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BOI - Board of Investments Tax Incentives

Posted by Dave on Thursday, May 7th, 2009

A corporation investing in the Philippines may avail of tax breaks and incentives by registering with the BOI - Board of Investments. The company must operate a business which has been recognized as a preferred area of investment in the Philippines Investment Priority Plan (IPP). For business activities not covered by the IPP incentives may still be available if:

1. at least 50% of production / service is for exports, if Filipino-owned enterprise,; and

2. at least 70% of production / service is for exports, if majority foreign-owned enterprise (more than 40% foreign equity),

Fiscal incentives includes the following:

* Income Tax Holiday
* Exemption From Taxes And Duties On Imported Spare Parts
* Exemption From Wharfage Dues And Export Tax, Duty, Impost And Fees
* Tax Exemption On BreedingStocks And Genetic Materials
* Tax Credits
* Additional Deductions from Taxable Income.

Income Tax Holiday (ITH) Advantages

Companies registered with the BOI are eligible for income tax holidays which range form 3 - 8 years. 4 years for new projects without pioneer status and 6 years for projects with pioneer status.

A 100% foreign owned corporation may be entitled to incentives if their business has been categorized as a pioneer project and at least 70% of production / service is exported or the project is in one of the less-developed areas mentioned in the IPP. Companies not exporting 100% of their production / services are obliged to have 60% Filipino ownership within a period of 30 years from time of registration with the BOI. Foreign ownership of corporations in non-pioneer projects is limited to 40% except if the company exports more than 70% of its production / service.

How to apply for Board of Investment incentives:

Submission of a notarized application specifying the nature of the projects, its inclusion in the IPP or not, percentage of production for export, the investors details and a 5 year feasibility study.

PEZA offers other tax breaks.

Email or call us Tel.: 63 2 474-2732 for a consultation

Comments

I would like to inquire if a foreign corporation, newly located in Bohol can avail tax incentives?

Rolaine, it depends on the kind of business, if there is a special economic zone there or it is
part of the Invest Priority Plan of the BOI.

hello

I would like to inquire if a new 100% Filipino owned single propriertorship BPO-export business can also avail of income tax holiday? for how many years it woulbe be?

thanks

Danny, yes Filipino owned companies may avail of tax holidays. How many years and what incentives depends on many factors and you will need to contact the BOI directly or hire a lawyer to negotiate for you.

Hi,

can i ask if the domestic corporation with tourism in nature (hotel, restaurant, spa) ca avail the incentives at BOI?

thanks and more power.

Ralph, yes it can as long as it fills the requirements of the BOI.

 

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