

Senior Citizen or Elderly – refers to any Filipino citizen

who is a resident of the Philippines, and who is sixty
(60) years old or above. It may apply to senior citizens
with “dual citizenship” status provided they prove
their Filipino citizenship and have at least six (6)
months residency in the Philippines
 Privileges for the Senior
Citizens

 The grant of 20% discount and exemption from the
value –added tax (VAT), if applicable, on the sale of
the following goods and services from all
establishments, for the exclusive use and enjoyment
or availment of the senior citizen
 20% DISCOUNT AND VAT EXEMPTION

 Medicine drug purchases

 Essential medical
supplies, accessories and
equipment
MEDICAL  Medical and dental
services in private
RELATED facilities
 Professional fees of
PRIVILEGES attending physician
 Professional fees of
licensed health workers
providing home health
care services
 20% DISCOUNT AND VAT EXEMPTION

 Air & sea transportation

 Public land transportation

 Fare in the public airways
DOMESTIC  LRT
TRANSPORTATION  MRT
 PNR
PRIVILEGES  PUB
 PUJ
 Taxi and shuttle services
 20% DISCOUNT AND VAT EXEMPTION

 Hotels and other similar

establishments

HOTEL,  Restaurants
RESTAURANTS, For the purchase of:
 Food
AND OTHER  Drinks
SIMILAR  Dessert
ESTABLISHMENTS  Other consumable items
 20% DISCOUNT AND VAT EXEMPTION

Recreational Centers  On utilization of services

 places of culture, leisure,

Admission Fees and amusement

 INCLUDES

Funeral and Burial  Casket

Services  Embalming
 Cremation cost, and
 Other related services
 Other Privileges

 the grant of a minimum of (5%) discount relative to the monthly
utilization of water and electricity supplied by the public utilities:
 Free medical and dental services in government facilities
 Exemption from training fees
 Free vaccinations for indigent senior citizens
 Educational privileges
 scholarships, grants, financial aid, subsidies
 Benefits and privileges for retirees
 Privileges on granting special discounts in special programs
 Express lanes privileges
NOTE:

 Credit Card Payments

 The 20% discount shall apply to purchases of goods and
services paying through credit cards

 No Double Discounts
 In the purchase of goods and services which are on
promo, the senior citizen can avail of the offered discount
OR the 20% discount, whichever is HIGHER
Exemption on payment of individual income taxes of
senior citizens who are considered to be minimum
wage earners in accordance with R.A. 9504

EXEMPTION
 if the returnable income of a Senior Citizen is in the
nature of compensation income but he qualifies as a
minimum wage earner, he shall be exempt from income
tax on the said compensation income

 if the aggregate amount of gross income earned by the

Senior Citizen during the taxable year does not exceed
the amount of his personal exemptions (basic and
additional), he shall be exempt from income tax and
shall not be required to file an income tax return
EXCEPTION:

 20% FWT on Interest Income

 from any currency bank deposit, yield and other monetary benefit from
deposit substitutes
 Royalties (except on books, as well as other literary works and musical
compositions 10% final withholding tax)
 Prizes (except prizes amounting to P10 000 or less
 other winnings (except Philippine Charity Sweepstakes and Lotto
Winnings
 7.5% FWT on Interest Income
 from a depositary bank under the expanded foreign currency
deposit system
 Pre-termination of 5-year long term deposit or investment
 he shall be subject to the final withholding tax imposed on the entire
income of the deposit if held for a period of:
 4 years to less than 5 years – 5%
 3 years to less than 4 years – 12% and
 Less than 3 years – 20%
 10% FWT
 Capital Gains Tax from sales of shares of stock not traded in the stock
exchange
 6% FWT
 on presumed capital gains from sale of real property (except capital gains
presumed to have been realized from the sale of principal residence
 Availment of the Privileges

 In the availment of the privileges, senior citizen or
representative shall submit a proof of his / her
entitlement:
 ID issued by OSCA on the place where the senior
citizen resides
 Passport of senior citizen concerned
 Other documents that establish that the senior citizen
is at least 60 yrs. Old
 Tax Incentives of Qualified
Establishments

 Private entities that will employ senior citizens as employees, upon the
effectivity of this Act, shall be entitled to an additional deduction from their
gross income, equivalent to 15% of the total amount paid as salaries and
wages to senior citizens
 That such employment shall continue for a period of at least six (6)
months
 That the annual income of the senior citizen does not exceed the latest
poverty threshold as determined by the National Statistical Coordination
Board (NSCB) of the NEDA for that year

 The government shall provide incentives to individuals or nongovernmental

institution caring for or establishing homes, residential communities or
retirement villages solely for, senior citizens, as follows:
 realty tax holiday for the first five (5) years starting from the first year of
operation; and
 Priority in the construction or maintenance of provincial or municipal
roads leading to the aforesaid home, residential community or retirement
village.
 Penalties

Any person who refuses to honor the senior citizen card
issued by this the government or violates any provision of this Act
shall suffer the following penalties:

 First Violation
 Imprisonment – not less than 2 years but not more than 6 years
 Fine – not less than P50,000 but not more than P100,000

 Subsequent Violation
 Imprisonment – not less than 2 years but not more than 6 years
 Fine – not less than P100,000 but not more than P200,000

 Any person abusing the privileges

 Imprisonment – not less 6 months
 Fine – not less than P50,000 but not more than P100,000
 SEC. 32. Persons with disability
shall be entitled to the following:

(a) At least twenty percent (20%) discount from all
establishments relative to the utilization of all services
in hotels and similar lodging establishments;
restaurants and recreation centers for the exclusive use
or enjoyment of persons with disability;
(b) A minimum of twenty percent (20%) discount on admission
fees charged by theaters, cinema houses, concert halls, circuses,
carnivals and other similar places of culture, leisure and
amusement for the exclusive use of enjoyment of persons with
disability;

(c) At least twenty percent (20%) discount for the purchase of

medicines in all drugstores for the exclusive use or enjoyment of
persons with disability;

(d) At least twenty percent (20%) discount on medical and

dental services including diagnostic and laboratory fees such as,
but not limited to, x-rays, computerized tomography scans and
blood tests, in all government facilities, subject to guidelines to
be issued by the Department of Health (DOH), in coordination
with the Philippine Health Insurance Corporation
(PHILHEALTH)
(e) At least twenty percent (20%) discount on
medical and dental services including diagnostic and
laboratory fees, and professional fees of attending
doctors in all private hospitals and medical facilities,
in accordance with the rules and regulations to be
issued by the DOH, in coordination with the
PHILHEALTH;

(f) At least twenty percent (20%) discount on fare for

domestic air and sea travel for the exclusive use or
enjoyment of persons with disability;

(g) At least twenty percent (20%) discount in public

railways, skyways and bus fare for the exclusive use
and enjoyment of person with disability;
(h) Educational assistance to persons with disability, for
them to pursue primary, secondary, tertiary, post
tertiary, as well as vocational or technical education, in
both public and private schools, through the provision
of scholarships, grants, financial aids, subsidies and
other incentives to qualified persons with disability,
including support for books, learning material, and
uniform allowance to the extent feasible: Provided, That
persons with disability shall meet minimum admission
requirements;

(i) To the extent practicable and feasible, the

continuance of the same benefits and privileges given
by the Government Service Insurance System (GSIS),
Social Security System (SSS), and PAG-IBIG, as the case
may be, as are enjoyed by those in actual service;
(j) To the extent possible, the government may
grant special discounts in special programs for
persons with disability on purchase of basic
commodities, subject to guidelines to be issued for
the purpose by the Department of Trade and
Industry (DTI) and the Department of Agricultural
(DA); and

(k) Provision of express lanes for persons with

disability in all commercial and government
establishments; in the absence thereof, priority
shall be given to them.
The abovementioned privileges are available only to
persons with disability who are Filipino citizens upon
submission of any of the following as proof of his/her
entitlement thereto:

(I) An identification card issued by the city or

municipal mayor or the barangay captain of the place
where the persons with disability resides;
(II) The passport of the persons with disability
concerned; or
(III) Transportation discount fare Identification Card
(ID) issued by the National Council for the Welfare of
Disabled Persons (NCWDP).
o The privileges may not be claimed if the persons with
disability claims a higher discount sa may be granted by
the commercial establishment and/or under other
existing laws or in combination with other discount
programs/s.

o The establishments may claim the discounts granted in

sub-sections (a), (b), (c), (f) and (g) as tax deductions
based on the net cost of the goods sold or services
rendered: Provided, further, That the total amount of the
claimed tax deduction net of value-added tax if
applicable, shall be included in their gross sales receipts
for tax purposes and shall be subject to proper
documentation and to the provisions of the National
Internal Revenue Code (NIRC), as amended.
 SEC. 33. Incentives. – Those caring for and
living with a person with disability shall be
granted the following incentives:

(a) Persons with disability shall be treated as
dependents under the Section 35 (A) of the National
Internal Revenue Code, as amended and as such,
individual taxpayers caring for them shall be accorded
the privileges granted by the code insofar as having
dependents under the same section are concerned; and
(b) Individuals or nongovernmental institutions
establishing homes, residential communities or
retirement villages solely to suit the needs and
requirements of persons with disability shall be
accorded the following:

(i) Realty tax holiday for the first five years of

operation; and
(ii) Priority in the building and/or maintenance of
provincial or municipal roads leading to the
aforesaid home, residential community or retirement
village.
 The Special Economic
Zone

 Ecozone
 Areas that highly developed or have the potential to
be developed
 Enterprises within the zone are given preferential tax
treatment and immigration laws are more lenient.
 May contain Industrial Estate, Export Processing
Zone, Free Trade Zone, Tourist/Recreational center
 Industrial Estate

land subdivided and developed according to
a comprehensive plan under a unified
continuous management and with provisions
for basic infrastructure and utilities
 Export Processing Zone

specialized industrial estate outside the
customs territory and predominantly
oriented to export production
 Free Trade Zone

an isolated policed area adjacent to a port of
entry and / or airport where imported goods
may be unloaded.
Tourist / Recreational
Center

- refers to an area within the ECOZONE
where tourist accommodation facilities are
provided to render tourism services for both
local and foreign tourists, travelers and
investors in accordance with the guidelines
issued by the PEZA.
 Philippine Economic Zone Authority
Support government’s efforts to:
Promote Investment
Create Employment
Generate Export
 REGISTRATION of ECOZONE
ENTERPRISES

 any form of business organization
 subject to the guidelines that shall be promulgated
by the Board in addition to the nationality
requirements under existing laws and regulations
 3 copies of applications in forms prescribed by
PEZA and Supporting Documents
 payment of the corresponding filing fee
 Approval of the application by resolution of the
Board communicated in writing to the applicant
 Formal acceptance submitted within 20 days after
receipt of approval of application
 Registration fee
 Issuance of certificate of registration
II. Governing
Structure

Philippine Economic Zone
Authority (PEZA) Board

The Board shall have a director general with the rank
of department undersecretary who shall be
appointed by the President. The director general
shall be:
 at least 40 years of age
 of proven probity and integrity
 a degree holder in any of the following fields:
economics, business, public administration, law,
management or their equivalent
 with at least ten (10) years relevant working
experience preferably in the field of management
or public administration.
 Functions and powers of
PEZA Board

a) Set the general policies on the establishment and operations of the
ECOZONES, industrial estates, export processing zones, free trade
zones;
b) Review proposals for the establishment of ECOZONES based on the
criteria on Section 6;
c) Regulate and undertake the establishment, operation and
maintenance of utilities, other services and infrastructure in the
ECOZONE;
d) Approve the annual budget of the PEZA and the ECOZONE
development plans;
e) Issue rules and regulations to implement the provisions of this Act;
f) Exercise its powers and functions as provided for in this Act; and
g) Render annual reports to the President and the Congress
Functions and powers of
PEZA

(a) To operate, administer, manage and develop the
ECOZONE;

(b) To register, regulate and supervise the enterprises in

the ECOZONE in an efficient and decentralized manner;

(c) To coordinate with local government units and

exercise general supervision over the development, plans,
activities and operations of the ECOZONES, industrial
estates, export processing zones, free trade zones;
Functions and powers of
PEZA

(d) In coordination with local government units
concerned and appropriate agencies, to construct,
acquire, own, lease, operate and maintain on its own
or through contract, franchise, license, bulk purchase
from the private sector and build-operate-transfer
scheme or joint venture, adequate facilities and
infrastructure, such as light and power systems, water
supply and distribution systems, telecommunication
and transportation, buildings, structures, warehouses,
roads, bridges, ports and other facilities for the
operation and development of the ECOZONE;
Functions and powers of
PEZA

(e) To create, operate and/or contract to operate such
agencies and functional units or offices of the authority
as it may deem necessary;
(f) To adopt, alter and use a corporate seal; make
contracts, lease, own or otherwise dispose of personal
or real property sue and be sued;
(g) To coordinate the formulation and preparation of
the development plans of the different entities;
Functions and powers of
PEZA

(h) To coordinate with the National Economic
Development Authority (NEDA), the Department of
Trade and Industry (DTI), the Department of Science
and Technology (DOST), and the local government
units and appropriate government agencies for policy
and program formulation and implementation; and

(i) To monitor and evaluate the development and

requirements of entities and recommend to the local
government units or other appropriate authorities the
location, incentives, basic services, utilities and
infrastructure required or to be made available for said
entities.
 Functions and powers of
the Director General

a) To safeguard all the lands, buildings, records, monies, credits
and other properties and rights of the ECOZONES;

a) To ensure that all revenues of the ECOZONE are collected

and applied in accordance with its budget;

a) To ensure that the investors/firms and employees of the

ECOZONES are properly discharging their respective duties;

a) To give such information and recommend such measures to

the Board, as he shall deem advantageous to the ECOZONE;

b) To submit to the Board, the ongoing and proposed projects, work

and financial program, annual budget of receipts, and expenditures
of the ECOZONE;
Functions and powers of
the Director General

(f) To represent the ECOZONE in all its business
matters and sign on its behalf after approval of the
Board, all its bonds, borrowings, contracts, agreements
and obligations.

(g) To acquire jurisdiction, as he may deem proper, over

the protests, complaints, and claims of the residents and
enterprises in the ECOZONE concerning administrative
matters;

(h) To recommend to the Board the grant, approval, refusal,

amendment or termination of the ECOZONE franchises,
licenses, permits, contracts, and agreements in accordance
with the policies set by the Board;
Functions and powers of
the Director General

(i) To require owners of houses, buildings or other
structures constructed without the necessary permit
whether constructed on public or private lands, to remove
or demolish such houses, buildings, structures within sixty
(60) days after notice and upon failure of such owner to
remove or demolish such house, building our structure
within said period, the director general or his authorized
representative may summarily cause its removal or
demolition at the expense of the owner, any existing law,
decree, executive order and other issuances or part thereof
to the contrary notwithstanding;
Functions and powers of
the Director General

(j) To take such emergency measures as may be
necessary to avoid natural or public calamities;
(k) To prepare and make out plans for the physical
and economic development of the ECOZONE; and

(l) To perform such other duties and exercises such

powers as may be prescribed by the Board, and to
implement the policies, rules and regulations set by
the PEZA.
Prohibition Against Holding
Any Other Office.

The director general, deputy director general,
administrators, officials and staff or assistants
of the PEZA shall not hold any other office or
employment within or outside the PEZA
during their tenure.
 III. Fiscal
Incentives

 Fiscal Incentives

1. Developer/Operator
2. Export Enterprise
3. Free Trade Enterprise
4. Domestic Market Enterprise
5. Utilities Enterprise
6. Tourism Enterprise
 Fiscal Incentives

SEC. 24. Exemption from National and Local Taxes.
 -In lieu thereof, five percent (5%) of the gross income
earned by all business enterprises within the ECOZONE
shall be paid and remitted as follows:
a. Three percent (3%) to the National Government;
b. Two percent (2%) which shall be directly remitted by
the business establishments to the treasurer’s office of the
municipality or city where the enterprise is located.
Except for real property taxes on land owned by
developers.

RA 7916 The Special Economic Zo

 Fiscal Incentives

SEC. 42. Incentive Scheme. - An additional
deduction of one- half (1/2) of the value of
training expenses incurred In developing
skilled or unskilled labor or for managerial or
other management development programs
incurred by enterprises In the ECOZONE can
be deducted from the national government's
share of three percent (3%) as provided In Sec.
24.

RA 7916 The Special Economic Zone Act of 1995

Additional
Incentives

 Additional Incentives for
Export and Free Trade

 Exemption from Duties and Taxes on Merchandise
 Tax credit for import substitution equivalent to 25%
of the duties that would have been paid
 Exemption from Wharfage Dues, Export Tax, Impost
or Fee
 Income tax holiday
 Additional Incentives for
Export and Free Trade

 Exemption from taxes and duties on the importation
of breeding stocks and genetic materials by an
ECOZONE Export Enterprise
 Tax Credit available for ECOZONE Export
Enterprise on domestic breeding stock and genetic
materials equivalent to 100% of the value of the
national revenue taxes and customs duties that
would have been waived
 Additional deduction for labor expense equivalent to
50% of the wages, in the first 5 years from
registration
 Additional Incentives for
Developers/Operators, Domestic
Markets, Utilities, Facilities and Tourism
Enterprises

 Additional deduction for training expenses
 Incentives under the Build-Operate-and-Transfer
Law
 Other incentives under the Omnibus Investments
Code as may be determined by the PEZA Board
WHAT IS OMNIBUS INVESTMENTS CODE OF
1987 OR EO 226?

The Omnibus Investments Code of 1987, as

amended, integrates the basic laws on investments,
clarifying and harmonizing their provisions to
encourage and guide domestic and foreign
investors.
 POLICIES

1. The State shall encourage private Filipino and foreign

investments in industry, agriculture, forestry, mining,
tourism and other sectors of the economy.

2. The State shall ensure the holistic development by

safeguarding the well-being of the social, cultural and
ecological life of the people.

3. The State shall extend to projects which will

significantly contribute to the attainment of these
objectives, fiscal incentives without which said
projects may not be established in the locales, number
and/or pace required for optimum national economic
development.
4. The State considers the private sector as the prime
mover for economic growth.

5. The State shall principally play a supportive role, rather

than a competitive one, providing the framework, the
climate and the incentives within which business activity
is to take place.

6. The State recognize that there are appropriate roles for

local and foreign capital to play in the development of the
Philippine economy and that it is the responsibility of
Government to define these roles and provide the climate
for their entry and growth.
7. The State recognizes that industrial peace is an essential
element of economic growth and that it is a principal
responsibility of the State to ensure that such condition
prevails.

8. Fiscal incentives shall be extended to stimulate the

establishment and assist initial operations of the
enterprise, and shall terminate after a period of not more
than 10 years from registration or start-up of operation
unless a specific period is otherwise stated.
 BOARD OF INVESTMENT
Composition of the Board –

 seven (7) governors:

 The Secretary of Trade and Industry – Chairman of the
Board
 three (3) Undersecretaries of Trade and Industry – Vice-
chairman of the Board and its Managing Head
 three (3) representatives from other government agencies
and the private sector - shall be appointed by the
President for a term of four (4) years:
 upon the expiration of his term, a governor shall serve as
such until his successor shall have been appointed and
qualified: Provided, further, That no vacancy shall be filled
except for the unexpired portion of any term, and that no one
may be designated to be governor of the Board in an acting
capacity but all appointments shall be permanent.
Qualifications of Governors of the Board–

 shall be citizens of the Philippines

 at least thirty (30) years old
 of good moral character; and
 of recognized competence in the fields of economics,
finance, banking, commerce, industry, agriculture,
engineering, law, management or labor.

Appointment of Board Personnel. —

The Board shall appoint its technical staff and other

personnel subject to Civil Service Law, rules and
regulations.
Powers and Duties of the Chairman. —

(1) To preside over the meetings of the Board;

(2) To render annual reports to the President and such special
reports as may be requested;
(3) To act as liaison between investors seeking joint venture
arrangements in particular areas of investments;
(4) Recommend to the Board such policies and measures he
may deem necessary to carry out the objectives of this Code;
and
(5) Generally, to exercise such other powers and perform such
other duties as may be directed by the Board of Governors
from time to time
Powers and Duties of the Vice-Chairman. —
(1) To act as Managing Head of the Board;
(2) To preside over the meetings of the Board in the absence of
the Chairman;
(3) Prepare the Agenda for the meetings of the Board and
submit for its consideration and approval the policies and
measures which the Chairman deems necessary and proper
to carry out the provisions of this Code;
(4) Assist registered enterprises and prospective investors to
have their papers processed with dispatch by all
government offices, agencies, instrumentalities and financial
institutions; and
(5) Perform the other duties of the Chairman in the absence of
the latter, and such other duties as may be assigned to him
by the Board of Governors
PREFERRED AREAS OF INVESTMENT UNDER THE
BOARD OF INVESTMENT

 Agriculture/Agribusiness and Fishery

 Business Process Outsourcing
 Shipbuilding
 Mass Housing
 Iron and Steel
 Energy
 Infrastracture
 Shipbuilding
 Research and Development
 Green Projects
 Motor Vehicles
 Strategic Projects
 INVESTMENT PRIORITIES PLAN

 "Investment Priorities Plan" shall mean the over-all plan

prepared by the Board which includes and contains:
(a) The specific activities and generic categories of economic
activity wherein investments are to be encouraged and the
corresponding products and commodities to be grown,
processed or manufactured pursuant thereto for the
domestic or export market;
(b) Specific public utilities which can qualify for incentives
under this Code and which shall be supported by studies of
existing and prospective regional demands for the services
of such public utilities in the light of the level and structure
of income, production, trade, prices and relevant economic
and technical factors of the regions as well as the existing
facilities to produce such services
(c) Specific activities where the potential for utilization of
indigenous no-petroleum based fuels or sources of energy can
be best promoted; and

(d) Such other information, analyzes, data, guidelines or criteria

as the Board may deem appropriate. The specific and generic
activities to be included in the Investment Priorities Plan with
their status as pioneer or non-pioneer shall be determined by
the Board in accordance with the criteria set forth in this Book.
 INVESTMENT PRIORITIES PLAN
 not later than the end of March of every year, the Board
of Investments, after consultation with the appropriate
government agencies and the private sector, shall
submit to the President an Investment Priorities Plan:
Provided, however, That the deadline for submission,
may be extended by the President.
 The Board shall take into account the following:
(a) Primarily, the economic soundness of the specific
activity as shown by its economic internal rate of
return;
(b) The extent of contribution of an activity to a specific
developmental goal;
(c) Other indicators or comparative advantage;
(d) Measured capacity; and
(e) The market and technical aspects and considerations of
the activity proposed to be included
Approval of the Investment Priorities Plan. —

• The President shall proclaim the whole or part of such

plan as in effect; or alternatively, return the whole or
part of the plan to the Board of Investment for revision.
Upon the effectivity of the plan or portions thereof, the
President shall issue all necessary directives to all
departments, bureaus, agencies or instrumentalities of
the government to ensure the implementation of the
plan by the agencies concerned in a synchronized and
integrated manner. No government body shall adopt
any policy or take any course of action contrary to or
inconsistent with the plan.
Amendments. —

• the Board of Investments may, at any time, add

additional areas in the plan, alter any of the terms of the
declaration of an investment area or the designation of
measured capacities, or terminate the status of
preference. In no case, however, shall any amendment
of the plan impair whatever rights may have already
been legally vested in qualified enterprises which shall
continue to enjoy such rights to the full extent allowed
under this Code. The Board shall not accept applications
in an area of investment prior to the approval of the
same as a preferred area nor after approval of its
deletion as a preferred area of investment.
Publication. —

• Upon approval of the plan, in whole or in part, or upon

approval of an amendment thereof, the plan or the
amendment, specifying and declaring the preferred
areas of investment and their corresponding measured
capacity shall be published in at least one (1)
newspaper of general circulation and all such areas
shall be open for application until publication of an
amendment or deletion thereof, or until the Board
approves registration of enterprises which fill the
measured capacity.
 REGISTRATION OF ENTERPRISE
• If the applicant for incentives is a natural person or
individual, he must be a citizen of the Philippines.
• If the applicant is a partnership or any other association, it
must be organized under Philippine laws and at least sixty
percent (60%) of its capital must be owned and held by
Philippine nationals; or in case of a corporation or a
cooperative, it is organized under Philippine laws and that
at least sixty per cent (60%) of the capital stock
outstanding and entitled to vote is owned and held by
Philippine nationals and at least sixty per cent (60%) of
the members of the Board of Directors are citizens of the
Philippines.
However, enterprises which do not meet the required degree
of Philippine ownership may still register with the BOI for
investment incentives under the following conditions:
1. They are engaged in a pioneer project in which the
measured capacity of the project cannot be adequately filled
by Filipino nationals; or if they export at least seventy
percent (70%) of their total production, but this export
requirement may be reduced in meritorious cases and under
such conditions and/or limited incentives as the BOI may
determine; and
2. They obligate themselves to attain the citizenship
requirement within thirty (30) years from the date of
registration. However, for enterprises which export seventy
percent (70%) of their total production, they need not comply
with this requirement; and
3. They will not engage in a pioneer area which is within the
activities reserved by the Constitution or other laws of the
Philippines to Philippine citizens or corporations owned and
controlled by Philippine citizens.
Application. —

• shall be filed with the Board, recorded in a registration book

and the date appearing therein and stamped on the
application shall be considered the date of official acceptance.

• Applications filed shall be considered automatically

approved if not acted upon by the Board within twenty (20)
working days from official acceptance thereof
Criteria for Evaluation of Applications. —

(a) The extent of ownership and control by Philippine citizens

of the enterprises;
(b) The economic rates of return;
(c) The measured capacity;
(d) The amount of foreign exchange earned, used or saved in
their operations;
(e) The extent to which labor, materials and other resources
obtained from indigenous sources are utilized;
(f) The extent to which technological advances are applied and
adopted to local condition;
(g) The amount of equity and degree to which the ownership of
such equity is spread out and diversified; and
(h) Such other criteria as the Board may determine.
Appeal from Board's Decision. —
Any order or decision of the Board shall be final and
executory after thirty (30) days from its promulgation. Within
the said period of thirty (30) days, said order or decision may be
appealed to the Office of the President. Where an appeal has
been filed, said order or decision shall be final and executory
ninety (90) days after the perfection of the appeal, unless
reversed.
Certificate of Registration. —
A registered enterprise under this Code shall be issued a
certificate of registration under the seal of the Board of
Investments and the signature of its Chairman and/or such
other officer or employee of the Board as it may empower and
designate for the purpose. The certificate shall be in such form
and style as the Board may determine and shall state, among
other matters: (a) The name of the registered enterprise; (b) The
preferred area of investment in which the registered enterprise
is proposing to engage;
(c) The nature of the activity it is undertaking or proposing to
undertake, whether pioneer or nonpioneer, and the registered
capacity of the enterprise; and (d) The other terms and
conditions to be observed by the registered enterprise by virtue
of the registration.
FISCAL INCENTIVES

A. Income tax holiday (ITH) BOI-registered enterprise

shall be exempt from the payment of income taxes
reckoned from the scheduled start of commercial
operations, as follows:
a. New projects with a pioneer status for six (6)
years;
b. New projects with a non-pioneer status for four
(4) years;
c. Expansion projects for three (3) years. As a
general rule, exemption is limited to incremental sales
revenue/volume.
New registered firms may avail themselves of a bonus
year in each of the following cases:
a. The indigenous raw materials used in the manufacture
of the registered product must at least be fifty percent
(50%) of the total cost of raw materials for the
preceding years prior to the extension unless the board
prescribes a higher percentage; Or
b. The ratio of total imported and domestic capital
equipment to the number of workers for the project
does not exceed US$10,000 to one (1) worker; Or
c. The net foreign exchange savings or earnings amount
to at least US$500,000 annually during the first three (3)
years of operation. In no case shall the registered
pioneer firm avail of the ITH for a period exceeding
eight (8) years.
B. Exemption from taxes and duties on imported spare parts A
registered enterprise with a bonded manufacturing warehouse
shall be exempt from customs duties and national internal
revenue taxes on its importation of required supplies/spare
parts for consigned equipment or those imported with
incentives.

C. Exemption from wharfage dues and export tax, duty, impost

and fees All enterprises registered under the IPP will be given a
ten (10) year period from the date of registration to avail of the
exemption from wharfage dues and any export tax, impost and
fees on its non-traditional export products.

D. Tax exemption on breeding stocks and genetic materials

Agricultural producers will be exempted from the payment of
all taxes and duties on their importation of breeding stocks and
genetic materials within ten (10) years from the date of
registration or commercial operation.
E. Tax credits
1. Tax credit on tax and duty portion of domestic breeding
stocks and genetic materials. A tax credit equivalent to one
hundred percent (100%) of the value of national internal
revenue taxes and customs duties on local breeding stocks
within ten (10) years from date of registration or commercial
operation for agricultural producers.
2. Tax credit on raw materials and supplies. A tax credit
equivalent to the national internal revenue taxes and duties
paid on raw materials, supplies and semi-manufacture of
export products and forming part thereof shall be granted to
a registered enterprise.

F. Additional deductions for labor expense

G. The firm may qualify to import capital equipment, spare

parts and accessories at 1% duty rate from date of registration or
up to June 5, 2006 pursuant to executive order no. 313 and its
implementing rules and regulations.