BOI REGISTRATIVE PROCEDURES

8/19/2019 BOI REGISTRATIVE PROCEDURES

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LUCITA P. REYES

Executive Director

Industry Development Group

Board of Investments


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E.O. 226 – Omnibus Investments Code of1987, as amended

2012 Investment Priorities Plan

R.A. 9513 - Renewable Energy Act of 2008

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To qualify for BOI registration, the proposed activity

must be in the Investments Priorities Plan (IPP).

RE development is declared a priority investment

activity that will regularly form part of the annual IPP,

unless declared otherwise by law.

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Regular List:

1. Agriculture/ Agri-business and Fishery

2. Creative Industries/Knowledge-Based Services

3. Shipbuilding

4. Mass Housing

5. Iron and Steel

6. Energy7. Infrastructure

8. Research and Development

9. Green Projects

10. Motor Vehicles

11. Strategic Projects

12. Hospital/Medical Services

13. Disaster Prevention, Mitigation & Recovery

Projects

Renewable Energy ( under R.A. 9513 – RE Act 2008)

Ecological Solid Waste Management

Tourism

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COVERAGE

exploration, development,and/or utilization of energy

sources adoptingenvironmentally-friendly

technologies

POWER PROJECTS QUALIFIEDFOR ITH ENTITLEMENT

Only power plants utilizingenvironmentally-friendly

energy sources and

technologies

PROJECTS EXEMPTED FROMNVA REQUIREMENT

Projects that utilize raw

materials or semi-processedraw materials that are notlocally produced or not in

sufficient quantity

PROJECTS QUALIFIED FORREGISTRATION

Only projects that haveachieved financial closing

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Other Qualifications

For power generation projects, only revenues from powergenerated and sold to the grid, other entities and/orcommunities may be entitled to ITH.

Power projects contiguous to existing generating facilitiesconsidered as expansion projects; if the existing base loadplant has consistently dispatched at least 80% of theirregistered capacity for the past 3 years, project may beconsidered new.

ITH shall not exceed 10% of the total revenue of generatedpower.

DOE endorsement

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Other qualifications for PIONEER status:

Power supply projects located in missionary areas or

off-grid areas not receiving subsidies from PSALM

With projects cost of at least the peso equivalent of

US$1.5 million per megawatt;

Projects with NVA of at least 30%

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INCENTIVEIncome Tax Holiday

(ITH)4 – 6 years (max of 8 years)

ITH Bonus 3 years provided the firm meets certain conditions

Importation of Capital Equipment, Spare

Parts and Supplies (Under E.O. 70)0% duty-free

Wharfage Dues and Export Tax, Duty,Impost and Fees

Exempted

Simplification of Customs Procedures Available

Employment of Foreign Nationals Foreign nationals may be employed in supervisory,

technical or advisory positions within 5 years from a

project’s registration, extendible for limited periods.

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.

All foreign employees may bring with them their

spouses and unmarried children under 21 years of

age.

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(Under the Mandatory List of the 2012 IPP)


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Approval: December 16, 2008

Effectivity: January 30, 2009

Nationwide consultation on the drafting of the RE Act IRR

IRR Effectivity: June 12, 2009

Coverage: Biomass, Solar, Wind, Geothermal, Ocean, Hydro

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RE Sources

• Geothermal

• Hydro• Wind

• Solar

• Ocean

Other RE Sources• Biomass

• Biofuels

Mandatory List: RE

RE facilities including

hybrid system RE equipment/

components

Feedstock/biomass forbiofuel

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For RE Developer

1. 7-year Income Tax Holiday (ITH).

2. 10-year Duty-free Importation of RE

machinery, equipment and materials

3. Special tax rates on realty and other taxes

on civil works, equipment, machinery.

4. Net Operating Loss Carry-Over (NOLCO)

5. Corporate Tax Rate of ten percent (10%)

on net taxable income after seven (7)

years of ITH

6. Accelerated Depreciation.

7. Zero Percent Value-Added Tax Rate

8. Tax Exemption of Carbon Credits

9. Tax Credit on Domestic Capital Equipment

and Services. - value-added tax and

custom duties

For RE Equipment Manufacturers

1. Tax and Duty-free Importation ofComponents, Parts and Materials

2. Tax Credit on Domestic CapitalComponents, Parts, and Materials

3. 7 years Income Tax Holiday fromthe date ofrecognition/accreditation

4. Zero-rated Value Added TaxTransactions

Note: Items in bold font are incentives

administered by BOI

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RE Developer RE Commercial’n

BOI

Registration

BOI

Registration

DOE Accreditation

BOI registration is required to qualify foravailment of incentives

REGISTRATIONS OF PROJECTS

DOERegistration

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DOEIssuance of Endorsement

(per transaction basis)

BOIIncentives Administration

(Issuance of

Certifications)

INCENTIVES AVAILMENT

BOCBIR

RE Developers/Equip’t

Manufacturers

ApplicationEndorse-ment

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Due diligence assistance

Information support

Visit program development & investment briefing

Business matching

Business registration facilitation

Fast tracking of applications for registration

Assistance with Local Government Unit (LGU) requirements

Aftercare Service Presence of government network to quickly respond to

concerns Supervision & monitoring

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Documents

BOI REGISTRATIVE PROCEDURES