The Philippines’ Board of Investments (BOI) operates under the authority of the Department of Trade and Industry (DTI). The BOI is the leading government agency for promoting local and foreign investments in the Philippines. By focusing on globally competitive industries, the BOI’s aim is to stimulate economic prosperity and employment for the country. The agency promotes the sustainable use of the state’s resources and the cooperation of the government with private investors through preferred areas of business which are published once a year in the Investment Priorities Plan (IPP). The IPP is drawn up by an inter-agency delegation and approved by the President; it lists specific areas of activities which qualify a business for incentives.
Projects registered with the BOI can avail from fiscal incentives and tax breaks:
•Income Tax Holiday *
•Exemption From Wharf Dues and Export Tax, Duty, Impost and Fees
•Exemption From Taxes and Duties on Imported Spare Parts
•Tax Exemption on Breeding Stocks and Genetic Materials
•Additional Deductions from Taxable Income
* 3 to 8 years of Income Tax Holiday and 4 to 6 years of local business tax exemption respectively for non-pioneer and pioneer industries.
There are different requirements for pioneer and non-pioneer industries.
• Pioneer industries: 100% foreign owned companies are entitled to incentives if:
◊ at least 70% of their services/products are intended for export, or
◊ its projects are undertaken in less-developed areas of the Philippines as listed by the BOI.
These enterprises are required to attain 60% Filipino-ownership within 30 years of registration with the BOI unless they are exporting or intend to export 100% of their services/production.
• Non-pioneer industries: Foreign ownership is limited to 40%, unless 70% of the annual production is exported.
Incentives may still be granted to businesses whose activity is not included in the IPP, under one of these conditions:
1) The enterprise is at least 60% Filipino-owned and 50% or more of the services/products are intended for export , or
2) The company is more than 40% foreign-owned and 70% or more of the services/products is intended for export.
Note: Outsourcing, Back Office, Call Centers, BPO, KPO, LPO and FPO activities are considered 100% export.
For all local and foreign companies wishing to register at the BOI, Dayanan Philippines Business Consultancy will:
- Ascertain if your business qualifies for BOI incentives
- Assist in finding a BOI approved location
- Prepare and submit of all the required documents for Philippines BOI registration