Question & AnswerQ&A (Republic Act No. 8748)
PEZA is a body corporate attached to the Department of Trade and Industry created to administer economic zones with a Board composed of government department heads and representatives from labor and business sectors.
The President appoints the Director General of PEZA, who must be at least 40 years old, of proven probity and integrity, hold a degree in economics, business, public administration, law, management or equivalent, and have at least 10 years relevant experience.
The PEZA Board has 13 members including the Secretary of Trade and Industry as Chairman, Director General of PEZA as Vice Chairman, undersecretaries of key government departments, representatives from the labor sector and business/investors in the ECOZONE.
Privately-owned ECOZONES retain autonomy and independence but are monitored by PEZA for compliance with laws and implementation of incentives.
The PEZA Board provides for the organization and staff of PEZA, appoints officers and employees, fixes their compensation, and has exclusive authority to promote, transfer, assign, or reassign officers. The Director General may remove officers and employees.
No, all PEZA officers and employees including the Board members shall not engage directly or indirectly in partisan activities or take part in elections except to vote.
Business establishments are exempt from all national and local taxes except real property tax on land owned by developers. Instead, they pay 5% of gross income: 3% to National Government and 2% to the city/municipality treasury where located.
No, all persons and service establishments in the ECOZONE are subject to national and local taxes under the National Internal Revenue Code and the Local Government Code.
If persons occupying land for a publicly-owned ECOZONE are evicted, PEZA must provide proper disturbance compensation. Displaced agrarian reform beneficiaries are entitled to benefits under the Comprehensive Agrarian Reform Law, homelots in relocation sites, and preferential employment.
No, RA 8748 does not apply to economic zones already created or to be created under RA No. 7227 or other special laws governed by respective authorities.