(1) Enterprises may receive a 4-year income tax holiday, which can be extended up to 8 years. Upon the expiration of the income tax holiday, enterprises may choose to pay a 5% "GROSS INCOME TAX" in lieu of all national (central) and local taxes, of which 3% is remitted to the central government and 2% to the local government;
(2) Importation of capital goods (equipment), spare parts, accessories, raw materials, breeding stock, or genetic materials is exempt from import duties and other taxes. If similar items are purchased domestically in the Philippines, a TAX CREDIT may be enjoyed, meaning taxes are paid according to regulations first and then refunded after the product is exported (including the conversion and refund of the import duty portion);
(3) Upon approval, enterprises are permitted to sell 30% of their manufactured products within the Philippines, provided that they pay taxes in accordance with domestic tax laws;
(4) Exemption from wharfage dues and export taxes;
(5) Investors with an initial investment of over $150,000, along with their spouses and unmarried minor children (under 21 years of age), are granted permanent residency status within the economic zone, allowing them free entry and exit without the need to apply to other departments;
(6) Simplified import and export procedures;
(7) Permission to hire foreign employees, with 2-year renewable work visas available for foreign managers and technical personnel, provided that the number of foreign employees does not exceed 5% of the total workforce;
(8) Half of the expenses incurred by the enterprise for employee skills training and management capacity building may be deducted from the 3% tax remitted to the central government;
In addition, whether to grant other preferential treatments stipulated by E.O. 226 is at the sole discretion of PEZA.
