New PEZA Compliance Requirement under TIMTA Act

(PEZA Memorandum Order No. 2017-009)

This Tax Alert is issued to inform all concerned on the submission of the newly required Report on Actual Investments and Benefits From Registered Project/s to Philippine Economic Zone Authority (PEZA) covering taxable years ending anytime in 2015 and 2016.

1.     The submission covers all PEZA-registered Enterprises and Ecozone Developers/Operators that are entitled to tax incentives including those entitled only to duty and tax exemption on importation and/or VAT zero-rating of local purchases.

2.    The report requires information on actual investments (assets and stockholder's equity), employment details, together with salaries and wages/compensation package, and other benefits from registered projects (taxes withheld and remitted to BIR and local taxes paid).

3.   The soft copy of the report in excel format shall be emailed, together with the scanned copy of the excel worksheet as signed by 2 highest officials of the enterprise.

4.     The deadline to submit the report is on or before July 31, 2017.

5.     In addition to the penalties on late submission of reports under PEZA regulation, noncompliance will also be covered by the penalties indicated in the TIMTA Act:

·         1st violation - P100,000

·         2nd violation - P500,000

·         3rd violation - cancellation of the registration of the registered business entity.