I. PREFERRED ACTIVITIES

 

1. All Qualified Manufacturing Activities including Agro-Processing

This covers the manufacture of industrial goods and processing of agricultural and fishery products, including Halal and Kosher food, into (a) semi-finished/intermediate goods for use as inputs in the production of other goods, or (b) finished products or consumer goods for final consumption.

This also covers the manufacture of modular housing components and machinery and equipment including parts and components.

All projects for the manufacture of industrial goods and processing of agricultural and fishery products must utilize up-to-date and market-appropriate technology, and must comply with the Philippine National Standards (PNS), as applicable.

In addition, they must satisfy any of the following criteria to be qualified for registration:

  1. Will manufacture/process products, the importation of which grew by an annual average of at least 10% from 2012-2016, or the share of imports to total apparent demand is at least 60%; or

  2. The project’s value creation is at least 50%, except for consumer durables and industrial products or their intermediate goods that should be at least 25%; or

  3. Will manufacture/process products that will utilize new technology and/or world-class design; or

  4. The project has a core capital equipment cost to direct labor ratio of not higher than $28,000:1 worker at full capacity; or

  5. Will adhere to Halal or Kosher standards for food manufacturing, as accredited by the PAB. Processing centers for the Halal industry to be located in the ARMM shall be registered with the RBOI-ARMM.

Cement projects that will qualify for registration must at least start from clinker production.

Qualified and registered enterprises for the manufacture of housing components must submit a valid Accreditation issued by the Accreditation of Innovative Technologies for Housing (AITECH) prior to each availment of ITH.

Except for modernization projects, only projects located outside Metro Manila may qualify for registration.

Modernization projects of sugar mills and/or refineries must have a resulting Overall Recovery Rate (ORR) performance of at least 85% and 94%, respectively. Application for registration must be accompanied by a certification from the Sugar Regulatory Administration of the applicant’s ORR performance for the last five (5) years.

Manufacturing Roadmaps

Manufacturing Industries

 

2. Agriculture, Fishery, and Forestry

This covers the commercial production of agricultural, fishery, and forestry products.

This also covers production of seeds and seedlings, and establishment of nurseries and hatcheries, and support services and infrastructures, such as, facilities for drying, cold chain storage, blast freezing, bulk handling, storage, and food irradiation; harvesting, plowing, and spraying/dusting; packing houses, trading centers, ice plants in Less Developed Areas, AAA Slaughterhouses, and AAA dressing plant.

Application for registration of agricultural and fishery production must be accompanied by an endorsement from the DA or Philippine Coconut Authority, whichever is applicable.

Application for registration of forest plantation in private lands must be accompanied by a copy of a Certificate of Tree Plantation Ownership issued by the Department of Environment and Natural Resources pursuant to DENR Memorandum Order No. 99-20.

Application for registration of food irradiation projects must be accompanied by a copy of Permit to Construct issued by the DOST-Philippine Nuclear Research Institute (PNRI). Prior to ITH availment, the registered enterprise must submit a copy of its License to Operate issued by the DOST-PNRI.

Except for modernization projects, only projects located outside Metro Manila may qualify for registration. Modernization projects include those for agricultural support services and infrastructure only.

Agribusiness Roadmaps

 

3. Strategic Services

    1. IC Design

      • This covers all logic & circuit design techniques required to design integrated circuits (ICs).

    2. Creative Industries/Knowledge-Based Services

      • This covers IT-BPM services for the domestic market such as contact centers, artificial intelligence and data science/analytics services, back-office services, IT services, creative services, and other non-voice services.

        This also covers services that involve original content such as animation, software development, game development, health information management systems, and engineering design.

        This also covers digital or technological start-ups/activities. Startups refer to newly emerged, fast-growing, scalable business entity that aims to meet a marketplace need by developing or offering an innovative product, process or service and should have at least one (1) founder who is working full time.

        Upgrading of existing or baseline skills/training program related to people, process, tools and technology to a higher level of certification or standards may qualify for registration as modernization project with entitlement to ITH equivalent to one hundred percent (100%) of the actual cost (including software/hardware and subscription requirement) of the new/upgraded training program reckoned one (1) year from the date of its implementation. The total ITH incentive, during the availment period, must not exceed 100% of the projected training expense as represented in the application for registration. Prior to ITH availment, the registered enterprise shall submit a certification issued by TESDA or other relevant organization or concerned industry association.

    3. Maintenance, Repair, and Overhaul (MRO) of Aircraft

      • This covers the MRO of all types of aircraft.

    4. Charging/Refueling Stations for Alternative Energy Vehicles

      • This covers the establishment of charging/refueling stations for alternative energy vehicles except LPG-run 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 five (5) charging stands.

        Application for registration must be accompanied by an endorsement from the DOE.

    5. Industrial Waste Treatment

      • This covers the establishment of treatment facilities for toxic and hazardous wastes (THW) from an industrial operation.

        The following are the qualifications for registration:

        • Must involve treatment, storage and disposal (TSD);

        • Must be capable of handling THW; and

        • Must handle only locally generated industrial wastes.

        Prior to start of commercial operation, the registered enterprise must submit a copy of its TSD Registration Certificate issued by the DENR.

    6. Telecommunications

      • This covers the establishment of connectivity facilities for fixed and mobile broadband services. Fixed broadband services include the delivery of broadband services through wired, wireless, satellite and other technological methods. Wired services include cable wire, fiber optics, submarine cables or other means of similar material. Wireless services include reception of broadband services by mobile phones, personal computers, modems and access points, vehicular communications/electronic boxes, and other nomadic/portable/mobile devices. 

        Only new players may qualify for registration. “New players” are domestic players or enterprises which are not subsidiaries, affiliates or related parties of existing and operating telecommunications companies nor have incurred sales/revenues from the public on fixed or mobile broadband.

    7. State-of-the-art Engineering, Procurement, and Construction

      • This covers engineering design, procurement, and construction for industrial plants and infrastructure.

        Application for registration must be accompanied by an accreditation, or proof of application thereof, from the Philippine Contractors Accreditation Board. The final copy of Accreditation, if not yet available upon application, must be submitted prior to start of commercial operations.

Comprehensive National Industrial Strategy

 

4. Healthcare Services including Drug Rehabilitation Centers

This covers the establishment and operation of general and specialty hospitals, and other medical/healthcare facilities including drug rehabilitation centers.

Any of the following may qualify for registration:

      1. General Hospitals (Levels 1, 2 and 3) in any of the locations listed in Annex C-1;

      2. General Hospitals (Levels2 and3) in any of the locations listed in Annex C-2;

      3. Specialty Hospitals located outside Metro Manila;

      4. Other Medical/Healthcare facilities located outside Metro Manila, as follows:

        1. Custodial Care facilities including geriatric care and drug rehabilitation centers;

        2. Diagnostic/Therapeutic facilities (excluding Clinical Laboratory, Drug Testing Laboratory, Laboratory for Drinking Water Analysis); and

        3. Specialized Out-Patient facilities (excluding In-Vitro Fertilization Center and Stem Cell facility).

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/ Accreditation, whichever is applicable, issued by the Health Facilities and Services Regulatory Bureau (HFSRB) of the DOH.

Prior to availment of ITH, the registered enterprise must submit a copy of the Certificate of PhilHealth Accreditation, where applicable.

 

5. Mass Housing

This covers the development of mass housing units based on a price ceiling of Php2.0 Million.

This also covers in-city low-cost housing projects for lease.

Except for in-city low-cost housing for lease, only projects located outside Metro Manila may qualify for registration.

      1. Economic and Low Cost Housing

      • The following are the qualifications for registration:

        1. The selling price of each housing unit shall be more than Php450,000.00 but not exceeding Php2.0 million;

        2. The project must be located outside Metro Manila;

        3. Minimum of 20 livable dwelling units in a single site or building;

        4. Must be new or expanding economic/low-cost housing project;

        5. For residential condominium projects, at least 51% of the total gross floor area must be devoted to housing units.

        In cases of un-incorporated joint venture and similar arrangements between landowner and developer wherein the sharing scheme is in terms of the number of lots or units built, only the share of the developer may qualify for registration.

        Projects that have already been completed (with HLURB certificate of completion) and have incurred sales of any housing unit prior to the date of Contract to Sell shall not qualify for registration.

        Any of the following may be considered as an expansion project:

        • Construction of additional floors or annexes intended for housing units;

        • If the project will locate adjacent or contiguous to an existing housing project owned by the same entity and shall share common facilities including access to the existing project.

        All economic/low-cost housing projects must comply with the socialized housing requirement (SHR) by building socialized housing units in an area equivalent to at least 20% of the total registered project area or total BOI registered project cost for subdivision housing and 20% of the total floor area of qualified saleable housing units for residential condominium projects.

        The SHR compliance may be any or a combination (i.e., cost recoverable and non-recoverable modes) of any of the following modes:

          • Development of a new settlement directly undertaken by the registered entity or affiliate or other related enterprise of the BOI-registered entity;

          • Development of a new settlement through joint venture arrangements with any of the following:

            1. Social Housing Finance Corporation’s (SHFC)Community Mortgage Program (CMP) or High Density Housing (HDH)for in-city, on-site, or near-city socialized housing developments;

            2. Local Government Unit;

            3. Developer or NGO accredited by the HLURB.

        In the case of joint venture projects, the BOI-registered entity shall be required to provide proof of funds transferred or assessed value of the land, where applicable, to the implementing entity.

          • Development of a new settlement through donation of land with basic infrastructure facilities (roads, water system, etc.) and/or construction materials (preferably locally produced) in partnership with relevant LGU, key shelter agency, or with BOI/HLURB-accredited NGO in any of the following:

          • Comprehensive rural community housing development with provisions for social services (e.g., education, healthcare, recreation/sports) and livelihood programs;

        • To benefit families in calamity-stricken or armed conflict areas as declared by relevant government agencies and/or endorsed by HUDCC that housing assistance is extremely needed in the area.

        For residential condominium projects, 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 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.

        For purposes of ITH availment, compliance with the 20%SHR shall be computed based on the actual units sold during the ITH availment period. Failure to submit proof of compliance shall result to forfeiture of ITH for that particular taxable period.

        Non-compliance with the 20% SHR on previous registrations using the ITH-based Compliance (IBC) shall result in denial of applications for registration for succeeding projects.

        Interest income arising from in-house financing shall not be entitled to ITH.

        Application for registration must be accompanied by a copy of the Development Permit issued by HLURB or concerned LGU.

        Prior to registration, subdivision project applicant must submit copies of License to Sell (LTS) and Certificate of Registration (CoR) issued by HLURB. For condominium projects, applicant may submit a copy of its temporary LTS provided that the copies of the final LTS and CoR shall be submitted prior to start of commercial operation.

      1. In-City Low Cost Housing for Lease

      • This covers newly constructed, low to medium-rise and dormitory-type housing projects including those located in Metro Manila.

        The following are the qualifications for registration:

        • Minimum of 20 livable dwelling units for lease in a single building

        • Within 4 kilometer radius from an economic zone, industrial parks/complex or business districts

        • Monthly lease price shall not exceed the threshold of the Rent Control Law (R.A. No. 9653) covering all private residential units with monthly rent of Php10,000.00.

        Only developers shall be entitled to ITH and as such, purchasers of housing units with the intention of leasing out shall not be qualified for registration.

        Registered enterprise shall not be required to comply with the SHR.

 

6. Infrastructure and Logistics including LGU-PPPs

This covers the establishment and operation of physical infrastructures vital to the country’s economic development and prosperity such as, but not limited to: airports, seaports, (air, land, and water) transport, LNG storage and regasification facilities, pipeline projects for oil and gas, bulk water treatment and supply, training facilities, testing laboratories, and domestic industrial zones.

This also covers PPP projects including those initiated and/or implemented by Local Government Units (LGUs).

      1. Airports and seaports (includes RO-RO ports) for cargo and passenger

        • The qualification for registration of projects is based on the government’s infrastructure development policy and other relevant plans.

          Application for registration must be accompanied by an endorsement from the CAAP or the PPA, whichever is applicable.

      2. Air, land and water transport

        1. Air Transport
          • This covers passenger and/or cargo air transport operation for commercial purposes.

            Lease with option to purchase an aircraft may be allowed.

            Application for registration must be accompanied by an endorsement from the CAB, when applicable. Such endorsement must contain information on the routes to be served.

            Prior to start of commercial operation of each aircraft, the registered enterprise must submit a copy of the Certificate of Airworthiness issued by CAAP.

            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.

        1. Land Mass Transport
          • This covers mass transport using brand new buses that run on electric batteries, and/or compressed or liquefied natural gas; as well as public utility vehicles (PUVs) as defined by DOTr, LTFRB and LTO as part of the PUV Modernization Program of the government.

            Projects must have its own terminal and garage that can accommodate all the buses under its franchise(s).

            Application for registration must be accompanied by a copy of the application for franchise with the LTFRB.

            Prior to start of commercial operation, the registered enterprise must submit a copy of its original LTFRB Franchise Verification with Original Receipt.

        1. Water Transport
          • This covers domestic/inter-island shipping, i.e., pure cargo, passenger, and passenger-cargo vessel operations including RORO/ROPax/Ferry Terminal System operations and overseas shipping.

            Tankers, high-speed craft, RORO vessels serving primary routes and passenger/cargo vessels having a gross weight of 150 GT and above may qualify for registration.

            Small passenger vessels such as ferry boats serving small islands/inland water/missionary routes, as endorsed by MARINA, may also qualify for registration.

            For overseas shipping, the following are the qualifications for registration:

            • Must be a Philippine shipping enterprise accredited with the MARINA;

            • Vessel must be registered and operated under the Philippine Flag; and

            • Vessels must be at least 1,000 GT.

            Application for registration must be accompanied by an endorsement of the project and proof of accreditation of the shipping enterprise by MARINA.

            Prior to start of commercial operation, the registered enterprise must submit copy of Certificate of Public Convenience (CPC), when applicable, copy of the vessel’s Class and Statutory Certificate, and proof that the vessel is registered with MARINA.

            Upgrading of skills of crew complement of passenger vessels to international standards may qualify for registration as modernization project with entitlement to ITH equivalent to one hundred percent (100%) of the actual cost of training reckoned from the date of its implementation. The total ITH incentive, during the availment period, must not exceed 100% of the projected training expense as represented in the application for registration. Prior to ITH availment, the registered enterprise shall submit a certification from an international body [e.g., Maritime Labor Convention (MLC), International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), International Convention for the Prevention of Pollution from Ships (MARPOL) and international Convention for the Safety of Life at Sea (SOLAS)] or other relevant organization or concerned industry association.

        1. Mass Rail
          • This covers mass rail transport system for passengers and cargoes in line with the transport development plans and programs of the DOTr and the DOST, where applicable.

      1. LNG Storage and Regasification Facility

        This covers the establishment and operation of natural gas storage and regasification facilities in accordance with relevant Philippine National Standards.

        LNG gasification plants may be located on land and/or on floating barges.

        The following are the qualifications for registration:

        • Must have new facilities;

        • Must cater to power plants, industrial plants, commercial establishments, etc.; and

        • Must cater to at least one (1) clientele, other than the proponent’s own business.

        The registered enterprise must submit a copy of its Permit to Operate issued by the DOE prior to start of commercial operations.

      1. Pipeline for Oil and Gas

        • This covers the establishment of a new pipeline facility for transport of petroleum products and natural gas, petrochemical and similar products.

          Prior to start of commercial operation, the registered enterprise must submit a copy of its Permit to Operate issued by the DOE.

      1. Bulk Water Treatment and Supply

        • Bulk water supply projects must involve extraction of water from its natural source, except shallow and deep wells, and water treatment for commercial purposes. Water supply projects with source from ground water may only be allowed if granted water permit by the National Water Resources Board. 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 bulk water (or distribution) should include extraction of water, treatment and installation of transmission and distribution lines to customers and flow metering systems. Treated water should be in accordance with the Philippine National Standards for Drinking Water.

          Projects involving any of the foregoing areas of water operations dedicated to a particular industrial estate, industrial community, or subdivision are not qualified for registration.

          Application for registration must be accompanied by a copy of Water Permit or Conditional Water Permit.

          Prior to start of commercial operations, the registered enterprise must submit a copy of the Water Permit and if applicable, a copy of Certificate of Public Convenience (CPC).

          Applications covering both supply and distribution projects shall be unbundled showing the revenue and cost structure of each.

      1. Training/Learning Facilities

        • This covers the establishment and operation of training and learning facilities specializing in developing skills in technical, vocational education and training (e.g., engineering, IC design, IT-BPM, maritime, culinary arts, etc.) in support of the activities listed in this IPP.

          The following are the requirements for registration:

          • The curriculum must be approved by either TESDA for training courses or CHED for degree courses or other concerned government agencies/authority and/or endorsed by the relevant industry association; and

          • The registered education/training/learning institutions must have laboratory/s, equipment and tools for training.

      1. Testing Laboratories

        • Application for registration must be accompanied by an endorsement from the DOST, or other concerned government agencies/authorities.

          Prior to start of commercial operation, the registered enterprise must submit proof of accreditation from the PAB.

      1. Domestic Industrial Zones

        • This covers development of domestic industrial zones outside Metro Manila with a minimum required area of twenty (20) hectares of contiguous land, with core infrastructure/facilities such as paved roads, power system, water supply, drainage system, pollution control devices and communication facilities, and with at least five (5) locators.

          The industrial zone must conform with the land use regulation in specific areas where it will be located as determined/required by the LGU, HLURB and the DAR.

          The development of the industrial zone must be completed within a maximum period of three (3) years from the date of registration of the project.

      1. PPP Projects

        • This covers projects implemented under Republic Act No. 6957, as amended by Republic Act No. 7718 (Amended Build-Operate-and-Transfer Law) including those initiated and/or implemented by LGUs.

          Application for registration must be accompanied by an endorsement from the PPP Center, where applicable.

      1. Tollways

        • This covers the development and/or operation of tollways.

          For projects that will involve the development and operation of tollways to be undertaken by separate entities, both the developer and operator may qualify for registration. However, the developer may be entitled only to incentive on capital equipment directly needed for the operation of the tollways.

          Application for registration must be accompanied by an endorsement from the TRB.

Infrastructure and Service Industries

 

7. Innovation Drivers

      1. Research and Development

        • This covers all research and development (R&D) activities and establishment and operation of facilities for the conduct of clinical trials including drug trials (e.g., Contract Research Organization or CRO).

          The registered CRO must submit a copy of Permit to conduct clinical trial from Food and Drug Administration before the conduct of each clinical trial.

      1. Centers of Excellence (COE)

        • This covers the establishment of institutions specializing in technical education and training in various disciplines in Centers of Excellence or Centers of Development.

          Application for registration must be accompanied by an endorsement from CHED or other concerned government agencies.

      1. Innovation Centers, Business Incubation Hubs, Fabrication Laboratories (FabLabs)/ Co-working Spaces.

        • This covers support services and infrastructures for MSMEs through the use of office space, machinery and equipment, and/or provision of technical/business counseling assistance.

          Innovation Centers are communities of industry entrepreneurs and academic researchers, as well as mandated government agencies such as the DOST-Technology Application and Promotion Institute working in partnership in finding breakthroughs and alternative solutions to address current industry challenges.

          Business Incubator Hubs assist entrepreneurs and startup companies develop a repeatable and scalable business model by providing infrastructure and services. A business incubator hub must have the following facilities: office space, internet access, business meeting/conference room, training room, and storage room. It should also provide the following services:

          • Technical Assistance (e.g., industry-based workshops, grant proposal writing, etc.);

          • Intellectual Property (IP) management and legal counseling services;

          • Business development and marketing assistance; and

          • Administrative services.

          FabLabs are computer-based innovation, design and fabrication workshops with the aim of developing or building models of new products and prototypes with at least the following computer-based tools and equipment:

          • Rapid Prototyper or 3D Printer;

          • Industrial Cutters (e.g., Universal Laser System Cutter or Plasma Cutters);

          • Milling Machines (e.g., Computer Numerical Control machines or Printed circuit board milling/etching machine);

          • Design/Modeling software.

          Revenues entitled to ITH include rental of office space and/or equipment, membership fees, counseling fee, and other related revenues.

      1. Commercialization of New and Emerging Technologies

        • This covers the commercialization of new and emerging technologies and products of DOST or government-funded R&D, such as, but not limited to:

          • Agricultural biotechnology tools–use of living systems and organisms to develop or make products with special characteristics that make them better than their traditional counterparts. These products are modified to contain traits such as: 1) insect resistance; 2) disease resistance; 3) herbicide tolerance; 4) altered nutritional profile; and 5) enhanced storage life, among others.

          • Disaster mitigation/prevention hardware or software – multi-natural hazard observation/monitoring and mapping, early warning and communication systems, remote sensing and high performance computing hardware, and image processing, mapping, simulating modeling and forecasting software.

          • Hardware or software for increasing agricultural productivity– use of agricultural tools, machinery and other durable equipment covering all levels of farming and processing, from simple and basic hand tools to more sophisticated and motorized equipment to increase farm productivity. The software includes programs and operating systems that may be used to increase agricultural productivity (e.g., crop modeling).

          • Mechanized means for natural resources conservation– use of labor-saving inventions for the conservation of natural resources. Examples include the use of helicopters in direct seeding for reforestation and use of mechanized means of gathering information such as drones, robotics (remotely-operated underwater vehicle) and drop cameras for fish visual census and deep-water research.

          • Portable technologies – innovation on existing bulky or heavy device to make it portable, or a new device or service that can be brought virtually anywhere.

          • Hardware or software for the prevention of disease outbreaks– any hardware (e.g., high performance computing systems, data storage systems, servers, cloud computing devices) or software (e.g., predictive models) that would aid in public health surveillance and predict and prevent a disease outbreak; may also involve methods for early and accurate diagnosis of diseases even before symptoms are developed (e.g., big-data analysis based on genomic sequences).

          • Remote monitoring devices or systems– acquisition of information about an object or phenomenon without making physical contact with the object either using active or passive sensors; includes the use of satellite-based or aircraft-based sensor technologies, but not limited to the use of ground-based and ship-based instruments or even use of unmanned aerial vehicle/systems to detect and classify objects on earth.

          • Professional services for remote sensing– professionals or experts that can interpret, process and analyze many types of aerial photographs, satellite images and other remote sensing data, but not limited to geographers, cartographers, physical scientists, computer scientists, GIS and RS analysis, surveyors, photogrammetrists, image analysts, or other professionals that have knowledge and expertise related to geospatial and mapping.

          • Hardware or software for the upgrading of local industries– technologies that are low-cost, robust and locally-designed and developed to be served as industry-centric across fields such as renewable energy, intelligent transportation system, service robots, smart biomedical devices, educational tools, public safety and security, business processes, advanced communications and entertainment, etc.

          • Photonics– the science and technology of generating, controlling, and detecting photons, which are particles of light. It underpins technologies of daily life from smartphones to laptops to the internet to medical instruments to lighting technology.

          • Nanotechnology– the convergence of science, technology and engineering with the unifying characteristics being that the observation, characterization, design and controlled fabrication of materials and devise are at the scale of 1-100 nanometers. It represents more than a reduction in size, it entails new properties and functions not present in larger dimensions of the material.

          • Natural health products– products that contain plants as active ingredients, which could be (a) herbal medicines, or (b) traditionally used herbal products, and both conforming to regulatory standards and having proper FDA clearance prior to marketing and distribution. The manufacturer/distribution company should have a License to Operate issued by the FDA.

          Application for registration must be accompanied by a Fairness Opinion Report (FOR) from an independent third party body composed of experts from public and private sectors as may be determined by the DOST or other concerned agency, where applicable. Details on the contents of FOR are specified in Article III, Sections 7 and 8 of R.A. No. 10055, known as The Philippine Technology Transfer Act of 2009.

 

      1. Inclusive Business Models
        • This covers business activities of medium and large enterprises (MLEs) in the agribusiness and tourism sectors that provide business opportunities to micro and small enterprises (MSEs) as part of their value chains.

          Inclusive Business (IB) projects may qualify for Pioneer status with entitlement to five (5) years of income tax holiday, subject to Section 16, Rule VI of the IRR of E.O. No. 226.

          A qualified agribusiness and tourism project may opt to undertake IB models by submitting duly notarized IB plan in the required BOI format upon application for registration which includes targets and timetable for implementation based on the following:

          • Qualified agribusiness enterprises shall target and accomplish all of the following within three (3) years of commercial operation:

          • At least 25% value of total cost of goods sold (COGS) are sourced from registered and/or recognized MSEs (includes cooperatives, or any organized entity duly recognized by a government body) as evidenced by a duly notarized contract;

          • At least 300 farmers/fisherfolk/suppliers/individual beneficiaries engaged, of which, at least 30% are women; and

          • At least 20% increase in average income of individuals engaged from MSEs, cooperatives or any organized entity duly recognized by a government body from the baseline year1to 3rd year of actual operation.

          In addition, the enterprise must exhibit innovation in the business model through any of the following:

          • Provision of technical assistance/capacity building to MSEs and/or individual farmers and fisherfolk that increases productivity and/or quality; or

          • Facilitation of access to finance either directly or provides linkages to sources of financing through a third party (i.e., provision of collateral by the company, direct lending, through a subsidiary, or third party financing disbursed directly to the client or through the company); or

          • Provision of inputs and/or technology to MSEs and/or individual farmers and fisherfolk that would increase productivity or improve product quality.

          • Qualified tourism enterprises shall target and accomplish all of the following within three (3) years of commercial operation:

          • At least 25%of total cost of goods/services sold are sourced from MSEs (includes cooperatives, or any organized entity duly recognized by a government body);

          • At least 25 direct jobs (regular employment) generated for individuals in the identified databases (e.g., DSWD Conditional Cash Transfer Graduates, DAR Agrarian Reform Beneficiaries, NCIP List, PWD, and others2) of which, at least 30% are women;

          • At least 20% increase in average income of individuals engaged from MSEs, cooperatives or organized entity duly recognized by a government body from the baseline year4 to 3rd year of actual operation.

          In addition, the enterprise must exhibit innovation in the business model through any of the following:

          • Provision of technical assistance/capacity building to MSEs and/or the direct jobs generated that increases productivity/quality or addresses specific knowledge gaps needed for the job; or

          • Facilitation of access to finance either directly or through a third party (i.e., provision of collateral by the company, direct lending, through a subsidiary, or third party financing disbursed directly to the client or through the company).

          A BOI-registered New project engaged in agribusiness or tourism activity may qualify for upgrade to pioneer status under Art. 17(3) of E.O. No. 226 and be entitled to another year of ITH3 if it intends to undertake IB model, provided that:

          • The registered project has yet to avail of the ITH or is within its first three (3) years of ITH entitlement period at the time of the registered enterprise’s filing with the Board of a request for upgrade to pioneer status;

          • The registered enterprise has filed the request for upgrade to pioneer status including a duly notarized IB Plan in the required BOI format within 12 months from the effectivity of this Guidelines; and

          • The registered enterprise will accomplish/has accomplished the requirements for IB model enumerated in the above criteria relevant to its activity.

 

9. Environment or Climate Change-Related Projects

This covers manufacture/assembly of goods and the establishment of energy efficiency-related facilities where either utilization of which would significantly lead to either the efficient use of energy, natural resources or raw materials; minimize/prevent pollution; or reduce greenhouse gas emissions.

This also covers green ship recycling based on international standards, and the establishment of privately-owned materials recovery facility.

Application for registration of green ship recycling projects must be accompanied by an endorsement from MARINA stating that the project will comply with the requirements of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships including the preparation of a Ship Recycling Facility Plan and the Technical Guidelines for the Environmentally Sound Management of the Full and Partial Dismantling of Ships.

Application for registration of privately-owned Materials Recovery Facility (MRF) must be accompanied by an endorsement from the National Solid Waste Management Commission. MRF refers to a facility that could be a solid waste transfer/sorting station, or drop-off center, with composting and/or recycling activities which utilizes 100% locally-generated wastes. Stand-alone recycling or composting projects shall be covered under the listing All Qualified Manufacturing including Agro-Processing.

 

10. Energy

  • This covers power generation projects utilizing conventional fuels (i.e., coal, diesel, bunker, natural gas, and geothermal), waste heat and other wastes, and the establishment of battery energy storage systems.

    Coal-fired power plants must utilize at least the supercritical boiler technology or its equivalent in terms of emissions. Modernization of coal-fired power plants that will convert to at least a supercritical boiler technology or its equivalent in terms of emissions including its turbine or generator may qualify for registration.

    To qualify for registration, diesel and bunker-fired power projects shall be integrated with renewable energy (hybrid power systems) or providing ancillary power services as contingency reserve.

    Revenues from sales of electricity sourced from the Wholesale Electricity Spot Market (WESM) shall not be entitled to ITH.

    Within two (2) years from the date of registration, projects with loan components in their financing scheme must have achieved financial close. Failure to achieve financial close shall result to the cancelation of the firm’s registration, unless it can be shown that the enterprise has made substantial investment or progress in the project. As evidence of financial close, the enterprise shall submit a certification, in a form and substance satisfactory to BOI, issued and addressed by the lenders to BOI confirming the financial agreements are in full force and in effect.

    Projects should utilize energy sources adopting environmentally-friendly technologies that comply with the Clean Air Act, the Environmental Impact System law, the Biofuels Act, where applicable, and other relevant environmental laws.

    Application for registration must be accompanied by an endorsement from the DOE.

 

II EXPORT ACTIVITIES

  1. Production and Manufacture of Export Products

    • This covers the production/manufacture of non-traditional export products and with export requirement of at least 50% of its output, if Filipino-owned or at least 70%, if foreign-owned.

      In the export of mineral products, the Specific Guidelines for R.A. No. 7942 of this IPP shall apply suppletorily.

  1. Services Exports4

    • 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.

      This also covers non-voice business processing operations such as administrative and business services including analytics, data management, engineering and architectural services.

      Mere deployment of people or individual practice of profession abroad is not qualified for registration.

      For contact centers, project must have a minimum investment cost of the Philippine Peso equivalent of US$2,500 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.

      For IT-BPM, upgrading of existing or baseline skills/training program related to people, process, tools and technology to a higher level of certification or standards may qualify for registration as modernization project subject to the conditions and requirements as specified under the listing Creative Industries/Knowledge-Based Services.

  1. Activities in Support of Exporters

    • This covers activities directly supporting export producers as follows:

      1. Manufacture of parts/components and materials and supplies directly/ reasonably needed in the production of the export product;

      2. Services rendered to II.1 and II.2 above;

      3. Product testing and inspection;

      4. Repair and maintenance; and

      5. Logistics services.

    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.

 

III Special Laws

  1. Industrial Tree Plantation (P.D. No. 705)

    • This covers extensive plantation of timber, non-timber species and 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.

      Application for registration must be accompanied by an endorsement from the DENR.

  1. Exploration, Mining, Quarrying and Processing of Minerals (R.A. No. 7942) (limited to capital equipment incentives)

This covers the exploration and development of mineral resources, mining/quarrying and processing of metallic and non-metallic minerals.

The following may qualify for registration with incentives limited to capital equipment:

  1. Exploration of mineral resources;

  2. Processing of metallic and non-metallic minerals to produce semi-processed mineral products, e.g., metallic ore concentrate, whether or not integrated with mining/quarrying operations.

Production of pure metals, whether or not integrated with mining operations, shall be covered under the listing All Qualified Manufacturing Activities including Agro-Processing.

Mere mining/quarrying or even those with minimal processing (e.g., crushing, grinding, screening, drying, etc.) shall not qualify for registration.

Application for registration must be accompanied by a copy of the Exploration Permit, Mineral Production Sharing Agreement (MPSA), Financial or Technical Assistance Agreement (FTAA) or Quarry Permit, whichever is applicable.

  1. Publication or Printing of Books/Textbooks (R.A. No. 8047)

This covers content development intended for books and publication of books in print or digital format.

The following may qualify as new:

  • New book titles (original works, and original text with annotations, with ISBN), 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 is published will be regarded as “Expansion.”

Re-prints, revisions, and succeeding editions of existing titles will not qualify for registration.

For publishing, the following will apply:

  • A minimum of 3 titles with 500 copies each for its first print run, in case of trade books;

  • A minimum of 3 titles with 1,000 copies each for its first print run, in case of printed text-books; and

  • A minimum of 3 titles each, in case of e-books.

Application for registration must be accompanied by an endorsement from the National Book Development Board.

  1. Refining, Storage, Marketing, and Distribution of Petroleum Products (R.A. No. 8479)

This covers refining, storage, distribution, and marketing of petroleum products.

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 storage, marketing and distribution, only investments of new industry participants may be entitled to incentives.

Application for registration must be accompanied by an endorsement from the DOE certifying that the applicant is a new industry participant with new investments.

For storage, marketing and distribution, petroleum products excluding liquefied petroleum gas (LPG), shall be sourced from the new industry participants as defined under R.A. No. 8479, except in cases of emergency supply situation.

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.

Blending of petroleum products alone may only be entitled to capital equipment and other non-fiscal incentives.

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.

  1. Rehabilitation, Self-Development and Self-Reliance of Persons with Disability (R.A. No. 7277)

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.

Manufacturing of technical aids and appliances used by persons with disability includes but is not limited to the following:

  • Walk-in baths designed for persons with disabilities;

  • Commode chairs;

  • Braille books;

  • Hoists and lifting chairs designed for incapacitated people, including stair lifts;

  • Wheelchairs, scooters and automobiles using special controls or assistive technology designed for persons with disabilities;

  • Hearing-aids;

  • Artificial limbs, orthotics, prosthetics and orthopedic braces;

  • Automatic/mechanical lifts to be attached to motor vehicle.

Application for registration must be accompanied by an endorsement from the DSWD.

  1.  Renewable Energy (R.A. No. 9513)

This covers developers of renewable energy facilities, including hybrid systems. This also covers manufacturers, fabricators and suppliers of locally-produced renewable energy (RE) equipment and components.

Application for registration must be accompanied by a copy of the DOE Certificate of Registration, Certificate of Accreditation or DOE endorsement, whichever is applicable.

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.

  1. Tourism (R.A. No. 9593)

This covers tourism enterprises that are outside the tourism enterprise zones (TEZs) and are engaged in the following:

  1. Tourist transport services whether for land, sea and air transport for tourist use;
  2. Establishment and operation of:
  • Accommodation establishments: hotel, resort, apartment hotel/serviced residences, guest accommodation, eco-lodge and homestay;

  • Convention and exhibition facilities or “meetings, incentives, conventions and exhibition” (MICE) facilities;

  • 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;

  • Farm tourism; and

  • Tourism training centers and institutes.

  1. Development of retirement villages;
  2. Restoration/ preservation and operation of historical shrines, landmarks and structures.
  1. Tourist transport

This covers transport services whether for land, water and air transport for tourist use.

  1. Land transport covers the operation of brand new, world-class buses and/or mini-buses/coasters, vans, luxury sedans, air-conditioned jeepneys and/or hop-on-hop-off transportation service.

A minimum of three (3) units are required to be qualified for registration.

  1. Water transport covers any watercraft catering to tourists.

  1. Air transport covers any air conveyance catering to tourists.

  1. Tourism-related facilities
  1. Accommodation facilities

This covers hotel, resort, apartment hotel, guest accommodation, eco-lodge, and homestay catering to tourists/guests to qualify for registration.

For apartment hotel/serviced residences, each unit must have a fully equipped kitchen and laundry facilities.

Income arising from gaming and mall operations are not qualified for ITH.

For modernization projects, replacement of carpets, pillows, mattresses and other similar items shall be excluded from the computation of the ITH rate of exemption.

Accommodation establishments locating in Boracay Island shall not be entitled to ITH.

Only income directly attributable to revenue generated from the tourism accommodation operations, specifically from room accommodation and income from food and beverage outlets within the facility owned by the registered enterprise shall be qualified for ITH.

  1. Tourism Training Centers and Institutes

The following are the requirements for registration:

  • The curriculum must be endorsed by the appropriate industry association and approved by either the TESDA for technical-vocational training courses or CHED for degree courses or other concerned government agencies/authority.

  • The registered education / training / learning institutions must provide training laboratories / On-the-Job facilities and equipment.

Application for registration of activities engaged in tourist transport, accommodation facilities, MICE facilities, amusement parks, adventure and eco-tourism facilities, sports facilities and recreational centers, theme parks, and tourism training centers and institutes must be accompanied by an endorsement from the DOT.

Prior to ITH availment, the registered enterprise must submit a copy of DOT accreditation.

Only income derived from tourism-related activities shall be entitled to ITH.

  1. Health and Wellness

This covers the establishment and operation of destination spa, resort/hotel spa, therapeutic centers and traditional healing centers that use Philippine “hilot”, “dagdagay”, “ventossa”, etc.

The modality used for the services involving spa, therapeutic and traditional healing centers must fall within the acceptable traditional and complementary medicine (T&CM) under the Philippine Institute of Traditional and Alternative Health Care (PITAHC) Guidelines (PITAHC Circular No. 01, Series of 2016, National Certification of Hilot Practitioners and Accreditation of Hilot Training Centers and Hilot Healing Centers.

The application for registration of these activities shall be accompanied by an endorsement from PITAHC.

  1. Retirement Village

This covers the development and operation of a retirement community or a complex of residential units or a number of separate complexes of residential units on common but bounded land suitable for development that will ensure safe, secure, healthful and environmentally-sound community life with prescribed carrying capacities of facilities and activities such as but not limited to accommodation, food, play & recreation, health & wellness, entertainment & culture services, security and other amenities/facilities and must have a 24-hour operating medical/healthcare facility staffed with qualified healthcare personnel, and provided with roads, power and water supply systems, drainage and sewerage systems and other infrastructures.

Revenues generated from the development and operation of the retirement community shall be limited to sale or rent of residential units to be entitled to ITH. Revenues derived from sources other than purchase or rent of residential unit shall not be entitled to ITH.

Locators engaged in the activities listed in the IPP that are related to retirement business may be registered as separate activities.

Application for registration must be accompanied by an endorsement from the DOT. Prior to ITH availment, the registered enterprise must submit copy of the DOT accreditation.

  1. Restoration/ preservation and operation of historical shrines, landmarks and structures.

This covers the conservation, restoration, preservation, and operation of national sites or properties.

Projects undertaking the conservation and preservation, restoration or maintenance of historico-cultural heritage that includes any of the following may qualify for registration:

  1. National shrines, monuments, landmarks and heritage houses of historical significance;

  1. Local historical sites/properties classified, identified, and listed in the National Registry of Historic Structures; and

  1. Cultural properties, treasures and/or artifacts.

Application for registration must be accompanied by an endorsement from the National Historical Commission of the Philippines (NHCP) for activities under (a) and (b), and the National Museum for activities under (c).

1 Baseline year refers to the year upon filing for application for registration for new projects or request for upgrading to pioneer status for existing projects.

As may be approved by the Board.

Without prejudice to applying for the ITH Bonus Year subject to compliance with the criteria set by the Board as shown in VI.C (Availment of ITH Bonus Year) under the General Policies of this Guidelines.

4 Contact centers and non-voice business processing activities that will be located in Metro Manila May no longer be qualified for incentives availment with the Board of Investments under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, as amended, by year 2020.

 Industrial Tree Plantation (ITP) is also known as Industrial Forest Plantation (IFP) based on DENR Administrative Order No. 1999-53.