Foreign enterprises who wish to set up a business in the Philippines may opt to register with the Board of Investments (BOI). BOI offers numerous incentives such as income tax holidays, tax breaks and exemptions, etc.
To help you, we provided a guide that will help you thoroughly go through the BOI registration process, along with how you can avail of the tax incentives provided by the agency for your business in the Philippines
Generally, the BOI registration process is as follows:
- File the BOI Application Form along with supporting documents and the filing fee
- Prepare Evaluation Report (including Publication of Notice of Filing of Application and plant visit)
- Present the application form, evaluation report, and supporting documents to the BOI Management Committee
- Wait for the confirmation and letter advice from the BOI Governing Board regarding Board Action
- Submit letter advice to Applicant of Board Action
- If approved, submit the letter of approval and comply with pre-registration requirements
- Pay Registration Fee
- Secure Certificate of Registration from BOI
The registration process usually takes 10 to 20 working days, depending on your business entity, nature of proposed activities, and documents provided upon registration.
Before proceeding with registration, enterprises must ensure that they meet the following criteria to be eligible for the tax incentives provided by the agency.
- Enterprises with at least 70% of their products or services dedicated to export-oriented activities
- Enterprises with activities included in BOI’s Strategic Investment Priority Plan (SIPP)
- Enterprises that set up their office in Less Developed Areas (LDAs)
Foreign enterprises must accomplish the following documents when registering with BOI:
- SEC Certificate of Registration
- Articles of Incorporation and By-Laws
- Audited Financial Statement (feasibility report that contains projected financial reports for the next five years)
- Income Tax Return for the past three years (if applicable)
- Board Resolution of a duly authorized company representative/signatory
- Project Report (a report that contains activities listed or is related to those listed in the SIPP)
Additionally, BOI requires foreign investors to have an equity investment in a Philippine corporation to be eligible for tax incentives.
BOI offers fiscal and non-fiscal incentives to enterprises such as, but not limited to:
- Income tax holiday (ITH) of four to six years
- Special corporate income tax (SCIT) rate of 5% based on gross income in lieu of national and local tax rates for five to 10 years
- Value-added tax (VAT) zero-rating and exemptions on importation or local purchases of goods and services directly and exclusively used on the registered project.
- Duty exemption on imported capital equipment, raw materials, spare parts, or accessories
- Enhanced Deductions
- Employment of foreign nationals in supervisory, technical, or advisory positions
Register with BOI and Enjoy Tax Incentives Your Business
As an entrepreneur, ensuring that your business is registered with appropriate investment promotion agencies can help increase your company’s chances of success. Tax incentives such as income tax holidays (ITH), wharfage and duty exemptions, tax deductions, and the like provides you ways to focus your finances on other business operations while maximizing your profits and revenue.
Maximize Tax Incentives from BOI for Your Business
With a full suite of business registration services, our team is dedicated to ensuring that your enterprise is properly registered with BOI to be eligible for tax incentives in the Philippines.