1.
TAXPLANNING
INSPECIAL
ECONOMIC
ZONES

2.
Features of the economic zones under Philippine Economic Zone Authority (PEZA) under Republic Act No.
7915 or otherwise known as "The Special Economic Zone Act of 1995".
1. Specific registrable business activities
Not just any line of business undertaking is registrable. The Philippine
government chooses the business operations or undertaking it would deem best to
register under Philippine Economic Zone Authority (PEZA) as an ecozone. The following
are the activities eligible for PEZA registration:
• Export manufacturing - Economic Zone Export Manufacturing Enterprise
• Information Technology Service Export - Economic Zone IT Enterprise or IT
Parks and Buildings
• Tourism - Tourism Economic Zone Developers or Operators and Locators
• Medical tourism - Medical Tourism Enterprise
• Agro-industrial Bio-fuel Manufacturing - Agro-industrial Economic Zone
Developers or Operators and Locators
• Economic zone development and operation
• Facilities provider
• Utilities - Economic zone utilities enterprise If your business operation is one of
the above, then, you may consider registering with the PEZA for tax and other
incentives.
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3.
Features of the economic zones under Philippine Economic Zone Authority
(PEZA) under Republic Act No. 7915 or otherwise known as "The Special
Economic Zone Act of 1995".
2. Prior registration to avail of benefits and incentives
Establishing the above business operations is not automatic and prior
registration is required. A new business could file an application papers during the
stage of incorporation with the Securities and Exchange Commission (SEC) or after
SEC approval. A set of documentary requirements applies to a particular type of
activity to be registered. This may include the SEC corporate papers, business plan,
and more. PEZA locators must be located in a particular ecozone to qualify. For the
purpose, an ecozone is a specific area registered by the PEZA or a building accredited
as an IT building.
3. Incentives to registered activities
What is being registered is the particular business activity that the entity will
engage into. If a corporation will engage in more than on business activity,
registration of one business activity does not necessarily mean a registration of all
activities. This would mean that a registered corporation may not be qualified tax
and other incentives with respect to non-registered activities. To avoid complications,
some approach is to adopt an company for every activity.
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4.
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"Medical Tourism" is the travel to the Philippines for the purpose of availing quality but affordable
healthcare services or treatment of illnesses and health problems in order to maintain one's health
and well-being.
"Medical Tourism Special Economic Zone1'shall refer to a selected area which is highly developed or
which has the potential to be developed into a Medical Tourism Park/Center whose metes and
bounds are fixed or delimited by Presidential Proclamation. Medical Tourism Parks/Centers shall be
planned and designed in Accordance with the standards of the Department of Health (DOH) and the
Department of Tourism (DOT) to have support facilities‘ and services required for health and
wellness.
"Medical Tourism Park" is an area which has been developed into a complex capable of providing
medical infrastructures and other support facilities, in compliance with DOH and DOT requirements,
such as but not limited to medical accommodations, wellness centers, spa, health farms, sports and
recreational facilities, and rehabilitation facilities required by Medical Tourism Enterprises, as well as
amenities required by foreign patients including professionals and workers involved in Medical
Tourism activities. A Medical Tourism Park shall have a minimum lot area of one (1) hectare.
MEDICALTOURISMPARKS/CENTERS

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"Medical Tourism Center" is either a medical hospital or a stand-alone building that hosts specialized medical
clinics and other specialized medical related activities, in compliance with DOH requirements, the whole or part
of which has been developed to provide infrastructures and other support facilities required by Medical
Tourism Enterprises, and which may also provide amenities required by foreign patients including professionals
and workers involved in Medical Tourism activities.
"Medical Tourism Ecozone Developer/Operator" refers to a business entity duly endorsed by the DOH and
registered with PEZA to develop, operate and maintain a Medical Tourism Park / Center and the required
infrastructure facilities and utilities such as light and power system, water supply and distribution system,
sewerage and drainage system, pollution control devices, communication facilities, and other facilities as may
be required for a medical tourism economic zone.
"Medical Tourism Enterprises" refers to a corporation or other form of business entity which has been endorsed
by the DOH and registered with the PEZA to engage in the practice of medical health services with foreign
patients as primary clientele.
MEDICALTOURISMPARKS/CENTERS

6.
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PEZA-registered Medical Tourism
Economic Zone Enterprises shall be
engaged in any of the following
types of activities:
1. Medical Services:
Allergology
Clinical Immunology
Rheumatology
Cardiology
Clinical Genetics
Clinical Nutrition
Emergency Care
Endocrinology and
Metabolism
Gastroenterology
Infectious and Tropical
Diseases
Nephrology
Neurology
Psychiatry
Radiology ,
Radiotherapy, and
Interventional Radiology
Hematology
Oncology or Cancer
Medicine
Pulmonology
Critical Care Geriatric
Care
Lifestyle Health Service
Dermatology
Pain management
Complementary and
Integrative Medicine
MEDICALTOURISMPARKS/CENTERS

7.
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PEZA-registered Medical Tourism Economic Zone Enterprises shall be engaged in any
of the following types of activities:
2. Surgical Services
Neurosurgery
Cardiothoracic surgery
Gastroenterology surgery
ENT
Ophthalmology
Urology
Transplant surgery
Orthopedics
Cosmetic, Plastic, and Reconstructive Surgery
MEDICALTOURISMPARKS/CENTERS

8.
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PEZA-registered Medical Tourism Economic Zone Enterprises shall be engaged in any
of the following types of activities:
3. Obstetric and Gynecologic Services
4. Pediatric, Perinatology and Neonatology Services
5. Dental and Orthodontic Services
6. Optometry and Orthoptic Services
7. Spa and Health Farms
8. Drug Addiction Treatment and Rehabilitation Services
MEDICALTOURISMPARKS/CENTERS

9.
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Fiscal Incentives
• Four (4) years Income Tax Holiday (ITH) on income solely derived from servicing foreign patients;
• Upon the expiry of the ITH period, payment of 5% Gross Income Tax on income solely derived from
servicing foreign patients, in lieu of all national and local taxes, provided however, that the enterprise
shall have the option to forego its ITH incentive entitlement and immediately avail of the 5% GIT
incentive upon start of its commercial operation; and
• Tax and duty-free importation of medical equipment, including spare parts and equipment supplies,
required for the technical viability and operation of the registered activity/ies of the enterprise.
Non-fiscal incentives
• Employment of foreign nationals, as provided under R.A. No. 7916 and other existing laws; and
• Special Investor’s Resident Visa (47A-2), as provided under Executive Order No. 63.
MEDICALTOURISMPARKS/CENTERS

10.
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“Tourism Development Zone / Tourism Estate” refers to a tract of land with defined
boundaries, suitable for development into an integrated resort complex, with prescribed
carrying capacities of tourist facilities and activities, such as, but not limited to, sports
and recreation centers, accommodations, convention and cultural facilities, food and
beverage outlets, commercial establishments and other special interest and attraction
activities/establishments, and provided with roads, water supply facilities, power
distribution facilities, drainage and sewage systems and other necessary infrastructure
and public utilities.
“Tourism Ecozone” refers to a Tourism Development Zone / Tourism Estate which has
been granted as a special economic zone status, through PEZA registration and
issuance of the required Presidential Proclamation, with its metes and bounds
delineated by the Proclamation pursuant to R.A. No. 7916, as amended.
TOURISM ECONOMIC ZONES

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“Tourism Ecozone Developer/Operator” refers to the owner and/or operator of a
Tourism Development Zone/Tourism Estate seeking registration with PEZA and the
required Presidential Proclamation of the Tourism Development Zone/Tourism Estate as
a Tourism Ecozone for the availment of incentives provided under R.A. No. 7916.
“Tourism Ecozone Locators” refers to enterprises registered with PEZA for the
establishment and operation, within PEZA-registered Tourism Ecozones, of sports and
recreation centers, accommodation, convention, and cultural facilities and other special
interest and attraction activities/establishments, with foreign tourists as primary clientele,
and which are, therefore, eligible for fiscal and non-fiscal incentives.
TOURISM ECONOMIC ZONES

12.
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Fiscal Incentives
• Tourism Ecozone Developers/Operators shall be entitled to four (4) years of Income Tax Holiday (ITH),
subject to the provisions of the Investment Priorities Plan (IPP), provided that Tourism Ecozones located
in Less Developed Areas shall be granted six (6) years ITH. Upon expiry of the ITH period, Tourism
Ecozone Developers/ Operators shall have the option to pay a special 5% tax on gross income earned, in
lieu of all national local taxes, except real property taxes on land owned by developers (5% GIT
incentive), provided, however, that PEZA-registered Tourism Ecozone Developers/Operators shall have
the option to forego its ITH incentive entitlement and immediately avail of the 5% GIT incentive upon
start of their commercial operations.
• Enterprises establishing and operating sports and recreation centers, accommodation, convention and
cultural facilities, theme parks, and other special interest or attraction activities/ establishments shall be
entitled to four (4) years ITH, as may be provided in and in accordance with the provisions of the IPP,
and tax and duty-free importation of capital equipment required for the technical viability and operation
of the registered activities of the enterprises.
TOURISM ECONOMIC ZONES

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Fiscal Incentives
• Enterprises establishing and operating airports, seaports and/or marinas shall be entitled to the ITH
incentive, as may be provided in and in accordance with provisions of the IPP, and tax and duty-free
importation of capital equipment. Upon expiry of the ITH period, PEZA-registered Tourism Ecozone
locators establishing and operating airports, seaports and/or marinas shall be entitled to avail of the 5 %
GIT incentive, provided, however, that they shall have the option to forego their ITH incentive
entitlement and immediately avail of the 5% GIT incentive upon start of their commercial operations.
Non-Fiscal Incentives
PEZA-registered Tourism Ecozone Developers/Operators and Locators shall be entitled to the following
non-fiscal incentives:
• Employment of foreign national, as provided under R.A. No. 7916
• Special Investor’s Resident Visa, as provided under Executive Order No. 63
• Incentives under the Build-Operate-Transfer Law, as may be applicable, subject to prescribed
guidelines.
TOURISM ECONOMIC ZONES

14.
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ThankYou!

15.
References:
https://mpm.ph/register-a-sole-proprietor-business/
https://www.peza.gov.ph/elligible-activities-and-incentives-
category/fiscal-incentives
https://help.juan.tax/en/articles/2040393-classification-of-tax-groups-
according-to-industry
https://www.kcsourcelink.com/guides/start-a-business/register-and-
license-your-business/forms-of-business-organization
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