Fiscals Incentives

INCOME TAX HOLIDAY

Income tax exemption for a period of six (6) years, extendible for another six (6) if the enterprise undertakes a substantial expansion or upgrade of its facilities prior to the expiration of the first six (6) years.

NET LOSS CARRY OVER

These enterprises shall be allowed to carryover as a deduction from the gross income for the next six (6) consecutive years immediately following the year of the loss, their net operating losses.

GROSS INCOME TAXATION

Except real estate taxes and such fees as may be imposed by the TIEZA, a new enterprise shall be pay a tax of 5% on its gross income in lieu of all national and local taxes and license fees, imposts and assessments.

This shall be directly remitted as follows:

One – third (1/3) to be proportionately allocated among affected cities or municipalities based on the area occupied by the TEZ Operator/ Registered Tourism Enterprise as determined by TIEZA.
One – third (1/3) to the national government
One – third (1/3) to TIEZA
TAX and DUTY FREE IMPORTATION OF:
  1. Capital Investment and Equipment
  2. Transportation equipment and Spare parts
  3. Goods and services

TAX CREDIT equivalent to all national internal revenue taxes paid on all locally-sourced goods and services.

SOCIAL RESPONSIBILITY INCENTIVE

Tax deduction equivalent to fifty percent (50%) of the cost of environmental protection or cultural heritage, preservation activities, sustainable livelihood programs, and other similar activities as approved by the TIEZA Board.

Non-Fiscal Incentives

EMPLOYMENT OF FOREIGN NATIONALS

A registered enterprise may employ foreign nationals in executive, supervisory, technical or advisory position for such reasonable periods and under such terms as may be provided by the TIEZA Board., provided that the total number of foreigners shall not exceed 5% of total workforce.

SPECIAL INVESTOR’S RESIDENT VISA

A foreign national who invests at least Two Hundred Thousand Dollars ($200,000.00) in a TEZ and/or a Registered Tourism Enterprise, his dependents, spouse and unmarried children under 18 years of age, shall be entitled to a special investor’s resident visa.

LEASE OF LAND

Lands and buildings in each TEZ may be leased to foreign investors for a period not exceeding fifty (50) years, renewable once for a period of not more than twenty-five (25) years.
The leasehold right acquired under long-term contracts may be sold, transferred or assigned.

RIGHT TO FOREIGN CURRENCY TRANSACTIONS IS GUARANTEED
The following rights are hereby guaranteed:

  1. Repatriation of investments
  2. Remittance of foreign exchange
  3. Foreign loans and contracts

NO REQUISITION OF INVESTMENT

There shall be no requisition of the property of the TEZ Operator or the registered tourism enterprise, except in the event of war or national emergency and only for the duration thereof.

INCENTIVES FOR ENTERPRISES OUTSIDE TEZS

Limited to EXISTING ACCOMMODATION ESTABLISHMENTS outside a TEZ which shall undertake substantial expansion or upgrade of its facility such as hotels, tourist inns, motels, apartelles, resorts, home stay operators and pension houses.

  • INCOME TAX HOLIDAY
  • TAX AND DUTY-FREE IMPORTATION ON CAPITAL INVESTMENT AND EQUIPMENT
How to apply
Guidelines
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