--- title: What Is PEZA Accreditation, and Why Does It Matter for Your Office Lease? description: PEZA accreditation affects the VAT on your rent, your tax holiday and how much staff can work from home. Here is what to check before you sign a lease. image: https://blog.flyspaces.com/hubfs/4.%20The%20building%20is%20suitable%20for%20different%20businesses.jpg --- [![spacesasia-logo](https://blog.flyspaces.com/hs-fs/hubfs/SpacesAsia%20-%20June%202019/spacesasia-logo.png?width=260&name=spacesasia-logo.png "spacesasia-logo")](https://blog.flyspaces.com/) - [Home](https://flyspaces.com/) - Navigate - [Flexible Workspaces](https://blog.flyspaces.com/tag/flexible-workspaces#blog-nav) - [News and Events](https://blog.flyspaces.com/tag/news-and-events#blog-nav) - [Industry Insights](https://blog.flyspaces.com/tag/industry-insights#blog-nav) - [City Guide](https://blog.flyspaces.com/tag/city-guide#blog-nav) - [Case Studies](https://blog.flyspaces.com/tag/case-studies#blog-nav) - Connect - [Contact Us](https://flyspaces.com/contact-us) - [Subscribe](https://flyspaces.us14.list-manage.com/subscribe/post?u=0b15b0bb7a66ae626f3388eb9&id=f72d186210) - Share : 21 September 2026 [Listerlynn Joy Garingo - De La Serna](https://blog.flyspaces.com/author/joy-garingo-delaserna) # What Is PEZA Accreditation, and Why Does It Matter for Your Office Lease? Two separate statuses sit behind the word PEZA in an office lease. One belongs to the building. The other belongs to the company renting space in it. Tax benefits reach the tenant only when both are in place, so the building's status is worth checking before you sign. What PEZA accreditation means PEZA is the Philippine Economic Zone Authority, which grants incentives to registered enterprises under the [Special Economic Zone Act of 1995 and the CREATE Act](https://www.peza.gov.ph/elligible-activities-and-incentives-category/fiscal-incentives). "Accredited" is market shorthand. In PEZA's guidelines, an IT building is registered and then declared an economic zone through a Presidential Proclamation. When a broker or landlord says a building is accredited, they usually mean this. What a building has to meet In Metro Manila, an IT building needs at least [5,000 sqm of available business floor area](https://depdev.gov.ph/guidelines-on-the-registration-of-it-enterprises-and-establishment-and-operation-of-it-parks-buildings/). That count includes lobbies, corridors, restrooms and utility areas, and excludes parking and roof gardens. A separate PEZA board resolution requires that [at least 20% of the gross floor area be used exclusively for IT](https://www.peza.gov.ph/issuances/guidelines/Guidelines_IT.pdf). The building also needs [clean, uninterruptible power and computer security and building monitoring systems](https://duranschulze.com/peza-registration-requirements/). The approval path has three parts. The PEZA board considers the application, the board endorses it to the Office of the President for a proclamation, and the registration agreement is signed after that. IT parks outside Metro Manila need [at least five hectares of land](https://formsphilippines.com/guide/1/standard-application-requirements-for-companies-engaged-in-freight-forwarding). If you are looking in Cebu or another city, ask the landlord which PEZA declaration covers the exact building. The tenant has to qualify too A building's status does nothing for a tenant that is not registered itself. The tenant must be a PEZA registered business enterprise. Most IT-BPM tenants register as export enterprises, which means [at least 70% of annual output is exported](https://www.bworldonline.com/economy/2024/12/23/643279/exploring-vat-zero-rating-and-certification-in-the-create-more-act/). Missing that threshold costs the company its VAT zero-rating the following year. What happens to VAT on rent A registered export enterprise can have local purchases zero-rated for VAT, meaning 0% instead of 12%. The purchase must be [directly and exclusively used in the registered activity](https://www.forvismazars.com/ph/en/insights/tax-alerts/bir-rr-3-2023). Since [BIR Revenue Regulations 3-2023](https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202023/RR%20No.%203-2023.pdf) took effect on 28 April 2023, the landlord no longer needs prior BIR approval. The landlord bills at 0% once the tenant provides its VAT zero-rating certificate from PEZA. The BIR can still [audit afterward](https://www.grantthornton.com.ph/insights/articles-and-updates1/line-of-sight/peza-enterprises-get-easier-access-to-vat-zero-rating-with-rr-no-03-2023/) to check the purchase qualified. The regulation also lists services that do not count as directly and exclusively used. These are janitorial, security, financial, consultancy, marketing, and administrative services such as HR, legal and accounting. A tenant can still show PEZA evidence that one of them qualifies. Office rent is not on that list, but it still needs the PEZA certificate and must serve the registered activity. Here is what the difference can look like. This is an illustration only, not a market rate or a FlySpaces listing price. - Office of 1,000 sqm at PHP 1,000 per sqm per month, so base rent is PHP 1,000,000 a month. - With 12% VAT: PHP 1,000,000 + PHP 120,000 = PHP 1,120,000 a month. - With 0% VAT: PHP 1,000,000 a month. - Difference: PHP 120,000 a month, or PHP 1,440,000 a year. Whether that 12% is a real cost depends on the tenant's tax status. Grant Thornton notes that enterprises on the 5% special rate [must register as non-VAT persons](https://www.grantthornton.com.ph/insights/articles-and-updates1/lets-talk-tax/vat-on-sale-of-services-to-peza-rbes/), so they cannot claim input VAT back. Ask your tax adviser how this applies to you. Income tax, duties and local taxes Export enterprises can receive an [income tax holiday of 4 to 7 years](https://www.pwc.com/ph/en/tax/tax-alerts/2024/pwcph-tax-alert-44-create-more.pdf), depending on location and industry priority. After that they choose either a 5% special corporate income tax on gross income or the enhanced deductions regime, which the CREATE MORE Act (RA 12066) now taxes at 20%. Registered enterprises can also import capital equipment, raw materials, spare parts and accessories [free of customs duty](https://www.bdblaw.com.ph/index.php/newsroom/articles/tax-law-for-business/763-implementing-the-tax-incentives-provisions-of-create). Local taxes need care. The 5% special rate [replaces local taxes, fees and charges](https://accralaw.com/2025/01/20/more-to-create/). During the tax holiday or enhanced deductions period, a city may charge a single local tax of [up to 2% of gross income](https://bdblaw.com.ph/index.php/newsroom/articles/tax-articles/income-tax-incentives-under-create-more), but only if it has passed an ordinance. Ask your adviser which applies in the city you are considering. Work from home Ecozone locators used to have to keep operations inside the zone. The CREATE MORE Act changed Section 309, so a locator can now [run a telecommuting program covering up to 50% of its workforce at any time](https://mtfcounsel.com/2025/08/21/telecommuting-in-light-of-tax-incentives/) without losing incentives. PEZA sets the rules, and locators [apply for a Letter of Authority](https://mb.com.ph/2026/04/02/peza-wants-to-allow-100-work-from-home-for-ecozone-firms). Companies registered with the Board of Investments are [outside this cap](https://www.bworldonline.com/economy/2025/03/05/657458/work-from-home-rules-under-create-more/), so the cap matters mainly for PEZA tenants. There is also a temporary higher limit. FIRB Resolution 005-2026, dated 10 Apr 2026, lets PEZA allow [up to 90% work from home, with PEZA free to set a lower cap of not less than 50%](https://pia.gov.ph/news/firb-allows-temporary-wfh-for-ecozone-businesses-amid-national-energy-emergency/). It took effect on 24 Mar 2026 and runs [for one year unless the national energy emergency is lifted or extended](https://portcalls.com/ecozone-firms-get-green-light-for-wfh-set-up-amid-energy-crunch/). Companies using it must [keep export revenue and workforce size](https://mb.com.ph/2026/04/11/govt-approves-up-to-90-work-from-home-for-ecozone-firms-amid-energy-emergency). The energy emergency came from [Executive Order 110](https://lawphil.net/executive/execord/eo2026/eo_110_2026.html). Confirm with PEZA what your cap is on the day you sign. Lease clauses to raise with your lawyer These are common protections, not legal advice. - A warranty that the landlord will keep the building's PEZA status in good standing, with loss of status through the landlord's fault treated as a material breach. - A right to end the lease without penalty if accreditation is revoked, or if a building sold as "PEZA-pending" never gets its proclamation. - A written process for the VAT paperwork, so the landlord bills at 0% as soon as you provide your PEZA certificate. - House rules that let you move company equipment in and out of the building for staff who work remotely. Before you sign Ask the landlord for the proclamation covering the building and confirm it with PEZA. Check that your own registration is approved, or that its timing fits your move-in date. Then ask your tax adviser to confirm the VAT and incentive treatment for your company. If you want a shortlist of PEZA-registered buildings compared on price range, term and inclusions, the FlySpaces team can set up viewings. *This article is general information, not tax or legal advice.* Tags: [PEZA](https://blog.flyspaces.com/tag/peza) ![](https://blog.flyspaces.com/hubfs/SpacesAsia%20-%20June%202019/author-img.png) ##### [Listerlynn Joy Garingo - De La Serna](https://blog.flyspaces.com/author/joy-garingo-delaserna) Joy Garingo - De La Serna is a Filipino business executive specializing in the real estate, flexible workspace, and Employer of Record (EOR) sectors within the Asia-Pacific (APAC) region. She is involved in creative ventures and community-centric workspace environments that support local startups, founders, and generational shifts in hybrid work styles. 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