Philippine Government Support to Investors Philippine Investment Climate

Philippine Government Support to Investors

Philippine Investment Climate

Philippine Investment Trends (In Billion Pesos) 73% growth Source: National Statistical Coordination Board (NSCB)

BOI-PEZA Approved Investments (In Billion Pesos) 69% growth Source: National Statistical Coordination Board (NSCB)

The Foreign Investments Act 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 listed in the Foreign Investments Negative List (FINL): LIST A Areas 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 B Areas 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 RP

Proposed Investment Priorities Plan 2011 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 § Production and Manufacture of Export Products § Services Exports (including IT& IT Enabled services) § Activities in Support of Exporters III. Mandatory List IV. Export ARMM List

Attractive Investment Incentives Comparison of Incentives INCENTIVE Income Tax Holiday (ITH) ITH Bonus BOI PEZA CDC / SBMA (Executive Order No. 226, as (Republic Act No. 7916, (Republic Act No. 7227 – Bases amended) as amended) Conversion Devt Authority 4 – 6 years (max of 8 years) 3 years provided the firm meets certain conditions Special Tax Rate of 5% on Gross Income Importation of Capital Equipment, Spare Parts and Supplies Wharfage Dues and Export Tax, Duty, Impost and Fees Simplification of Customs Procedures Employment of Foreign Nationals § Exempted from all local and national taxes - value-added taxes, franchise taxes, excise and ad valorem taxes) Special Tax Rate of 5% on Gross Income Duty-free Tax and Duty-Free Exempted No exemption Available § 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.

IPA Services § Due diligence assistance Information support ü Visit program development & investment briefing ü Business matching ü § Business registration facilitation Networking with IPUs and other government agencies on preoperational business requirements ü Fast tracking with registration procedures ü Assistance with local government requirements ü § Aftercare service Presence of government network to quickly respond to concerns ü Regular supervision & monitoring ü

F E O af p s ef et n c aft a ci c v ei sl ai s nt at d ot si o u p n s u bt o al fi n c ei n d s v e e ci st n ot o er Strategic Investors Aftercare Program (SIAP) SIAP is a PROACTIVE program designed to create a high The BOI ensures that investors’ issues and concerns are and quality, trust-based, working relationship between BOI addressed managed with thecontinuing following partners: existing and investors in ensuring business in the country. Investments Promotion Unit (IPU) Network National Economic Research and Business Assistance Centers (NERBACs)

IPU NETWORK BOI dispatcher / monitor (secretariat) BSP DAR DILG HLURB BOC DA DOLE MIAA BFAD DOE DPWH BI DENR DOST BIR DOF DOT CICT DFA DOTC CSC OMB The OMB has discussed its intention to facilitate Issues raised by the investors to NGA’s thru NEDA their resident ombudsman for recommendation to OMB NICA NCIP POEA SEC Act on I/C within 5 working days for simple transaction and 10 working days for complex transaction per Anti-Red Tape Law

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Contact details: Asst. Secretary FELICITAS AGONCILLO-REYES Investments Promotion Group Board of Investments Industry and Investment Building 385 Sen. Gil Puyat Avenue, 1200 Makati City, Philippines Tel: (632) 896 -9212/ 897 -6682 ext. 327 -28 Fax: (632) 8972781 Email: FAgoncillo. Reyes@boi. gov. ph Website: www. boi. gov. ph