Philippines to divert IT development by removing incentives

Philippines to divert IT development by removing incentives

Summary: The Philippine Economic Zone Authority is withdrawing benefits in Metro Manila and Cebu City, to divert development to other parts of the country where perks will continue.

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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 create jobs there.

Acccording to the report, the resolution will take effect 15 days after its publication in a newspaper.

Topics: Tech Industry, Emerging Tech, Philippines

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Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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