Cagayan Economic Zone Authority (CEZA)
Definition
Cagayan Economic Zone Authority (CEZA)
The Cagayan Economic Zone Authority (CEZA) is the Philippine government agency running the Cagayan Special Economic Zone and Freeport in Santa Ana. Established by Republic Act 7922 in 1995, it licenses BPO, iGaming, and logistics firms at a flat 5% gross-income tax.
CEZA is one of only four Philippine freeport zones. Unlike PEZA, its licensing power extends into interactive gaming, giving the zone a mandate few other Asian SEZs carry. That mix draws contact centres and iGaming platforms to Cagayan’s northern coast.
Its incentive stack anchors established outsourcing operators. Registered firms pay a 5% tax on gross income in lieu of all national and local taxes — the same treatment codified in Republic Act 7922 and confirmed on the official CEZA record.
That incentive structure has held since 1995 with only minor amendments. It gives CEZA locators tax certainty over the multi-year contracts that outsourcing sales cycles depend on.
Key takeaways
- CEZA governs the Cagayan Special Economic Zone and Freeport in Santa Ana, Cagayan.
- Registered enterprises pay a flat 5% gross-income tax in place of national and local taxes.
- CEZA is one of the few Philippine authorities empowered to license interactive gaming.
- Contact centres, back offices, and iGaming firms make up its dominant tenant classes.
- The zone runs under Republic Act 7922, signed on 24 February 1995 by President Fidel V. Ramos.
How it works
CEZA operates as a government-owned corporation with a 15-seat board chaired by the Trade and Industry Secretary. It approves locators, collects the 5% gross-income tax, and enforces zone-specific customs, immigration, and gaming rules inside the Santa Ana freeport.
Locators file with CEZA rather than PEZA, the Board of Investments, or the Anti-Money Laundering Council. A single agency handles zoning, tax certification, and — for gaming licensees — offshore-gaming permits.
That single-window flow is why iGaming operators cluster here despite the geographic remove. It also compresses the timeline from board approval to first customer contact.
The incentive schedule below sits inside the RA 7922 framework and shapes locator planning:
| Incentive | Coverage |
|---|---|
| 5% gross-income tax | In lieu of all national and local taxes |
| Duty-free imports | Machinery, raw materials, consumables |
| 100% foreign ownership | Permitted across most enterprise categories |
| Simplified visas | Non-immigrant status for foreign staff and dependents |
Compliance sits across two layers. CEZA runs zone-side inspections on payroll, gross-income filings, and gaming reporting, while the Bureau of Internal Revenue verifies the 5% remittance to the national treasury.
Anti-money-laundering rules apply to CEZA licensees on top of these zone checks. Gaming licensees additionally file monthly returns with the Philippine Amusement and Gaming Corporation.
Examples
CEZA licensees skew toward two use cases: an offshore BPO operating from Santa Ana or a Manila satellite, and an interactive-gaming firm running platforms out of the zone. Both routes lean on the 5% gross-income shield and CEZA’s single-window filing.
- Offshore-gaming licensees. In 2020, the Department of Finance flagged CEZA as one of two Philippine bodies (with PAGCOR) authorised to issue offshore-gaming licences. Republic Act 11590 of 2021 later added a 5% gaming tax on top of CEZA’s own levy.
- BPO locators. Voice, chat, and back-office teams register with CEZA when they operate inside the freeport or under a CEZA-issued locator certificate at a Manila satellite. The 5% shield replaces the corporate income tax an equivalent PEZA BPO would face.
- Logistics and light manufacturing. Freeport-based warehousing and duty-free re-export operators use CEZA to import raw materials without duty. Cagayan’s proximity to the Batanes shipping lane makes this a common route for Taiwan- and Japan-facing trade.
Related terms
- PEZA: the older, larger Philippine economic-zone authority covering IT parks and industrial estates.
- BPO: the outsourcing-services category most CEZA locators fall into.
- Board of Investments: the national agency granting incentives outside CEZA and PEZA zones.
- Bureau of Internal Revenue: collects the 5% gross-income tax CEZA firms remit.
- Freeport zone: the wider category CEZA belongs to alongside Subic and Clark.
- POGO: the offshore-gaming licence class CEZA co-issues with PAGCOR.
FAQ
What does CEZA stand for?
CEZA stands for the Cagayan Economic Zone Authority. It is the Philippine government body that runs the Cagayan Special Economic Zone and Freeport under Republic Act 7922 of 1995.
Is CEZA the same as PEZA?
No. CEZA governs one zone in Santa Ana, Cagayan, while PEZA governs hundreds of IT parks and industrial estates nationwide. CEZA also licenses interactive gaming, which PEZA does not.
What tax rate do CEZA-registered firms pay?
Registered enterprises pay a 5% tax on gross income in lieu of all national and local taxes. That rate is set by Section 4 of Republic Act 7922 and remains the standing incentive today.
Can foreigners fully own a CEZA-registered company?
Yes, 100% foreign ownership is permitted across most CEZA enterprise categories.
Need a CEZA-registered BPO partner? Browse Outsource Accelerator’s provider hubs to shortlist by zone and service line.
Independent
