Location is one of the make or break factors when it comes to operating a business. This is especially true for foreign investors in the call center industry looking to establish their business overseas. Business Process Outsourcing (BPO) company owners need to be observant when it comes to choosing the location for their latest ventures.
To this end, the Philippine government has expressed its full support for investors. This is apparent from the varied forms of premier real estate development, thriving business districts, and laws and ordinances. In addition, the Philippine Economic Zone Authority (PEZA) is designed to attract more investors into the country to help BPO companies flourish better.
For businesses operating in a PEZA-accredited building or area, these are the benefits it grants to business owners:
- Income Tax Holiday (ITH) 100% exemption from corporate income tax
- Upon expiry of the Income Tax Holiday, 5% Special Tax on Gross Income*, and exemption from all national and local taxes
- Tax and duty-free importation of raw materials, capital equipment, machinery, and spare parts
- Exemption from wharfage dues and export tax, impost or fees
- VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements
- Exemption from payment of any and all local government imposts, fees, licenses or taxes. However, while under Income Tax Holiday, no exemption from real estate tax, but machinery installed and operated in the economic zone for manufacturing, processing or for industrial purposes shall be exempt from real estate taxes for the first three (3) years of operation of such machinery. Production equipment not attached to real estate shall be exempt from real property taxes.
*Gross Income refers to gross sales or gross revenues derived from the following: registered activity, net of sales discounts, sales returns, and allowances, minus the cost of sales or direct costs. These are before any deductions coming from administrative expenses or incidental losses during a given taxable period.
- Simplified Import – Export Procedures (Electronic Import Permit System and Automated Export Documentation System);
- Special Non-Immigrant Visa with Multiple Entry Privileges for the following non-resident Foreign Nationals in a PEZA-registered Economic Zone Enterprise: Investor/s, officers, and employees in supervisory, technical or advisory position, and their spouses and unmarried children under twenty-one years of age.
- PEZA extends Visa Facilitation Assistance to foreign nationals their spouses and dependents;
- Non-resident Foreign Nationals may be employed by PEZA-registered Economic Zone Enterprises in supervisory, technical or advisory positions.
With all these great benefits, business owners are sure to enjoy easy and efficient operations in the Philippines. Furthermore, as there are several PEZA locations in the country, business owners are sure to find a location that suits their operations.
Therefore, Anderson Group BPO, Inc. takes into consideration these advantages. For this reason, all of its branches are established in PEZA-accredited buildings including its offices in Bonifacio Global City and Ortigas Central Business District.
To know how you can easily set up your outsourcing business in these PEZA-accredited workspaces, contact us today!