GENERAL AREAS FOR INVESTMENT WITH POTENTIAL INCENTIVES

A. PREFERRED ACTIVITIES

  1. All qualified manufacturing activities including agro-processing

  2. Agriculture, Fishery and Forestry

  3. Strategic Services 

    • Integrated Circuits (IC) Design

    • Creative Industries/Knowledge-Based Services

    • Maintenance, Repair, and Overhaul (MRO) of aircraft

    • Charging/Refueling Stations for Alternative Energy Vehicles

    • Industrial Waste Treatment

    • Telecommunications

    • State-of-the-art Engineering, Procurement, and Construction

    • 4. Healthcare Services including Drug Rehabilitation Centers 

  4.  Mass Housing

  5. Infrastructure and Logistics including LGU-PPPs

  6. Innovation Drivers

  7. Inclusive Business (IB) Models

  8. Environment or Climate Change-Related Projects

  9. Energy

B. EXPORT ACTIVITIES

  1. Production and manufacture of export products 

  2. Service exports 

  3. Activities in support of exporters 

C. SPECIAL LAWS

  1. Industrial Tree Plantation (P.D. 705);    

  2. Mining (R.A. 7942) (limited to capital equipment incentive);

  3. Publication or Printing of Books/Textbooks (R.A. 8047);

  4. Refining, Storage, Marketing and Distribution of Petroleum Products (R.A. 8479);

  5. Rehabilitation, Self-Development and Self-Reliance of Persons with Disability (R.A. 7277);

  6. Renewable Energy (R.A. 9513); and

  7. Tourism (R.A. 9593).  

D. AUTONOMOUS REGION OF MUSLIM MINDANAO (ARMM) LIST

  1. Export Activities 

    • Export Trader and Service Exporters

    • Support Activities for Exporters

  2. Agriculture,  Agribusiness, Aquaculture, and Fishery 

  3. Basic industries 

  4. Infrastructure and services 

  5. Industrial service facilities 

  6. Engineering industries 

  7. Logistics 

  8. BIMP-EAGA Related Investment Enterprises 

  9. Tourism

  10. Health and education services and facilities 

  11. Halal industry 

  12. Banking,  non-bank financial institutions and facilities 

  13. Energy

E. TAX INCENTIVES

An enterprise registered with the BOI may be entitled to the following tax and non-tax special incentives: 

  1. Income tax holiday consisting of income tax exemption for six years from the start of commercial operations for pioneer firms, and four years for non-pioneer firms. This incentive may be extended in certain instances and upon approval by the BOI.

    Expanding firms are entitled to an exemption from income taxes proportionate to their expansion for a period of three years from the start of commercial operations of the expansion. However, they are not entitled to additional deductions for incremental labor expenses during the period that they avail themselves of this incentive.

    The income tax holiday may not be extended for more than eight years.

  2. Exemption from taxes and duties on spare parts and consumable supplies imported by a registered enterprise with a customs-bonded manufacturing warehouse and exporting at least 70% of its production

  3. Exemption from taxes and duties on machinery, equipment, spare parts and accessories imported by new and expanding registered enterprises

  4. For the first five years from registration, an additional deduction from taxable income of 50% of the wages of additional skilled and unskilled workers in the direct labor force. This incentive is granted only if the registered enterprise meets a prescribed capital-to-labor ratio.

  5. Exemptions from taxes and duties on the importation of breeding stocks and genetic materials within 10 years from the date of registration or commercial operation

  6. Tax credit for taxes and duties on raw materials, supplies and semi-manufactured products used for the manufacture of export products and forming part thereof

  7. For registered enterprises with bonded manufacturing warehouses, exemption from taxes and duties on the importation of supplies and spare parts for imported equipment and consigned equipment

  8. Exemption from wharfage duties and any export tax, duty, impost and fees on exports by a registered enterprise of its non-traditional export products

  9. Exemption from local taxes for six years from the date of registration for pioneer enterprises, and four years for non-pioneer enterprises

F. NON-TAX INCENTIVES

  1. Simplified customs procedures for the importation of equipment, spare parts, raw materials, and supplies, and the export of processed products

  2. No restriction on the use of consigned equipment but re-export bond is required

  3. Employment of foreign nationals in supervisory, technical, or advisory positions for five years from registration, extendible for limited periods. The president, general manager and treasurer (or their equivalent) of foreign-owned registered firms are not subject to the foregoing limitations.

  4. The privilege to operate bonded manufacturing/trading warehouses, subject to customs rules and regulations

G. ADDITIONAL INCENTIVES

The following additional incentives are available to projects (excluding mining, forestry, and processing of minerals and forest products) located in less-developed areas:

  1. Double deduction from taxable income of 50% of the wages corresponding to the increment in the number of direct labor

  2. Deduction of the cost of necessary and major infrastructure works constructed

 
 
 
 
 
 
 

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