Planning a new office for a PEZA-registered IT-BPM or export company? Requirements that seem minor during design, such as space allocation, access control, or operational setup, can become costly problems if they are discovered only after construction.
PEZA registration can provide valuable tax incentives, but it also comes with compliance obligations that affect how your office is planned, built, and operated. Addressing these requirements early helps protect your incentives, keep the fit-out on schedule, and avoid expensive rework later.
What Benefits Does PEZA Registration Offer?
For qualified IT-BPM and export enterprises, PEZA registration can help reduce operating and investment costs. The incentives available depend on the company’s registered activity, project location, and approved incentive terms.
Eligible export enterprises may receive:
- Income Tax Holiday: Four to seven years, depending on the project’s location and industry priority
- Preferential Tax Options: A 5% Special Corporate Income Tax on gross income or Enhanced Deductions for 10 years after the ITH period
- VAT Incentives: VAT exemption on eligible importations and VAT zero-rating on qualifying local purchases directly connected to the registered project or activity
- Tax- and Duty-Free Importation: Available for eligible capital equipment, raw materials, spare parts, and accessories
- National and Local Tax Exemptions: Applicable during the period when the enterprise is availing itself of the 5% SCIT incentive
These incentives come with eligibility, documentation, and ongoing compliance requirements. For companies planning an office fit-out, PEZA requirements should be considered before the layout, procurement, and construction plans are finalized. Addressing them early can help prevent delays, compliance concerns, and costly changes later.
How Does the CREATE MORE Act Affect Office Planning?
The CREATE MORE Act, signed into law on 8 November 2024, introduced greater flexibility for registered business enterprises. Subject to PEZA guidelines, eligible companies may implement telecommuting or work-from-home arrangements for up to 50% of their total workforce while continuing to receive their registered incentives.
For IT-BPM companies, this creates more options when planning office capacity. Instead of automatically providing a permanent workstation for every employee, businesses can consider hybrid schedules, shared desks and flexible work zones based on expected daily attendance. However, capacity planning should still account for peak office days, meetings, training sessions, visitors, and future growth.
The work-from-home allowance does not remove the need for a compliant PEZA-registered workplace. The office must remain suitable for the registered activity and continue to meet applicable PEZA, building, safety, and operational requirements. Addressing these factors early can help businesses create a more efficient workplace without compromising compliance.
Start With a PEZA-Accredited Location
To qualify for PEZA incentives, your office must be within a PEZA-designated economic zone, IT park, or accredited building. Operations outside the approved location may not be covered by your registered incentives.
Before signing the lease or planning the fit-out, confirm the property against PEZA’s current list of accredited locations. Early verification helps avoid compliance issues, delays, and costly changes later.
What Permits Are Needed for a PEZA Office Fit-Out?
A PEZA office fit-out requires approvals from PEZA and, when applicable, the Bureau of Fire Protection. Preparing the documents early can help reduce delays and revisions.
Common Permit Requirements
Requirements may vary depending on the building, registered activity and type of fit-out work. Depending on the project scope, you may need:
- Completed PEZA application forms
- PEZA Certificate of Registration and Registration Agreement
- Letter of Authority for expansion, transfer or relocation
- Signed lease or sublease approval
- Signed and sealed architectural and engineering plans
- Occupant Load Density Certification for BPO and IT offices
- Equipment data sheets and technical calculations
- Fire Safety Evaluation Clearance from the BFP
Reviewing the checklist with PEZA, the building administrator and your consultants can help avoid missing documents and revisions.
Who Must Sign the Plans?
All plans must be signed and sealed by the appropriate licensed professionals, including the architect and civil, electrical, mechanical, sanitary and electronics engineers. The appointed contractor should also hold the required PCAB licence for the project scope and value.
MCFC provides complete design services, including the preparation of PEZA building permit plans and coordination of the required professional sign-offs, helping clients manage the approval process more smoothly.
What Infrastructure Does a PEZA-Registered Office Need?
Beyond permits, a PEZA-registered office must have infrastructure that supports its approved business activities. For IT-BPM companies, this often means planning for longer operating hours, higher power demand, reliable connectivity, and stronger system redundancy.
Power and Electrical Systems
IT-BPM operations depend on a stable power supply. Depending on the building and operating requirements, the fit-out may include generator support, UPS systems, and backup power for critical equipment.
Power demand should be calculated early, as upgrading electrical systems after occupancy can lead to additional costs, downtime, and coordination with building management.
IT and Telecommunications
The office should have structured cabling, organized cable management, and reliable telecommunications connections suited to daily operations. Companies may also require multiple service providers to reduce the risk of network disruption.
Server rooms and IT hubs should be planned with suitable cooling, security, and equipment access. The final setup should reflect the activities covered by the company’s PEZA registration.
Air-Conditioning and Ventilation
Companies operating beyond standard office hours need air-conditioning and ventilation systems designed for extended use. Critical areas, such as server rooms, may also require dedicated cooling and backup capacity.
The system should be planned around expected occupancy, equipment heat loads, and operating schedules rather than relying only on standard building provisions.
Fire Protection
The fit-out must comply with the Fire Code of the Philippines and pass the required BFP review and inspection. This includes fire alarms, sprinkler coverage, extinguishers, and clearly marked emergency exits.
Server rooms and areas containing sensitive equipment may need specialized fire protection systems, depending on BFP and building requirements.
Accessibility and Workplace Safety
The layout must also consider accessibility and workplace safety requirements. This may include accessible entrances, corridors, ramps, and other facilities required under BP 344.
DOLE occupational safety and health standards should also be included in the design to create a safer and more compliant workplace.
PEZA Inspections and Ongoing Compliance
PEZA compliance continues after the office is completed. Registered enterprises may be audited or inspected to confirm that the space supports the approved activity and that reporting requirements are being met.
Ongoing requirements may include:
- Submitting quarterly and annual performance reports
- Maintaining the required export ratio
- Securing PEZA approval before expanding, relocating, or changing the registered activity
- Keeping the office operational and consistent with its declared use
- Renewing registrations and meeting labor, environmental, and operational standards
Non-compliance may lead to penalties, suspended incentives, or loss of registration. Keeping records updated and consulting PEZA before making major changes can help avoid unnecessary risks.
Work With a Fit-Out Partner Experienced in PEZA Projects
A PEZA office fit-out involves more approvals, documentation, and infrastructure requirements than a standard commercial project. Working with a contractor familiar with PEZA and BFP processes can help reduce permit delays, compliance issues, and costly changes after construction.
It also helps to involve the fit-out team before signing the lease. An early site assessment can identify whether the space can support the required power, cooling, IT, and safety systems without major upgrades.
MCFC has experience delivering office fit-outs within PEZA-registered locations across Metro Manila. From permit planning and technical coordination to construction and handover, our team can help you create a compliant workspace that supports your operations from day one.