What it takes to be a PEZA Certified Company?

Informing a prospect or a potential client that we are a PEZA certified company might be a selling point for a call center like Cebu tele-net. Honestly, does it have any impact on a sales pitch? I have asked my self multiple times. I would understand the side of the prospect or anyone thinking of outsourcing if they would be asking what is it or just goes silent not caring what was mentioned. In this article, I would like to discuss and dig a bit deeper what it means by being a PEZA accredited company. I am not a lawyer nor a government expert. I have been in the call center industry here in Philippines for ten years and have heard this acronym multiple times. It’s time to know and be informed.

Wikipedia explains: Philippine Economic Zone Authority (PEZA) is a government agency in the Philippines attached to the Department of Trade and Industry created to help promote investments in the export-oriented manufacturing industry into the country by assisting investors in registering and facilitating their business operations and providing tax incentives.PEZA also assists investors who locate in service facilities inside selected areas in the country (areas are called PEZA Special Economic Zones) which are usually business process outsourcing and knowledge process outsourcing firms. Other activities also eligible for PEZA registration and incentives include establishment and operation within special economic zones for tourism, medical tourism, logistics and warehousing services, economic zone development and operation and facilities providers.

Historically, PEZA was enacted under Republic Act 7916 and was passed by the House of Representatives and the Senate and approved by former Philippine President Fidel V. Ramos on the 21st of February, 1995.As provided in the Special Economic Zone Act, the PEZA Board is chaired by the Secretary of the Department of Trade and Industry. Vice-Chair is the Director General (Chief Executive Officer) of PEZA. Members of the Board are Undersecretaries representing nine key government Departments, to ensure efficient coordination between PEZA and their respective Departments on matters pertaining to investors’ operations inside the Special Economic Zones.

PEZA offers both fiscal and non-fiscal incentives as well as ready-to-occupy business locations in world-class economic zones and IT parks or buildings. Fiscal incentives include: income tax holiday for a certain number of years, which translates to 100% exemption from corporate income tax; tax and duty-free importation of raw materials, capital equipment, machineries and spare parts; exemption from wharfage dues and export tax, impost or fees; VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements; exemption from payment of any and all local government imposts, fees, licenses or taxes; and exemption from expanded withholding tax. Non-fiscal incentives, on the other hand include simplified import-export procedures, extended visa facilitation assistance to foreign nationals and spouses and dependents; special visa multiple entry privileges; and more

source: https://en.wikipedia.org/wiki/Philippine_Economic_Zone_Authority

I don’t want to drown you with all the technical terms and requirements that involves for an organization to be accredited or certified. Let me give you the link for you to explore and have a better understanding about what one needs to belong to the list.

Requirements for Registration with the Philippine Economic Zone (PEZA)
source: http://www.filipinovirtuallawyers.com/2012/08/02/requirements-for-registration-with-the-philippine-economic-zone-peza/

CHECKLIST OF REQUIREMENTS FOR INFORMATION TECHNOLOGY PARK/CENTER APPLICATION
source: http://www.peza.gov.ph/documents/EDD.1.I.002_IT%20Park%20and%20Center.pdf

LIST of PEZA Accredited Companies
source: https://www.google.com.ph/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwid6peY44LWAhVCiLwKHSQhAkgQFggmMAA&url=http%3A%2F%2Fwww.peza.gov.ph%2Fdocuments%2Ffirmsmay2016.xls&usg=AFQjCNFs14xAKSwDeLlCSRxqI1UDv2LqzA

Reading through the documents, I think we can all agree that it is not easy. Good thing, the Call Center Association of the Philippines (CCAP) and IT and Business Process Association of the Philippines (IBPAP) are organizations that can help and will help companies who wants to relocate or start outsourcing in the Philippines. They have one-stop-shops setup to help speed up the process. There are also law and accounting firms that can help you. Personally knowing people in CCAP, I would endorse these guys because they know and are well experienced. Guys like Jojo, Benedict and Rona with all the Board Members made it their mission to assist and make the industry prosper amidst the competition creating a positive vibe for everyone to step up creating a very healthy environment for business. Here is their website IBPAP (http://www.ibpap.org/) CCAP (http://ccap.ph/)

Cebu tele-net Philippine Corporation is a PEZA accredited company. It is, let me say intense to get one as you have read. You have to be financially capable and transparent, IT infrastructure in place must be best in class in a PEZA building which itself has a dozen or more checklist to achieve to be as such. The company is serious about doing business and in delivering Japanese excellence and hospitality. As the CEO Naoya Osawa mentioned, “in order to achieve our mission we have to be the best and stick to a higher standard of doing business.You cannot deliver Japanese excellence in a place where your infrastructure fails you.”

For comments and suggestions contact the following:

Cebu tele-net Philippine Corporation
cebuinfo@tele-net.co.jp / +1 415-466-7222