D&L units get additional two-year tax holiday from PEZA

Subsidiaries of chemicals and food ingredients maker D&L Industries, D&L Premium Foods Corp. (DLPF) and Natura Aeropack Corp (NAC), have secured "pioneer status" from the Philippine Economic Zone Authority (PEZA), granting the firms additional two years of Income Tax Holiday (ITH). 

In a disclosure to the Philippine Stock Exchange (PSE) on Friday, D&L Industries said the ITH for its two units, operating at its new plant in Batangas, was originally set at four years and expiring on June 30, 2027.

With the approved pioneer status by PEZA, the ITH for the firms now covers a total of six years expiring on June 30, 2029.

D&L said PEZA approved its subsidiaries' application for pioneer status on September 19, 2025, with the Certificate of Board Approval issued on September 25, 2025. 

Pioneer status is a special PEZA classification granted to enterprises that are considered "new" or "innovative," or introduce industries, technologies, or processes deemed strategically important to national development.

Such projects often require substantial investment and, in return, generate significant economic benefits, including job creation, technology transfer, and industry growth.

D&L said DLPF and NAC's pioneer status approval was underpinned by the adoption of advanced automation and sustainable manufacturing practices. 

After the ITH period, and by virtue of their PEZA registration, DLPF and NAC will enjoy a preferential tax rate of 5% on gross income earned until December 31, 2034, in line with the provisions of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act (CREATE MORE Act) for enterprises located in special economic zones, according to the company.

"This approval underscores our commitment to innovation, advanced manufacturing technology, and world-class automation systems. It reflects our long-term vision of positioning the Philippines as a hub for sustainable, high-value manufacturing that is globally competitive," said D&L president and CEO Alvin Lao. — VDV, GMA Integrated News