The basic costs of doing business are mostly similar in Metro Manila. What would be distinct would be real estate costs, which are relatively lower in Quezon City, compared to office spaces in Makati or Ortigas Center in Pasig City.
Businesses registered with the Philippine Economic Zone Authority (PEZA) are entitled to a holiday from income tax and local taxes for four to eight years. After that, they are subject to 5% tax on gross income (sales less direct costs) in lieu of all local and national taxes.
|Securities & Exchange Commission||For stock corporations, the filing fee is 1/5 of 1% of the Authorized capital stock, or the subscription price of the subscribed capital stock, whichever is higher, but not less than P1,000 plus legal research fee (LRF)|
|For non-stock corporations, filing fee of Php 500 plus LRF, plus additional requirements for foundations, religious corporations, condominium corporations and others|
|For partnerships, 1/5 of 1% of the partnership’s capital but not less than PHP 1,000 plus LRF|
|Department of Trade and Industry||Application fees ranging from Php 315 to Php 515, for single proprietorships|
|FEES TO AVAIL OF INCENTIVES|
|Board of Investments||Fees to be paid to register for incentives availment, from Php 1,500 to P6,000, depending on project costs|
|Fee for certificate of registration of 1/10th of 1% of project cost but not less than Php 3,000 and not to exceed Php 15,000|
|Phil. Eco. Zone Authority||Registration fees ranging from PHP 1,200 to Php 6,000, depending on reason for application|
|Processing fees to avail of incentives, of Php 1,200, for endorsement of 5% gross income tax and tax holiday and Php 1,200 for ITH entitlement|
To avail of the incentives offered by PEZA an enterprise must register with PEZA and locate their operation in one of the zones. PEZA registrants must generally be export-oriented, with enterprises located inside the zones required to export 100% of their production. In some cases PEZA may approve the sale of up to 30% of production in the domestic market. Full foreign ownership of a PEZA enterprise is allowed provided they are not engaged in activities that appear on the Foreign Investment Negative List. PEZA approval and specific incentives granted are on a case by case basis. Applicants must supply an application for providing information on capital structure, nationality of investors and a feasibility report in accordance with a PEZA prescribed format. Applicants should then expect fast turnaround once the application is submitted.