Expanding a business in the Philippines comes with challenges like high operational costs, strict tax regulations, and intense market competition. However, for businesses looking to scale while minimizing expenses, the Philippine Economic Zone Authority (PEZA) offers an attractive solution. Through PEZA accreditation, businesses can enjoy tax incentives, duty-free imports, and streamlined operations, making it easier to grow and remain competitive.

If you’re considering PEZA accreditation, this guide will help you understand what it is, how it can benefit your business, the process for accreditation, and how you can maximize these incentives with additional business financing.

What Is the Philippine Economic Zone Authority (PEZA)?

PEZA is a government agency under the Department of Trade and Industry (DTI) that promotes investment by developing special economic zones (SEZs) for businesses. These zones provide a business-friendly environment with tax breaks, government support, and simplified processes, making them attractive to local and foreign investors.

Primarily, PEZA supports export-oriented businesses, including manufacturing, IT and BPO services, tourism and medical tourism, agro-industrial operations, logistics, and renewable energy industries. Businesses operating within PEZA-accredited zones can significantly lower their costs, increase profitability, and expand their operations with ease.

What are the Benefits of PEZA Accreditation?

One of the biggest advantages of PEZA accreditation is the variety of financial and operational incentives that help businesses reduce expenses and improve efficiency.

Tax Incentives and Exemptions

PEZA-accredited businesses enjoy an Income Tax Holiday (ITH), which means they don’t have to pay corporate income tax for 4 to 7 years. After this period, businesses can choose either a 5% Special Corporate Income Tax (SCIT) in lieu of regular corporate income tax or opt for Enhanced Deductions (ED) to further maximize savings. Additionally, PEZA businesses benefit from VAT zero rating, meaning they are exempt from Value Added Tax (VAT) on local purchases, leading to lower production costs.

Duty-Free Importation of Equipment and Materials

A PEZA-accredited business can import raw materials, equipment, and supplies without paying import duties or taxes. This results in lower production costs, making businesses more competitive in both local and global markets.

Simplified Import and Export Processing

PEZA businesses experience faster import and export clearance since shipments are processed without Bureau of Customs intervention. This means fewer delays, less paperwork, and more efficient logistics.

Easier Hiring of Foreign Nationals

For companies requiring highly skilled foreign employees, PEZA accreditation allows businesses to hire foreign experts and executives without restrictions, ensuring they can attract the best talent.

Government Support and Business-Friendly Policies

PEZA provides businesses with various forms of government support, including labor assistance, infrastructure development, and incentives that make operations cost-effective and sustainable.

How to Apply for PEZA Accreditation

If your business qualifies for PEZA accreditation, follow these steps to apply:

Step 1: Check If Your Business Qualifies

  • Ensure that your business falls under one of the eligible industries (manufacturing, IT/BPO, logistics, etc.).
  • Your business must be located in a PEZA-accredited zone or propose a new economic zone.

Step 2: Prepare the Required Documents

  • Letter of Intent (stating why your business wants to be PEZA-accredited)
  • Project Feasibility Study (explaining your business plan)
  • SEC Registration (proof that your business is registered with the Securities and Exchange Commission)
  • Articles of Incorporation & By-Laws
  • List of Equipment and Materials for Importation

Step 3: Submit Your Application Online

Step 4: PEZA Evaluation & Approval

  • PEZA will review your application, check compliance, and conduct site inspections.

Step 5: Start Operations & Comply with PEZA Rules

  • Once approved, your business must follow PEZA rules to continue enjoying incentives.

How to Maximize PEZA Incentives for Business Growth

Once accredited, businesses can strategically use these incentives to lower operating costs, scale production, and improve profitability. The savings gained from tax breaks and duty-free imports can be reinvested into business expansion, workforce development, and innovation. However, while PEZA accreditation provides valuable financial relief and operational advantages, sustainable business growth requires more than just tax incentives. Expanding your operations, increasing production capacity, or managing day-to-day expenses still demand a reliable cash flow. This is where ULoan becomes your strategic partner.

As your partner for better business financing, ULoan empowers entrepreneurs with fast, flexible, and accessible funding solutions designed to help businesses scale without financial roadblocks.

Know more about business loans by contacting us at (632) 8892-0991 from M-F, 8AM-5PM.

ULoan Business is the brand that represents the financing services dedicated to businesses offered by Unicapital Finance and Investments, Inc. (UFII) with SEC REGISTRATION NO. 68716 | CERTIFICATE OF AUTHORITY NO. 0022. UFII is a subsidiary company under the Unicapital group, a leading financial services provider in the Philippines.

For more information, visit https://unicapital-inc.com/financing/.

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