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Primary Contact

316 Mile Long Building

Amorsolo Street

Legaspi Village

Makati City

1200 Philippines

Telephone: (632) 8941441

TeleFax: (632) 8124296



Office Hours

9:30AM to 5:30PM PH Time

Monday - Friday



Incentives to Foreign Investors




Board  of Investments (BOI) Incentives


Omnibus Investment Code of 1987 (EO 226) a amended is the law that grants incentives to foreign investors. The incentives available to BOI registered companies or enterprise are as follows:


Fiscal Incentives

• Income tax holiday. From the start of commercial operations, newly

  registered pioneer projects are exempt from income taxes for six years,

  non-pioneer firms for four years, and expansion projects for three years

  (for incremental sales revenue/volume). New registered pioneer and

  non-pioneer enterprises may avail of a bonus year in each of the

  following cases if:

• Indigenous raw materials used are at least 50% of the total cost of raw

  materials for the preceding years

• The ratio of total imported and domestic capital equipment to number of

  workers does not exceed US$10,000 to one worker, or

• The net foreign exchange savings or earnings amount to at least

   US$500,000 annually during the first three years of operation

• Additional deduction of labor expenses from taxable income

• Tax credit for taxes and duties on raw materials used in the manufacture,
  processing, or production of export products

• Additional deduction of necessary and major infrastructure expenses from

  taxable income

• Access to bonded manufacturing and warehouse system

• Exemption from taxes and duties on imported supplies and spare parts

  for consigned equipment

• Exemption from wharfage dues and any export tax, duty fee, and impost

Non-fiscal Incentives

• Simplification of customs procedures. Customs procedures are simplified

  for the importation of equipment, spare parts, raw materials, and supplies

  and the export of products of BOI-registered firms.

• Unrestricted use of consigned equipment. BOI-registered enterprises’ use

  of consigned equipment is unrestricted provided a re-export bond is


• Employment of foreign nationals. Foreign nationals may be employed in
  supervisory, technical, or advisory positions within five years from a

  registered project's registration, extendible for limited periods to be

  determined by the BOI. The positions of president, general manager, and

  treasurer, or their equivalents, of foreign-owned registered firms may be

  retained by foreign nationals for a longer period.

Qualifications for BOI-Registered Enterprises

1. If a natural person, he or she must be a Philippine citizen.

2. If a partnership or any other association, it must be organized under

    Philippine laws and at least 60% of its capital is owned and controlled by

    Philippine citizens.

3. If a corporation, it must be organized under Philippine laws and at least

    60% of the capital stock outstanding and entitled to vote is owned and

    held by Philippine nationals, and at least 60% of the members of the

    Board of Directors are Philippine citizens. If the corporation does not

    possess the required degree of ownership by Philippine nationals, the

    following circumstances must be satisfactorily established:

-  It proposes to engage in a pioneer project which cannot be readily and

   adequately filled by Philippine nationals, or the applicant will export at

   least 70% of its total production.

-  It obligates itself to attain the status of a Philippine national within 30

   years from date of registration, but a registered enterprise which exports

   100% of its total production need not comply with this requirement.

-  The pioneer area that  it will engage in is not within the activities

    reserved by the Constitution to Philippine citizens or corporations owned

    and controlled by citizens.

-  The business activity that the applicant will engage in is listed under the

   Investment Priorities Plan (IPP) of the Philippines.










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Guzman Tañedo & Acain Law Offices
316 Mile Long Building, Amorsolo Street, Makati City, Philippines - Telephone: 894.14.41; Telefax: 812.42.96

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