PEZA Rules for RA 7916 Implementation

Protection of investment including:
- Right to repatriate investments and earnings
- Freedom from expropriation except for public use with just compensation
- No requisition except during war or national emergency with compensation
Protection of labor with assurance of constitutional labor rights including security of tenure and right to self-organization within ECOZONES.

Any person or entity may apply for registration as an ECOZONE enterprise subject to nationality and ownership rules under Foreign Investments Act.
Application requirements include feasibility studies, registration documents, lists of officers and equipment, and other relevant papers.
Applications filed with PEZA with review and approval by the Board.
Certificate of Registration issued upon compliance and execution of Registration Agreement.
One Stop Shop Center established within ECOZONE to streamline registration and permits.

Criteria for site selection include infrastructure, accessibility, labor availability, and strategic location to ensure viability.
Development schemes: private initiative, local government initiative, and national government/PEZA initiative.
Documentary requirements for proclamation include land use clearances, environmental certificates, endorsements from development councils, project feasibility, financial proof, land ownership or lease contracts.
Development timetable generally five years with phased development and basic infrastructure required per phase.
PEZA monitors development and inspects projects; material changes require prior approval.
Areas not meeting strict criteria may still be developed under strict conditions and may be taken over if underdeveloped.

Leasing of lands/buildings in ECOZONE limited to registered enterprises with controls on lease terms, particularly for foreign-owned entities.
Cancellation of lease if project not initiated within three years.
Leasehold rights may be transferred subject to registration and qualifications.
ECOZONE enterprises may acquire lands and buildings in compliance with constitutional nationality requirements.
PEZA regulates permits for construction and installation; inspections ensure compliance with building and safety standards.

Goods brought into restricted areas by registered enterprises are exempt from customs and local taxes, except prohibited items.
Domestic merchandise sold from ECOZONE to customs territory subject to internal revenue laws.
Foreign merchandise exported from ECOZONE to customs territory subject to import laws; foreign merchandise in negative list prohibited from customs territory sales.
Merchandise entering or leaving ECOZONE restricted areas require PEZA permits and proper documentation.

Merchandise entry and exit require PEZA prior approval; samples may be imported as raw materials.
PEZA issues Certificates of Origin for exports indicating origin from ECOZONE.
Goods must be marked clearly as destined for or originating from specific ECOZONE.
Inspections and permits regulate movement to prevent smuggling.
PEZA may inspect inventory; shortages or overages may result in fines and penalties.

National government responsible for perimeter defense; PEZA maintains internal security.
Private security guards allowed under PEZA accreditation.
All persons and vehicles entering or leaving ECOZONE subject to inspection and passes.
Workers must display identification; PEZA can deny access for security reasons.
PEZA maintains firefighting force; adopts Fire Code of the Philippines.

Eligible enterprises include new or expanding Export, Free Trade, Domestic Market, Utilities, Facilities, Tourism; Service Enterprises excluded from certain incentives.
Incentives vary by enterprise type and may include tax exemptions, deductions, tax credits, income tax holidays, and other benefits under various laws and codes.
Income tax holiday periods vary: 6 years for pioneer firms, 4 years for non-pioneer, 3 years for expansions.
Additional deductions available for training expenses and labor costs.
Sale or disposition of imported capital equipment and breeding stocks require prior Board approval within specified periods.

Foreign nationals may be employed in executive, supervisory, technical, and advisory roles under specific conditions and limits.
Employment not to exceed 5 years, renewable; training program for Filipino understudies mandatory.
Spouse and dependent children allowed residency during employment.

After-tax profits and earnings may be remitted abroad without prior Bangko Sentral ng Pilipinas approval if registered with BSP.

ECOZONE enterprises (except service enterprises) pay a 5% final tax on gross income distributed between national government (3%), local government units (1%) and development fund (1%).
Return filing and tax payments follow existing tax code provisions.

Enterprises must comply with Act, Decree, Code, PEZA rules, directives, registration and reporting requirements.
Delinquency or violations may result in suspension or cancellation of incentives.
Reporting includes audited financials, tax returns, changes in officers and ownership, annual reports, and progress on commercial operations.

PEZA issues work and residency visas to foreign nationals with required skills, valid for 2 years renewable.
Visa termination conditions include contract end, firm dissolution, violations, or disqualification.
Permanent residency visas available to investors with investment of at least US$150,000 within ECOZONE.

Labor Code governs labor relations; PEZA promotes industrial peace through cooperation.
Labor Center established within ECOZONE for manpower, training, and coordination.
Priority in hiring local workers encouraged.
Tri-partite body oversees industrial peace mechanisms.
Master Employment Contract prescribed, yet collective bargaining agreements allowed.

PEZA coordinates with DENR and related agencies for environmental protection plans and compliance.
ECOZONE developers/operators must secure environmental clearances and adhere to environmental impact assessments.
Environmental units monitor pollution, waste management, and compliance with laws.
Waste management programs and facilities encouraged, with restrictions on outside waste treatment.

Rules apply to all ECOZONES established under the Act and Decree.
Negative List governs industries restricted from domestic marketing.
Procedures for termination of business involve clearing of debts and transfer of assets.
PEZA retains police powers pending establishment of internal security forces.
Violations incur fines, suspensions, or cancellation of registrations, permits, or franchises.
PEZA may issue circulars and amend rules with proper publication.
Separation of invalid provisions does not affect remainder of rules.
Effectivity is 15 days after publication in a newspaper of general circulation.