (RA out of the PPFZ.
7227, Sec. 15) (RA 7227, Sec. 15-
A as amended by
RA 9400)

(2) Exemption from National and Local Taxes and Licenses

N/A Exemption from No national and local No national and No national and N/A Exempt from
payment of all national taxes shall be imposed local taxes shall local taxes shall be payment of
internal revenue taxes within the Subic Special be imposed on imposed on all national
and all local government Economic Zone. [R.A. registered registered business and local
impost, fees, licenses 7227, Sec. 12.(c)] business enterprises within taxes (R.A.
and taxes, including but enterprises the PPFZ. (R.A. 7227, Sec.
not limited to the Including but not limited within the CFZ. 7227, Sec. 15-A as 15-B as
following: to the following: (R.A. 7227, Sec. amended by RA amended by
1. Internal revenue taxes
such as gross receipts
tax, Value Added Tax, ad
valorem and excise
taxes; and
2. Franchise, common
carrier or value added
taxes and other
percentage taxes on
public and service
utilities and enterprises
Applicable to:
> Business
establishments
operating at the
ECOZONE
> An ECOZONE
Developer / Operator
> ECOZONE Export and
Free Trade Enterprises
> ECOZONE Domestic
Market Enterprise
> ECOZONE Facilities,
Utilities and Tourism
Enterprises (IRR, Rule
XIV)
Not applicable to:
> All persons and
service establishments
in the ECOZONE (RA
7916, Sec. 24, as
amended by RA 8748)
a. Customs and import 15) 9400) RA 9400)
duties and national
internal revenue taxes,
such as VAT, excise and
ad valorem taxes on
foreign articles;
b. Internal revenue
taxes, such as VAT, ad
valorem and excise
taxes on their sales of
goods and services for
which they are directly
liable;
c. Income tax on all
income from sources
within the SBF and
foreign countries, Export
Processing Zones,
Bonded
Warehouses and other
Special Economic
Zones within the
Philippines, as well as
all other areas that may
now or hereafter be
considered to be
outside the Customs
Territory, whether or not
payment of such income
is actually received;
made or collected within
such areas; provided,
that SBF Enterprises
shall, as withholding
agents for the National
Government,
withhold tax on
compensation and
income payments to
 persons or individuals
subject to expanded
withholding tax; and
d. Franchise, common
carrier or value added
taxes and other
percentage taxes on
public and service
utilities and enterprises
within the SBF. (IRR,
Sec. 43)

Exception: Real property N/A Exception:

taxes on land owned by Real property
developers (RA 7916, tax on land
Sec. 24)

(3) Preferential Income Tax Treatment

N/A 5% tax on the gross 5% tax on gross income 5% tax on gross 5% tax on gross N/A 5% tax on
income earned by all earned shall be paid by income earned income earned shall gross income
business enterprises all business enterprises shall be paid by be paid by all earned shall
within the ECOZONE within the Subic Special all registered registered business be paid by all
shall be paid and Economic Zone and business enterprises within registered
remitted as follows: shall be remitted as enterprises the PPFZ and shall business
a.3% to the National follows: within the CFZ be directly remitted enterprises
Government; a.3% to the National and shall be as follows: which shall
b.2% which shall be Government, and directly remitted a.3% to the be directly
directly remitted by the b.2% to the Subic Bay as follows: National remitted as
business establishments Metropolitan Authority a.3% to the Government, and follows:
to the treasurer's office (SBMA) for distribution National b.2% to the a.3% to the
of the municipality or city to the local government Government, treasurers office of National
where the enterprise is units affected by the and the municipality or Government,
located. (RA 7916, declaration of and b.2% to the city where they are and
Section 24 as amended contiguous to the zone. treasurers office located. (R.A. 7227, b.2% to the
by RA 8748) [R.A. 7227, Sec. 12 (c)] of the Sec. 15-A as treasurers
municipality or amended by RA office of the
city where they 9400) municipality
 are located. or city where
(R.A. 7227, Sec. they are
15) located.
(R.A. 7227,
Sec. 15-B as
amended by
RA 9400)

(4) Income Tax Holiday

> Newly Registered Same as in BOI but Same as in Same as in

Pioneer Firms - 6 particular to these ff. PEZA (Sec. 15, PEZA (Section
years from enterprises: RA 7227 as 15-C, as
commercial operation following enterprises: amended by RA amended by
> Newly Registered i) Export Manufacturing 9400) RA 9400)
Non-pioneer Firms - ii) Information
4 years from Technology
commercial operation iii) Tourism
> Expanding Firms- 3 iv) Medical Tourism
years from v) Agro-Industrial
commercial operation vi) PEZA Zone
(E.O. 226, Art. 39) Developer
vii) PEZA Zone Facility &
Incentives for pioneer Utility Enterprises
and non-pioneer
firms may be
extended for another
year in each of the ff.
cases:
(i) The project meets
the prescribed ratio
of capital equipment
to number of workers
set by the Board;
(ii) Utilization of
indigenous raw
materials at rates set
by the Board;
(iii) The net foreign
exchange savings or
earnings amount to
at least US$500,000
annually during the
first 3 years of
operation

However, no
registered pioneer
firm may avail of this
incentive for a period
exceeding 8 years.

(5) Tax and Duty Credit/Exemption on Raw Materials

Tax credit equivalent Same as in BOI Tax and duty-free importations of raw materials Same as PEZA Tax and
to the national duty-free
internal revenue importations
taxes and customs of raw
duties paid on the materials
supplies, raw
materials and semi-
manufactured
products used in the
manufacture,
processing or
production of its
export products and
forming part thereof
(E.O. 226, Art. 39.
(j))

(6) Tax and Duty Exemption on Imported Capital Equipment and its Accompanying Spare Parts

0% Duty on any Exemption from Tax and duty-free importation of capital equipment Same as PEZA Tax and duty-
importation of capital payment of any and all free
equipment, spare tariff duties and internal importation of
parts and revenue taxes due on capital
accessories imported capital equipment
machineries, equipment
Conditions: and spare parts
a. They are not
manufactured Conditions:
domestically in a, They are not
sufficient quantity, of manufactured
comparable quality domestically in sufficient
and at reasonable quantity, or comparable
prices; and quality, and at
b. They are reasonable prices;
reasonably needed b. They are reasonably
and will be used needed and will be used
exclusively by the exclusively by the
enterprise in its registered enterprise in
registered activity, its registered activity,
unless prior approval unless prior approval of
of the BOI is secured the Board is secured for
the part-time utilization
of said equipment in a
non-registered activity to
maximize usage thereof
or the proportionate
taxes and duties are
paid on specific
equipment and
machinery being
permanently used for
non-registered activities;
and
c. The approval of the
Board was obtained by
the registered enterprise
for the importation of
such machinery,
equipment and
accompanying spare
parts.
 (7) Tax Credit on Domestic Capital Equipment

100% Tax credit of 100% Tax Credit of the Same as in Same as in

the value of national value of national internal PEZA (Section PEZA (Section
internal revenue revenue taxes and 15-C, as 15-C, as
taxes and customs customs duties that amended by RA amended by
duties that would would have been waived 9400) RA 9400)
have been waived on on the machinery,
the machinery, equipment and spare
equipment and spare parts, had these items
parts had these items been imported
been imported
Conditions:
Conditions: a. The said equipment,
a. The said machinery and spare
equipment, parts are reasonably
machinery and spare needed and will be used
parts are reasonably exclusively by the
needed and will be registered enterprise in
used exclusively by its registered activity
the registered b. The equipment would
enterprise in its have qualified for tax
registered activity, and duty exemption on
unless prior approval imported merchandise
of the Board is is c. The approval of the
secured for the part- Board was obtained by
time utilization of said the registered enterprise
equipment in a non-
registered activity to
maximize usage
thereof
b. The equipment
would have qualified
for tax and duty
exemption on
imported
merchandise
c. The approval of
the Board was
obtained by the
registered enterprise
d. The purchase is
made on or before
December 31, 1997
or December 1999
as the case may be

(8) Tax and Duty Exemption on Breeding Stocks and Genetic Materials

Exemption from all Exemption from taxes In general, all articles Same as in Same as in
taxes and duties on and duties of breeding may be imported by PEZA (Section PEZA (Section
the importation of stocks and genetic SBF 15-C, as 15-C, as
breeding stocks and materials necessary for Enterprises into the SBF amended by RA amended by
genetic materials expansion or free of customs and 9400) RA 9400)
within 10 years from improvement or for import duties and
the date of replacement of proven national internal
registration of unproductive breeding revenue taxes, except
commercial operation stock and materials. those articles prohibited
of the enterprise by the SBMA and those
Conditions: absolutely
Conditions: a. The strains/ breeding prohibited by law.
The breeding stocks stocks to be imported
and genetic materials are not domestically
are available at reasonable
a. not prices
locally b. They shall be used
available exclusively by the
and/or registered producer for
obtainable the improvement of the
locally strains/ breeding stocks
comparable of its livestocks, poutry,
quality fish and/or plants; and
quality and c. That prior approval of
reasonablle the Board must have
prices been obtained by the
b. reas registered enterprise
 onably before the opening of
needed in the corresponding letters
the of credit
registered
activity
c. appr
oved by the
Board

(9) Tax Credit on Domestic Breeding Stocks and Genetic Materials

100% tax credit of 100% tax credit of the Same as in Same as in

the value of national value of national internal PEZA (Section PEZA (Section
internal revenue revenue taxes and 15-C, as 15-C, as
taxes and customs customs duties amended by RA amended by
duties that would 9400) RA 9400)
have been waived on Conditions:
the breeding stocks a. The strains/ breeding
and genetic materials stocks to be imported
had these items been are not domestically
imported available at reasonable
prices
Conditions: b. They shall be used
a. Said breeding exclusively by the
stocks and genetic registered producer for
materials would have the improvement of the
qualified for tax and strains/ breeding stocks
duty importation of its livestocks, poultry,
b. The breeding fish and/or plants; and
stocks and genetic c. That prior approval of
materials are the Board must have
reasonably needed in been obtained by the
the registered activity registered enterprise
c. Approval of the before the opening of
Board has been the corresponding letters
obtained by the of credit
registered
d. The purchase is
made within 10 days
from the date of
registration of
commercial operation
of the registered
enterprise

(10) Exemption from Taxes and Duties on Spare Parts

Exemption from In general, all articles

customs duties and may be imported by
national revenue SBF
taxes payable on the Enterprises into the SBF
importation of free of customs and
required supplies and import duties and
spare parts for national internal
consigned equipment revenue taxes, except
or those imported tax those articles prohibited
and duty-free by a by the SBMA and those
registered enterprise absolutely
with a bonded prohibited by law.
manufacturing
warehouse

Conditions:
a. At least 70% of
production is
exported
b. Such spare parts
and supplied are not
locally available at
reasonable prices,
sufficient quantity
and comparable
quality
c. All such spare
parts and supplies
shall be used only in
the bonded
manufacturing
warehouse of the
registered enterprise
under such
requirements as the
Bureau of Customs
may impose

(11) Exemption from Wharfage Dues and Export Tax, Duty, Impost and Fee

Exemption from any Exemption from

wharfage dues, and payment of wharfage
any export tax, duty, dues and any export tax,
impost and fee impost of fee on its
registered export
products or, in the case
of an ECOZONE Free
Trade Enterprise, on
foreign merchandise
transshipped through its
ECOZONE facilities

(12) Tax Credit for Import Substitution

25% tax credit of the

duties that would have
been paid had the locally
produced raw materials,
capital equipment and/or
spare parts been
imported for ECOZONE
Export or Free Trade
Enterprises exporting
non-traditional products
which use or substitute
locally produced raw
materials, capital
equipment and / or
spare parts

Available until December

31, 1997, unless
extended by the
President of the
Philippines.

To be eligible for tax

credit, the ECOZONE
Export or Free Trade
Enterprise exporting a
non-traditional product
must have used locally
produced raw materials,
capital equipment and /
or spare parts or has
substituted locally
produced raw materials,
capital equipment and /
or spare parts for similar
articles previously
imported.

(13) Exemption from Duties and Taxes on Construction Materials

Tax and duty free In general, all articles

importation of may be imported by
construction materials SBF
and other articles that Enterprises into the SBF
shall form part of its free of customs and
factory, warehouse or import duties and
office building, including national internal
fixtures thereof, revenue taxes, except
enclosures, driveways those articles prohibited
and auxiliary structures by the SBMA and those
absolutely
Conditions: prohibited by law.
a. The factory,
warehouse or office
building shall be
constructed at the
expense of the
ECOZONE Export or
Free Trade Enterprise;
b. The construction
materials to be imported
are not manufactured
domestically in sufficient
quantity, not of
comparable quality and
not sold locally at
reasonable prices.
c. The construction
materials to be imported
are reasonably needed
and will be used
exclusively in the
construction of the
factory, warehouse or
office building to be used
by the ECOZONE
Export or Free Trade
Enterprise solely for its
registered operations
d. The approval of PEZA
is obtained by the
ECOZONE Export or
Free Trade Enterprise
before the purchase
order is made or before
the corresponding letters
of credit are opened;
and
e. The construction
materials shall be
brought directly and
physically inside the
ECOZONE restricted
area or such area as
may be designated by
PEZA for this purpose
and in no instance shall
be sold, transferred,
assigned, donated or be
disposed of in any
manner in the customs
territory.

(14) Importation of Specialized Office Equipment and Furniture

Exemption from customs In general, all articles

duties and taxes payable may be imported by
on specialized office SBF
equipment and furniture Enterprises into the SBF
such as computers, free of customs and
antistatic chairs, tables import duties and
and others of similar national internal
nature revenue taxes, except
those articles prohibited
Conditions: by the SBMA and those
a. Said equipment is not absolutely
manufactured prohibited by law.
domestically in sufficient
quantity
b. Said equipment not
of comparable quality
and not sold at
reasonable price

(14) Importation of Specialized Vehicles and Other Transportation Equipment

Specialized vehicles and In general, all articles

other specialized may be imported by
transportation SBF
equipment, including Enterprises into the SBF
necessary spare parts, free of customs and
directly related to the import duties and
registered activity of the national internal
ECOZONE Export or revenue taxes, except
Free Trade Enterprise, those articles prohibited
may be imported exempt by the SBMA and those
from customs duties and absolutely
taxes only upon prior prohibited by law.
approval of the Board
and with proper
clearance from the
appropriate government
agency(ies). Otherwise,
ordinary vehicles and
other transportation
equipment, including
necessary spare parts,
whenever applicable
shall be procured locally.

(15) Importation of Professional Instruments and Household Effects

The professional In general, all articles

instruments and may be imported by
implements, tools of SBF
trade, occupation or Enterprises into the SBF
employment, wearing free of customs and
apparel and personal import duties and
household effects of national internal
foreign nationals who revenue taxes, except
shall settle in the those articles prohibited
Philippines in connection by the SBMA and those
with their registered absolutely
activity, may be imported prohibited by law.
exempt from the
payment of import duties
 and taxes: Provided,
(a) That the foreign
national is an executive
or is employed in an
ECOZONE Export or
Free Trade Enterprise;
and
(b) That the above-
mentioned articles shall
not be in commercial
quantities nor for hire
(Section 105 (h) of the
Tariff and Customs
Code); and
c) That the approval of
PEZA is obtained by the
ECOZONE Export or
Free Trade Enterprise
before the purchase
order is made or before
the corresponding letters
of credit are opened.

(16) Value-Added Tax

VAT on Purchases VAT on Purchases VAT on Purchases

> VATable; however, > Zero-rated: if > Zero-rated: if the seller is a VAT entity, and exempt if the seller
certain purchases by purchased by a PEZA is a non-VAT entity.
a VAT-registered Registered Enterprise > Exempt: Between freeport zone enterprises or residents shall be
supplier to a BOI- subject to the 5% special exempt from VAT.
registered 100% tax regime from a
exporter can Supplier from customs
automatically qualify territory, or;
for VAT zero-rating. by PEZA registered
enterprise which is not
embraced by the 5%
special tax regime
VAT on Sales VAT on Sales VAT on Sales
> Zero-rated: if > VATable - Sale of > Exempt: The sale, barter or exchange of goods or properties
export sales Goods/Services by a into the freeport zones by suppliers/contractors from the customs
PEZA Registered territory shall be considered as export sales.
> VATable: if local Enterprise to a Buyer
sales from the Customs VAT on Sale of Services
Territory > VAT-exempt: if rendered within the zone or if the property leased
is located within the freeport.
> Exempt: if Sale is
between a PEZA > Freeport enterprises may generate income from sources within
Registered Enterprise, to the Customs Territory of up to 30% of its total income from all
Another PEZA sources; provided, that should an its income from sources within
Registered Enterprise the Customs Territory exceed 30% of its total income from all
(i.e., Intra ECOZONE sources, then it shall be subject to the regular income tax law.
Sales of Goods) (RMC 74-99)

VAT on Sale of Service

> Exempt from VAT or
percentage tax: if Sale of
Service by ECOZONE
Enterprise, to Another
ECOZONE Enterprise
(Intra ECOZONE
Enterprise Sale of
Service)
and PEZA-Registered
Seller is Subject to the
5% Special Tax Regime
> Zero-rated: If Sale of
Service by ECOZONE
Enterprise, to Another
ECOZONE Enterprise
(Intra ECOZONE
Enterprise Sale of
Service) and PEZA-
Registered Seller is
Subject to Taxes Under
 the NIRC

VAT on Sale of services

> Zero-rated: if availed
by a PEZA Registered
Enterprise subject to the
5% special tax regime to
Supplier from Customs
territory, or by PEZA
registered enterprise
which is not embraced
by the 5% special tax
regime

> Exempt: if purchased

by a PEZA Registered
Enterprise from A VAT-
Exempt Supplier From
The Customs Territory

(17) No Exchange Control Policy

No exchange control policy shall be applied and free markets for

foreign exchange, gold, securities and future shall be allowed and
maintained in the Subic Special Economic Zone, CFZ and PPFZ
(RA 7227, Sec. 12. (d))

(18) Exemption from Branch Profit Remittance Tax

Taxable (NIRC, Sec. Exempt (NIRC, Sec. 28) Exempt (NIRC, Sec. 28)
28) > Any profit remitted by > Profits shall not be treated as branch profits unless the same
> Any profit remitted a branch to its head are effectively connected with the conduct of its trade or business
by a branch to its office shall be subject to in the Philippines.
head office shall be a tax of fifteen (15%)
subject to a tax of which shall be based on
fifteen (15%) which the total profits applied
shall be based on the or earmarked for
total profits applied or remittance without any
earmarked for deduction for the tax
remittance without component thereof
any deduction for the (except those
tax component activities which are
thereof (except those registered with the
activities which are Philippine Economic
registered with the Zone Authority).
Philippine Economic
Zone Authority)

(19) Remittance of Earnings

In the case of foreign Without prior Bangko

investments, the right Sentral approval, after
to remit earnings tax profits and other
from the investment earnings of foreign
in the currency in investments in
which the investment enterprises in the
was originally made ECOZONE may be
and at the exchange remitted outward in the
rate prevailing at the equivalent foreign
time of remittance exchange through any of
the banks licensed by
the Bangko Sentral ng
Pilipinas in the
ECOZONE: Provided,
however, That such
foreign investments in
said enterprises have
been previously
registered with the
Bangko Sentral.

(20) Additional Deduction for Labor/Training Expenses

First 5 yrs from An additional deduction

registration -> 50% of equivalent to one- half
the wages (1/2) of the value of
corresponding to the training expenses
increment in the incurred In developing
number of direct skilled or unskilled labor
labor for skilled and or for managerial or
unskilled workers if other management
the project meets the development programs
prescribed ratio of incurred by enterprises
capital equipment to In the ECOZONE can be
number of workers deducted from the
set by the Board national governments
share of three percent
If located in less (3%)
developed areas
Doubled (EO 226, Conditions:
Art. 39. (b)) 1. That the ratio of
imported and domestic
capital equipment to the
number of workers of the
firm does not exceed
US$10,000.00 to one
worker;
2. The ECOZONE
Export or Free Trade
Enterprise does not avail
of this incentive
simultaneously with the
income tax holiday
incentive; and
3. That in the event the
ECOZONE Export or
Free Trade Enterprise,
except those engaged in
mining or forestry-based
activities, should be
located in a less-
developed area as
defined in Title IV of the
Code, it shall be allowed
to deduct 100% of the
wages above-
 mentioned.

(21) Special Incentives for Enterprises in Less-Developed Areas

(a) Pioneer
incentives
> A registered
enterprise regardless
of nationality located
in a less-developed-
area included in the
list prepared by the
Board of Investments

(b) Deduction from

taxable income in an
amount equivalent to
100% of necessary
and major
infrastructure works
Registered
enterprise
establishing their
production,
processing or
manufacturing plants
in an area that the
Board designates as
necessary for the
proper dispersal of
industry or in area
which the Board finds
deficient in
infrastructure, public
utilities, and other
facilities, such as
irrigation, drainage or
other similar
waterworks
infrastructure may

NOTE: Any amount

not deducted for a
particular year may
be carried over for
deduction for
subsequent years not
exceeding10 years
from commercial
operation.

NON-FISCAL INCENTIVES

(1) Simplified Import-Export Procedures

Customs procedures Same as BOI

for the importation of
equipment, spare
parts, raw materials
and supplies, exports
of processed
products by
registered
enterprises shall be
simplified by the
Bureau of Customs.
(E.O. 226, Art. 39
(e))

(2) Unrestricted Use of Consigned Equipment

Machinery, The use of consigned

equipment and spare machinery, equipment
parts consigned to and spare parts which
any enterprise shall are reasonably needed
not be subject to in the registered
restrictions as to operations and for the
period of use of such exclusive use the
machinery, ECOZONE Export or
equipment and spare Free Trade Enterprise
parts: Provided, That beyond the period
the appropriate re- permitted under other
export bond is posted laws, rules and
unless importation is regulations (RR, Rule
otherwise covered XV, Sec. 6. F)
under subsections (c)
and (1) of this Article:
Provided, further,
That such consigned
equipment shall be
for the exclusive use
of the registered
enterprise.
"If such equipment is
sold, transferred or
otherwise, Article
39(c)(3) shall apply.
Outward remittance
of foreign exchange
covering the
proceeds of such
sale, transfer or
disposition shall be
allowed only upon
prior Bangko Sentral
ng Pilipinas approval.

(3) Employment of Foreign Nationals

Employment of ECOZONE Enterprises

Foreign Nationals in may employ foreign
supervisory, technical nationals in executive,
or advisory positions supervisory, technical
for a period not and advisory positions:
exceeding 5 years Provided, That executive
from its registration, positions shall pertain
extendible for limited only to the president,
periods at the vice-president, treasurer
discretion of the and general manager, or
Board (E.O. 226, Art. their equivalents:
39. (g))
NOTE: The total number
NOTE: When the of foreign nationals
majority of the capital employed by an
stock of a registered ECOZONE Enterprise in
enterprise is owned supervisory, technical or
by foreign investors, advisory positions shall
the positions of not at any time exceed
president, treasurer, 5% of its workforce
and general manager unless expressly
or their equivalents authorized by the
may be retained by Secretary of Labor and
foreign nationals Employment
beyond the period
set forth within. An ECOZONE
Enterprise may employ
The spouse and foreign nationals for a
unmarried children period not exceeding
under 21 years of five (5) years from its
age of the foreign registration, extending
nationals employed within limited periods
under the provisions depending upon the
of the Act shall be need of the ECOZONE
permitted to enter Enterprise as
and reside in the determined by PEZA
Philippines during the
period of The spouse and
employment of such unmarried children
foreign national under 21 years of age
of the foreign nationals
employed under the
provisions of the Act
shall be permitted to
enter and reside in the
Philippines during the
period of employment of
 such foreign national in
the ECOZONE
Enterprise.

(4) Access to Bonded Manufacturing/Trading System

Registered export-
oriented enterprises
shall have access to
the utilization of the
bonded warehousing
system in all areas
required by the
project subject to
such guidelines as
may be issued by the
Board upon prior
consultation with the
Bureau of Customs.
(E.O. 226, Art. 39.
(k))

(5) Special Non-Immigrant Visa

Any investor within the Any investor within the SEZ whose continuing investment shall not
ECOZONE whose initial be less than $250,000, his/her spouse and dependent children
investment shall not be under 21 years of age, shall be granted permanent resident status
less than $150,000.00, within the SEZ
his/her spouse and
dependent children The pertinent authority may also issue working visas renewable
under 21 years of age every 2 years to foreign executives and other aliens possessing
shall be granted highly technical skills (RA 7227, Sec. 12. (g))
permanent resident
status within the The pertinent authority may issue a permanent residency visa
ECOZONE. within the SEZ to any investor who has made and continues to
maintain an investment of not less than US$250,000.00 within the
The PEZA shall issue SBF.
working visas renewable
every 2 years to foreign This privilege may extend to the investors spouse and dependent
executives and other children under 21 years of age.
aliens, processing
highly-technical skills The visa will be provided upon application by the investor with
which no Filipino within evidence of the
the ECOZONE investment, made in conformance with the SEZs land use plan,
possesses, as certified which may be in form of:
by the Department of a. Establishment of an Enterprise or other direct investment within
Labor and Employment. the SEZ;
b. A cash grant or interest-free loan to the Authority or to an
The names of aliens Enterprise for the purpose of making capital improvements by the
granted permanent recipient in the SEZ;
resident status and c. A purchase of real estate in the SEZ or of an Enterprise for the
working visas by the purpose of renovation, construction, or expansion of buildings,
PEZA shall be reported equipment, structures, or appurtenances for capital improvement
to the Bureau of purposes; or
Immigration within 30 d. A donation in kind to the Authority or an Enterprise of an
days after issuance equipment or materials for capital improvement purposes.
thereof. (RA 7916, Sec.
10)

The PEZA may issue a

permanent residency
visa within an
ECOZONE to any
investor who has made
and continues to
maintain an investment
of not less than
US$150,000.00 within
the ECOZONE.

This privilege may

extend to the investors
spouse and dependent
children under 21 years
of age.

The visa shall be

provided upon
 application by the
investor upon
submission of evidence
of investment, which
may be in the form of:
a. Establishment of an
ECOZONE Enterprise or
other direct investment
within the ECOZONE;
b. A cash grant or
interest-free loan to the
PEZA or to an
ECOZONE Enterprise
for the purpose of
making capital
investments by the
recipient in the
ECOZONE;
c. A purchase of an
ECOZONE; and
d. A donation in kind to
the PEZA or an
ECOZONE Enterprise of
equipment or materials
for capital improvement
purposes (Rule XXII,
Sec. 8)

(6) One Stop Shop Center

One stop shop center

One Stop Action Center
to assist investors who for the purpose of
do business in the facilitating the
Philippines. registration of new
enterprises in the
ECOZONE. Specifically:
It offers the following i) Special Non-Immigrant
services: (i) Conducts VISA for foreign nationals
business counseling, (ii) and their families
Monitors the status of

investors registration
applications, (iii) Informs
investors of the action
taken on their application
within the shortest
possible time
Special Investor
Resident VISA for a
minimum investment of
USD75,000.00
A registered enterprise
may be allowed to
employ foreign nationals
in supervisory, technical
or advisory positions for
five (5) years from the
date of registration.
Simplification of customs
procedures for
importation of
equipment, spare parts,
raw materials and
supplies and exports of
processed products.
The privilege to operate
a bonded
manufacturing/trading
warehouse.
ii) Building and occupancy
permits, iii) Import and
export permits, iv)
Harmonized customs
process, v) Automated
import and export
procedures
Thus, all appropriate
government agencies
that are Involved In
registering, licensing or
issuing permits to
investors shall assign
their representatives to
the ECOZONE to attend
to Investors
requirements. (RA 7916,
Sec. 36)