BOI MC No. 2015-01
BOI MC No. 2015-01
BOI MC No. 2015-01
BOARD OF INVESTMENTS
Industry and Investments Building
385 Sen. Gil J. Puyat Avenue, Makati City
MEMORANDUM CIRCULAR
NO. 2015- 01
A. PREFATORY STATEMENT
Philippines, the President issued Memorandum Order No. 74 dated 28 October 2014
approving the 2014 Investment Priorities Plan (IPP), which is centred on the theme
. A fundamental investment policy tool of
the DTI- an to grow
industries, not just or necessarily through incentives, but through other policy
interventions and initiatives. The IPP undertakes to address the most binding constraints
to the entry of new investments and moving up the value chain to enhance the local
The 2014 IPP is a rolling three-year plan to ensure continuity, consistency and
predictability factors seriously considered by domestic and foreign investors. This new
IPP will, however, be reviewed annually over the three-year period.
Therefore, notice is hereby given that the Board approved the following General Policies
and Specific Guidelines to implement the 2014 IPP.
B. GENERAL POLICIES
I. APPROVAL OF APPLICATION AND ENTITLEMENT TO INCENTIVES
The approval of application for registration and entitlement to incentives under this
IPP is subject to Article 7, paragraph 3 of Executive Order (E.O.) No. 226.
The approval of applications for registration shall be based on the IPP listing.
However, the extent of entitlement to incentives shall be
value-added, job generation, multiplier effect and measured capacity.
The BOI, if national interest requires, may deny registration of projects engaged in the
export of a product including industry inputs that are in short supply domestically.
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II. EQUITY OWNERSHIP
Except as provided for under the Constitution and the Foreign Investments Act of
1991 (Republic Act No. 7042, as amended), there are no restrictions on foreign
ownership of export-oriented and/or pioneer enterprise that will engage in the
activities listed in the IPP.
The minimum equity of the project applied for registration is 25% of the project cost
unless exempted under any of the following:
For projects with a gestation period of more than three (3) years, the 25% equity
requirement shall be based on the annual capital requirement of the project; Provided
that the total equity requirement of 25% is complied with on the first year of ITH
availment. Non-compliance with this policy shall result in forfeiture of ITH incentives
for the taxable year.
For multi-phase projects, the 25% equity requirement shall be based on the annual
capital requirement of each phase; Provided that the total equity requirement for the
first phase is complied with on the first year of ITH availment; and the corresponding
cumulative equity requirement for the succeeding phases is complied with on the first
ITH availment of each succeeding phase thereafter. Non-compliance with this policy
shall result in forfeiture of ITH incentives for the taxable year.
Pioneer status with pioneer incentives shall be governed by Article 17 of E.O. 226.
Projects in any of the identified less developed areas (LDAs) listed in Annex A
shall be entitled to pioneer incentives and additional deduction from taxable
income equivalent to 100% of expenses incurred in the development of necessary
and major infrastructure facilities unless otherwise specified in the Specific
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Guidelines.
The BOI shall limit incentives to firms that locate in congested urban centers. The
locational restriction applies to the National Capital Region (NCR) wherein
projects are not entitled to ITH. Exemption from the above locational restriction,
however, may be given to the following:
A. General Rules
1. In the grant of incentives, the Board shall give priority to projects with
value added, (2) job generation, (3) multiplier effect, and (4) measured
capacity.
In the event that the registered enterprise fails to implement the project as
represented in its project application, the Board may opt to reduce the
performance (e.g.
investments, employment generation, production and sales, timetable) of the
enterprise.
The income qualified for ITH shall be limited to the income directly
attributable to the eligible revenue generated from registered project.
1
Government Industrial Estates
a) Dagat-Dagatan (P.D. No. 569 dated 30 October 1974)
b) Vitas Industrial Estate, Tondo (E.O. No. 1086 dated 31 January 1986, as amended/expanded through
Presidential Proclamation No. 39 dated 09 September 1992 and Proclamation No. 465 dated 01 August
1994) (Vitas Industrial Estate/Smokey Mountain)
c) Bagong Silang Industrial Estate, Caloocan City (Presidential Proclamation No. 843 dated 26 July 1971)
d) Food Terminal Inc., Taguig (LOI No. 900 dated 25 July 1979)
e) Navotas Fishing Port Complex (E.O. No. 772 dated 08 February 1982)
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2. Except for renewable energy projects, the basis of net income qualified for
ITH shall be limited to the 110% of the projected gross revenues as
represented by the firm in its application for registration.
4. Only net income from operation of registered activity as certified under oath
by CEO or CFO shall be entitled to ITH.
5. Enterprises with multiple registrations with the Board and/or several activities
(whether BOI-registered or not) shall submit a list of cost items that are
common with the qualified project and their cost allocation methodology for
the said cost items, to ensure proper, fair and equitable allocation of common
cost such as overhead and administrative costs.
case of heterogeneous products, in the last three (3) years, prior to the filing of the
application for registration of the project.
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For multiple products/ activities or when ITH period of other products/ activities
has lapsed:
Where:
ROE shall be fixed for the ITH entitlement period.
Exchange rate shall be the existing rate at the time of actual investment or time
of availment of ITH whichever will result in lower rate of ITH.
Replacement cost shall refer to the appraised value of its Fixed Assets relative
to the concerned plant in the first year of ITH availment duly assessed and
certified by an Independent Appraiser accredited by the Bangko Sentral ng
Pilipinas. This shall thereon be used as a basis in succeeding ITH availments
until the end of the ITH entitlement period of the project.
% Sales Entitled to ITH shall be based on actual sales values for the year of
availment.
a) Formula:
c) The direct labor count shall represent an average of the month end labor
count for the same taxable year as represented in b.
d) On the year of the actual availment of the ITH bonus year, the firm must
still comply with the capital equipment to labor ratio criterion to be
entitled to it.
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2. Net Foreign Exchange Earnings/Savings Criterion
a) Formula:
d) On the year of the actual availment of the ITH bonus year, the firm must
still comply with the indigenous raw material cost criterion to be entitled
to it.
The ITH is deemed to have been imputed in the grant of the government
guarantee/subsidy if the ITH was incorporated in the bid documents of the project
proponent/contract with government on the project, or the ITH was included in the
The latter case is particularly applicable to power projects and thus, subject to a
certification by the Energy Regulatory Commission (ERC).
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VIII. MULTI-PHASE PROJECTS
Registered enterprises are encouraged to adopt the Inclusive Business (IB) strategy
that provides: a) goods and services; and b) income and decent work opportunities for
the low-
directly contributing to the improvement of living standards and poverty reduction.
The IB strategy of the registered enterprise may be accredited by the Board subject to
the guidelines that will be issued by the Board separately.
BOI registered entities, recognizing the benefits derived from the fiscal incentives
granted by the government, should endeavour to undertake meaningful and
sustainable CSR projects in the locality where the projects are implemented.
Registered enterprises shall adopt measures intended to reduce climate change risks in
support of the National Framework Strategy on Climate Change.
Applicants for BOI registration must submit proof of application for ECC/CNC filed
with DENR.
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Registered enterprises are encouraged to secure environmental certifications based on
internationally-recognized standards, whenever applicable.
XIV. EQUIPMENT
Registered enterprises shall use brand new equipment except for projects utilizing
consigned equipment, projects involving transfer of facilities, and when specified in
the Specific Guidelines, and apply production processes that meet environmental
standards. Application for availment of capital equipment incentive shall be filed prior
to the ordering of equipment.
The ARMM List covers priority activities that have been identified by the Regional
Board of Investments of the ARMM (RBOI-ARMM) in accordance with E.O. No.
458. The RBOI-ARMM may also register and administer incentives to activities in
this IPP for projects locating in the ARMM.
Revenues from the sale of carbon credits through certified emission reduction (CER)
units generated from registered activity may be considered as part of the income
entitled to ITH, provided that the enterprise made representation at the time of
application for registration that such projects would earn CER units.
The BOI may deny applications for registration and/or grant of incentives for reasons
of public health or morals or for environmental considerations.
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C. DEFINITION OF TERMS
a) Alternative Fuel Vehicles refer to vehicles that run on electric batteries, flexible
fuels, hybrid systems.
e) Distribution - refers to bunkering and fuels shipping and transport. Fuels shipping
and transport cover shipping and transport through land such as tank trucks, lorries
and pipeline and tankers, and barges for the fuels to get to the points or areas where
they are needed. Bunkering covers the activity of selling fuel for direct use by a
vessel, usually for water and air transport, through a smaller transport vessel.
Distribution projects are limited to those acquiring brand new equipment.
g) Energy crops - refer to plants that may be used as feedstock for biofuels and/or
power generation. These include grass, bamboo, leguminous tree species, sugarcane,
sweet sorghum, cassava, algae, coconut, and oil palm and other crops as may be
identified by the DOE.
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Biodiesel vehicles that run on diesel and a minimum biodiesel blend/content of at
least 5%
Compressed Natural Gas Vehicles are vehicles that run on Compressed Natural
Gas (CNG)
Other vehicles powered by LPG, fuel cell and other alternative fuels.
k) General Hospital refers to a hospital with Levels 1, 2 or 3 that provides services for
all kinds of illnesses, diseases, injuries, or deformities. It shall provide medical,
surgical, maternity, newborn, and child care. It shall employ Board-certified/eligible
medical specialists and other licensed physicians.
m) General Hospital Level 2 refers to a hospital that has, as minimum, all of Level 1
capacity including the following:
An organized staff of qualified and competent personnel with Chief of
Hospital/Medical Director and appropriate Board-certified Clinical Department
Heads;
General ICU for critically-ill patients;
Provision for Neonatal Intensive Care Unit (NICU);
Provision for High Risk Pregnancy Unit (HRPU);
Provision for respiratory therapy services;
DOH licensed tertiary clinical laboratory;
DOH licensed level 2 imaging facility with mobile x-ray inside the institution and
capability for contrast examinations.
n) General Hospital Level 3- refers to a hospital that has, as minimum, all of Level 2
capacity including the following:
Teaching and/or training hospital with accredited residency training program for
physicians in the four (4) major specialties namely: Medicine, Pediatrics,
Obstetrics and Gynecology, and Surgery;
Provision for physical medicine and rehabilitation unit;
Provision for ambulatory surgical clinic;
Provision for dialysis facility;
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Provisions for blood bank;
DOH licensed tertiary clinical laboratory with standard
equipment/reagents/supplies necessary for the performance of histopathology
examinations;
DOH licensed level 3 imaging facility with interventional radiology.
q) Inclusive Business are those profitable core business activities that deliberately
target the low-income segment (below US$3/day) as part of their value proposition.
IB creates or expands access to goods, services, and livelihood opportunities for the
poor and vulnerable in commercially viable and scalable way.
s) Logistics Efficiency Index refers to the measure of cost efficiency of the logistics
involved in the supply of motor vehicle parts and components for the enrolled Model.
It is computed as follows:
t) Job Generation - refers to the number of jobs directly generated by the project
regardless of the length of employment.
(1) Retailing or selling in retail generally directed to the end users, through dispensing
pumps in stations or in packaged containers such as drums for the liquid fuels or
metal cylinders that are compliant with PNS. This includes the establishment and
operation of gasoline/natural gas stations and retailing.
(2) Fuels bulk marketing or selling in wholesale through tank trucks, lorries, double-
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stations and LPG/LNG outlets.
w) Metro Cebu is composed of Cebu City, Lapu-Lapu City, Mandaue City, Cordova,
Consolacion, Liloan, Compostela, Talisay, Minglanilla, and Naga.
x) Metro Davao is composed of Davao City and the adjoining towns of Panabo and
Sta. Cruz.
aa) Multiplier Effect - refers to the increase in economic activity and interrelationships
generated and stimulated by the investment.
bb) New Plantation Area - refers to new hectarage of plantation or lands that have been
idle for at least one year or those involving change of crops/variety to achieve higher
yield or shifts in the production system such as organic farming.
cc) New Project - refers to a project/activity listed in the IPP that has not started
commercial operation undertaken by:
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(2) An existing enterprise that shall engage in:
i. an entirely distinct and different activity from its existing business operations;
or
ii. the same activity provided it shall establish a new facility2 in an area not
contiguous to the premises of its existing project and with new investments.
(4) For industrial tree plantations, an enterprise involved in the development of any
public or private land to plantation of timber and non-timber species to supply the
raw material requirements of forest-based industries. It also includes plantation
with existing tree crops, which have not yet reached commercial harvest.
dd) Net Value-added - refers to the value of final product/service less the value of inputs.
pendent on
imported raw materials/ supplies.
ee) Original Text with Annotations refer to written works where the original text is
augmented with annotations, such as additional comments, highlights, evaluation, or
explanation, that are provided by the same or another author for the purpose of further
analyses and understanding of the said original text by a specific audience.
ff) Original Works are original intellectual creations in the literary and artistic domain
protected from the moment of their creation and shall include in particular books,
pamphlets, articles and other writings.
(1) Custodial Care Facility a health facility that provides long-term care, including
basic human services like food and shelter to patients with chronic or mental
illness, people requiring ongoing health and nursing care due to chronic
impairments and a reduced degree of independence in activities of daily living.
(2) Diagnostic/Therapeutic Facility - a facility that examines the human body or
specimens from human for the diagnosis, sometimes treatment of diseases.
(3) Specialized Out-patient Facility - a facility with highly competent and trained
staff that performs highly specialized procedures on an out-patient basis; examples
are, but not limited to the following: (i) Dialysis Clinic, (ii) Ambulatory Surgical
Clinic, (iii) Oncology Chemotherapeutic Center/Clinic, (iv) Radiation Oncology
Facility, (v) Physical Medicine and Rehabilitation Center / Clinic.
(4) Geriatric Care Facilities.
2
New Facility refers to new complete line used in the production of the registered product/service separate from
existing line
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ii) Specialty Hospital refers to a hospital that specializes in a particular disease or
condition or in one type of patient. A specialized hospital may be devoted to
treatment of any of the following:
(1) Treatment of particular types of illness for a particular condition requiring a range
of treatment. Examples of these hospitals are Philippine Orthopedic Center,
National Center for Mental Health, San Lazaro Hospital, and hospitals dedicated
to the treatment of cancer.
(2) Treatment of patients suffering from diseases of a particular organ or groups of
organs. Examples of these hospitals are Lung Center of the Philippines, Kidney
and Transplant Institute, and hospitals dedicated to treatment of eye disorders.
(3) Treatment of patients belonging to a particular group as children, women, elderly
and others.
Dr. Jose Fabella Memorial Hospital.
jj) Start of Commercial Operations shall be the date specified in the project study
submitted to the Board or the date when a particular enterprise actually begins
production of the registered product for commercial purposes or commercial harvest
in the case of agricultural activities, whichever comes first, irrespective of phases or
modules or schedule of development. In the case of service oriented activities, it shall
mean the date when a particular registered enterprise begins catering to or servicing
its clients on a commercial basis. In the case of export traders and service exporters,
the term shall mean the date when the initial export shipment in commercial quantity
has been made or initial performance of service as borne out by the appropriate
supporting documents.
For renewable energy projects (RE), start of commercial operations shall refer to the
state at which the RE Plant generated the first kilowatt-hour of energy after
commissioning or testing, or two (2) months from the date of such commissioning or
testing, whichever comes earlier, as certified by the DOE.
kk) Storage - refers to the business of receiving/discharging and storing petroleum crude
and/or products of others for compensation or profit. Storage projects are limited to
those establishing new facility, i.e., depot or storage tanks.
ll) Trial Operation refers to the initial pre-commercial phase based on 10% of the
annualized sales vis--vis the first year of the project s projected revenues. This shall
not apply to energy projects.
mm) TSD (Treatment, Storage, and Disposal) Facilities - are the facilities where
hazardous wastes are stored, treated, recycled, reprocessed, or disposed of.
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D. SPECIFIC GUIDELINES
I. PREFERRED ACTIVITIES
1. Manufacturing
a. Motor vehicle (excluding motorcycles, e-bikes and golf carts) and motor
vehicle parts and components
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automotive glass; engine parts & assembly; and transmission parts &
assembly
e) Controller assembly, motor, and battery (other than lead acid) for
electric vehicle
(1) Shipbuilding
This covers the construction of ships that are at least 500 GT and the
manufacture of parts and components.
This covers the manufacture of parts and components such as but not
limited to fit-outs, pumps, marine engines, navigational equipment, marine
boilers, and propellers.
This covers the manufacture of aerospace parts and components, and support
activities (e.g., R&D activities, research/testing laboratories, and technical
vocational education and training institutions).
d. Chemicals
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(2) Petrochemical Products and its Derivatives
Petrochemical products and its derivatives include, but are not limited to,
the manufacture of derivatives from ethylene such as ethylene dichloride
(EDC) and vinyl chloride monomer (VCM); olefins and polyolefins
[Polyethylene (PE), Polypropylene (PP), Polystyrene (PS), and Polyvinyl
Chloride (PVC)], derivatives from propylene, derivatives from mixed C4,
and aromatic derivatives.
This covers the production of pulp integrated with forest plantation, research
& development, and technical vocational education and training institutions.
This covers the manufacture of copper wire rods and enamelled wires,
research & development, and technical vocational education and training
institutions.
This covers the production of copper enamel wires. All enamelled wire
products must be compliant with the applicable Philippine National
Standards (PNS).
g. Basic iron and steel products, steel grinding balls, long steel products (billets
and reinforcing steel bars), and flat hot/cold-rolled products.
All iron and steel products must be compliant with the applicable Philippine
National Standards (PNS).
This covers the production of dies and molds, research & development, and
technical vocational education and training institutions.
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Simple, compound and progressive dies for metal stamping or metal
forging
Molds for die casting, for plastic injection or blow molding, glass blow
molding, forging, encapsulation molds
Jigs and fixtures for metal cutting and metal forging.
a. Commercial production3
(1) Coconut, corn, cassava, coffee, cocoa, fisheries, poultry and livestock;
(2) High value crops - rubber, spices, vegetables and fruits;
(3) Emerging commodities sampaloc, jackfruit, peking duck, native pigs,
siling labuyo, peanuts, monggo, and achuete.
b. Commercial processing3
(1) Extraction of higher value substances from agricultural and fishery raw
materials through bioprocessing; or
(2) Conversion of agricultural and fishery products or wastes to a form ready
for further processing or final consumption.
c. Production of animal and aqua feeds excluding those for game animals, fowls
and other species for pet/leisure purposes.
3
Subject to geographical supply considerations. In the case of poultry and livestock production, this is limited to
areas in ARMM, Mindoro and Palawan.
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centers; ice plants in Less Developed Areas; AAA slaughterhouse; research &
development/testing facilities; technical vocational education and training
institutions; and AAA dressing plant.
For projects under (c), (d), (f), and (g) above supporting agricultural commercial
production, the qualification for registration is subject to the geographical market
conditions, industry roadmaps and industry clustering strategies.
3. Services
c. Ship repair
This covers the establishment of charging stations for electric vehicles. The
charging stations could refer to a 'service station' designed to simultaneously
fast charge multiple vehicles similar to gasoline/diesel stations or a network of
at least 5 charging stands.
4
Covers start-ups of small newly incorporated domestic players/enterprises only.
5
Covers only those with own Intellectual Property that are developed for commercial sale.
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e. Maintenance, Repair and Overhaul (MRO) of aircraft
This covers the establishment of treatment facilities for toxic and hazardous
wastes (THW) from an industrial operation.
This covers the development of economic and low-cost housing and the
manufacture of modular housing components.
Projects that have already been completed and have incurred sales (booked
sales) of housing packages shall not qualify for registration.
6
Based on a price ceiling of Php3.0 million and subject to geographical considerations.
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project owned by the same entity and shall share common facilities
including access to the existing project.
In the case of joint venture projects, the BOI registered entity shall be
required to provide proof of funds transferred to the implementing
entity.
In lieu of the above modes for compliance with the SHR, vertical housing
projects may opt to donate provided: (1) the donation is made to BOI
accredited NGO and (2) the amount to be donated shall be equivalent to
30% of (20% of the building construction cost based on the actual number
or equivalent total floor area of qualified saleable low cost housing units)
or not less than 40% of the estimated ITH. Equivalent total floor area
refers to the sum total of the floor area of all the registered low-cost
housing units.
Project shall conform with the design standards set forth in the Rules and
Regulations to Implement B.P. No. 220/P.D. No. 957 and other related
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laws.
Eligible projects in NCR, Metro Cebu, and Metro Davao may only be granted
three (3) years ITH unless the SHR compliance of the said projects would be
undertaken in any of the identified calamity-stricken areas in the
Interest income arising from in-house financing shall not be entitled to ITH.
5. Hospitals7
This covers the establishment and operation of general and specialty hospitals and
other health facilities.
7
Subject to geographical considerations.
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Only revenues derived from medical and diagnostic services rendered by the
registered entity shall be entitled to ITH. Income from lease/rent, and revenues
from any other non-treatment related services will not be eligible for ITH.
Prior to start of commercial operation, the registered enterprise must submit the
License to Operate from the Bureau of Health Facilities and Services of the DOH,
where applicable.
Prior to availment of ITH, the registered enterprise must submit a copy of its
Certificate of PhilHealth Accreditation, where applicable.
6. Energy
This covers power generation projects utilizing conventional fuels (i.e., coal,
diesel, bunker, natural gas, and geothermal), waste heat and other industrial
wastes. Only projects that will respond to the capacity installation gap based
-year supply-demand forecast and will operate on or before
2019 may qualify for registration. Availment of ITH shall be on a first to
operate basis.
8
-year supply-demand forecast or up to 2019, i.e., if
forecast is 6000MW, then the first 6000MW capacity receives the incentives, and said installation gap will be
divided among areas in Luzon, Visayas and Mindanao.
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the Department of Energy (DOE) as of February 2015 and may be subject to
re-allocation based on regional power demand and supply situation.
Power projects that are built contiguous to its existing generating facilities
shall be considered as expansion projects. However, if the existing base load
power plant has consistently dispatched at least 80% of its registered capacity
for the past 3 years, the project to be registered may be considered new.
Revenues of base load plants derived through the Wholesale Electricity Spot
Market (WESM) shall not be entitled to ITH.
Within one (1) year from the date of registration, projects with loan
components in their financing scheme must have achieved Financial Close;
c. Ancillary services
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7. Public Infrastructure and Logistics
a. Airports and seaports (includes RO-RO ports) for cargo and passenger
b. Air, land and water transport (limited to brand new ships, aircraft, seaplanes,
RO-RO; buses, boats, mass rail - limited to capital equipment incentive only)
This covers passenger and/or cargo air transport operation for commercial
purposes.
Only revenues derived from cargo air freight fares, passenger air fares, and
revenues on refund, cancellation and rebooking fees shall be entitled to
ITH. Incidental revenues such as those earned from excess baggage
(including prepaid baggage), seat selector options, merchandise sales such
as sale of meals/beverages, souvenirs, travel related products and other
commodities, package tours and other incidental revenues as may be
determined by the Board shall not be entitled to ITH.
This covers mass transport using brand new buses that run on electric
batteries, and/or compressed natural gas.
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Application for registration must be accompanied by a copy of the
application for franchise with the Land Transportation Franchising &
Regulatory Board (LTFRB).
This covers mass rail transport system for passengers and cargoes in line
with the transport development plans and programs of the Department of
Transportation and Communications (DOTC).
This covers the establishment and operation of natural gas storage and
regasification facilities in accordance with relevant Philippine National
Standards (PNS).
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Must cater to power plants, industrial plants, commercial establishments,
etc.
Must cater to at
business.
The registered enterprise must submit a copy of its Permit to Operate issued
by the DOE prior to start of commercial operations.
Bulk water supply projects must involve extraction of water from its natural
source, except shallow and deep wells, and water treatment for commercial
purposes. The water treatment facility shall cover the minimum basic process
flow of a treatment plant (i.e. screening, mixing, flocculation, sedimentation,
filtration and chlorination) with capacity sufficient to handle the volume of
raw water to be supplied to its target service area.
Only new bulk water treatment and supply projects may qualify for
registration. Supply of water (or distribution) should include extraction of
water, treatment and installation of distribution lines and flow metering
systems. Treated water should be in accordance with the PNS for Drinking
Water.
8. PPP Projects
This covers projects implemented under Republic Act No. 6957, as amended by
Republic Act No. 7718 (Amended Build-Operate-and-Transfer Law).
This covers the manufacture of export products, services exports and activities in
support of exporters.
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1. Production and Manufacture of Export Products
In the export of mineral products, the Specific Guidelines for R.A. No. 7942 of
this IPP shall apply suppletorily.
2. Services Exports
This covers service activities rendered to clients abroad and paid for in foreign
currency with export requirement of at least 50% of its revenue, if Filipino-owned
or at least 70%, if foreign-owned.
For contact centers, project must have a minimum investment cost of the
Philippine Peso equivalent of US$5,000 per seat to qualify for registration. This
amount covers the cost of equipment (hardware and software), office furniture and
fixture, building improvements and renovation, and other fixed assets except land,
building and working capital. If equipment used were leased, the same should be
converted to assets in terms of commercial interest rates and amortized over a
five-year period. If equipment were consigned, the same should have an assigned
value to be considered as part of the project cost.
In the case of contact centers, revenues shall be unbundled to show the breakdown
of servicing domestic and overseas markets.
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This also covers service providers to foreign film and television production
projects in the country as endorsed by the Philippine Film Export Services Office
(PFESO) as mandated by E.O. No. 674.
This covers extensive plantation of forest land of tree crops (except fruit trees) for
commercial and industrial purposes.
Tree crops include timber and non-timber species such as rubber, bamboo, rattan,
etc. (excluding fruit trees) for commercial and industrial purposes.
In cases of tree plantations that are joint venture agreements with other private
entities, community organizations or government entities, only the share of the
registered enterprise may be entitled to ITH.
This covers content development intended for books and publication of books in
print or digital format.
New book titles (original works, and original text with annotations), and
First format by which the new book title will be produced or published. The
succeeding format (e.g., print to digital, or vice versa) by which the same title
Re-prints, revisions, and succeeding editions of existing titles will not qualify for
registration.
9
Industrial Tree Plantation (ITP) is also known as Industrial Forest Plantation (IFP) based on DENR AO 1999-
53
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For unpublished content, application for registration may be on a per book title or
a maximum of five (5) book titles per application.
A minimum of 10 titles with 1,000 copies each for its first print run, in case of
printed books; and
A minimum of 10 titles each, in case of e-books.
For gasoline retailing stations, except those locating in LDAs listed in this IPP, the
applicant shall be required to invest a minimum capital of PhP10 million per
station, excluding land, or such amount as may be determined jointly by BOI and
DOE for augmentation purposes, as the need arises; Provided, that foreign
retailers shall comply with the requirements provided under R.A. No. 8762,
otherwise known as the Retail Trade Liberalization Law, and its implementing
rules and regulations.
For projects that involve more than one activity, i.e., storage, marketing and
distribution, each must be unbundled showing the revenue streams and costs for
each activity.
Applicant enterprises shall elect to be governed by the provisions of E.O. No. 226
or R.A. No. 8479 at the time of their application for registration, provided that
such election once made shall be final.
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5. Rehabilitation, Self-Development and Self-Reliance of Persons with Disability
This covers the manufacture of technical aids and appliances for the use and/or
rehabilitation of persons with disability, and the establishment of special schools,
day care centers, homes, residential communities or retirement villages solely to
suit the needs and requirements of persons with disability.
6. Renewable Energy
Applicant enterprises shall elect to be governed by the provisions of E.O. No. 226
or R.A. No. 9513 at the time of their application for registration.
7. Tourism
This covers tourism enterprises that are outside the tourism enterprise zones
(TEZs) and are engaged in the following:
a. Tourist transport services whether for land, sea and air transport for tourist
use;
Page 31 of 48
Convention and exhibition faci
Amusement parks;
Adventure and eco-tourism facilities;
Sports facilities and recreational centers;
Theme parks;
Health and wellness facilities such as but not limited to spas;
Agri-tourism farms and facilities; and
Tourism training centers and institutes.
This covers transport services whether for land, water and air transport for
tourist use.
Land transport covers the operation of brand new, world-class buses and/or
mini-buses/coasters. The quantity or number of units of vehicles that may be
allowed shall be determined based on the number of tourist arrivals in the area
or the ratio of hotel/resort facilities/rooms.
Income arising from gaming and mall operations are not qualified for ITH.
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The quantity or number of units of buses and/or mini-buses/coasters
that may be allowed shall be determined based on the number of tourist
arrivals in the area or the ratio of hotel/resort facilities/rooms.
Metro Manila;
Cebu City;
Mactan Island; and
Boracay Island.
Prior to ITH availment, the registered enterprise must submit a copy of DOT
accreditation.
Locators engaged in the activities listed in the IPP that are related to
retirement business may be registered as separate activity.
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This covers the conservation, preservation or restoration of national sites or
properties.
These General Policies and Specific Guidelines shall take effect immediately upon
publication.
Page 34 of 48
ANNEX A
Province Municipality/City
Boliney
Bucay
Bucloc
Danglas
Daguioman
Dolores
Lacub
Lagangilang
Lagayan
Langiden
La Paz
Licuan-baay (Licuan)
ABRA
Luba
Malibcong
Manabo
Pearrubia
Pidigan
Pilar
Sallapadan
San Isidro
San Juan
San Quintin
Tayum
Villaviciosa
AGUSAN DEL NORTE Remedios T. Romualdez
Buruanga
AKLAN Lezo
Tangalan
Belison
ANTIQUE
Libertad
Itbayat
Basco
Sabtang
BATANES
Ivana
Mahatao
Uyugan
Balete
San Nicolas
BATANGAS
Santa Teresita
Tingloy
Sablan
BENGUET
Tublay
Almeria
Biliran
BILIRAN
Cabucgayan
Caibiran
Culaba
Page 35 of 48
Province Municipality/City
Kawayan
Maripipi
Alburquerque
Anda
Batuan
Clarin
Corella
BOHOL Cortes
Dagohoy
Lila
Loay
San Isidro
Sevilla
Sikatuna
CAGAYAN Rizal
Santa Praxedes
CAMARINES NORTE San Vicente
Bombon
CAMARINES SUR Cabusao
Gainza
Camaligan
Catarman
CAMIGUIN Guinsiliban
Mahinog
Sagay
Bagamanoc
Baras
CATANDUANES Bato
Gigmoto
Panganiban (Payo)
San Miguel
CAVITE General Emilio Aguinaldo
Alcantara
Alcoy
Boljoon
Ginatilan
CEBU
Malabuyoc
Pilar
Ronda
Samboan
Tudela
DAVAO DEL NORTE San Isidro
Dinagat
DINAGAT ISLANDS Libjo (Albor)
Tubajon
Balangkayan
General Macarthur
Giporlos
EASTERN SAMAR Hernani
Jipapad
Lawaan
Maslog
Page 36 of 48
Province Municipality/City
Mercedes
Quinapondan
Salcedo
San Julian
San Policarpo
GUIMARAS San Lorenzo
Hingyon
IFUGAO
Asipulo
ILOCOS NORTE Adams
Gregorio del Pilar (Concepcion)
Lidlidda
Nagbukel
San Esteban
ILOCOS SUR San Ildefonso
San Vicente
Santa Catalina
Sigay
Sugpon
Mina
Batad
ILOILO
Bingawan
San Rafael
San Isidro
ISABELA
Luna
KALINGA Pasil
Famy
Mabitac
LAGUNA
Pakil
Rizal
Kauswagan
Linamon
Magsaysay
Matungao
LANAO DEL NORTE Pantar
Salvador
Sapad
Tagoloan
Tangcal
Bayang
Butig
Calanogas
Lumbatan
Masiu
LANAO DEL SUR
Pagayawan (Tatarikan)
Pualas
Sultan Dumalondong
Tamparan
Tugaya
Bagulin
LA UNION Burgos
Pugo
LEYTE Hindang
Page 37 of 48
Province Municipality/City
Julita
La Paz
Macarthur
Mayorga
Merida
Pastrana
Santa Fe
Tabontabon
Tolosa
Tunga
Datu Unsay
Kabuntalan (Tumbao)
MAGUINDANAO Mamasapano
Northern Kabuntalan
Sultan Mastura
Batuan
MASBATE Esperanza
San Fernando
Baliangao
Concepcion
MISAMIS OCCIDENTAL Panaon
Sapang Dalaga
Sinacaban
Balingoan
Binuangan
Gitagum
MISAMIS ORIENTAL Kinoguitan
Lagonglong
Libertad
Sugbongcogon
Barlig
Besao
MOUNTAIN PROVINCE Sabangan
Sadanga
Sagada
NEGROS ORIENTAL San Jose
Allen
Biri
Capul
Lapinig
Mapanas
NORTHERN SAMAR
Rosario
San Antonio
San Jose
San Vicente
Victoria
Nampicuan
NUEVA ECIJA
Palayan City
Ambaguio
NUEVA VIZCAYA
Villaverde
OCCIDENTAL MINDORO Looc
PANGASINAN Santo Tomas
Page 38 of 48
Province Municipality/City
Agutaya
Cagayancillo
PALAWAN
Linapacan
Magsaysay
Agdangan
Alabat
Jomalig
Patnanungan
QUEZON
Perez
Plaridel
Quezon
Sampaloc
QUIRINO Saguday
Alcantara
Banton
Calatrava
Concepcion
Corcuera
ROMBLON Ferrol
Magdiwang
San Andres
San Jose
Santa Fe
Santa Maria (Imelda)
Almagro
Jiabong
Marabut
Matuguinao
Pagsanghan
SAMAR (WESTERN SAMAR)
San Sebastian
Santo Nio
Tagapul-an
Talalora
Zumarraga
Enrique Villanueva
Larena
SIQUIJOR
Maria
San Juan
Barcelona
SORSOGON Prieto Diaz
Santa Magdalena
Anahawan
Hinundayan
Libagon
Limasawa
Padre Burgos
SOUTHERN LEYTE
Pintuyan
San Francisco
San Juan (Cabalian)
San Ricardo
Tomas Oppus
SULU Hadji Panglima Tahil (Marunggas)
Page 39 of 48
Province Municipality/City
Kalingalan Caluang
Lugus
Maimbung
Panglima Estino (New Panamao)
Pata
Tapul
Alegria
Bacuag
Burgos
Del Carmen
General Luna
Malimono
Pilar
SURIGAO DEL NORTE
San Benito
San Francisco (Anao-aon)
San Isidro
Santa Monica (Sapao)
Sison
Tagana-an
Tubod
Bayabas
SURIGAO DEL SUR
Carmen
Anao
TARLAC Ramos
San Clemente
TAWI-TAWI Turtle Islands
Mutia
ZAMBOANGA DEL NORTE Rizal
Sibutad
Josefina
Sominot (Don Mariano Marcos)
ZAMBOANGA DEL SUR
Tigbao
Vincenzo A. Sagun
ZAMBOANGA SIBUGAY Talusan
Page 40 of 48
ANNEX B
(b) Animals obtained by hunting, Covers animals obtained in the wild, whether live or
trapping, fishing, gathering or dead, whether or not born and raised in the
capturing in the Philippines Philippines
(c) Products obtained from live Covers products obtained from live animals without
animals in the Philippines further processing, including milk, eggs, natural
honey, hair, wool, semen and dung
(d) Plants and plant products Covers all plant life, including fruit, flowers,
harvested, picked or gathered vegetables, trees, seaweed, fungi and live plants
in the Philippines grown in the Philippines
(e) Minerals and other naturally Covers crude minerals and other naturally occurring
occurring substances, not substances, including rock or solar salt, crude mineral
included in (a) and (d), sulphur occurring in free state, natural sands, clays,
extracted or taken in the stones, metallic ores, crude oil, natural gas,
Philippines bituminous minerals, natural earths, ordinary natural
waters, natural mineral waters, natural snow and ice
(f) Scrap and waste derived from Covers all scrap and waste, including scrap and waste
manufacturing or processing resulting from manufacturing or processing
operations or from operations or consumption in the Philippines, scrap
consumption in the country machinery, discarded packaging and household
and fit only for disposal or for rubbish and all products that can no longer perform
the recovery of raw materials the purpose for which they were produced, and are fit
only for discarding of for the recovery of raw
materials. Such manufacturing or processing
operations include all types of processing, not only
industrial or chemical but also mining, agricultural,
construction, refining, incineration and sewage
treatment operations.
Page 41 of 48
Indigenous Materials Intermediate Indigenous Products
Coconut Crude Coconut Oil
Seaweeds Carrageenan
Page 42 of 48
ANNEX C-1
Page 43 of 48
Sub-Regions and Provinces
Quezon
Rizal
Region IV-B MIMAROPA (Mindoro, Marinduque, Romblon, Palawan)
Marinduque
Occidental Mindoro
Oriental Mindoro
Palawan
Romblon
Region V Bicol
Albay
Camarines Norte
Camarines Sur
Masbate
Sorsogon
Region VI Western Visayas
Aklan
Antique
Capiz
Iloilo
Guimaras
Negros Occidental
Region VII Central Visayas
Bohol
Cebu
Negros Oriental
Region VIII Eastern Visayas
Biliran
Eastern Samar
Leyte
Northern Samar
Southern Leyte
Western Samar
Region IX Zamboanga Peninsula
Zamboanga del Norte
Zamboanga del Sur
Zamboanga Sibugay
Region X Northern Mindanao
Bukidnon
Misamis Occidental
Misamis Oriental
Lanao Del Norte
Region XI Davao
Compostela Valley
Page 44 of 48
Sub-Regions and Provinces
Davao Del Norte
Davao Oriental
Davao Del Sur
Region XII SOCCSKSARGEN
North Cotabato
South Cotabato
Sultan Kudarat
Saranggani
Page 45 of 48
ANNEX C-2
1. Boracay Island
2. Cebu City
3. Lapu-Lapu City
4. Puerto Princesa City
5. Baguio City
6. Albay
7. Batangas
8. Cagayan de Oro City
9. Davao City
10. Bohol
Page 46 of 48
ANNEX D
Entitlement and availment of incentives shall be subject to the terms and conditions set forth
1. Exemption from real property tax and other taxes or assessments of pollution control
devices;
2. Income tax-carry forward of losses;
3. Income tax-accelerated depreciation.
Page 47 of 48
E. Downstream Oil Industry Deregulation Act of 1998 (R.A. 8479)
***********************NOTHING FOLLOWS**********************
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