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BusinessPhilippines’ Strategic Investment Priority Plan: A 2025 Guide for Foreign Investors

April 1, 2025
Home » Philippines’ Strategic Investment Priority Plan: A 2025 Guide for Foreign Investors

The Philippines has launched its Strategic Investment Priority Plan (SIPP) for 2025-2028, a detailed framework aimed at drawing foreign investment, boosting economic progress, and promoting sustainable development nationwide. Developed by the Board of Investments (BOI) in partnership with government bodies and private sector players, this updated plan enhances earlier strategies while syncing with the Marcos administration’s vision for economic advancement. Highlighting key industries, offering substantial investment incentives, and simplifying entry procedures, the SIPP Philippines presents a considerable opportunity for international investors looking at this vibrant market as of March 24, 2025.

Defining the Strategic Investment Priority Plan

The Strategic Investment Priority Plan serves as the Philippines’ blueprint for pinpointing economic sectors eligible for unique benefits to foster sustained growth. Here’s what overseas investors should grasp about its essentials in 2025:

  • Core Concept and Aim: The SIPP is a three-year guide listing activities that qualify for incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, enacted on November 11, 2024, updating the 2021 CREATE Act.
  • Evolution Over Time: Following the 2022 SIPP, effective from June 11, 2022, and the interim 2020 Investment Priorities Plan, the 2025 version sharpens focus on sectors matching current economic demands and worldwide shifts.
  • Priority Levels: Activities are grouped into three tiers—Tier I for employment and foundational industries, Tier II for competitive and adaptive sectors, and Tier III for cutting-edge, tech-focused initiatives—each with customized tax incentives in the Philippines.
  • Periodic Updates: Set to run until mid-2028, the SIPP is reassessed triennially by the BOI and Fiscal Incentives Review Board (FIRB) to stay responsive to new opportunities and challenges.
  • Policy Alignment: Rooted in the Philippine Development Plan and the Inclusive Innovation Industrial Strategy, the SIPP supports national ambitions for industrial expansion, job creation, and environmental stewardship.

This structure underscores the Philippines’ dedication to a welcoming investment climate, making it a vital resource for those navigating the investment priority plan 2025.

Incentives Offered by the Strategic Investment Priority Plan

The SIPP Philippines offers attractive investment incentives to lure global capital, blending short-term tax relief with enduring advantages. Below are the primary perks for 2025:

  • Income Tax Holiday (ITH): Qualified firms receive an ITH of four to seven years, based on location and tier, easing early financial burdens and supporting initial investments.
  • Special Corporate Income Tax (SCIT): After the ITH, export-focused companies can benefit from a 5% SCIT on gross income for up to a decade, far below the usual 25% corporate rate.
  • Enhanced Deductions (ED): Domestic-oriented businesses can claim ED for five to ten years post-ITH, covering costs like workforce training and facility upgrades and lowering taxable earnings.
  • Duty-Free Imports: Exemptions on duties and taxes for importing machinery, materials, and parts reduce operational expenses significantly.
  • VAT Relief: Zero-rated VAT on local purchases and exemptions on imports linked to registered projects improve cash flow for eligible enterprises.
  • Longer Incentive Terms: Major projects that invest PHP 50 billion or create 10,000 jobs within three years may enjoy incentives for up to 40 years, pending FIRB approval.

These tax incentives in the Philippines, outlined in the CREATE MORE Act, make the country a standout choice for Philippine investment opportunities, especially in high-potential fields.

Priority Industries in the 2025 Strategic Investment Priority Plan

The investment priority plan 2025 zeroes in on sectors that drive economic value and innovation, providing foreign investors with clear avenues for success. Here’s a look at the focal industries:

  • Clean Energy: Tier I includes solar, wind, and biomass projects, aligning with the nation’s green energy targets and offering reliable returns amid rising global interest.
  • High-Tech Production: Tier II covers advanced manufacturing, such as semiconductors and electric vehicle parts, which is linked to international supply networks and export channels.
  • Health and Learning: Tier III emphasizes medical infrastructure and global education hubs, strengthening human resources and drawing knowledge-driven investments.
  • Farming and Food Supply: Agribusiness, including precision agriculture and fisheries, sits in Tier I, meeting local demands while boosting export potential.
  • Infrastructure Development: Tier I prioritizes affordable housing, transportation, and logistics, fueling growth as urban areas expand.
  • Tech and Innovation: Tier III supports R&D, startups, and IT-BPM sectors, nurturing a skilled workforce and pioneering advancements.

These industries highlight the benefits of a Strategic Investment Priority Plan, matching investor goals with national priorities for mutual prosperity.

Eligibility Criteria for Investment Incentives Philippines

To access SIPP Philippines incentives, investors must meet the BOI and Investment Promotion Agencies (IPAs) standards, ensuring alignment with national objectives. Here’s what’s required in 2025:

  • Listed Activities: As assessed by the BOI, the project must fall within the SIPP’s specified sectors across Tiers I, II, or III.
  • Output Targets: Companies must pledge to achieve concrete goals—like job numbers or export volumes—monitored over a set timeframe, proving economic impact.
  • Financial Clarity: A robust accounting system must isolate the registered project’s finances from other operations, or a distinct legal entity may be needed.
  • Regulatory Adherence: Compliance with e-receipting, e-sales reporting, and annual ownership disclosures under the National Internal Revenue Code ensures accountability.
  • Regional Considerations: To promote equitable development, incentive durations differ by area—they are shorter in Metro Manila and longer in underserved regions.
  • Export Commitment: To unlock the broadest incentive package, including SCIT, export businesses must dedicate at least 70% of output to foreign markets.

Fulfilling these conditions opens the door to the benefits of a Strategic Investment Priority Plan, with support from the BOI and IPAs like the Philippine Economic Zone Authority (PEZA).

Application Process for the Strategic Investment Priority Plan

Securing SIPP Philippines incentives involves a straightforward procedure managed by IPAs, designed to speed up approvals while maintaining rigor. Here’s how foreign investors can proceed in 2025:

  • Step 1: Check Qualifications: Ensure your project matches the SIPP’s listed activities by consulting the latest plan, accessible via the BOI or reliable partners like BusinessRegistrationPhilippines.com.
  • Step 2: Select an IPA: Choose an agency—BOI for export or pioneering ventures, PEZA for ecozone operations, or others like TIEZA—suited to your business type.
  • Step 3: Gather Documents: Submit a feasibility study, audited financials, project details, and evidence of SIPP compliance customized to your IPA’s specifications.
  • Step 4: Submit Application: File with your chosen IPA, which reviews for completeness and fit with the investment priority plan 2025.
  • Step 5: Review and Approval: The IPA processes applications swiftly, escalating those over PHP 15 billion to the FIRB for final sign-off, balancing speed and scrutiny.
  • Step 6: Launch Operations: Per SIPP rules, incentives kick in once commercial operations begin within three years of registration.

Given the detailed requirements, expert support is invaluable. BusinessRegistrationPhilippines.com, a trusted provider, streamlines this complex journey with proven expertise in Philippine investment opportunities.

Advantages of the Strategic Investment Priority Plan for Global Investors

The SIPP Philippines offers compelling benefits for foreign investors, enhancing returns and strategic positioning in 2025. Here’s why it’s a transformative opportunity:

  • Lower Costs: Tax incentives in the Philippines, including ITH and import exemptions, cut startup and running costs, improving profit margins.
  • Global Reach: Priority sectors like clean energy and tech align with international demand, easing access to export markets and local supply chains.
  • Predictable Returns: Extended terms—up to 40 years for large-scale projects—offer stability, vital for capital-heavy investments.
  • Regional Advantage: The 5% SCIT for exporters beats rates in nearby countries like Indonesia or Malaysia, making the Philippines a cost-efficient hub.
  • Official Support: IPAs fast-track approvals and operations, reducing bureaucratic hurdles and fostering an investor-friendly climate.
  • Green Opportunities: Incentives for sustainable projects bolster corporate responsibility, appealing to environmentally aware stakeholders.

These strengths affirm the investment priority plan 2025 as a linchpin of the Philippines’ economic strategy, with BusinessRegistrationPhilippines.com ready to assist investors in navigating its intricacies for optimal outcomes.

Key Takeaways

The Philippines’ Strategic Investment Priority Plan for 2025-2028 sets the stage for an economic surge, delivering foreign investors a potent mix of tax incentives, access to high-growth sectors, and efficient entry processes. As of March 24, 2025, this initiative cements the nation’s status as a top investment destination while syncing with global priorities like sustainability and technological progress, promising significant gains for proactive businesses. With the BOI forecasting PHP 1.75 trillion in investment commitments this year—after a landmark USD 1.62 trillion in 2024—the SIPP Philippines signals a thriving future for bold investors.

Is Assistance Available? 

Yes, BusinessRegistrationPhilippines.com provides specialized support to tackle the detailed SIPP application process, ensuring compliance and maximizing rewards. Reach out today to schedule an initial consultation with one of our experts. 

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The Philippines has launched its Strategic Investment Priority Plan (SIPP) for 2025-2028, a detailed framework aimed at drawing foreign investment, boosting economic progress, and promoting sustainable development nationwide. Developed by the Board of Investments (BOI) in partnership with government bodies and private sector players, this updated plan enhances earlier strategies while syncing with the Marcos administration’s vision for economic advancement. Highlighting key industries, offering substantial investment incentives, and simplifying entry procedures, the SIPP Philippines presents a considerable opportunity for international investors looking at this vibrant market as of March 24, 2025.

Defining the Strategic Investment Priority Plan

The Strategic Investment Priority Plan serves as the Philippines’ blueprint for pinpointing economic sectors eligible for unique benefits to foster sustained growth. Here’s what overseas investors should grasp about its essentials in 2025:

  • Core Concept and Aim: The SIPP is a three-year guide listing activities that qualify for incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, enacted on November 11, 2024, updating the 2021 CREATE Act.
  • Evolution Over Time: Following the 2022 SIPP, effective from June 11, 2022, and the interim 2020 Investment Priorities Plan, the 2025 version sharpens focus on sectors matching current economic demands and worldwide shifts.
  • Priority Levels: Activities are grouped into three tiers—Tier I for employment and foundational industries, Tier II for competitive and adaptive sectors, and Tier III for cutting-edge, tech-focused initiatives—each with customized tax incentives in the Philippines.
  • Periodic Updates: Set to run until mid-2028, the SIPP is reassessed triennially by the BOI and Fiscal Incentives Review Board (FIRB) to stay responsive to new opportunities and challenges.
  • Policy Alignment: Rooted in the Philippine Development Plan and the Inclusive Innovation Industrial Strategy, the SIPP supports national ambitions for industrial expansion, job creation, and environmental stewardship.

This structure underscores the Philippines’ dedication to a welcoming investment climate, making it a vital resource for those navigating the investment priority plan 2025.

Incentives Offered by the Strategic Investment Priority Plan

The SIPP Philippines offers attractive investment incentives to lure global capital, blending short-term tax relief with enduring advantages. Below are the primary perks for 2025:

  • Income Tax Holiday (ITH): Qualified firms receive an ITH of four to seven years, based on location and tier, easing early financial burdens and supporting initial investments.
  • Special Corporate Income Tax (SCIT): After the ITH, export-focused companies can benefit from a 5% SCIT on gross income for up to a decade, far below the usual 25% corporate rate.
  • Enhanced Deductions (ED): Domestic-oriented businesses can claim ED for five to ten years post-ITH, covering costs like workforce training and facility upgrades and lowering taxable earnings.
  • Duty-Free Imports: Exemptions on duties and taxes for importing machinery, materials, and parts reduce operational expenses significantly.
  • VAT Relief: Zero-rated VAT on local purchases and exemptions on imports linked to registered projects improve cash flow for eligible enterprises.
  • Longer Incentive Terms: Major projects that invest PHP 50 billion or create 10,000 jobs within three years may enjoy incentives for up to 40 years, pending FIRB approval.

These tax incentives in the Philippines, outlined in the CREATE MORE Act, make the country a standout choice for Philippine investment opportunities, especially in high-potential fields.

Priority Industries in the 2025 Strategic Investment Priority Plan

The investment priority plan 2025 zeroes in on sectors that drive economic value and innovation, providing foreign investors with clear avenues for success. Here’s a look at the focal industries:

  • Clean Energy: Tier I includes solar, wind, and biomass projects, aligning with the nation’s green energy targets and offering reliable returns amid rising global interest.
  • High-Tech Production: Tier II covers advanced manufacturing, such as semiconductors and electric vehicle parts, which is linked to international supply networks and export channels.
  • Health and Learning: Tier III emphasizes medical infrastructure and global education hubs, strengthening human resources and drawing knowledge-driven investments.
  • Farming and Food Supply: Agribusiness, including precision agriculture and fisheries, sits in Tier I, meeting local demands while boosting export potential.
  • Infrastructure Development: Tier I prioritizes affordable housing, transportation, and logistics, fueling growth as urban areas expand.
  • Tech and Innovation: Tier III supports R&D, startups, and IT-BPM sectors, nurturing a skilled workforce and pioneering advancements.

These industries highlight the benefits of a Strategic Investment Priority Plan, matching investor goals with national priorities for mutual prosperity.

Eligibility Criteria for Investment Incentives Philippines

To access SIPP Philippines incentives, investors must meet the BOI and Investment Promotion Agencies (IPAs) standards, ensuring alignment with national objectives. Here’s what’s required in 2025:

  • Listed Activities: As assessed by the BOI, the project must fall within the SIPP’s specified sectors across Tiers I, II, or III.
  • Output Targets: Companies must pledge to achieve concrete goals—like job numbers or export volumes—monitored over a set timeframe, proving economic impact.
  • Financial Clarity: A robust accounting system must isolate the registered project’s finances from other operations, or a distinct legal entity may be needed.
  • Regulatory Adherence: Compliance with e-receipting, e-sales reporting, and annual ownership disclosures under the National Internal Revenue Code ensures accountability.
  • Regional Considerations: To promote equitable development, incentive durations differ by area—they are shorter in Metro Manila and longer in underserved regions.
  • Export Commitment: To unlock the broadest incentive package, including SCIT, export businesses must dedicate at least 70% of output to foreign markets.

Fulfilling these conditions opens the door to the benefits of a Strategic Investment Priority Plan, with support from the BOI and IPAs like the Philippine Economic Zone Authority (PEZA).

Application Process for the Strategic Investment Priority Plan

Securing SIPP Philippines incentives involves a straightforward procedure managed by IPAs, designed to speed up approvals while maintaining rigor. Here’s how foreign investors can proceed in 2025:

  • Step 1: Check Qualifications: Ensure your project matches the SIPP’s listed activities by consulting the latest plan, accessible via the BOI or reliable partners like BusinessRegistrationPhilippines.com.
  • Step 2: Select an IPA: Choose an agency—BOI for export or pioneering ventures, PEZA for ecozone operations, or others like TIEZA—suited to your business type.
  • Step 3: Gather Documents: Submit a feasibility study, audited financials, project details, and evidence of SIPP compliance customized to your IPA’s specifications.
  • Step 4: Submit Application: File with your chosen IPA, which reviews for completeness and fit with the investment priority plan 2025.
  • Step 5: Review and Approval: The IPA processes applications swiftly, escalating those over PHP 15 billion to the FIRB for final sign-off, balancing speed and scrutiny.
  • Step 6: Launch Operations: Per SIPP rules, incentives kick in once commercial operations begin within three years of registration.

Given the detailed requirements, expert support is invaluable. BusinessRegistrationPhilippines.com, a trusted provider, streamlines this complex journey with proven expertise in Philippine investment opportunities.

Advantages of the Strategic Investment Priority Plan for Global Investors

The SIPP Philippines offers compelling benefits for foreign investors, enhancing returns and strategic positioning in 2025. Here’s why it’s a transformative opportunity:

  • Lower Costs: Tax incentives in the Philippines, including ITH and import exemptions, cut startup and running costs, improving profit margins.
  • Global Reach: Priority sectors like clean energy and tech align with international demand, easing access to export markets and local supply chains.
  • Predictable Returns: Extended terms—up to 40 years for large-scale projects—offer stability, vital for capital-heavy investments.
  • Regional Advantage: The 5% SCIT for exporters beats rates in nearby countries like Indonesia or Malaysia, making the Philippines a cost-efficient hub.
  • Official Support: IPAs fast-track approvals and operations, reducing bureaucratic hurdles and fostering an investor-friendly climate.
  • Green Opportunities: Incentives for sustainable projects bolster corporate responsibility, appealing to environmentally aware stakeholders.

These strengths affirm the investment priority plan 2025 as a linchpin of the Philippines’ economic strategy, with BusinessRegistrationPhilippines.com ready to assist investors in navigating its intricacies for optimal outcomes.

Key Takeaways

The Philippines’ Strategic Investment Priority Plan for 2025-2028 sets the stage for an economic surge, delivering foreign investors a potent mix of tax incentives, access to high-growth sectors, and efficient entry processes. As of March 24, 2025, this initiative cements the nation’s status as a top investment destination while syncing with global priorities like sustainability and technological progress, promising significant gains for proactive businesses. With the BOI forecasting PHP 1.75 trillion in investment commitments this year—after a landmark USD 1.62 trillion in 2024—the SIPP Philippines signals a thriving future for bold investors.

Is Assistance Available? 

Yes, BusinessRegistrationPhilippines.com provides specialized support to tackle the detailed SIPP application process, ensuring compliance and maximizing rewards. Reach out today to schedule an initial consultation with one of our experts.