Tax Incentives for Call Centers in the Philippines

Contact Center Brokers have in-house corporate tax lawyers and CPAs specializing in registration and tax incentives with PEZA and BOI. Our team is committed to addressing risks and identifying opportunities regarding setting up a call center in the Philippines, and help determine your eligibility for availing of concessions and investment incentives granted under Philippine law. Some tax incentives depend on the geographic location of a business. Our team will identify Philippines Special Economic Zones (PEZA), IT Parks, Technology Parks and IT buildings where businesses and individuals are allowed to avail of special tax breaks in Makati, Manila, Ortigas, Fort Bonifacio and other parts of the Philippines.

Contact Center Brokers' PEZA Lawyer and Consultant will perform the following:

• Determine eligibility for PEZA or BOI
• Process all required documents for PEZA or BOI
• Identify tax risks
• Choose effective tax structure
• Address international & double taxation issues

Philippines PEZA - Philippine Economic Zone Authority

Enterprises registered with the Philippine Economic Zone Authority (PEZA) are entitled to a holiday from income tax and local taxes for three or eight years. After that, they are subject to 5% tax on gross income (sales less direct costs) in lieu of all local and national taxes.

To avail of the tax breaks and incentives offered by PEZA an enterprise must register with PEZA and locate their operation in one of the PEZA zones, buildings, IT Parks or Technology Parks. PEZA registrants must generally be export-oriented, with enterprises located inside the zones required to export 100% of their production. In some cases PEZA may approve the sale of up to 30% of production in the domestic market. Full foreign ownership of a PEZA enterprise is allowed provided they are not engaged in activities that appear on the Foreign Investment Negative List . PEZA approval and specific incentives granted are on a case by case basis. Applicants must supply an application for providing information on capital structure, nationality of investors and a feasibility report in accordance with a PEZA prescribed format. Applicants should then expect fast turn around once the application is submitted.