Expect new found attraction of locating in other parts of the country outside Metro Manila and Cebu for IT companies relocating in the Philippines judging from this policy change from PEZA.
Policy aims to spur growth of IT parks in new areas
In a resolution published over the weekend, Peza said that IT facilities projects to be located in the first four Peza-registered IT parks in Metro Manila and Cebu City would no longer be entitled to incentives.
Elmer San Pascual, head of Peza’s promotions group, said that with the new policy, IT facilities to be located in Eastwood City Cyberpark in Quezon City, Northgate Cyber Zone in Muntinlupa City, Robinsons Cyberpark in Mandaluyong City, E-Square Information Technology Park in Taguig City and Cebu IT Park would no longer be granted the special 5 percent tax on rental income.
IT facilities include buildings leased to Peza-registered locator enterprises.
On the other hand, developers and operators of new IT parks and centers outside Metro Manila and Cebu City, including IT facilities enterprises, will continue to enjoy the special 5 percent tax on gross income and other fiscal incentives, Peza said.
“This will ensure the dispersal of IT buildings to make areas outside Metro Manila and Cebu City attractive to investments,” San Pascual said in a phone interview.
Further, Peza will no longer grant incentives to developers of new special economic zones involved in manufacturing, agro-industries and tourism with an area of less than 25 hectares.
Peza previously gave incentives to developers with areas less than 25 hectares.
However, San Pascual said that a new developer with an area less than 25 hectares could still be recommended for proclamation as a special economic zone for marketing purposes.
Investments in the economic zones from January to July reached P105.721 billion, up 14.9 percent from the P91.981 billion recorded in the same period last year.