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Business

PEZA optimistic of attaining investment target this year

Louella Desiderio - The Philippine Star

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is optimistic about attaining its investment target for this year as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is seen to put an end to investor uncertainty on the country’s incentives regime.

PEZA director general Charito Plaza said investments are expected to be “much higher than last year now that tax incentives are clear.”

Last year, investments approved by the agency reached P95 billion.

At the start of the year, PEZA said it aims to approve more than P100 billion total investments this year.

Plaza is also upbeat investments may reach the P117.5 billion attained in 2019.

“I’m very positive with CREATE removing uncertainties,” she said.

Earlier, she said a number of investors have been on a wait-and-see attitude with their application with the PEZA due to uncertainties on the changes on the incentives system.

CREATE reduces the corporate income tax (CIT) rate to 25 percent from 30 percent for large corporations.

In addition, industries qualified for incentives will enjoy four to seven years of income tax holidays (ITH), followed by 10 years of special CIT or enhanced deductions.

For firms currently enjoying incentives, they would be given a 10-year sunset period after the lapse of the ITH and move to the 25 percent CIT rate.

Plaza said the PEZA would conduct a virtual dialogue with locators and ecozone operators to discuss CREATE, as well as provide updates on assistance available to them amid the pandemic.

She said the PEZA would also continue to conduct its virtual global business investment forum targeting different countries to attract more investments.

“We’re partnering with foreign embassies and Philippine embassies abroad to gather investors,” she said.

CREATE

PEZA

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