Supplemental Agreement Peza

In order to attract investors to our economic zones, the Philippine Economic Zone Authority (PEZA) has just set up the peza electronic application for registration (e-ARS). It is possible to access this system via the PEZA website (www.peza.gov.ph) by clicking on the “e-ARS” icon or by going directly to the URL (ears.peza.gov.ph) With the implementation of this new system, applications can now be submitted electronically to PEZA. Completed application forms with the necessary attachments (including proof of payment of the registration fee) can be scanned and emailed to eddapps@peza.gov.ph Ecozone Developers and erdapps@peza.gov.ph for Ecozone Developers The following PEZA applications can be submitted through this new system: The Advisory, which dates from 2017-001 EOD Advisory nr. 2017-001 of January. 11, also requires erroneous peza companies to provide written information to PEZA on the list of activities and sites that go beyond the scope of the registration and endorsement agreements or A.A. Otherwise, a notarized certificate must be provided as proof of full compliance of the PEZA company. Will secondary activities, such as the sale of used materials, be included in the written communication? According to the Court of Tax Appeals (Hoya Glass Disk Philippines, Inc. [March 2016] and Nidec Copal Philippines Corp. [October 2007]), the sale of scrap metal, refusal and seconds carries the risk of being taxed at the standard corporate tax rate of 30% instead of the preferred gross income tax rate of 5% or the 5% income tax rate. depending on what is true.

In contrast, PEZA interprets sales of scrap metal processed or used in production as 5%. We hope that peza companies, under the new leadership of PEZA, will be able to take full advantage of their incentives for such types of sales. Are the local sales of some PEZA companies threatened? In accordance with the rules in force, PEZA companies may continue to operate within the economic zone, provided that the percentage of local sales in terms of export sales does not exceed the agreed margin, as provided for in the respective registration and amendment agreements. How will advice influence the prospects of foreign investors? According to the Philippine National Statistical Coordination Board, foreign direct investment in the Philippines averaged £40 billion in the last quarter of 2016, with a peak of £230 billion in 2016 and a low of £3 billion in 2009. Nevertheless, employment opportunities will be strengthened and symbiotic networks between foreign and local industries will be strengthened over the years by the more than 3,000 units registered in PEZA throughout the country, spread across 73 producing economic zones, 243 information technology parks, 21 agro-industrial economic zones, 19 tourist zones and two medical tourist parks. What impact will the advice have on the Bureau of Internal Revenue`s interpretation of PEZA corporate taxation? We hope for a consistent interpretation, since BIR and PEZA had their coordinated agreement on this almost a decade ago. The two companies institutionalized their coordination efforts to obtain the preferential gross tax rate of 5% and income tax incentives, as part of an income tax on the 1st Memorandum of Understanding signed on 1 March 2007. How will the boards influence PEZA`s subsequent rules and regulations as a management body? In this regard, it is essential to achieve a sustainable balance between fiscal compliance and investment growth. .

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