No confirmation yet that Peza firms can keep zero VAT
The Philippine Economic Zone Authority (PEZA) still has not received assurance that its more than 4,000 registered companies, mostly business process outsourcing firms, can keep the zero-rated value added tax (VAT) of their local purchases. The Bureau of Internal Revenue (BIR) has not yet issued a clear answer on the fate of Peza-related tax incentives. BIR, but has told Peza that the issue still requires discussions. Should the incentive be terminated, this could be a major disincentive for Peza-registered companies to source locally, opting instead to depend on imports, which are also currently being granted tax exemptions, analysts said.
