How to Register with the Board of Investments
Annually the BOI, along with other government agencies, comes up with an Investment Priorities Plan (IPP). The IPP is an approved list of priority activities for investments. The IPP is significant since all industries whose business activity falls under the list can be registered as such and shall enjoy fiscal and non-fiscal benefits.
The following are the Fiscal Incentives:
- Income Tax Holiday
- Exemption from taxes and duties on imported spare parts
- Exemption from wharfage dues and export tax, duty, impost and fees
- Reduction of the Rates of Duty on Capital Equipment, Spareparts and Accessories by virtue by Virtue of EO 528
- Tax exemption on breeding stocks and genetic materials
- Tax Credits
- Additional Deductions from Taxable Income.
The following are the Non-Fiscal Incentives:
- Employment of Foreign Nationals
- Simplification of customs procedures
- Importation of sonsigned equipment
- The privilege to operate a bonded manufacturing/trading warehouse subject to custom rules and regulations
A Filipino enterprise can register their activity with the BOI if their project is listed as a preferred project in the current IPP. Said enterprise may engage in domestic –oriented activities listed in the IPP whether classified as pioneer or non-pioneer. However, an activity which is not listed, may also be entitled to incentives if the following conditions are met :
- At least 50% of the production is for export (for 60% Filipino-40% Foreign-owned enterprises); or
- At least 70% of production is for export (for more than 40% foreign–owned enterprises)
For foreign-owned firms or those whose foreign participation exceeds 40% of the outstanding capital stock who intend to engage in domestic-oriented activities, they can only be registered with BOI if they propose to engage in an activity listed or classified in the IPP as pioneer. However, if it fails to meet the pioneer classification, it can likewise opt to be an export-oriented firm to qualify for BOI registration. However, this time, the export requirement is at least 70% of actual production.
Our firm is ready to render services for BOI registration. We will begin the service by determining your eligibility for registration and we will take you through all the other steps for your company to be BOI registered.
To know more about this topic, please email firstname.lastname@example.org or call Atty. Joyce Domingo at +632-8231090 or +639175220680.
Add SEE ALSO: