Professional Documents
Culture Documents
Republic Act No. 7916 "The Special Economic Zone Act of 1995"
Republic Act No. 7916 "The Special Economic Zone Act of 1995"
Republic Act No. 7916 "The Special Economic Zone Act of 1995"
7916
THE SPECIAL ECONOMIC
ZONE ACT OF 1995
Ecozone
Areas that highly developed or have the potential to be developed
Enterprises within the zone are given preferential tax treatment
and immigration laws are more lenient.
May contain Industrial Estate, Export Processing Zone, Free Trade
Zone, Tourist/Recreational center
Industrial Estate
Established ECOZONES
Areas not enumerated in this act may be established as Ecozone through
the recommendation of PEZA
Upon evaluation, the board recommends to the president issuance of
proclamation
The issuance of the Presidential Proclamation enables economic zone
developers and locator enterprises to qualify for incentives
Criteria for the Establishment
(e) Issue rules and regulations to implement the provisions of this Act
(f) Exercise its powers and functions as provided for in this Act; and
(f) To adopt, alter and use a corporate seal; make contracts, lease,
own or otherwise dispose of personal or real property; sue and be
sued
(b) To ensure that all revenues of the ECOZONE are collected and
applied in accordance with its budget;
(f) To represent the ECOZONE in all its business matters and sign on
its behalf after approval of the Board, all its bonds, borrowings,
contracts, agreements and obligations.
(k) To prepare and make out plans for the physical and
economic development of the ECOZONE,
(Sec. 23)
Sources:
Presidential Decree No. 66 law creating the Export
Processing Zone Authority.
Omnibus Investment Code of 1987
Export Development Act of 1994
Source: Definition of terms from IRR of RA 7916 The Special Economic Zone
Act of 1995
Fiscal Incentives
Domestic Market Enterprise, ECOZONE Facilities, Utilities and Tourism Enterprises - ECOZONE
Domestic Market Enterprise shall be entitled to the following incentives:
a. Exemption from national and local taxes in lieu thereof, payment of a special tax rate of five
percent (5%) on gross income in accordance with Section 1(A) of Rule XIV and Rule XX of these
Rules;
b. Additional Deduction for Training Expenses - The same incentive as provided for under Section
1(B) of Rule XIV of these Rules shall also apply to ECOZONE Domestic Market Enterprises; and
c. Incentives provided under R.A. 6957 as amended by R.A. 7718, otherwise known as the Build
Operate and Transfer Law, subject to such conditions as may be prescribed by the Board; and
d. Other incentives available under the Code, as may be determined by the Board subject to the
conditions provided under Sections 3 and 5 of Rule XIII of these Rules.
Sources
http://creba.ph/online_library/files/investment/BOTLaw-RA6957-IRR.pdf
http://www.peza.gov.ph/index.php/about-peza/implementing-rules-and-
regulations
http://taxacctgcenter.org/classification-of-peza-registered-enterprises-in-the-
philippines/