ChanRobles Virtual law Library

A collection of Philippine laws, statutes and codes
not included or cited in the main indices
of theChan Robles Virtual Law Library

This page features the full text of
Guidelines for the Establishment and Operation
of Information Technology (IT) Parks.chanrobles virtual law library

1. Software development for business, e-commerce, education and entertainment;2. Content development for multimedia or internet purposes;3. Hardware design, prototype production and related activities;4. Knowledge and computer-based support service activities such as, but not limited to, the following:chanroblesvirtuallawlibrary

• Regional/worldwide software support
• Data encoding and conversion
• Internet facilitation
• Systems integration
• Project implementation
• IT consultancy
• Call center

5. Research and development services;6. Other related IT and computer-based services/activities as may be identified and approved by the PEZA Board; and7. Manufacturing facilities for IT Parks outside NCR.

1. Executive and staff housing/accommodations;2. Conference facilities, seminars/training/exhibit rooms and other facilities and services for business group activities;3. Physical fitness, health improvement, medical and sport facilities;4. Facilities and services for social and recreational activities; and5. Other facilities that complement the IT community’s educational, social and cultural requirements.

1. Income Tax Holidays (ITH), subject to the provisions of Executive Order No. 226 (EO 226) and the Investment Priorities Plan (IPP):chanroblesvirtuallawlibrary

(a) Four (4) years for IT Parks located outside the National Capital Region, the Provinces of Cavite and Laguna, as provided under EO 226 and the IPP;(b) Six (6) years for IT Parks located in less developed areas identified in the IPP.Developers/Operators of IT Parks not entitled to the ITH may avail of the Special 5% tax on gross income incentive in lieu of the national and local taxes;

2. For IT Parks Developers/Operators entitled to ITH, option to waive the ITH in favor of immediate availment of five percent (5%) gross income tax incentive, in lieu of all national and local taxes, except real property tax on land owned by developers.  Otherwise, the said 5% gross income tax scheme shall apply after the expiration of the ITH period;3. Permanent resident status for foreign investors and immediate family members with initial investment of at least US$150,000.00, subject to such guidelines as may be prescribed by the PEZA Board;4. Employment of foreign nationals; and5. Simplified customs procedures.

1.  Income Tax Holidays (ITH), for firms located I IT Parks for the period as follows:chanroblesvirtuallawlibrary

• New registered pioneer firms - six (6) years from commercial operations
• New registered non-pioneer firms - four (4) years from commercial operations
• Expanding firms - three (3) years from commercial operations

IT service type exporters locating in the National Capital Region may also qualify for availment of the ITH.

2. Exemption from all government imposts, fees, licenses and taxes. However, during the ITH period, the enterprise shall pay real property tax except on: (a) machinery owned by zone registered enterprises which are actually installed and operated in the park for the first 3 years of operation; and (b) production equipment of machinery, not attached to real estate, used directly or indirectly in the production, assembly or manufacture of the registered product of the zone registered product enterprise;3. After the ITH period, the option to avail of exemption from national and local taxes, in lieu thereof, the enterprise shall pay a 5% tax on gross income earned;4. Exemption from duties and taxes on imported capital equipment, spare parts, raw materials and supplies;5. Exemption from wharfage dues, export tax, impost or fee;6.  Additional deduction equivalent to 50% of training expenses, chargeable against the 3% national government share in the 5% tax on gross income;7. Unrestricted use of consigned equipment;8. For the first five years of operation, additional deduction equivalent to 50% of the wages paid corresponding to the increment in the number of direct labor for skilled and unskilled workers, subject to such conditions as may be prescribed by the PEZA Board;9. Permanent residents status for foreign investors with initial investment of at least US$150,000.00, subject to such guidelines as may be prescribed by the PEZA Board;10. Employment of foreign nationals;11. Domestic sales allowance equivalent to 30% of total export sales, subject to such conditions as may be prescribed by the PEZA Board;12. Exemption from SGS inspection; and13. Simplified customs procedure.

1. Option to pay a special 5% tax on gross income earned, in lieu of all national and local taxes;2. Additional deduction equivalent equivalent to 50% of training expenses, chargeable against the #% national government share in the 5% tax on income, subject to PEZA Board approval;3.  Permanent residents status for foreign investors with initial investment of at least US$150,000.00, subject to such guidelines as may prescribed by the PEZA Board;4. Employment of foreign nationals;5. Simplified customs procedures; and6. Incentives under Book 1 of EO 226 as may be determined by the PEZA Board in accordance with the pertinent provisions of EO 226 and the Investment Priorities Plan.