The Philippine Economic Zone Authority (PEZA) Act

What Are The Immigration Rules Under The Philippine Economic Zone Authority (PEZA) Act?

Every individual or business establishment residing or operating within the several economic zones found scattered within the country are subject to specialized rules that dictate their operation and management. Included in these rules are the provisions that govern the immigration of foreign individuals to and from the zone. Under Republic Act no. 7916 as amended by Republic Act 8748, the authorities governing the zone may grant both working and resident visas in favor of foreign individuals who have invested a significant amount of money within the zone or who exhibit specialized skills in an industry where no Filipino possesses the same.

Under section 11 of the said Act, any investor found within the ECOZONE whose initial investment shall not be less than One Hundred Fifty Thousand Dollars ($150,000.00); his or her spouse; and dependent children under twenty-one (21) years of age shall be granted permanent resident status within the said area. They shall be granted the right to freely travel within and without the zone notwithstanding the lack of any previous authorization from the Bureau of Immigration. The visa shall be provided upon the application and submission by the investor of the evidence of investment, which may be in the form of:

1. Establishment of an ECOZONE Enterprise or other direct investment within the ECOZONE;


2. A cash grant or interest-free loan to the PEZA or to an ECOZONE Enterprise for the purpose of making capital investments by the recipient in the ECOZONE;


3. A purchase of an ECOZONE; and


4. A donation in kind to the PEZA or an ECOZONE Enterprise of equipment or materials for capital improvement purposes.

The authority may also issue temporary working visas renewable every two (2) years in favor of foreign executives and other aliens who have highly-technical skills which no Filipino within the ECOZONE possesses, as certified by the Department of Labor and Employment. The names of aliens granted permanent resident status and working visas by the PEZA shall be reported to the Bureau of Immigration within thirty (30) days after the issuance thereof. Under the implementing rules of the Act, any enterprise operating within the ECOZONE shall directly apply with the PEZA authority for renewal not less than 30 days before the expiration of the temporary working visa. They shall furthermore inform the PEZA of any removal from employment of any foreign national by reason of contract expiration; or firing; or any other cause for termination.

The same authority of the ECOZONE may also issue temporary resident visas in favor of any foreign national to whom a work visa has been issued and to his or her spouse and dependent children under 21 years of age. The temporary residency visas of the foreign national, spouse and children are valid for residence either inside the ECOZONE or the customs territory during the period of validity of the work visa.

The grounds and procedure governing the termination and revocation of these visas are subject to the provisions found in the implementing rules of Republic Act no. 7916 as amended. Furthermore, recipients of these visas are required to report within specific periods of any changes or developments regarding their employment or residency to the agencies specified in the Act and implementing rules.