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Location is one of the make or break factors when operating a business. This is especially true for foreign investors in the call center industry looking to establish business overseas. Here’s why it is very important for bpo company owners to be wary when choosing the location of their new ventures.

In the Philippines, the government has expressed full support for investors. It evident through the varied forms of premiere real estate developments, well-developed business districts, and passed laws and ordinances. The Philippine Economic Zone Authority (PEZA) is particularly designed to attract more investors into the country and help bpo companies flourish better.

For businesses operating in a PEZA-accredited building or area, these are the benefits it grants to business owners:

Fiscal Incentives

  • 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, machineries and spare parts;
  • Exemption from wharfage dues and export tax, impost or fees;
  • Tax and duty free importation of raw materials, capital equipment, machineries and spare parts;
  • 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 machineries 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 machineries. 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 cost of sales or direct costs. These are before any deductions coming from administrative expenses or incidental losses during a given taxable period.

Non-Fiscal Incentives

  • 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 these great benefits, business owners can enjoy easy and efficient operations in the Philippines. As there are lots of PEZA locations all over the country, there will surely be a perfect spot for everybody.

Taking into consideration these advantages, Anderson Group BPO, Inc. ensures that 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!

Sources:

http://www.hoppler.com.ph/blog/featured-people/what-you-need-to-know-about-peza

http://www.peza.gov.ph/