CEZA (Cagayan Economic Zone Authority) Tax and Fiscal Incentives
Ceza offers tax or fiscal incentives such as four to six-year income tax holiday, tax and duty-free importation of capital equipment, a special tax rate of 5 percent of gross income in lieu of all local and national taxes, tax credits for foreign corporations, and effective zero-rating for articles admitted to the zone from the customs territory under proper permit.
CEZA is a government-owned and controlled corporation created under Republic Act No. 7922. CEZA is also known as Cagayan Freeport or Cagayan Cyber Park, and is located in the Northeast of the Philippines. CEZA possesses the power to operate on its own, either directly or through a subsidiary entity, or license to others. Tourism-related activities, including games, amusements, recreational and sports facilities such as horse racing, dog racing, gambling casinos, online casinos, golf courses, online gaming, and others are under priorities and standards set by the CEZA. CEZA is a government unit under the Office of the President that operates and manages the 50,000-hectare economic zone in Cagayan.
Online Gaming with CEZA in Cagayan
Internet gaming is regulated by CEZA. To expedite the processing of gaming licenses, CEZA has the legal authority to independtly approve applications without the prior acceptance from a national government agency, including PAGCOR. In fact, 90% of the locators in Cagayan’s cyber park engage in gaming operations. Through virtual gaming or online gaming, clients may play the games through proxies without need of physical presence. CEZA issues internet gaming licenses targeted toward international players. This has become an attractive business model for online gaming operators in Asian markets and the international gaming community. A number of local and foreign-owned online gaming companies have registered with CEZA including online casinos, online gambling, online betting, and more.
Requirements for CEZA Registration
- Completed Application Form (CSEZFP Form 99-1)
- Fee for processing amounting to US$200 or its equivalent in Php
- Project Feasibility Study
- Copies of relevant documentation of legal status of business enterprise (articles of incorporation and by-laws/partnership agreement/SEC license to do business)
- Name and address of legal agent if not a corporation or the business organization established in the Philippines
- If there is foreign ownership, proof of inward remittance, and/or investment or other proof of financial capacity acceptable to CEZA
- Evidence of intended physical location of enterprise within the Cagayan Special Economic Zone and Freeport (CSEZFP)(i.e., Certificate of Title)
- If part of a larger business enterprise doing business outside the CSEZFP, evidence or restructuring which excludes from the operations of the CSEZFP enterprise all business operations taking outside the CSEZFP
- List of assets and other properties comprising the investment to be made
- Application Forms for Work Permits for any expatriate personnel
- List of references that may be contacted to verify the information included in the application, including a commercial bank, and/ or financial institutions and independent auditor
- Certificate under oath that the CSEZFP Enterprise applicant will comply with the Masterplan as maybe adopted and amended from time to time
- Undertaking that applicant shall not at all times conduct any unlawful activities