Ceremonial signing with PEZA Director General Lilia B. de Lima covering the granting of Pioneer Status registration to Cebu Toyo Corporation (CTC) for the latter's Blu-ray Lens project at the Mactan Economic Zone II, Basak, Lapu Lapu City, Philippines. Shown (L-R) in the picture are Mr. Michi Miyahara, CTC President, PEZA Director General Lilia B. de Lima, and Erwin B. Navarez, of E.B. Navarez Auditing Firm and CTC's Tax Consultant

Providing foreign and local investors with the one-stop-shop of corporate, tax, auditing, accounting, other collateral services using the Big 5 experience at lower cost 



You Could Be Under Income Tax Holiday Forever

Dear PEZA Locators,

Don’t you know that you could have new set of income tax holiday for every production line that you put up?For every new product that you produce?For a similar product but with different specific application?If you know the answers to these questions as well as the corresponding procedures with PEZA, YOU COULD BE UNDER INCOME TAX HOLIDAY FOREVER. 

Surprisingly, substantial number of PEZA export and IT enterprises have been missing the opportunity to maximize income tax holiday.    Take the case of  a Semicon firm registered with PEZA.  At the outset, it  registered an integrated circuit (IC) for television.  Three years after it installed another production line that produces IC for automotive application.  Bearing in mind that the additional IC production falls with the scope of its first registered activity (production of IC for TV) with PEZA, said Semicon firm did not bother to seek new registration with PEZA. 

Its first project’s ITH expired after the end of the 4^th year of operation and graduated into 5% gross income tax together with the 2^nd project which was just one year in operation when the ITH expired.  In a few months upon entering the 5% gross income tax regime, the first project got phased-out and only the 2^nd project continued to operate and pay tax.

Conversely, if the 2^nd project was registered as another new project, the same would still be under ITH after the expiration of the first project’s ITH.  When I met the Japanese President of the said Semicon firm and made him realized he could have maximized the company income tax holiday, he manifested his regrets by saying in Nihongo – MUTAI NAI.

If you want to discuss about how you maximize your incentives from PEZA, we are very much willing to come and visit you at your most convenient time.

Please bear in mind its possible that You Could Be Under Income Tax Holiday Forever