Under Philippine Economic Zone Authority (PEZA) rules, a Tourism Economic Zone Locator Enterprise is an establishment and operation within PEZA Tourism Special Economic Zone of sports and recreation centers, accommodation, convention, and cultural facilities and their special interest attraction activities / establishments, with foreign tourists as primary clientele. Tax Incentives of Tourism Economic Zone Locator Enterprise in the Philippines based on qualifications and registration are as follows:
Philippine Economic Zone Authority (PEZA) Board issued Board Resolution No. 12-610 dated November 13, 2012 (PEZA Board Reso. No. 2012-610) on the tax incentives of Tourism Economic Zones developers and locators in the Philippines. This was circularized by the Bureau of Internal Revenue (BIR) under Revenue Memorandum Circular No. 23-2013 dated February 22, 2013 (RMC 23-2013).
Under PEZA Board Reso 2012-610, tourism economic zones developers and locators in the Philippines shall have the following tax incentives:
Prospective effect of PEZA Board Reso No. 2012-610
The new policy under PEZA Board Reso No. 2012-610 shall apply prospectively and not retroactively. TEZ developer/operators and locator enterprises in the above four areas that have not signed their Registration Agreement with PEZA shall be covered by this new policy.
Based on PEZA Board Reso. No. 2012-610, no more tax incentives are applicable to tourism ecozones in the four (4) areas – Metro Manila, Cebu City, Mactan Island, and Boracay Island. This in effect encourages development of tourism ecozones in other tourist destinations in the Philippines such as Bohol Philippines, Palawan Island Philippines, Davao Philippines, and other parts of the country for tourism industry.
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