Ecozone firms to get tax perks for COVID-19 costs
Ecozone locators will now be able to avail of the five per cent gross income tax incentive to include COVID-related expenses as direct costs to maintain operations during the quarantine period.
The Philippine Economic Zone Authority (PEZA) is allowing registered enterprises to consider the following as direct costs expenses incurred to maintain operations during the government-imposed lockdowns: temporary housing or accommodations to employees; shuttle services; port charges; disinfection requirements and personal protective equipment (PPE); as well as coronavirus disease (COVID) tests for employees.
“If the enumerated expense can be directly attributed in providing the PEZA-registered services, then it should be treated as direct cost, otherwise, it is non-deductible,” the Bureau of Internal Revenue (BIR) said in its letter to the PEZA dated Oct.27.
