BOARD OF INVESTMENT
Registration to the Board of Investments entitles a company to avail of incentives offered by the Philippine Government. Approval of BOI registration should be before the start of commercial operation of the business.
INCENTIVES OF A BOI REGISTERED
1. Income Tax holiday (4 yrs for new projects in developed areas and 6 yrs in less developed areas; 3 yrs for expansion projects) or additional deduction on incremental direct labor expense (5 yrs) if ratio for capital equipment to worker is at least US$10,000:1.
2. Employment of foreign nationals for 5 yrs from date of registration.
3. Simplification of customs procedures
4. Unrestricted use of consigned equipment for 10 yrs, subject to posting of re-export bond
5. Tax and duty exemption on importation of breeding stocks and genetic materials for 10 years.
6. Tax Credit on domestic stocks and breeding materials.
7. Additional deduction for necessary major infrastructure works
8. Exemption from local Business Taxes (as per Sec. 133 (g) of the Local Government Code and Art 221(g) of its Implementing Rules & Regulations) for the duration of the income tax holiday.
9. VAT Zero Rating for qualified exporters
10. Tax Credit Equivalent to the national internal revenue taxes and duties on raw materials, supplies, and semi-manufactured products used in the manufacture of export products and forming parts thereof.
11. Tax and duty exemption on imported supplies and spare parts of imported & consigned equipment if these are brought in through the company’s Custom’s bonded Manufacturing Warehouse.
12. Access to operate a bonded manufacturing/trading warehouse subject to the rules and regulations of the Bureau of Customs
13. Exemption from Wharfage dues or any export tax, duty, impost and fees
Projects or activities listed in the current Investment Priorities Plan.
II. REQUIREMENTS FOR APPLICATION
These documents should be submitted in three (3) individual folders
1. Duly accomplished and Notarized BOI Form 501
2. Photocopies of SEC Registration Certificate and Articles of Incorporation/Partnership or DTI Business Name Certificate for Single Proprietorship
3. Board Resolution for corporation/partnership or a Letter for single proprietorship, authorizing officer/s to represent and sign documents submitted to BOI in behalf of the owner.
4. Project Feasibility Study with ten (10) years financial projection and analysis, with and without BOI incentives.
5. Audited financial statements and Income Tax Returns of Directors and Stockholders for the past three (3) years.
Other requirements:
6. Notice of One-time publication in a newspaper of national circulation.
7. Plant visit and pictures of the project site
8. Payment of Filing Fee
9. Other documents the Board may require.
Note: Processing Time is 5 working days from date of official acceptance of application
III. PRE- REGISTRATION REQUIREMENTS
After the Board approval, the enterprise shall submit the following documents:
1. Resolution of the Applicant’s Board of Directors for Corporation/ Partnership or a Letter of Acceptance for a Single proprietorship, accepting all the terms and conditions listed under the “General and Specific Terms and Conditions” of the Project Approval Sheet.
2. Payment of Registration Fee
3. Sworn Statement of the Applicant’s Board of Directors for corporation/partnership or the owner for single proprietorship, adopting and affirming all representations and commitments made by the applicant to the Board and stating that except those of which the Board has been duly advised in writing, all information and data submitted to the Board are true and correct
1. Certification under oath that the applicant is not in arrears in the payment of outstanding obligations, including loans to the government or any government instrumentality
2. Publisher’s affidavit on the publication of the notice of filing of the application
3. Other documents required by BOI
IV. POST REGISTRATION REQUIREMENTS
The following reports shall be submitted annually by a registered enterprise to BOI:
1. Audited Financial Statements and Income Tax Returns: Deadline is one (1) month after filing with the BIR
2. BOI Quarterly and S1 Form ( Annual Report of Actual Operations) : Deadline is May 15 for those following the calendar year or 4.5 months for firms using the fiscal year.
3. Other documents the Board may require
V. REGISTRATION COST
1. Filing Fee (upon official acceptance of application)
Project Cost: not exceeding P4M ................P 1,510.00
Exceeding P4M but no more than P 20 M.......P 3,010.00
Exceeding P20M but notmore than P50M ........P4,510.00
Project Cost exceedingn P50M......................P6,010.00
2. Publication Fee (paid to Publisher of newspaper of national circulation for one time publication of BOI application after official acceptance). Applicant may opt for BOI to facilitate publication.
3. Registration Fee (paid after approval of application)
1/10 of 1% of the Project Cost but not less than P3,000 and not more than P15,000
4. Issuance Fee (paid during incentive availment)
½ of 1% of total taxes and duties waived but not less than P300 and not more than P15,000.00
Non-cash payment of fees shall be made in Manager’s check addressed to BOI.
CAGAYAN DE ORO EXTENSION OFFICE
Oro Business promotion Center
2/F, 52nd
Tiano-Gaerlan
Phone: (88) 857-4867 or (8822) 712-473
Fax: (88) 857-4867
Mobile: 0917-822-6260
e-mail: iact@websprinter.net
