Summary
RMC No. 23-2013 circularizes the full text of PEZA Board Resolution No. 12-610 dated November 13, 2012, which amends PEZA guidelines on incentives for Tourism Economic Zone (TEZ) developers and locator enterprises.
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Key points
- Four areas: incentives removed. In Metro Manila, Cebu City, Mactan Island and Boracay Island, TEZ developers no longer get the 5% Gross Income Tax (GIT) incentive. Locator enterprises there lose the Income Tax Holiday (ITH) and 5% GIT, except tax and duty-free importation and zero-VAT rating on local purchases of capital equipment.
- No new TEZs. No new TEZs will be established in those four areas.
- No retroactive effect. The policy is not retroactive, but TEZ developers, operators and locators in those areas that have not signed Registration Agreements with PEZA are covered.
- Outside the four areas. Existing and future TEZ developers and locators keep their incentives under existing guidelines. Developers and operators get the 5% GIT, and locators get ITH, 5% GIT, tax and duty-free importation and zero-VAT rating on local purchases of capital equipment.
Who is affected
- TEZ developers and operators
- TEZ locator enterprises
- Those in Metro Manila, Cebu City, Mactan Island and Boracay Island without signed PEZA Registration Agreements
Deadlines and effectivity
- PEZA Board Resolution dated November 13, 2012
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.