The Philippine Economic Zone Authority (PEZA) is planning to stop incentives for IT developers in Metro Manila and Cebu City, in order to spur the development of the IT sector in other parts of the country where the perks will continue.
IT projects in the first four PEZA-registered IT parks in Metro Manila, and one in Cebu City, will no longer be entitled to incentives, according to a report Monday by the Philippine Star.
Developers of the IT facilities are currently given an incentive of only paying five percent tax on gross income in lieu of national taxes, Elmer San Pascual, PEZA's manager for promotions and public relations, told the news daily.
However, new IT parks and centers located outside Metro Manila and Cebu will continue to receive the benefits as part of a move to encourage developers to set up in those areas to createthere.
Acccording to the report, the resolution will take effect 15 days after its publication in a newspaper.