The investment promotion agencies in the Philippines like BOI and PEZA play an important role in attracting foreign investment by providing various tax incentives. With the latest 2022 SIPP policy, pioneer projects can enjoy 6 years of income tax holidays. Companies registering with BOI or PEZA need to meet certain requirements, but can benefit from exemptions on import duties, income tax deductions, increased foreign worker quota etc. Overall, the investment environment in the Philippines keeps improving with favorable policies.
BOI and PEZA offer attractive tax perks to boost investment philippines
BOI and PEZA were established under the Department of Trade and Industry to promote investment in the Philippines. Based on the Omnibus Investments Code and Executive Order No. 226, these agencies are authorized to grant pioneer projects 6 years of income tax holidays, non-pioneer projects 4 years and expansion/modernization projects 3 years. Additional incentives include exemptions from import duties, tax credits on imported materials, enhanced deductions on labor costs etc. The recent 2022 SIPP further extended tax holidays for industries like AI, high-tech manufacturing critical to Philippines’ development.
Eligibility criteria for BOI and PEZA registration investment philippines
For local companies to register with BOI/PEZA, they need 60%+ Filipino ownership and be engaged in activities listed as investment priorities. Foreign companies can also register if pioneer project with 70%+ exports or located in less developed areas. All companies need to submit incorporation documents, financial projections, board resolution etc. The key difference between BOI and PEZA is that PEZA registered companies must relocate within special economic zones.
BOI policies create conducive environment investment philippines
Apart from tax incentives, BOI registration also allows increased foreign worker quota, simplified customs clearance for equipment import, privileges to operate bonded manufacturing warehouses etc. These measures greatly improve the ease of doing business and attract more foreign direct investment to the Philippines. For instance, PEZA offers permanent residency to investors subscribing 150k USD capital in local enterprises. The business-friendly reforms make the Philippines an increasingly popular investment destination.
Promising industries for pioneer projects investment philippines
Based on the latest Investment Priorities Plan and SIPP, promising industries to develop pioneer projects in the Philippines include IT and BPM, creative industries, medical tourism, inclusive businesses and infrastructure etc. Priority is also given to innovation drivers like artificial intelligence, robotics, biotechnology and semiconductor manufacturing which align with Philippines’ ambitions to move towards higher-value industries.
The Philippines offers a conducive environment for foreign investors through investment promotion agencies like BOI and PEZA. Pioneer projects can obtain 6 years income tax holidays plus many other incentives. With favorable policies and growth potential, the Philippines provides good opportunities across both traditional and emerging industries.