PEZA Recognizes “Ecozone Developers and Operators as Exporters” as “Activities in Support to Exporters”

On 12 May 2023, the Philippine Economic Zone Authority (“PEZA”) issued Memorandum Circular No. 2023-033 (“Circular”) which recognized that “Economic Zone Developers and Operators as Exporters” is now classified as “Activities in Support to Exporters” under the 2020 Investment Priority Plan. 

The PEZA, in the same Circular, referred to the Board of Investments (“BOI”) Memorandum Circular 2022-003 dated 01 June 2022, amending the Specific Guidelines of Activities in Support of Exporters under the 2020 Investment Priorities Plan, and which specifically included the “Development and Operation of Economic Zones; and Industrial Parks and Buildings for Exporters” as one of the “Activities in Support of Exporters.”

Only qualified developers/operators of industrial parks and buildings, facilities and utilities enterprises under BOI MC No. 2022-003 shall be entitled to the value-added tax (“VAT”) zero-rating incentive on local purchases which are directly and exclusively used for the registered project.

Further, developers/operators, facilities, and utilities enterprises applying for a VAT zero-rating certificate shall submit to the Ecozone Development Department (“EDD”) an affidavit that:

1. For Developers/Operators and Facilities Enterprises – 70% of the leasable/saleable areas are dedicated to exporters.
2. For Utilities Enterprises — that 70% of demand for power and 70% of volume for water were supplied to export enterprises.

All developers/operators, facilities, and utilities enterprises which have filed their request for VAT zero-rating certification for the year 2023 and are compliant with PEZA reportorial requirements including reports required under the Tax Incentives Management and Transparency Act and have submitted the required affidavit to and have been cleared by the EDD shall be issued the VAT zero-rating certificate.
For developers/operators, facilities, and utilities enterprises which have not yet filed their request for VAT zero-rating certificate, they may file their accomplished “Request for VAT Zero-Rating Certification” through email at odg@peza.gov.ph.