Ms. LILLIAN C. COTAZResource-Based Industries Department

Board of Investments10 May 2013

Sulo Riviera Hotel, Quezon City

Regional Workshop on Enhancing Regional Workshop on Enhancing Farmers’ Market Power WorkshopFarmers’ Market Power Workshop

An attached agency of the Department of Trade and Industry

Promote investments in preferred areas as identified in the annual Investments Priorities Plan (IPP)

Administer incentives:• Fiscal • Non-fiscal

Board of Investments

Agriculture/Agribusiness and Fishery• Commercial Production• Commercial Processing

Services in Support of Agriculture / Agribusiness and Fishery

• Irrigation• Harvesting Services• Post Harvesting Services

2012 Investment Priorities Plan

Agribusiness

2012 to Q1 2013

Total Registered Investments (PhP B) 14.04

Total Number of Projects 50

Employment 10,327

Board of Investments

income tax holiday (ITH) exemption from wharfage dues and export tax, duty, impost and fees tax exemption on breeding stocks and genetic materials employment of foreign nationals Simplification of customs procedures Duty exemption on imported capital equipment, spare parts and

accessories Tax credits on imported raw materials Tax and duty free importation of consigned equipment Additional deduction from labor expense Access to bonded manufacturing warehouse

Incentives

Foreign Investments Act – R.A. 7042

Foreign Investment Act of 1991• basic law governing foreign investments in the Philippines• liberalized the entry of foreign investments in the country

Key Features of FIA• concept of negative list• opened domestic market to 100% foreign investment

except those in the Foreign Investment Negative List (FINL)• allowed 100% foreign ownership of business activities

outside FINL but WITHOUT incentives

Foreign Investments

Foreign Investment Negative Lists

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 (limited to a maximum of 40%)

List B - areas of activities where foreign ownership is limited pursuant to law such as defense or law enforcement-related activities, which have negative implications on public health and morals, and small and medium-scale enterprises.

Foreign Investments

Qualifications for BOI Registration

Entity organized under Philippine laws at least 60% Filipino owned

If not Filipino:» proposes to engage in Pioneer project for domestic-

oriented projects» Commits to export at least 70% of production/

manufacturing revenues Activity must be listed in the Investments Priorities Plan

Registration

BOI Resource-Based Industries Department

385 Sen. Gil Puyat Ave. Makati City Tel. (+632) 895-3977 Fax (+632) 896-8453

Registration