A.            Board of Investment (BOI)

To qualify for registration with the BOI, a company should be organized under Philippine laws as a domestic entity. An enterprise may register its activity if the same is listed in the current Investments Priorities Plan (IPP). If not listed the enterprise may also be entitled to BOI incentives for as long as the following conditions are met:


·         At least 50% of the production is for export (for enterprise with more than 60% Filipino/40% foreign ownership); or

·         At least 70% of production is for export (for enterprise with more than 40% of foreign ownership).


Foreign-owned firms, whose ownership exceeds 40% of the outstanding capital stock and which proposes to engage  in domestic-oriented activities, may be entitled to incentives if the proposed activity is listed in the current IPP and qualities under Pioneer status (refer to ensuing description).


B.            Philippine Economic Zone Authority (PEZA)

The Special Economic Zone Act of 1995 as amended, mandates the PEZA to operate, administer, manage and develop Special Economic Zones or Ecozones.


Enterprises that may qualify for registration with PEZA are domestic company, subsidiary and branch office that will manufacture and export 100% of their production and/or services.


Permission has to be sought if the enterprise located within the zone will export below 100% and in most cases PEZA has allowed up to 30% of production for the domestic market.


So far, there are 225 proclaimed Special Economic Zones that are operating in the country. Details could be drawn from http://www.peza.gov.ph.