The Philippine Board of Investments (BOI), an attached agency of Department of Trade and Industry (DTI), is the lead government agency responsible for the promotion of investments in the Philippines.
Taking the lead in the promotion of investments, BOI assists Filipino and foreign investors to venture and prosper in desirable areas of economic activities. Investors are welcome to experience the potentials of the booming Philippine Industry sectors. Profitable business opportunities abound in the food processing, construction, metal products, telecommunications, power and infrastructure projects among others.
BOARD OF INVESTMENTS (BOI) Registered Company
Enterprises registered with the Board of Investments are entitled to the following incentives:
Income Tax Holiday
Newly registered firms are fully exempt from income taxes for the following periods: six years from commercial operation for pioneer firms and four years for non-pioneer firms. This can be extended for another year in each following cases:
- The project use indigenous materials
- The project meets the BOI-prescribed ration of capital equipment to number of workers; or
- The net foreign exchange savings or earnings amount to at least US $500,000 annually during the first three years of operation.
Expanding firms are entitled to a period of three years from commercial operations, and an exemption from income taxes proportion to their expansion. They are, however, not entitled to additional deductions for incremental labor expense during the period within which this incentive is availed of.
Additional Deduction of Labor Expense
For the first five years from registration, a registered enterprise is allowed an additional deduction from taxable income of 50% of the wages corresponding to the incremental direct labor, that is, the number of skilled and unskilled workers, if the projects meet the BOI-prescribed ration of capital equipment to number of workers.
Tax Credit on Domestic Capital Equipment
A tax credit equivalent to 100% of the value of the national internal revenue taxes and customs duties that would have been waived on the machinery, equipment and spare parts, had these items been imported shall be given to the new and expanding enterprise, whether national or local.
Tax Credit on Duty Portion of Domestic Breeding Stocks and Genetic Materials
Within 10 years from the date of registration, a tax credit equivalent to 100% of the value of national internal revenue taxes and customs duties that would have been waived on the breeding stocks and genetic materials had these items been imported shall be given to the registered enterprise which purchases breeding stocks and genetic materials from a domestic producer.
Tax Credit for Taxes and Duties on Raw Materials Used in the Manufacture, Processing, or Production of its Export Products and Forming Parts Thereof
Every registered enterprise shall enjoy a tax credit equivalent to the national internal revenue taxes and customs duties paid on supplies, raw materials and semi-manufactured products used in the manufacture, processing or production of its export products and forming parts thereof.
Access to Bonded Manufacturing/Trading Warehouse System
Registered export-oriented enterprises shall have access to the utilization of the bonded warehouse system in all areas required by the project subject to such guidelines as may be issued by the BOI upon prior consultation with the Bureau of Customs.
Exemption From Taxes and Duties on Imported Supplies and Spare Parts on the Consigned Equipment
Importation of required supplies and spare parts of the registered enterprises with a bonded manufacturing warehouse shall be exempt from customs duties and national internal revevue taxes payable thereon.
Exemption From The Wharfage Dues and Any Export Tax, Duty, Impost and Fee
Exports by a registered enterprise of its non-traditional export products shall be exempted from any wharfage, and any export tax, duty, impost and fee.
Simplification of Customs Procedure
Customs procedures for the importation of equipment, spare parts, raw materials and supplies, and exports of processed products by registered enterprises have been simplified.
"Newly-registered firms are fully exempt from income taxes - six years from commercial operation for pioneer firms and four years for non-pioneer firms."
Source: Board of Investments (BOI)