PEZA stamp raises Century Spire’s value offering
Occupancy is hardly a challenge for well-located office towers these days. Proof of this is the consistently low vacancy rate registered in Metro Manila, particularly in the central business district of Makati at 1.8 percent as of the second quarter of 2015. Developers continue to add to the inventory as projections of an industry growth remain high.
But with the quantity or a range of options growing in ideal locations, values that greatly benefit the locator are fast becoming in demand. And for many of them, a Philippine Economic Zone Authority (PEZA) accreditation just might offer the clincher.
Businesses located in a PEZA- accredited building are entitled to a wide range of perks and advantages beneficial to the company and consequently, to its employees. Developer Century Properties has taken advantage of this by having its latest office development, Century Spire, PEZA-accredited.
The office tower has a prime location— Century City in modern Makati, the growing residential and commercial district north of the CBD—and groundbreaking architecture— by globally-acclaimed architect Daniel Libeskind—to boast of. It also has amenities that range from a retail section, a food hall, a fine dining restaurant, an auditorium with pre-function room, and a grand office lobby designed by Armani/ Casa.
Not content with the building’s clear advantages, Century Properties has opted to add to them with an accreditation that many investors are finding attractive.
“The challenge we gave ourselves this time is to make an already Grade A building even more attractive,” Marco Antonio, Century Properties chief operating officer, said.
PEZA aims to bolster the flow of foreign investments in the Philippines by rewarding them with fiscal and non-fiscal incentives. Foremost of these is an income tax holiday wherein for a certain number of years, businesses in a PEZA-accredited zone enjoy tax holidays, allowing companies to save up on tax fees and operational costs.
Other privileges include VAT zero-rating of local purchases of goods and services such as land-based telecommunications, electrical power, water bills, and lease on the building, subject to compliance with Bureau of Internal Revenues and PEZA requirements; exemption from payment of any and all local government imposts, fees, licenses or taxes.; and exemption from expanded withholding tax.
PEZA- accredited foreign entities in a PEZA-accredited location are also entitled to exemptions through PEZA’s non-fiscal incentives.
Among the incentives are the simplified import-export procedures, special non- immigrant visa with multiple entry privileges, assistance of extended visa facilitation for foreign nationals and their families, and employment for foreign nationals in a PEZAregistered company.
To a foreign investor, obtaining PEZA accreditation and locating in a PEZA-accredited zone means a cut in the bureaucracy normally involved in establishing business and contributes to immediate and smoother operations.