PEZA and BOI Incentives: Lowering Your Tax in the Philippines

The Philippines actively encourages investment in priority activities — and the incentives can be substantial. Two of the main routes are registration with the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI). Used correctly, they can meaningfully lower your effective tax rate.

What incentives are on offer Qualifying registered enterprises may enjoy an income tax holiday for a period, followed by reduced rates, along with other perks depending on the activity and location. The exact package depends on which body you register with and the nature of your project.

PEZA: the economic-zone route PEZA incentives are tied to locating and operating inside a designated economic zone, and are popular with exporters and IT-BPO firms. If your operations can sit within a PEZA zone, this route is often the most direct path to the benefits.

BOI: the priority-activity route The BOI grants incentives to enterprises engaged in activities listed as investment priorities, without the strict zone-location requirement. If your activity is on the priority list, BOI registration can be the better fit.

Eligibility is everything Incentives flow only to activities and structures that actually qualify, so eligibility must be assessed before you incorporate — not after. The way you set up the company can be the difference between qualifying and missing out.

Plan incentives into your setup Because the benefits depend on how and where you register, the smartest time to plan for PEZA or BOI is at incorporation. A short eligibility review up front ensures you don’t leave significant tax savings on the table.