The registration/complement agreement of a company registered by PEZA contains guidelines on the conditions to be met to maintain its registration and, ultimately, to benefit from the incentives it grants to register with PEZA. If the IT company does not meet the minimum investment cost per seat and the minimum investment in machinery and equipment, PEZA may revoke the four-year ITH incentive and the pezA registered company is only entitled to the 5% GIT incentive retroactively on the date of its registration to PEZA. Enrolling economic zones in PEZA is not an unlimited privilege. The issuance of the registration certificate by THE PEZA is subject to the conditions and conditions of the registration agreement signed by the representatives of the company and pezA. Models could be the level of sales on an annual basis, the percentage of production exports – say 70%, the number of employees, regular reporting, environmental sustainability and much more. Failure to comply with the conditions may result in sanctions from the registered company or the most serious cancellation of the registration certificate by PEZA during a trial to that effect. While some companies have made decisions with the BIR to validate their allocation base, others clearly use their internal interpretations (for example). B sales related to registered and unregistered projects, floor surfaces and staffing). Note, however, that the allocation base is essential for BIR evaluations. The burden on PEZA companies is to demonstrate that the allocation base is reasonable and acceptable.
Therefore, PEZA companies should keep documents (for example. B memorands, agreements and BIR judgments) that can justify the basis of the award. These should continue to be supported by invoices/bills issued to the company, so that they are acceptable from the BIR`s point of view. Before peza issues the available incentive certificate, companies registered in pezA must of course comply with the conditions of their registration in the PEZA.