What Are the Incentives for BOI-Registered Companies?
TL;DR
Registering with the Board of Investments (BOI) in the Philippines can offer companies a wide range of tax perks, fiscal and non-fiscal incentives, and strategic business advantages. These include income tax holidays, VAT exemptions, and streamlined import/export procedures. Both local and foreign companies across priority industries may qualify, making BOI registration a powerful tool for growth.
Summary Answer
BOI-registered companies in the Philippines can enjoy generous fiscal and non-fiscal incentives such as income tax holidays, VAT exemptions, duty-free importation of capital equipment, and simplified business processes. These incentives are aimed at stimulating economic activity, attracting foreign investments, and supporting key industries.
Introduction: Why BOI Incentives Matter
The Philippines has long been a strategic hub for business, and one of the government’s most effective tools for driving investment is through the Board of Investments (BOI). Yet many businesses are unclear about what they actually gain from registration. So, what are the BOI-registered company benefits, and how can you maximize BOI incentives?
This blog breaks down the BOI incentives in the Philippines, making them easy to understand and highlighting why they matter for your business.
Types of BOI Incentives in the Philippines
BOI incentives are categorized into two main types: fiscal and non-fiscal.
1. Fiscal Incentives
These directly affect your bottom line by reducing tax burdens and import costs.
- Income Tax Holiday (ITH)
- Up to 6 years of exemption from income tax, depending on business location and type
- Extended benefits for expansion projects
- 5% Special Tax on Gross Income
- After the ITH, companies may opt to pay a 5% tax on gross income in lieu of all national and local taxes
- Duty-Free Importation
- Import capital equipment, spare parts, and accessories without customs duties
- VAT Exemption on Importation and Local Purchases
- No VAT on machinery, raw materials, or services needed for production
- Exemption from Wholesaling or Retailing Requirements
- Ideal for export-oriented enterprises
2. Non-Fiscal Incentives
These help facilitate business operations and provide administrative benefits.
- Employment of Foreign Nationals
- Easier processing of work permits and visas for foreign staff
- Simplified Customs Procedures
- Faster import/export processing
- Access to BOI Investment Promotion Services
- Market intelligence, assistance with permits, and exposure through trade missions
- Protection from Non-Tariff Barriers
- Especially helpful for exporters
Who Can Benefit? BOI Eligibility and Priority Sectors
Not all businesses can register with the BOI, but many types can—especially those that are export-oriented or part of the government’s priority sectors.
Business Sectors Eligible for BOI Incentives:
- Agribusiness
- Renewable energy
- Manufacturing
- Infrastructure and logistics
- Innovation and R&D
- Tourism
- Creative industries
- Export services (BPO, software dev, animation)
BOI Registration Benefits for Foreign Companies:
Foreign-owned companies can apply for BOI registration as long as they:
- Export at least 70% of their products/services
- Operate within a preferred investment area
Why Businesses Struggle to See the Value
Many companies, especially SMEs, are unsure whether the process is worth it. The truth is: BOI tax incentives are often misunderstood or underutilized. Here’s how to overcome that:
Common Misconceptions:
- “It’s only for large corporations.”
- “The paperwork is overwhelming.”
- “We don’t qualify because we’re not exporters.”
Solutions:
- Partner with BOI registration consultants
- Start with a free BOI eligibility assessment
- Focus on how the savings outweigh the cost of compliance
How to Qualify and Apply for BOI Incentives
Steps to Start the BOI Registration Process:
- Determine Eligibility
- Check the Investment Priorities Plan (IPP)
- Prepare Required Documents
- SEC registration, project study, financials, and ownership structure
- Submit BOI Application Online
- Through the BOI One-Window Network (BOI-OWN)
- Attend Project Evaluation Meeting
- BOI may request clarifications or site visits
- Wait for Approval
- Timeline varies (generally 15-30 business days)
- Claim Incentives
- After getting your BOI Certificate of Registration
How to Maximize BOI Incentives
To get the most out of your BOI registration:
- Consult BOI registration experts regularly
- Keep proper documentation for tax and customs claims
- Stay updated on BOI rules and annual reporting
- Join seminars and briefings offered by BOI
Final Thoughts
Getting BOI-registered isn’t just a paperwork exercise. It’s a long-term investment in cost-efficiency, market expansion, and credibility. Whether you’re a startup or a seasoned exporter, understanding the perks of registering with the Board of Investments can give you the competitive edge you need.
Need help starting your BOI application? Fill out the form below and let our experts guide you.
Frequently Asked Questions (FAQ)
- What are the fiscal and non-fiscal incentives given by the BOI?
Fiscal: Tax holidays, VAT exemptions, and duty-free imports.
Non-fiscal: Visa support, simplified customs, business assistance. - Who is eligible to receive BOI incentives in the Philippines?
Firms in the IPP list, export-oriented businesses, and companies in key sectors like manufacturing, agribusiness, and IT. - How long does the income tax holiday (ITH) last for BOI-registered firms?
Between 4 and 6 years, depending on industry and location. - Do BOI-registered companies get VAT exemptions?
Yes, for the importation and purchase of capital goods and raw materials. - Can foreign companies qualify for BOI incentives in the Philippines?
Yes, especially if they export at least 70% or fall within preferred investment areas. - What industries are prioritized for BOI registration and incentives?
Manufacturing, tech, renewable energy, agribusiness, tourism, logistics. - How do I apply for BOI incentives as a local or foreign business?
Prepare documents, submit online, undergo evaluation, and secure approval. - What are the benefits of BOI registration over other investment programs?
More comprehensive incentives, targeted industries, and stronger promotion support. - Is it worth registering with the BOI for small or medium-sized businesses?
Yes, especially if you’re scaling and want to reduce costs and increase visibility. - How does the BOI monitor and enforce incentive compliance?
Through annual reporting, audits, and compliance checks linked to your registration certificate.
Want to learn more or get started with BOI registration? Fill out the form below for a free consultation.