Chapter 2 general power and attributes of local government units section 17. As to the payment of lbt, section 23 of republic act ra no. This act shall be known as the optical media act of 2003. Republic act 7916 peza law, otherwise known as the the special economic zone act of 1995 was enacted as a means of attracting investors in the philippines. Under ra 7916, the then export processing zone authority epza established pursuant to presidential decree no. Pursuant to paragraph e of section 12 and section 55 of republic act no. As provided under republic act 7916, pezaregistered enterprises may be entitled to ith of four to six years, depending on whether the firm has been granted pioneer or nonpioneer status. Be it enacted by the senate and house of representatives of the philippines in congress assembled. Philippine economic zone authority annual audit report for cy. Republic act 7917 bases conversion and development authority. Philippine economic zone authority citizens charter iso 9001.
In order to view pdf files, you need to install adobe reader. Affinity as pezaregistered nonpioneer enterprise should not have been assessed for regulatory fees and lbt for the period 20091010 considering it still enjoy ith exemption under its peza certificate of registration in relation to section 23 of r. The philippine economic zone authority peza was created by virtue of republic act no. It is noteworthy to mention that even prior to the train law, the zerorating of sales of goods and services had a legal basis under the peza law ra 7916. Tax news interpret and integrate deloitte united states. We transform former military bases and properties into premier centers of economic growth in partnership with the private sector with integrity, excellence and efficiency in the stewardship of government resources. Vat zero rating of sale of services under the peza law.
Definition of terms for purposes of these rules and regulations, the following definitions shall apply. Title these rules shall be referred to as the rules and regulations to implement republic act no. Jan 14, 2016 as to the payment of lbt, section 23 of republic act ra no. Ra 5186 was replaced by eo 226, the omnibus investments code in 1987. It is hereby declared to be the policy of the state to ensure the protection and promotion of. Incentives under the bot law incentives provided under r. Creation of economic zones senate of the philippines. Philippine economic zone authority peza the creation of peza, the development of special economic zones throughout the country, and the very competitive incentives available for investments within peza special economic zones are embodied in the special economic zone act of 1995 republic act no. The board shall have a director general with the rank of a department undersecretary who shall be appointed by the president. Under ra 7916, pezaregistered enterprises shall enjoy income tax holiday or 5 tax on.
Gorgonio, undersecretary designate for administration and chief of staff, officerincharge of the office of the undersecretary for policy and planning, project development, research. Before the train law, pezaregistered enterprises were granted. An act amending section 8 of republic act numbered seventytwo hundred and twentyseven, otherwise knoen as the bases conversion and development act of 1992, providing for the distribution of proceeds from the sale of portions of metro manila military camps, and for other purposes. Fiscal and nonfiscal incentives provided under investment laws in any. The tax reform that is being proposed by the government is encompassing and cuts through all sectors of society and business. Sep 15, 2014 on 29 december 2000, peza approved resolution no. Peza ra 7916 cdc ra 7227 sbma ra 7227 ceza ra 7922 phividec pd 538 location in economic zone and freeports 100% for export regardless of ownership and status needs zone authority to sell 30% to 50% in the domestic market but subject to payment of taxes and duties. Investments boi, the philippine economic zone authority peza,the bases. Republic act ra 7916, otherwise known as the special economic zone. Philippine economic zone authority board in the exigency of the service, and in compliance to section i i of the peza law ra no. Definition of terms for purposes of these rules and. Special economic zone act of 1995 republic act 7916. Republic of the philippines congress of the philippines metro manila.
As in previous legislation creating ecozones, the aforementioned bills call for. Following this provision, the supply of services to entities registered under the philippine economic zone authority peza law, or republic act ra 7916, shall be. Board of investments pursuant to executive order eo no. It is the declared policy of the government to translate into practical realities the following state policies and mandates in the 1987 constitution, namely.
Ra 7916 or the philippine economic zone authority peza law was enacted with. Philippine economic zone authority annual audit report. As provided under republic act 7916, peza registered enterprises may be entitled to ith of four to six years, depending on whether the firm has been granted pioneer or nonpioneer status. Let me share you my personal views on the features of the economic zones under philippine economic zone authority peza under republic act no. Philippine economic zone authority what you should know about pezas reportorial requirements basic laws 1. Peza presses tax reform exemption inquirer business. There is hereby created a body corporate to be known as the philippine economic zone authority peza attached to the department of trade and industry. Responsibilities of the bfp enforcement units to properly execute the provisions of this guidelines, all concerned enforcement units shall. February 1995, created the philippine economic zone authority. The philippine economic zone authority peza directorgeneral announced that sales of goods and services to pezaregistered entities shall continue to be subject to 0% vat.
Hence, the sale of scrap materials should be subject to 30% rcit. Pezas amendments clash with the second tax reform package, which wants to just have one law to rationalize all the tax perks offered by investment promotion agencies like peza. This act shall be known and cited as the special economic zone act of 1995. Ramos, the philippine economic zone act or ra 7916 6was enacted in 1995. The bcda group is a prime mover of national development. Ra 7916, as amended by ra 8748 ra 7916 or the special economic zone act of 1995 february 24, 1995 provides the framework for the transformation, formation and monitoring of certain designated areas in the country called special economic zones 366 these incentives are in addition to those provided under presidential decree. Clarifying the allowable activities of peza it enterprises. May 29, 2018 the american chamber of commerce of the.
This act shall be known and cited as the special economic zone act of. Republic act 7916 bases conversion and development authority. Jul 08, 2014 republic act 7916 peza law, otherwise known as the the special economic zone act of 1995 was enacted as a means of attracting investors in the philippines. Table of contents vision and mission 3 performance pledge 4 feedback and redress mechanism 5 peza frontline services 6 peza processing fees 10. Ra 7916 peza law employment taxes free 30day trial. Provided, that for the purpose of administering these incentives, the peza shall register, regulate, and supervise all registered enterprises within the special economic zones. Incentive laws generally align their respective rules with the provisions of the. Before the train law, the asis for the incenties granted to peza registered entities are the pertinent proisions of ra no. The special economic zone act of 1995 ra 7916, as amended other special economic zone acts zamboanga city special economic zone act of 1995 ra 7903 cagayan special economic zone act of 1995 ra 7922 aurora pacific economic zone and freeport act of 2007 ra 9490 as amended by ra 10083. Special economic zone act, the principal law governing the philippine economic zone authority peza and pezaowned and administered economic zones. This was issued following a clarification by the department of finance dof that the train law did not amend or repeal the relevant provisions of the peza law. Status quo on vat zerorating of sales to peza entities. It is submitted that the vat treatment of such transactions is grounded on the provisions of ra no.
Special economic zone act republic of the philippines. Your browser will redirect to your requested content shortly. Gr 153866, february 11, 2005, the bir held that a company registered with the peza as a resident withholding agent operating within an economic zone cannot bear the burden of vat since it is an entity exempt from internal revenue laws under republic act no. After the expiration of the ith period, they shall be subject to the 5% git, in lieu of all national and local taxes to which the enterprise is directly liable.
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