What PEZA offers ecozone and IT-BPM locators — income tax holidays, the 5% SCIT and VAT treatment — and why it is enterprise registration, not a scheme to buy AI software.

dgm is an independent osFoundry implementation partner — not affiliated with osFoundry’s developer (the company OS LLC), and it has not yet completed any client integrations.

PEZA administers incentives for export-oriented and IT-BPM enterprises located in proclaimed economic and IT zones — registration and a qualifying activity, not a scheme to buy AI software.

What the scheme actually gives

  • Income Tax Holiday of 4–7 years, then 5% SCIT on gross income earned or the Enhanced Deductions Regime, for registered ecozone locators.
  • VAT zero-rating on local purchases and VAT exemption on imports directly related to the registered activity.
  • CREATE MORE added flexibility for IT-BPM firms — notably allowing up to 50% of employees to work from home without loss of incentives.

Does it fund buying AI software?

PEZA incentives require the company to be a registered ecozone locator carrying out a qualifying export/IT-BPM activity; they do not attach to the act of buying software, and dgm is not a PEZA-registered enterprise. A platform such as osFoundry lowers the cost structurally through usage-based pricing and the BYOK principle — which helps more than waiting for support that does not cover software.

Important note

This article is general information and is not legal, tax or grant advice. Tax incentives, grants, rules and rates change, and only the relevant authorities (among them the National Privacy Commission, the Bureau of Internal Revenue, PEZA, the Board of Investments, the Bangko Sentral ng Pilipinas and the SEC) decide eligibility and awards. dgm is not a registered business enterprise, accredited incentive provider or intermediary. Always confirm the current terms with the official source or a qualified tax or legal adviser.

How dgm helps

dgm is an independent implementation partner that helps businesses in the Philippines adopt osFoundry — from identifying the first practical use case, through building it, to connecting AI to the systems you already use. dgm works independently of osFoundry’s developer (the company OS LLC) and has not yet completed any client integrations; everything above is therefore a description of the service offered, not a delivered result. If you would like to look at a sensible first step, dgm is happy to think it through with you. Arrange a no-obligation conversation with dgm.