What is CEZA?
The Cagayan Economic Zone Authority (CEZA) is a government-owned and controlled corporation that is established to manage the Cagayan Freeport and Special Economic Zone in northern Luzon.
It serves as both a regulator and an investment promotion agency, providing a range of tax and non-tax incentives designed to attract and support foreign and local businesses.
Why is CEZA Important?
CEZA serves as a strategic economic hub for fintech, iGaming, and technology ventures, regulating offshore virtual currency exchanges (OVCEs) and blockchain businesses. For investors, CEZA provides a flexible alternative to PEZA and BOI incentives, especially in industries that are not typically covered.
Its geographic proximity to major East Asian markets further enhances its appeal as a gateway for international trade and innovation.
Types of CEZA-Registered Enterprises
Businesses that establish operations under CEZA span multiple sectors, as the corporation provides a supportive environment through targeted incentives and regulatory support.
Key business types often registered under CEZA include:
- iGaming Operators: Offshore gaming licensees and support services.
- Fintech and Blockchain: Offshore virtual currency exchanges (OVCEs), blockchain developers, digital wallet providers.
- Business Process Outsourcing (BPO) and IT Services: IT-enabled services, shared service centers.
- Trading and Logistics: Import and export companies, e-commerce, warehousing, and distribution.
- Tourism and Real Estate: Hotels, resorts, leisure facilities, and real estate development projects.
- Export-Oriented Manufacturing and Agro-Industry: Export-oriented manufacturing enterprises can access various tax incentives similar to PEZA.
CEZA Incentives for Businesses
Enterprises registered under CEZA are entitled to a wide range of incentives designed to attract investment, reduce operational costs, and create a favourable business environment.
The available incentives are as follows:
A. Tax Incentives
- 5% tax on gross income in lieu of all national and local taxes.
- Tax and duty-free importation of raw materials, capital equipment, and consumer goods for business use.
- Exemption from local government business permits, licenses, and fees (except those issued by CEZA).
- Customs privileges for import and export activities conducted through CEZA.
B. Investment Incentives
- 100% foreign ownership permitted across most industries.
- Full repatriation of profits and dividends.
- Foreign currency transactions permitted without BSP restrictions.
- Long-term land lease agreements of up to 75 years.
- Streamlined processing through CEZA’s One Stop Action Center.
C. Employment and Immigration Incentives
- Employment of foreign nationals for specialized roles, subject to CEZA approval.
- Access to CEZA Working Visa (CWV), which is renewable, allows multiple-entry, and is valid for up to 2 years (extendable).
- Special Residency Visa (SRV) available for foreign investors, executives, and their dependents.
- Access to a skilled local workforce, supported by CEZA’s IT and technology training initiatives.
Why Choose CEZA?
In the Philippines, CEZA offers a competitive advantage and progressive regulatory framework with a lower gross income tax rate at 5% when compared to PEZA and BOI-registered companies.
Additionally, CEZA has a unique positioning as the Philippines’ fintech and blockchain sandbox that fosters innovation in digital assets, virtual currency exchanges, and emerging financial technologies.
The zone offers supportive government policies and streamlined processes, making business registration and compliance more efficient. Notably, CEZA is also among the first in Asia to regulate offshore virtual currency exchanges (OVCEs), having established provisional licenses and regulatory mechanisms in partnership with the Asia Blockchain and Crypto Association (ABACA).
Key Requirements and Compliance
Setting up in CEZA involves meeting specific registration and compliance obligations, which ensure that only qualified businesses operate within the zone and remain eligible for its incentives. These requirements include:
- Certificate of Registration and License to Operate (CRLO)
- Minimum capital requirements
- Due diligence and background checks
- AML or KYC compliance for fintech or iGaming
- Operational presence within CEZA jurisdiction
- CEZA work permits and visas for foreign hires
Secure Your CEZA License in the Philippines with Emerhub
Want to register your business with CEZA and take advantage of its incentives? Emerhub’s local experts will guide you through the entire process. We will prepare the required documents and liaise with local governing authorities to ensure full compliance for your CEZA application.
For further information, fill out the contact form below and we will connect you with our licensing specialists.
