Developers of IT Parks and IT Centers in the National Capital Region (NCR) are not entitled to the tax and fiscal incentives offered by the Philippine Economic Zone Authority (PEZA), as these benefits are reserved exclusively for qualified locator companies operating within these facilities.
This was clarified by Finance Secretary Frederick Go and PEZA Director General Tereso O. Panga following the issuance of Administrative Order (AO) No. 45, which amended AO No. 18 that had imposed a moratorium on new IT Parks and IT Centers in Metro Manila. AO 45 lifts the seven-year ban and reopens the capital to new investments in IT Parks and IT Centers.
“Developers of these IT Parks and IT Centers will not be entitled to fiscal incentives pursuant to PEZA Board Resolution No. 00-411, as amended. Qualified IT-BPM enterprises locating in these buildings may still avail themselves of the applicable incentives under existing laws, rules, and regulations,” Panga pointed out.
Panga said the policy gives property developers an opportunity to reposition qualified office spaces to meet the requirements of global information technology and business process management (IT-BPM) companies. Developers may register these projects with PEZA and market them as PEZA-accredited locations.
(Photo credit: https://www.dof.gov.ph)
Secretary Go likewise explained that while developers of new IT Parks and IT Centers in Metro Manila are not eligible for incentives, qualified Registered Business Enterprises (RBEs) that locate within PEZA-registered facilities in the NCR may continue to avail themselves of incentives, subject to applicable investment laws and regulations.
“By directing incentives to enterprises that generate quality jobs, exports, innovation, and higher value-added economic activity, the DOF supports the continued growth of the IT-BPM industry, while reserving the integrity of the country’s investment incentives framework,” he added.
Go said the Department of Finance (DOF) supported the adoption of AO 45 as a strategic measure to attract high-value, innovation-driven investments by allowing businesses to locate where talent, infrastructure, and established industry ecosystems are most developed.
Five IT Parks and IT Centers in Metro Manila have already applied for PEZA registration and are expected to undergo the proclamation process. These are MJ Landtrade Development Corp.’s Altaire in Makati City; Triumvirate Development Corp.’s One Trium Tower in Muntinlupa City; Ayala Land, Inc.’s ARCA South 1 in Taguig City; Aseana Holdings, Inc.’s Parqal in Parañaque City; and San Lorenzo Ruiz Investment Holdings and Services, Inc.’s The Yuchengco Centre in Makati City.
Panga emphasized that allowing new IT Parks and IT Centers in Metro Manila does not diminish the government’s commitment to expanding investment and employment opportunities outside the capital. Instead, a stronger pipeline of Metro Manila investments can serve as a gateway for future expansion into Central Luzon, CALABARZON, and other emerging growth centers.
“Many global companies first establish themselves where there is already a deep talent pool, mature infrastructure, and an established business ecosystem. As they grow, we have the opportunity to bring their succeeding sites to other parts of the country,” Panga said.
He added that the strategy complements the development of the Luzon Economic Corridor by strengthening economic linkages between Metro Manila and surrounding growth centers.
“AO 45 allows us to replenish and modernize the pipeline of PEZA-ready spaces in Metro Manila and ensure that the country can meet the increasingly sophisticated requirements of new and expanding IT-BPM investors. We encourage developers—from established CBDs to emerging locations—to bring qualified IT Park and IT Center projects to PEZA. We will, in turn, actively market these locations to investors,” Panga concluded.
To date, Metro Manila hosts 178 PEZA-registered IT Parks and IT Centers hosting 1,072 locator companies that collectively employ more than 740,000 Filipinos across a broad range of IT-BPM activities.
AO 18 was implemented to encourage the IT-BPM industry to further diversify their location outside of Metro Manila, spread the economic development to the countryside and decongest the capital.
