comparative incentives_boi peza

8/3/2019 Comparative Incentives_BOI PEZA

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COMPARISON OF INCENTIVES AMONG VARIOUS INVESTMENT INCENTIVE LAWS

INCENTIVE BOI PEZA

Enabling Law Executive Order No. 226, as amended Republic Act No. 7916, as amended

FISCAL

Income Tax Holiday Pioneer : Six (6) YearsNon-Pioneer : Four (4) YearsExpansion : Three (3) Years

The exemption period may be extendedfor another year in each of the followingcases:1. The project uses indigenous rawmaterials2. The project meets the BOI-prescribed

ratio of capital equipment to number ofworkers3. The net foreign exchange savings orearnings amount to at least US$500,000.00 annually during the first three(3) years of the project's commercialoperations

For Export-Oriented:Pioneer : Six (6) YearsNon-Pioneer : Four (4) YearsExpansion : Three (3) Years

A special tax rate of 5% of grossincome earned in lieu of the paymentof all national and local taxes exceptreal property tax after the income taxholiday

Tax and Duty FreeImportation of CapitalEquipment

Incentives under E.O. 528For BOI-registered companies: 12%

VAT, 0% duty

Available

Tax Credit on DomesticCapital Equipment

None Available

Additional Deduction forLabor Expense

Available for the first five (5) years fromregistration, additional deduction fromthe taxable income of 50% of the wages

Same as EO 226 incentive :Available for the first five (5) yearsfrom registration, additional deductionfrom the taxable income of 50% ofthe wages

Tax and Duty FreeImportation on BreedingStocks and Genetic Materials

Available Available

Tax Credit on Duty Portion ofDomestic Breeding Stocksand Genetic Materials

Available Available

Tax Credit for Taxes andDuties on Raw Materials

Available (used in the manufacture,processing, or production of a project'sexport products)

Available

Tax and Duty ExemptImportation of ImportedSpare Parts

Available Available

Exemption from WharfageDues and Export Tax, Duty,Impost and Fee

Available Available

Additional Deduction onTraining Expenses

None Equivalent to 1/2 of the value oftraining expenses incurred


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Exemption from Payment ofLocal and National taxes,Licenses

None Available

Tax and Duty ExemptImportation of ConstructionMaterials

None Available

Taxes and Duty ExemptImportation of SpecializedOffice Equipment andFurniture

None Available

Taxes and Duty exempt

Importation of SpecializedVehicles and Other

Transportation Equipment

None Available

Taxes and Duty exempt

Importation of Professionals

Instruments and Household

effectsNone Available

Exemption from Franchise,common carrier or value-added taxes and otherpercentage taxes on publicand service utilities

None None

NON-FISCAL

Business within may be100% foreign-owned

Unrestricted Use ofConsigned Equipment

Available (including exemption from taxesand duties on imported supplies and

spare parts for consigned equipment)

There are no restrictions on the use byBOI-registered enterprises of consignedequipment provided a re-export bond isposted. E. O. No. 226 provides furtherthat if the consigned equipment andspare parts were imported tax and duty-free, the re-export bond may be waived.

Available

Treatment of the Zone as aseparate customs territory

None Available

Permanent Resident Statusfor Foreign Investors andImmediate Family

(Special Investors ResidentVisa)

Foreign personnel of regionalheadquarters in the Philippines; theirrespective spouses and unmarriedchildren below 21 years old may beissued multiple entry visas.

For investments of US$ 75,000.00

Available

For investments of US$ 150,000.00


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Employment of ForeignNationals

Foreign nationals may be employed insupervisory, technical or advisorypositions within five (5) years from aproject's registration, extendible forlimited periods to be determined by theBOI. The positions of president, generalmanager, and treasurer or their

equivalents, of foreign-owned registeredfirms may be retained by foreignnationals for a longer period.

All foreign employees may bring withthem their spouses and unmarriedchildren under 21 years of age.

Foreign nationals may be employed insupervisory, technical or advisorypositions within five (5) years from aproject's registration, extendible forlimited periods to be determined bythe PEZA. The positions of president,general manager, and treasurer or

their equivalents, of foreign-ownedregistered firms may be retained byforeign nationals for a longer period.

All foreign employees may bring withthem their spouses and unmarriedchildren under 21 years of age.

Special Investor's Resident Visa maybe issued to aliens investing in atleast US$ 75,000 in the Philippinesthereby allowing them to reside in the

Philippines as long as their investmentis maintained.

Location on less-developedareas (whether proposed orin an existing venture gearedfor expansion)

Additional Incentives :1. The same set of incentives given to apioneer registered enterprises;2. A 100% deduction from its taxable incomerepresenting the necessary majorinfrastructure it may have undertaken in thecourse of its operation; and3. An additional deduction from taxableincome of 100% of the wages correspondingto the increment in the number of direct laborfor skilled and unskilled workers in the year ofavailment as against the previous year is

observed.

None

Unlimited purchase andconsumption of tax and duty-free goods within theFreeport zones.

None None

Government Facilities fortraining laborers

None Extends assistance on majormanpower training of laborers tofirms in the zones. The Technical,Education, Skills Development

Authority (TESDA) conductsmanpower training programs. In

addition, the Labor Code grantsincentives to firms engaged in labortraining activities.

Other incentives under thePresidential Decree No. 66 orthose provided under BookVIof E.O. 226.

None None

Availment of inexpensiveelectrical power rates

None None

Availment of the lowest landlease rates in the country

None None

comparative incentives_boi peza

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