OfficeSpaceMakati.com
Set up a Makati Office and Save on Tax Incentives
Business in the Philippines is advancing. This is why many foreign companies come to the country to set up their business here. Most of them set up a Makati office because the city of Makati houses one of the country’s business districts.
Most companies that rent a commercial office space in Makati are BPOs, call centers, advertising companies and international banks. Although Makati office rental has increased within the last few years due to the increased demand from BPO companies, it is still much less expensive compared to setting up offices in nearby countries. A typical office in Makati would normally cost Php 800.00/sqm, a less expensive option compared to setting up an office elsewhere.
For foreign businesses wanting to set up an office in Makati, there are certain buildings that offer tax incentives. Businesses that reside in Special Economic Zone (PEZA) buildings are entitled to different tax incentive programs including tax breaks for four to eight years.
If you want your business to benefit from this tax incentive, you can choose to set up an office in Makati in buildings including 6750 Ayala Avenue Building, BPI Buendia Center, Burgundy Corporate Tower, Philamlife IT Building and PBCom Tower. However, before your company can experience the benefit of setting up an office in a PEZA-accredited building, you have to undergo several procedures first.
Your company must register with PEZA and locate their operations within the zone you want to set up an office in. PEZA requires that your business is export-oriented and may require you to export 100% of your production. There are instances that PEZA may grant the sale of up to 30% of production in the local market. Foreign investors are required to provide PEZA information about capital structure, nationality of investors and a feasibility report in compliance with a PEZA-prescribed format. Once these are accomplished your business can expect a quick response from the agency.
Setting up a Makati office can bring your company great benefits. Apart from the tax incentive of setting up a commercial office space in a PEZA-accredited building, your company is also located in one of the prime business centers in Asia. The Philippine business setting is improving fast, and foreign companies are more than welcome to be a part of this unparalleled growth.
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