Company Registration with BOI Accreditation

The Board of Investments is the primary agency tasked by the government to promote investments in the Philippines. It periodically identifies economic activities to include in the government’s Investment Priority Plan (IPP), and devises a host of incentive schemes to encourage investments in these activities.

The IPP also aims to identify elements that hinder growth in a particular economic activity or sector, and to present solutions to these hindrances.

If your business is registered with the BOI, you can expect not only a wide range of fiscal and non-fiscal incentives, but also government support through favorable policies and specialized assistance.

BOI or PEZA?

Investors often have to decide whether to register their business with the BOI or PEZA. Both agencies offer similar incentives, and each one has advantages over the other.

PEZA-registered businesses can benefit from highlydeveloped infrastructures and policies designed to facilitate relevant operations, particularly those related to import and export. But PEZA requires the business to be located at a PEZA Ecozone. BOI registration, on the other hand, does not include any restriction on business location, and is open to companies catering to either the export or domestic market.

BOI Incentives

The BOI offers the following incentives to registered companies:

Fiscal Incentives:

• Income Tax Holiday for three to eight years
• Exemption from taxes and duties on imported spare parts
• Exemption from wharfage duties, as well as export tax, duty, impost and fees
• Reduced duty rates for capital equipment, spare parts and accessories
• Tax exemption on breeding stocks and genetic materials
• Tax credits on breeding stocks, genetic materials, raw materials and supplies
• Additional deductions from taxable income for labor expense

Non-Fiscal Incentives:

• Employment of foreign nationals for supervisory, advisory and technical positions
• Simplification of customs procedures
• Importation of consigned equipment for 10 years
• Operation of a bonded manufacturing/trading warehouse

BOI registration requirements

Foreign companies (more than 40% foreign-owned) may only qualify for BOI registration if:

• Their activity is classified in the IPP as a pioneer
• They export 70% of their output
• The documentary requirements for BOI registration include:
• Project report or summary detailing the company’s activities 
• Completed and notarized Application Form 501
• SEC certification for corporations and partnerships, or DTI registration for sole proprietorships
• Feasibility Report with projected financial statements for the next 5 years
• Financial statements and Income Tax Returns in the past three years (if applicable)

Filipino companies (at least 60% Filipino-owned) engaged in eitherthe export or domestic markets may qualify for BOI registration, provided their activities are included in the IPP. The most recent IPP covering the period from 2011 to 2016 includes the following investment priority areas:

• Business Process Outsourcing
• Electronics industry
• Agribusiness and fishery
• Renewable energy
• Shipbuilding
• Mass housing
• Iron and steel
• Energy
• Medical services
• Disaster prevention, mitigation and recovery
• Others

Filipino companies whose activities do not fall under the IPP may still qualify for BOI accreditation if they export at least 50% of their output.

How we can help

• Our team of legal and financial experts can help you in the following:
• Determine whether or not your enterprise is eligible for BOI accreditation
• Understand your incentive options (including PEZA incentives) and determine which could work best for you
• Prepare all the necessary documentation and take care of submitting and processing them with the BOI
• Compliance with regular BOI reportorial requirements once your company is registered

In addition, we offer PEZA accreditation services. For more information, read here: Company Registration with PEZA Accreditation