In recent years, the Philippines has attracted increasing foreign investment thanks to its unique geographic position, young English-proficient workforce, and steadily growing economy.
With the launch of Trump’s “reciprocal tariffs” trade war, more Chinese enterprises are now eyeing the Philippines as the right springboard to access the ASEAN market.
But for first-time investors, a critical question arises: where to land, how to reduce costs, and how to maximize incentives?
For many, the answer is clear: the Philippine Economic Zone Authority (PEZA).
Why PEZA Zones Mean More Efficient, Cost-Saving Investment
PEZA (Philippine Economic Zone Authority) is a specialized government body dedicated to managing economic zones and creating a business-friendly environment. It is especially suitable for enterprises in manufacturing, BPO, technology, logistics, and data centers.
427 PEZA-administered ecozones across the country
4,382 registered locator companies
Key hubs include Metro Manila, Batangas, Cebu, Baguio, Davao, Subic, Clark, and Dumaguete
Breakdown of zones:
304 IT Parks & Centers
79 Manufacturing Zones
24 Agro-Industrial Parks
17 Tourism Zones
3 Medical Tourism Zones
PEZA vs. Ordinary Business Registration:
Enterprises located in PEZA zones enjoy tangible benefits compared to those in regular commercial areas:
Export-oriented firms: up to 10 years income tax holiday, then 5% Special Corporate Income Tax (SCIT)
Domestic-oriented firms: 4–7 years ITH, then Enhanced Deductions for 5 years
Capital equipment, raw materials, machines and parts: duty-free imports (up to 17 years)
Up to 30% of annual output may be sold to the domestic market with proper duties
VAT exemption on imports and qualified local purchases
Land lease rights up to 75 years
Why PEZA Is Favored by Chinese Enterprises
Compared with other Philippine investment frameworks, PEZA offers more comprehensive and flexible incentives than both ordinary business registration and freeport models.
📌 Case Study: A Chinese Electronics Manufacturer
A Chinese smart home appliance company chose the Philippines for its ASEAN expansion.
Initially considered Metro Manila, but high land costs, lengthy approvals, and a 30% corporate income tax rate made it unviable.
Relocated to a PEZA ecozone instead and enjoyed:
5 years full corporate tax exemption → significant savings on startup costs
Duty-free equipment imports → millions of dollars saved
Fast approvals → company registered in 3 months, factory operational in 6 months
“The PEZA ecozone gave us certainty, lower costs, and a faster path to the Philippine market,” said the company’s representative.
How to Land Quickly in PEZA
If your enterprise plans to enter the Philippines and maximize PEZA advantages, here’s the roadmap:
1️⃣ Choose the right PEZA zone (manufacturing, BPO, IT, or specialized parks)
2️⃣ Register your Philippine corporation (submit investment plan, shareholding structure, etc.)
3️⃣ Apply for PEZA accreditation (to qualify for incentives)
4️⃣ Complete operational requirements (foreign worker visas, factory lease, permits)
Our Services as an Official PEZA Partner
We provide end-to-end investment landing services for Chinese enterprises:
✅ PEZA zone selection & site recommendations
✅ Company registration, tax planning, and compliance support
✅ Fast-track PEZA accreditation to access tax incentives
✅ Local partner network to accelerate operations
Conclusion
As the Philippine government’s flagship program for foreign investors, PEZA combines inclusivity, flexibility, and global competitiveness.
For many Chinese companies seeking to build a long-term ASEAN presence, PEZA remains the top choice for securing tax advantages, operational efficiency, and investment security.
services1 