Philippine Government Support to Investors

Philippine Investment Climate

PhilippinePhilippine Investment TrendsInvestment Trends (In Billion Pesos)

Source: National Statistical Coordination Board (NSCB)

231.23

357.00

314.11

464.22

385.80

221.82

542.60

-

100.00

200.00

300.00

400.00

500.00

600.00

2004 2005 2006 2007 2008 2009 2010

73% growth

BOI-PEZA Approved InvestmentsBOI-PEZA Approved Investments (In Billion Pesos)

-

100.00

200.00

300.00

400.00

500.00

600.00

2006 2007 2008 2009 2010

BOI PEZA

69% growth

Source: National Statistical Coordination Board (NSCB)

Non-Philippine Nationals (individual or juridical) may invest in domestic or export-Non-Philippine Nationals (individual or juridical) may invest in domestic or export-oriented (at 60% export) activities up to 100% of its capital provided these are not oriented (at 60% export) activities up to 100% of its capital provided these are not listed in the listed in the Foreign Investments Negative List (FINL):Foreign Investments Negative List (FINL):

The Foreign Investments ActThe Foreign Investments Act

LIST AAreas of activities reserved to Philippine nationals where foreign equity participation in any domestic or export enterprise engaged in any activity listed therein shall be limited to a maximum of 40% as prescribed by the Constitution and other specific laws.

LIST BAreas of activities where foreign ownership is limited pursuant to law for reasons of security, defense, risk to health and morals, and protection of SMEs

Government Support

Investment Promotion Agencies (IPAs) in RPInvestment Promotion Agencies (IPAs) in RP

I. Preferred Activities

Regular List: Agriculture/ Agri-business and Fishery Ship Building Mass Housing Energy Infrastructure Research and Development Green Projects Strategic Projects Motor Vehicles Tourism PPP Projects

II. Export Activities

III. Mandatory List

Production and Manufacture of Export Products Services Exports (including IT& IT Enabled

services) Activities in Support of Exporters

Proposed Investment Priorities Plan 2011Proposed Investment Priorities Plan 2011

IV. Export ARMM List

Comparison of Incentives

INCENTIVEBOI

(Executive Order No. 226, as amended)

PEZA

(Republic Act No. 7916, as amended)

CDC / SBMA

(Republic Act No. 7227 – Bases Conversion Devt Authority

Income Tax Holiday

(ITH)4 – 6 years (max of 8 years) Exempted from all local and national

taxes - value-added taxes, franchise taxes, excise and ad valorem taxes)

ITH Bonus 3 years provided the firm meets certain conditions

Special Tax Rate of 5% on Gross Income

Special Tax Rate of 5% on Gross Income

Importation of Capital Equipment, Spare Parts and Supplies

Duty-free Tax and Duty-Free

Wharfage Dues and Export Tax, Duty, Impost and Fees

Exempted No exemption

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.

Attractive Investment IncentivesAttractive Investment Incentives

Due diligence assistance Information support Visit program development & investment briefing Business matching

Business registration facilitation Networking with IPUs and other government agencies on pre-operational

business requirements Fast tracking with registration procedures Assistance with local government requirements

Aftercare service Presence of government network to quickly respond to concerns Regular supervision & monitoring

IPA ServicesIPA Services

Strategic Investors Aftercare Program (SIAP) Strategic Investors Aftercare Program (SIAP)

SIAP is a PROACTIVE program designed to create a high quality, trust-based, working relationship between BOI and existing investors in ensuring continuing business in the country.

The BOI ensures that investors’ issues and concerns are addressed The BOI ensures that investors’ issues and concerns are addressed and managed with the following partners:and managed with the following partners:

Investments Promotion Unit (IPU) NetworkNational Economic Research and Business Assistance Centers (NERBACs)

Fast facilitation of Fast facilitation of investors issues and investors issues and

concernsconcernsOpen access to public sector Open access to public sector on investment related policyon investment related policy

Effective and sustained Effective and sustained interactioninteraction

IPU NETWORK

IPU NETWORK

BSPBSP

BIBI

BOCBOC

BFADBFAD

BIRBIR

CSCCSC

NCIPNCIP

CICTCICT

DADA

DOEDOE

DENRDENR

DOFDOF

DFADFA

DILGDILG

DOLEDOLE

DPWHDPWH

DOSTDOST

DOTDOT

DOTCDOTC

HLURBHLURB

MIAAMIAA

NEDANEDA

NICANICA

POEAPOEA

BOI(secretariat)

BOI(secretariat)

DARDAR

OMBOMB SECSEC

dispatcher / monitor

dispatcher / monitor

Act on I/C within 5 working days for simple transaction and 10 working days for complex transaction per Anti-Red Tape LawAct on I/C within 5 working days for simple transaction and 10 working days for complex transaction per Anti-Red Tape Law

The OMB has discussed its intention to facilitate Issues raised

by the investors to NGA’s thru their resident ombudsman for

recommendation to OMB

Discover the Philippine Advantage!

Contact details:

Asst. Secretary FELICITAS AGONCILLO-REYESInvestments Promotion GroupBoard of InvestmentsIndustry and Investment Building385 Sen. Gil Puyat Avenue,1200 Makati City, PhilippinesTel: (632) 896-9212/ 897-6682 ext. 327-28 Fax: (632) 8972781Email: FAgoncilloReyes@boi.gov.ph Website: www.boi.gov.ph