Requirement Incentives Activities

BOI- Filipino-owned Tax Incentives Companies that want to

registere enterprises are  income tax holidays engage in the following
d eligible to o six (6) years for business activities are
entities register for BOI projects with pioneer recommended to register
incentives if status and for projects with BOI:
they engage or located in a Less  Information
propose to Developed Area (LDA) Technology –
engage in an o four (4) years for new Business Process
activity listed projects with non- Outsourcing (IT-
in the current pioneer status BPO)
IPP. They can o three (3) years for  Knowledge Process
engage in any expansion/modernizati Outsourcing (KPO)
domestic- on projects  Legal Process
oriented  duty exemption on imported Outsourcing (LPO)
activity capital equipment, spare  Call Center
included in the parts, and accessories Agencies
IPP regardless  exemption from wharfage  Offshoring
if it is dues and export tax, duty, Companies
considered as impost, and fees  Staff
a pioneer  tax exemption on breeding Leasing/Augmentati
project or not.   stocks and genetic materials on Companies
Domestic
 tax credits on imported raw
foreign
materials
corporations
 tax and duty-free importation
(those that are
of consigned equipment
100% foreign-
owned) can  additional deduction for labor
avail of expense
incentives if Non-Tax Incentives
they engage in  employment of Foreign
pioneer Nationals
projects and  simplification of customs
satisfy any of procedures for imported
these products
qualifying  importation of consigned
requirements: equipment
 at least 70%  privilege to operate a bonded
of services manufacturing/trading
or products warehouse (subject to
are for custom rules and regulations)
export, or
 proposed
projects are
to be
undertaken
in areas that
are listed as
less
developed
areas (LDAs)
by the BOI
These
 enterprises are
obliged to
attain 60%
Filipino
ownership
within thirty
(30) years from
registration
unless they
export or are
planning to
export 100% of
their
production.
For enterprises
that intend to
engage in non-
pioneer
projects,
foreign
ownership is
limited to 40%,
unless the
enterprise will
export more
than 70% of its
annual
production.

PEZA- Foreign PEZA-registered companies are List of activities that are

registere corporations entitled to tax exemptions and other qualified for PEZA
d can apply for benefits including but not limited to incentives:
entities tax incentives the following:  Export
from PEZA if  all incentives under EO 226 Manufacturing
they meet the  preferential final tax of five  Information
eligibility percent (5%) of gross income Technology (IT)
requirements. in lieu of all national and local Service Export
To be eligible, taxes; after the income tax  Tourism
they must holiday period (alternatively,  Medical Tourism
establish their this incentive may be waived  Agro-industrial
business by the registered enterprise Export
locations in subject to certain conditions) Manufacturing
any of  tax and duty-free importation  Agro-industrial Bio-
PEZA’s econom of capital equipment, spare Fuel Manufacturing
ic zones or parts, raw materials, and  Logistics and
engage in supplies, which are needed in Warehousing
the list of the registered activity Services
activities that  tax credits for exporters  Economic Zone
are qualified using local materials as Development and
for PEZA inputs under RA 7844 or the Operation
incentives Export Development Act of  Facilities Providers
1994  Utilities
 value-added tax (VAT) rating
on local purchases of goods
and services, including land-
 based telecommunications,
electric power, and water bills
 exemption from expanded
withholding tax