The Board of Investments (BOI) is a government agency that aims to boost investments in the Philippines by encouraging investors and entrepreneurs to establish a business in the country. 

Operating under the Department of Trade and Industry (DTI) supervision, BOI is mandated through the Omnibus Investments Code Executive Order No. 226 to offer tax exemption to registered business entities with activities under Investment Priorities Plan (IPP).

Tax benefits, tax breaks, and tax incentives may be awarded to the following industries in the Philippines that may apply for BOI registration:

• Investment Priority Plan (IPP):
  • Agriculture/Agribusiness and Fishery
  • Business Process Outsourcing (BPO)
  • Creative Industries
  • Disaster Prevention, Mitigation, and Recovery Projects
  • Green Projects
  • Infrastructure
  • Manufactured Products
  • Research and Development and Innovation
  • Strategic Activities
• Mandatory List:
  • Clean Water
  • Downstream Oil Industry
  • Ecological Solid Waste Management
  • Forestry
  • Magna Carta for Disabled Persons
  • Mining
  • Printing, Publication, and Content Development of Books or Textbooks
  • Renewable Energy
  • Tourism
• Export Activities:
  • Activities in Support of Exporters
  • Export Services 
  • Production and Manufacture of Export Products

• Exemption from custom duties and national internal revenue taxes on the importation of spare parts
• Exemption from wharfage dues and export tax, duty, impost, and fees
• Income tax holidays (ITH) 
  • Three (3) years for expansion projects
  • Three (3) years for modernization projects 
  • Four (4) years for new projects that are non-pioneer
  • Six (6) years for new projects that are pioneer
• Reduction of duty on capital equipment, spare parts, and accessories 
• Tax credits on imported breeding stocks and genetic materials
• Tax credits on raw materials and supplies
• Tax exemption on importation of breeding stocks and genetic materials
• Additional deduction for labor expense (ADLE)
• Additional deduction for necessary and major infrastructure works

• Employment of foreign nationals
• Simplification of customs procedures such as importation of equipment, supplies, and exports of processed foods
• Privilege to operate a bonded manufacturing/trading warehouse subject to customs rules and regulations.

Enterprises should meet specific criteria to qualify for registration to receive BOI incentives:

• Companies that are entirely locally owned may register for BOI incentives if they engage or propose to engage in an activity that falls under the Investment Priorities Plan (IPP). 
• Domestic corporations that are entirely foreign-owned may register for incentives if they engage in pioneer projects or has any of these requirements:
  • The proposed foreign investment is made in any of the following:
    • Enterprises involved in preferred non-pioneer areas and exporting at least seventy percent (70%) of their output
    • Preferred investment areas are listed in the latest Investment Priorities Plan (IPP). A select area may be declared a pioneer if it meets any of the following conditions: 
      • Engages in the manufacturing, processing, or production of goods, products, commodities, or raw materials that have not been or are not being produced in the Philippines on a commercial scale.
      • Engages in the pursuit of agricultural, forestry, and mining activities and services, including the industrial aspects of food processing, whenever appropriate, pre-determined by the concerned IPA to be feasible and highly essential to the attainment of the national goal concerning a declared specific national food and agricultural program or self-sufficiency and other social benefits of the project.
      • Produces non-conventional fuels or manufactures equipment that utilizes non-conventional sources or uses, or converts to coal or other non-conventional fuels sources of energy in its production, manufacturing, or processing operations. 
      • Uses a design, formula, scheme, method, process, or production system or transformation of any element, substance, or raw materials into another raw material or finished good which is new and untried in the Philippines. 
      • Pioneer status of the abovementioned instances shall be subject to the condition that the final product will involve substantial use and processing of domestic raw materials.
    • Projects in less-developed areas (LDAs) provided that the activities in the above cases are not reserved for Philippine nationals under the Foreign Investment Negative List (FINL).

• Process filing BOI Application Form 501 with the required documents and pay the fee.
• Create an evaluation report which includes publication of a Notice of Filing of Application and plant visit. 
• Submit the application form, evaluation report, and documentary requirements to the BOI Management Committee.
• Wait for the confirmation and a letter of advice from the BOI Governing Board.
• Present the letter of advice to the Applicant of Board Action.
• Wait for approval, then present the letter of approval and process the pre-registration requirements.
• Pay the fee. 

Obtain a Certificate of Registration from BOI. 

After submission of requirements, according to EO 226, applications filed with the BOI shall be considered automatically approved if not acted upon by the BOI Board within 20 working days after officially accepting the applications, subject to terms and conditions.

After the successful approval of a registered project, the amount of time allowed for starting the said project will depend on the type of the project and the period set by the proponent in the feasibility study as approved by the BOI. Generally, the project must be commenced within one year from the approval date but may be extended under appropriate qualifying circumstances.

Boost your enterprise’s chances for success. Register with the country’s investment supporting agencies. Business Registration Philippines helps foreign-owned and locally-owned businesses register for any of the Philippines government’s tax incentive programs. 

Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises. Our services range from Accounting, Finance, Human Resources, Business Process Outsourcing, Product Registration, Taxation, and more. This is a microsite of Triple i Consulting Inc. 

With extensive knowledge and skills about the Philippine taxation system, Philippine business registration, and Philippine business incorporation that dates back over 14 years, Triple i is the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients. 

With a team of Philippine business strategy experts who can extend professional guidance for local and foreign investors establishing their businesses in the Philippines, Business Registration Philippines, together with Triple i, can help your company apply for tax breaks and tax incentives from the Philippine government. 

Start saving on your corporate taxes by booking a free initial consultation with one of our business registration professionals. Contact us through one of the following channels:

• Contact Us Here
• Fill Out the Form Below
• Call us at +63 (02) 8540-9623