Benefits of an I.T. Park to the community
- Improved international competitiveness. The creation of an integrated economic – I.T. zone will help Cebu become an even more competitive player among local and international I.T. and outsourcing destinations.
- Increased direct investments / capital formation. Shifting the direction of the Cebu Business Park to that of an economic - I.T. zone will stimulate even more investments from local and international companies, which will give the country’s economy a much-needed boost.
- Employment / job creation. Increased investments and business activity will generate more jobs for Cebuanos and those from nearby towns. These will be avenues for the export of services and exceptional, sought-after Filipino talent. This will also give rise to the demand for service industries to cater to this growing population.
- Improved quality of life. Locating local and international companies will create a higher standard of living and a more productive business climate.
PEZA Incentives for I.T. Parks
For IT Park Facilities/Utilities Providers
- Income Tax Holiday for four years
- Option to pay a special 5% tax on gross income earned from locator IT enterprises and related operations, in lieu of all national and local taxes, except real property taxes on land owned by developers
- Permanent resident status for foreign investors with initial investment of US $150,000
- Employment of nonresident aliens required in the operation of IT enterprises
For PEZA-registered IT Enterprises
- Income Tax Holiday for four years for Non-Pioneer IT Enterprises, or six years for Pioneer IT Enterprises
- Option to pay a special 5% tax on gross income earned, in lieu of all national and local taxes, except real property taxes on land owned by developers
- Exemption from payment of import duties and taxes on imported machinery and equipment and raw materials
- Additional deduction equivalent to 50% of training expenses, chargeable against the 3% share of the national government in the special 5% tax on gross income
- Permanent resident status for foreign investors with initial investment of US $150,000
- Employment of nonresident aliens required in the operation of IT enterprises
