IPP2010 Booklet

Maximizing Opportunities of a Stronger Philippine Economy
Contents
Memorandum Order No. 314 3
Message 4
Foreword 5
Part 1: Priority Investment Areas

Preferred Activities 8
Mandatory List 11
Export Activities 12
ARMM List 13
Part II: General Policies

I. Approval Of Application And Entitlement To Incentives 17
II. Equity Ownership 17
III. Equity Requirement 17
IV. Locational Restriction Policy 17
V. Export Of Manufactured / Processed Goods 19
VI. Export Of Products In Short Domestic Supply 19
VII. Micro, Small And Medium Enterprises (Msmes) 20
VIII. Project Type And Status 20
IX. Pioneer Status And Incentives 24
X. Projects With Sovereign Guarantee Or Guaranteed
Rate Of Return 24
XI. Unsolicited BOT Projects 24
XII. Multi-Phased Projects With Multiple Locations 24
XIII. Corporate Social Responsibility Pursuant To Social
Objectives Of E.O. No. 226 25
XIV. Good Corporate Governance 25
XV. Support To The National Framework Strategy On
Climate Change 25
XVI. Projects Critical To The Environment 26
XVII. Food Processing Projects 27
XVIII. International Certification 27
XIX. Equipment 27
XX. Projects In The Autonomous Region In Muslim
Mindanao 27
XXI. Projects With Revenues Derived From Carbon Credits
Pursuant To The Kyoto Protocol 27
XXII. Outsourcing Of Production Process Or Services 27
XXIII. Public Welfare Consideration 27
INVESTMENT PRIORITIES PLAN 2010 1
FA_IPPBOI INSIDES.indd 1 8/13/10 11:29 AM

Part III: Specific Guidelines
I. Preferred Activities
A. Contingency List 29
B. Regular List 30
1. Agriculture/Agribusiness and Fishery 30
2. Infrastructure 31
3. Manufactured Products 40
4. Business Process Outsourcing (BPO) 45
5. Creative Industries 45
6. Strategic Activities 46
7. Green Projects 46
8. Disaster Prevention, Mitigation and
Recovery Projects 47
9. Research and Development and
Innovation 48
II. Mandatory List

A. Revised Forestry Code of the Philippines
(P.D. No. 705) 49
B. Philippine Mining Act of 1995 (R.A. No. 7942) 49
C. Printing, Publication and Content Development
of Books or Textbooks (R.A. No. 8047) 50
D. Downstream Oil Industry Deregulation Act
of 1998 (R.A. No. 8479) 51
E. Ecological Solid Waste Management Act of
2000 (R.A. No. 9003) 52
F. Philippine Clean Water Act of 2004
(R.A. No. 9275) 52
G. Magna Carta for Disabled Persons
(R.A. No. 7277) 53
H. Renewable Energy (RE) Act of 2008
(R.A. No. 9513) 53
I. The Tourism Act of 2009 (R.A. No. 9593) 54
III. Export Activities

A. Production and Manufacture of Export Products 57
B. Export Services 57
C. Activities in Support of Exporters 57
Annex A
Projects Not Qualified Under the Contingency List and
MSE Projects 58
2 BOARD OF INVESTMENTS PHILIPPINES

M EMORANDUM ORDER NO. 314
APPROVING THE 2010 INVESTMENT PRIORITIES PLAN
Pursuant to Article 29 of the Omnibus Investment Code of 1987, the attached 2010 Investment
Priorities Plan (IPP) is hereby APPROVED. Further to the provision of said Article, upon the
affectivity of the IPP, all government agencies and entities are enjoined not to adopt any policy or
take any course of action contrary to or inconsistent with the IPP.
This Memorandum Order shall take effect fifteen (15) days after its publication in a national
newspaper of general circulation as required under Article 31 of the Omnibus Investments Code
of 1987.
DONE in the City of Manila, this 30th of April, in the year of Our Lord, Two Thousand and Ten.
By the President:
LEANDRO R. MENDOZA
Executive Secretary
Note: Memorandum Order No. 314, approving the 2010 Investment Priorities Plan, was published on 21 May 2010 in
Philippine Star. Said Order therefore became effective fifteen (15) days thereafter.

Message
MALACAÑANG
M
MANILA
ESSAGE
In pursuit of sustainable development, reforms have been
the central pillar of my administration as espoused in my
10-Point Agenda, the Medium Term Philippine Development
Plan and in my vision of a Strong Republic.
The macroeconomic fundamentals coupled with timely fiscal

reforms that my administration has laid down spurred the
country’s positive economic growth over the years enabled
us to weather the recent global recession that wreaked havoc
to the world’s economies. These are the testaments that the
Philippines remains resilient and is now better equipped to
face new challenges.
In support of my administration’s agenda and vision, the 2010 Investment Priorities Plan
(IPP) seeks to generate more investments and more jobs in the agriculture, industry
and services sectors that are geared up to optimize the opportunities from the global
economic recovery and the implementation of our international engagements. This IPP
is made more significant as it promotes investments in green business initiatives that will
also address the climate change challenge towards a Green Philippines.
By “Maximizing Opportunities of a Stronger Philippine Economy” and with the

committed cooperation of the private sector and the government’s resolve to provide a
suitable business environment, we can ensure the successful implementation of the 2010
IPP and realize the gains of my administration’s development agenda.
The future for the Philippine economy is brighter. I am optimistic and hopeful that
with the country’s internal strength and resilience, which we have built up through
investments in our country and sound economic policies, we can continue to march
towards sustainable growth and bring the benefits of economic progress to every
Filipino.
Mabuhay tayong lahat!

GLORIA MACAPAGAL-ARROYO
Manila, Philippines, 30 April 2010

F OREWORD
The Philippine economy has remained resilient in the midst of the global economic crisis
that swept through the countries in East Asia including China and Japan extending to the
US and Europe. The economic reforms implemented through the years of the Arroyo
Administration have paved the way for a strong Philippines poised to take advantage of
the opportunities from the global economic recovery.
The 2010 Investment Priorities Plan (IPP) provides a platform to maximize these
opportunities as well as the benefits from the implementation of our free trade
agreements. Recognizing, however, that the effects of the global economic crisis still
linger and upon recommendation of the National Economic Development Authority
(NEDA), we have retained the Contingency List, which is a temporary inclusion
in the 2010 IPP to assist existing enterprises recover from global crisis aftermath and
which also covers new projects of micro and small enterprises.
Further, the 2010 IPP promotes a sustainable economic model that allows for growth, job
creation and environmental protection. Embracing an approach that is both green and
economically successful, we provide support to private sector initiatives on greenhouse
gas emissions reduction and disaster risk management.
The 2010 IPP has identified the priority areas that can provide the greatest push for the
country to attract more investments and generate more jobs. In this regard, the 2010
IPP likewise contains the following priority investment areas:
The Regular List, which includes nine (9) priority investment areas that were identified
to support the current priority programs of the government.
The Export Activities, which covers manufacture of export products, export services
and activities in support of exporters.
The Mandatory List, which now includes the recently passed R.A. No. 9593 or the
Tourism Act of 2009, covers all areas/activities where the inclusion in the IPP and/or the
grant of incentives under EO 226 is mandated by law.
The ARMM List, which covers priority investment areas that have been determined by
the Regional Board of Investments of the Autonomous Region of Muslim Mindanao
(RBOI-ARMM) in accordance with EO 458. The economic activities listed in the ARMM
shall be entitled to incentives provided that the said activities are undertaken in the
ARMM region.

Foreword
The 2010 IPP was formulated through the concerted efforts of the IPP Inter-Agency
Working Group spearheaded by the Board of Investments, in coordination with the
Regional Board of Investments - Autonomous Region of Muslim Mindanao (BOI-ARMM),
the Office of the President - Presidential Management Staff, NEDA and the Departments
of Finance, Agriculture, Energy, Environmental and Natural Resources, Health, Labor
and Employment, Public Works and Highways, Social Welfare and Development, Science
and Technology, Tourism, and Transportation and Communications.
Other participating agencies were Built Operate Transfer (BOT) Center, Bureau of
Customs (BOC), Bureau of Export Trade Promotion (BETP), Bureau of Micro, Small
and Medium Enterprise Development (BMSMED), Bureau of Product Standards
(BPS), Civil Aeronautics Board (CAB), Civil Aviation Authority of the Philippines
(CAAP), Commission on Information and Communications Technology (CICT),
Construction Industry Authority of the Philippines (CIAP), Development Academy
of the Philippines (DAP), Fiber Industry Development Authority (FIDA), Housing and
Land Regulatory Board (HLURB), Intellectual Property Office (IPO), Maritime Industry
Authority (MARINA), National Book Development Board (NBDB), National Housing
Authority (NHA), National Power Corporation (NPC), National Telecommunications
Commission (NTC), Philippine Economic Zone Authority (PEZA), Philippine Ports
Authority, Philippine Retirement Authority (PRA), Small Business Guarantee and Finance
Corporation (SBGFC), Technical Education and Skills Development Authority (TESDA)
and the DTI-Regional Operations Group.
Private sector inputs were likewise obtained through well-attended simultaneous public
hearings in Manila, Cebu and Davao on 15 February 2010.
With unity and cooperation among all sectors of the economy, we shall be “Maximizing
Opportunities of a Stronger Philippine Economy”!

PETER B. FAVILA
Chairman, Board of Investments
Secretary, Department of Trade and Industry

INVESTMENT PRIORITIES PLAN 2010
PART I
PRIORITY INVESTMENT AREAS

Priority Investment Areas
Part I
P RIORITY INVESTMENT AREAS
The coverage, description and entitlement to incentives of the following listed activities shall be
defined and clarified in the General Policies and Specific Guidelines to be issued by the Board of
Investments (BOI).
The grant of incentives under the 2010 IPP is subject to Article 7, paragraph 3 of EO 226, to wit:
“ART. 7 Powers and Duties of the Board. x x x
(3) Process and approve applications for registration with the Board, imposing such terms and
conditions as it may deem necessary to promote the objectives of this Code, including refund of
incentives when appropriate, restricting availment of certain incentives not needed by the project
in the determination of the Board x x x .”
I. PREFERRED ACTIVITIES
A. Contingency list
Job Saving/Creation Projects
This covers existing projects and/or activities affected by the global economic crisis
that will at least retain investments and either maintain current number of workers,
reinstate laid-off workers to equal their pre-crisis number, or increase current number
of workers.
This also covers new projects of micro and small enterprises pursuant to R.A. 9501.
Enterprises registered under this list may be entitled to ITH.
The projects enumerated in Annex “A” are not qualified under this listing.
NOTE: The Contingency List is a temporary inclusion in the IPP to enable existing
enterprises to recover from the effects of the global crisis and will be delisted upon
an official pronouncement by the National Economic Development Authority (NEDA)
that the crisis no longer exists.

B. Regular List
1. Agriculture/Agribusiness and Fishery
This covers production and processing of agricultural and fishery products (including
their by-products and wastes), biofuels, feeds, and fertilizers.
This also covers biotechnological products and services.
2. Infrastructure
This covers transport (air, water and mass rail transport), water (water supply and/
or distribution), logistics, energy (power generation projects, projects/activities under
the PSALM privatization plan, power generation projects located in missionary areas,
and rehabilitation of power plants), waste management facilities, mass housing, physical
infrastructure, pipeline projects for oil and gas, and projects under the Build-Operate-
Transfer (BOT) Law.
3. Manufactured Products
This covers shipbuilding, and manufacture of machinery and equipment including their
parts and components, other transport equipment (air, water and land) including
their parts and components, cement, modular housing components (for mass housing
projects) and iron and steel products.
This also covers manufacture of chemical compounds or biological substances, other

than food, intended for use in the treatment, prevention or diagnosis of disease in
humans or animals, including:
1. articles recognized in official Pharmacopoeia or national drug formulary;

2. articles intended for use as a component of the articles in one (1) above; and
3. herbal and/or traditional drugs which are articles of plant or animal origin used in
alternative medicine.
4. Business Process Outsourcing (BPO)
This covers voice and non-voice IT-enabled services including procurement and
sourcing services.
5. Creative Industries
This covers non-BPO IT-enabled services and film, TV and theater arts production.

6. Strategic Activities1
This covers projects that exhibit high social economic returns and require large
investments that will significantly contribute to the country’s economic development
taking into consideration any two (2) of the following:
a. Minimum project investment cost of the peso equivalent of US$ 300 Million
b. Employment generation of at least 1,000
c. Use of new, emerging and technologically advanced products/services involving
breakthrough processes and innovation
This also covers major projects of global companies intended to be located only in one
country as a regional hub where the Philippines is one of the short-listed countries for
investment location.
7. Green Projects
This covers the production of goods (such as but not limited to capital equipment, lighting,
and construction materials), the utilization of which would lead to either the efficient use of
energy, natural resources, raw materials, or minimize/prevent pollution.
This also covers systems/processes that would involve the application of cleaner
and more efficient technologies on carbon and/or other greenhouse gases emission
reduction.
8. Disaster Prevention, Mitigation and Recovery Projects
This covers projects that will prevent or mitigate adverse impacts of calamities and disasters
(e.g., installation of flood control systems, installation of early warning systems for typhoons,
earthquake occurrences, tsunami, volcanic eruptions, dikes, etc.)
This also covers projects to rehabilitate areas affected by calamities and disasters (e.g.,
rebuilding of roads and bridges after earthquakes/floodings, volcanic eruptions, oil spill
clean-up, etc.).
This further covers training for disaster preparedness, mitigation or recovery/

rehabilitation/reconstruction.
9. Research and Development and Innovation
This covers commercial and in-house R&D activities, establishment of Centers of

Excellence (COE), innovation, and skills development training institutions.
1
Projects under these activities will be approved upon determination by the Board in consultation with
DOF, NEDA and other appropriate government agencies.

II. MANDATORY LIST
This covers activities that require their inclusion in the IPP as provided for under existing laws.
LAW ACTIVITY
P.D. 705 Revised Forestry Code of the Philippines2
This covers extensive plantation of forest land of tree crops (except fruit
trees) for commercial and industrial purposes.
2
R.A. 7942 Philippine Mining Act of 1995
This covers the exploration and development of mineral resources, mining,

quarrying and processing of metallic and non-metallic minerals.
R.A. 8047 Book Publishing Industry Development Act
This covers printing, re-printing, publication and content development of

books or textbooks.
2, 3
R.A. 8479 Downstream Oil Industry Deregulation Act of 1998
This covers refining, storage, distribution, and marketing of petroleum

products located in government identified logistics hubs.
R.A. 9003 Ecological Solid Waste Management Act of 2000
This covers the establishment of waste recycling facilities.2

2
R.A. 9275 Philippine Clean Water Act of 2004
This covers the establishment of industrial wastewater treatment

facilities, and sewage collection integrated with treatment facilities and
the adoption of water pollution control technology, cleaner production
and waste minimization.
2
In general, not entitled to Income Tax Holiday.
3
Entitled to Income Tax Holiday if registered under RA 8479 (Downstream Oil Industry Deregulation Act).

R.A. 7277 Magna Carta for Disabled Persons
This covers the manufacture of technical aids and appliances for the use and/
or rehabilitation of disabled persons, and the establishment of special schools,
homes, residential communities or retirement villages solely to suit the needs
and requirements of persons with disability.
R.A. 9513 Renewable Energy Act of 2008
This covers developers of renewable energy facilities, including hybrid systems.
This also covers manufacturers, fabricators and suppliers of locally-produced

renewable energy (RE) equipment and components.
4
R.A. 9593 The Tourism Act of 2009
This covers tourism enterprises that are outside the tourism enterprise
zones (TEZs) and are engaged in the following:
• Tour operations;
• Tourist transport services whether for land, sea and air transport
for tourist use;
• Establishment and operation of:
- Accommodation establishments such as but not limited to hotels,
resorts, apartment hotels, tourist inns, motels, pension houses, private
homes for homestay, ecolodges, condotels, serviced apartments, and
bed and breakfast facilities;
- Convention and exhibition facilities or “meetings, incentives,
conventions and exhibition” (MICE) facilities;
- Amusement parks;
- Adventure and ecotourism facilities;
- Sports facilities and recreational centers;
- Theme parks;
- Health and wellness facilities such as but not limited to spas,
tertiary hospitals, and ambulatory clinics;
- Agri-tourism farms and facilities; and
- Tourism training centers and institutes.
III. EXPORT ACTIVITIES
This covers the following:
A. Manufacture of Export Products

B. Export Services
C. Activities in Support of Exporters
4
Subject to standards to be adopted by the BOI in consultation with the Department of Tourism (DOT).

IV. ARMM LIST
The ARMM List covers priority activities that have been identified by the Regional Board of
Investments of the ARMM (RBOI-ARMM) in accordance with EO 458. The RBOI-ARMM
can also grant registration and administer incentives to activities in the IPP.
A. Export Activities

1. Export Trader and Service Exporters
2. Support Activities for Exporters
B. Agriculture, Agribusiness/Aquaculture & Fishery
This covers the production of processed foods (production of “Halal” meat and
foods), vegetable oils, food crops, integrated coconut processing and plantation,
activated carbon, production of beverage crops and plantation, seaweeds
production and processing, fruit processing, aquaculture (fish production and
processing), young/sweet corn production, potato and sweet potato plantation/
processing, cutflower production/processing, abaca plantation/processing, oil palm
plantation/processing/refining and germinated oil palm seeds, feeds production,
jatropha plantation/processing, sugarcane plantation/processing and refineries,
quality seed and seedlings of fruit trees and other planting materials propagated
asexually or by tissue culture, pearl culture/processing, production of livestock
and poultry that includes processing, crocodile farming and processing, sericulture,
feeds production and production of plantation crops and other pharmaceuticals,
medical herbs/essential oil plants.
C. Basic Industries
This covers the production of pharmaceuticals such as antibiotics and medical

devices, textile and textile products, inorganic and organic fertilizers using solid
wastes materials, mining exploration and development of mineral resources (mining
and quarrying of metallic and non-metallic minerals which includes small scale as
defined under P. D. 1899 but to exclude river beds in operations and processing
of minerals such as beneficiation and other metallurgical methods) and cement
production of at least 1.0 million MTPY capacity (clinker based).

D. Consumer Manufactures
This covers processing of rubber products to be integrated with plantation and

leather products.
E. Infrastructure and Services
This covers public utilities with developmental route of the five provinces and one
city of ARMM and other adjacent cities and provinces such as common carriers,
electric transmission/distribution, water supply facilities/waterways and sewerage
systems, buses/cargo trucks, other specialized mass transport systems, power
generation like hydro power, geothermal and natural gas, and telecommunications
with international gateways.
F. Industrial Service Facilities
This covers common centers to include testing and quality control laboratories,
training and demonstration centers, tool shops and similar facilities, metal casting,
metal working, furniture, ceramics and food processing, petrochemical complex
and industrial gases.
G. Engineering Industries
This covers engineering products, electronics and telecommunication products,

fabrication of construction materials and the like.
H. Energy – Related Activities
This covers exploration, production, development and utilization of energy

resources such as minerals, hydrocarbon, coal, geothermal, hydropower resources,
oil, natural gas and any form of renewable energy resources. Investments pertain
to both upstream industry and downstream industry in energy resources in the
ARMM.
I. BIMP – EAGA Trade and Investment Enterprises
This covers enterprises located or have their base of operation in the BIMP –
EAGA, namely, Brunei; Sabah and Sarawak in Malaysia; Maluku, Sulawesi, Kalimantan
and Irian Jaya in Indonesia; and Mindanao and Palawan in the Philippines, who
shall invest and engage in economic activity in the ARMM including the age old
Traditional Barter Trading System in the BIMP – EAGA.

J. Tourism
This covers the establishment of tourism estate subject to guidelines developed

jointly by RBOI-ARMM and the Department of Tourism – ARMM, tourist
accommodation facilities, tourist transport facilities and development of retirement
villages which shall include health and medical facilities including amenities required
by the Philippine Retirement Authority (PRA) and subject to the guidelines to
be approved by RBOI-ARMM in consultation with the PRA, the Department of
Health (DOH), the Regional Planning and Development Office (RPDO) and other
concerned agencies.
K. Health and Education Services and Facilities
This covers the establishment of private hospitals, medical clinics, wellness centers,
primary education, secondary education, tertiary education (colleges, universities
and vocational – technical schools) and ancillary services including any and all
health and education related investment.
L. Halal Industry
This covers services and the production of goods permissible under muslim or
Islamic law.
ANNEX “A”
Projects Not Qualified Under the Contingency List and MSE Projects
• Banks and financial institutions (as provided under Article 11 of E.O. 226)
• Retailing business as defined under R.A. 8762
• All services except those qualified under the Regular List
• Small-scale mining as defined under P.D. 1899 and R.A. 7076
• Activities that are restricted/regulated by law or ordinances for reasons of security,
defense and risk to health and morals (e.g., beerhouse; “health clubs”; manufacture/
distribution of dangerous drugs; race track operations and forms of gambling, among others)
• Activities of non-Philippine nationals engaged in small and medium-sized domestic
market enterprises that are not qualified under the Foreign Investment Act (R.A.
7042) as amended by R.A. 8170
• Non-agricultural basic consumer goods
• Personal care products
• All existing power and infrastructure projects with sovereign guarantee or granted ITH
• Other activities as may be determined by the Board
* * * * * * * * * * * * * * * * * * * * * * * * NOTHING ELSE FOLLOWS * * * * * * * * * * * * * * * * * * * * * * * *

PART II
GENERAL POLICIES

Part II
G ENERAL POLICIES
I. APPROVAL OF APPLICATION AND ENTITLEMENT TO INCENTIVES
The approval of application for registration and entitlement to incentives under this IPP is
subject to Article 7, paragraph 3 of Executive Order No. (E.O.) 226, to wit:
“ART. 7 Powers and Duties of the Board. xxx
(3) Process and approve applications for registration with the Board, imposing
such terms and conditions as it may deem necessary to promote the objectives
of this Code, including refund of incentives when appropriate, restricting
availment of certain incentives not needed by the project in the determination
of the Board x x x”
II. EQUITY OWNERSHIP
Except as provided for under the Constitution and the Foreign Investment Act (Republic
Act No. 7042, as amended), there are no restrictions on the extent of foreign ownership of
export-oriented and/or pioneer enterprise that will engage in the activities listed in the IPP.
III. EQUITY REQUIREMENT
In general, the equity of the project applied for registration is 25% of the project cost.
IV. LOCATIONAL RESTRICTION POLICY
A. Regional Dispersal of Industries
The dispersal of economic activities in the countryside is encouraged.
1. Projects in LDAs shall be entitled to pioneer incentives and additional deduction

from taxable income equivalent to 100% of expenses incurred in the development
of necessary and major infrastructure facilities.
2. Projects in the thirty (30) poorest provinces shall be entitled to pioneer or non-
pioneer incentives, as may be applicable.
3. The BOI may, on a case to case basis, consider areas within any province as a less
developed area.

General Policies
REGION PROVINCE REGION PROVINCE

1
CAR Abra VIII Biliran1
1
Apayao Eastern Samar1
Ifugao Southern Leyte1
1
Kalinga Northern Samar
Mt. Province1
IX Zamboanga del Norte
II Quirino1
Nueva Vizcaya1 X Lanao del Norte
Lanao del Sur
IV Aurora1 Misamis Occidental
1
Marinduque
Occidental Mindoro XI Davao Oriental
Oriental Mindoro
Palawan XII Saranggani
Romblon Sultan Kudarat
V Masbate1 CARAGA Agusan del Sur

Camarines Sur Surigao del Norte
Sorsogon Surigao del Sur
VI Guimaras1 ARMM Basilan1

Antique Maguindanao1
Aklan Sulu1
Tawi-Tawi1
1
VII Siquijor
Negros Oriental
B. Exemption from the Locational Restriction
Complementary to the provision of the law granting pioneer incentives to projects in

LDAs, the BOI limits incentives to firms that locate in congested urban centers. The
locational restriction applies to the National Capital Region (NCR) wherein projects are
not entitled to ITH.
Exemption from the above locational restriction, however, may be given to the following:
1. Projects in government industrial estates declared by national law or presidential

proclamation prior to 01 January 1989 (unless subsequently privatized), as follows:
1
Less Developed Areas (LDAs).

a. Dagat-Dagatan (P.D. No. 569 dated 30 October 1974)

b. Vitas Industrial Estate,Tondo (E.O. No. 1086 dated 31 January 1986, as amended/
expanded through Presidential Proclamation No. 39 dated 09 September 1992
and Proclamation No. 465 dated 01 August 1994) (Vitas Industrial Estate/
Smokey Mountain)
c. Bagong Silang Industrial Estate, Caloocan City (Presidential Proclamation No.
843 dated 26 July 1971)
d. Food Terminal Inc., Taguig (LOI No. 900 dated 25 July 1979)
e. Navotas Fishing Port Complex (E.O. No. 772 dated 08 February 1982)
Once the foregoing government industrial estates are privatized, existing locators
thereat shall continue to enjoy incentives for the period provided for under their
BOI registration.
2. Projects that will engage in service type activities

3. Export-oriented projects
Revenues generated from services rendered to foreign tourists may be considered

as export sales.
4. Modernization project

5. Projects of micro and small enterprises (MSEs)

6. Strategic Activities as defined under this IPP (see Part I, I.B.6 “Strategic Activities”)
7. Projects under the Contingency List
8. Relocation of oil terminals
V. EXPORT OF MANUFACTURED / PROCESSED GOODS
Except for agricultural products, goods should undergo manufacturing or processing.
Mineral products are covered by the Specific Guidelines (see Part III, II.B Philippine Mining
Act of 1995 (R.A. No. 7942)).
Production of goods involving simple processing covering any or a combination of activities

such as but not limited to cleaning, sorting, cutting, shredding, pulverizing, grinding, crushing,
compacting, dissolving and filtration are not qualified for registration.
VI. EXPORT OF PRODUCTS IN SHORT DOMESTIC SUPPLY
The application for registration of projects engaged in the export of products in short
domestic supply may be suspended if national interest so requires.

General Policies
The export commitment of a registered enterprise may be suspended to satisfy national

interest or in an emergency situation.
VII. MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)
In line with the Medium Term Philippine Development Plan (MTPDP), the BOI promotes
the development of MSMEs on account of their contribution to employment generation,
countryside development, and the cultivation of the Filipino entrepreneurial spirit.
In this regard, the BOI extends the following:
• Preparation of simplified project application for BOI registration

• Identification of MSME support companies
• Sourcing of financing support
In addition, the following assistance are provided to micro and small enterprises:
• Exemption from application and registration fees for micro enterprises

• Seventy five percent (75%) reduction in application and registration fees for
small enterprises
• Reduced application fees for incentives as follows:
Type of Fee Micro Enterprises Small Enterprises

Filing Fee PhP 500.00 PhP 1000.00
of 1% of amount of incentive of 1% of amount of

Issuance Fee granted but not more than PhP incentive granted but not
500.00 more than PhP 1,000.00
• One-day processing of application for registration

• Exemption from the twenty five percent (25%) equity requirement
• Posting of the Notice of Filing of Application in provincial, city, municipal or barangay
hall, in lieu of publication in a newspaper of general circulation
• Simplified reportorial requirements
• Simplified application for incentives
VIII. PROJECT TYPE AND STATUS
A. New Projects
The following are considered new projects:
1. Projects undertaken by a newly formed or organized entity that has no common

stockholders in any existing enterprise or, if with common stockholders, will
engage in an entirely distinct and separate activity.

2. Project of a new enterprise whose stockholders are also stockholders of an

existing enterprise engaged in the same activity provided that the common
stockholders in the existing enterprise do not own more than seventy percent
(70%) of the equity in the new enterprise.
3. Project of an existing enterprise that is entirely distinct and different from

its existing business operation in terms of either final product or service,
production process, equipment or raw materials.
4. Products manufactured from locally designed and developed Research and

Development (R & D).
All applications for registration must be endorsed by the Department of Science

and Technology (DOST) stating that the R&D was undertaken in the Philippines
and has not yet been commercialized.
5. Project of an enterprise that meets all of the following:
a. The project will establish a new complete line.
“New Complete Line” refers to new facilities used in the production of the
registered product/service separate from existing line.
“New Facility” refers to the space or area, physical structure and equipment
provided for a particular purpose or segment of the production process/
service activity.
b. The project will locate in an area not contiguous to the premises of the
existing project of the existing enterprise, with which the enterprise has
common stockholders of more than 70% of equity.
c. There is new investment in fixed assets and working capital.
6. Projects acquired from PMO/GFIs/GOCCs
This covers projects involving assets purchased/leased from the Privatization

and Management Office (PMO), government financial institutions (GFIs) and
government owned or controlled corporations (GOCCs), or entities wherein
the government has ownership or interest.
The ITH shall be subject to the limitations set forth under Part II, I. “Approval of
Application and Entitlement to Incentives”.

General Policies
Pioneer status may be granted to either of the following unless the Specific
Guidelines provides for other qualifications for pioneer status:
• Projects with a new investment of at least the Philippine Peso equivalent of

US$100 million covering purchase cost, pre-operating cost, rehabilitation
cost, if any, and working capital; or
• Projects utilizing leased assets with new investment of at least the Philippine
Peso equivalent of US$25 million covering upfront lease payment equivalent
to 1 year upon signing of contract, pre-operating cost, rehabilitation cost
and working capital.
7. Projects of Micro and Small Enterprises operating for less than one (1) year
These are projects of micro and small enterprises with total project cost of not
more than PhP15 million, excluding cost of land, that have been in commercial
operation for less than one year.
B. Expansion Projects
These are activities involving the same products of or services rendered by an existing
enterprise, as follows:
1. Projects involving the installation of additional capacity-determinant equipment

within the same existing plant or facility of the enterprise
2. Projects involving the modernization and rehabilitation of an existing facility of

activities listed in the IPP that will result in increase in existing capacity
3. ICT projects located in the same building and using the same basic common
facilities such as servers, backup generators, internet connections, etc., shall be
considered as expansion
4. Other projects/activities that do not meet the qualification requirements for

new projects under Part II,VIII.A.
In general, ITH of expansion projects, except those under the Contingency List, are
subject to a base-figure equivalent to the enterprise’s highest sales volume in case of
homogenous products or sales value in case of heterogeneous products, in the last
three (3) years, prior to the filing of the application for registration of the project.

C. Modernization Projects
1. For purposes of this IPP, rehabilitation is considered a form of modernization.
2. The modernization program should identify the phases / stages of production

sought to be modernized. In general, the program should be completed within
two (2) years from date of registration.
3. To be eligible for pioneer status, the project must comply with Article 17
of E.O. 226 unless other conditions are provided in the Specific Guidelines
covering the activity.
4. In general, modernization of manufacturing activities must result in any of

the following:
a) substantial reduction of production cost; or

b) significant increase in productive efficiency including debottlenecking; or
c) meaningful upgrading of product quality; or
d) keeping abreast with the state of the art in the production of
registered product.
For rehabilitation, the minimum requirement shall be the restoration of the

plant rated capacity.
5. Projects registered under the modernization program without increase in

capacity may be entitled to three (3) years ITH and other incentives.
6. The general policy on brand new equipment also applies to modernization program.
7. The computation of ITH for projects without increase in capacity is as follows:
a. For single product/activity
New Investment (in US$)

Rate of Exemption (ROE) = ------------------------------------------------- x 100
Total Investments (replacement cost +new)
Relative to the concerned plant (in US$)
b. For multiple products/activities or when ITH entitlement of other

products/ activities has lapsed:
Sales of the Product subject of retooling

% Share to Total Sales = ------------------------------------------------------ x 100
Total Sales

General Policies
New Investment (in US$)

ROE = --------------------------------------------------------------------------- x 100
Total Investments (replacement cost + new)
Relative to the concerned plant (in US$)
Where:
(1) The ROE shall be fixed for the ITH entitlement period.
(2) The exchange rate shall be the existing rate at the time of actual
investment or time of availment of ITH whichever will result in
lower rate of ITH.
(3) The % share in Total Sales shall be based on actual sales values for the
year of availment.
D. Existing Export Projects
Existing export producers must export at least 50% of their production, if Filipino-
owned, or at least 70%, if foreign-owned, to qualify for registration.
IX. PIONEER STATUS AND INCENTIVES
In general, pioneer status with pioneer incentives shall be governed by Article 17 of E.O. 226.
Pioneer status with pioneer incentives may be granted to projects that meet the minimum
investment requirement and other qualifications as provided in the Specific Guidelines.
X. PROJECTS WITH SOVEREIGN GUARANTEE OR GUARANTEED

RATE OF RETURN
In general, projects with sovereign guarantee or guaranteed rate of return are not entitled
to ITH.
Projects with take or pay provisions are not entitled to ITH.
Projects with sovereign guarantee for risks other than commercial risk may be granted ITH
subject to certification as such by the agency/institution providing the guarantee.
Pioneer status with non-pioneer incentives may be granted to projects that meet the
minimum investment requirement as provided in the Specific Guidelines.
XI. UNSOLICITED BOT PROJECTS
In general, unsolicited BOT projects are not entitled to ITH.

XII. MULTI-PHASED PROJECTS WITH MULTIPLE LOCATIONS
In general, projects of an enterprise with multiple phases/location may be registered on a

per phase or revenue stream basis.
XIII. CORPORATE SOCIAL RESPONSIBILITY PURSUANT TO SOCIAL

OBJECTIVES OF E.O. NO. 226
Registered enterprises with non-pioneer incentives are encouraged to undertake

Corporate Social Responsibility (CSR) activities, to the extent possible, in accordance
with the development plans of the community where the registered project is located.
Enterprises engaged in housing projects, when undertaking CSR activities, must establish
facilities (e.g., community centers, child care centers, etc.) for the benefit of the
homeowners within the housing project.
Registered enterprises with pioneer incentives must undertake CSR activities, to the
extent possible, in accordance with the development plans of the community where the
registered project is located. The grant of the last two years of their ITH shall be subject
to submission of proof thereof not later than the end of the 4th year of ITH entitlement.
XIV. GOOD CORPORATE GOVERNANCE
All medium and large BOI-registered enterprises must abide by the principles of Good
Corporate Governance. All registered enterprises must likewise accomplish the self-rating
Governance Scorecard to be provided by BOI every year as a requirement for ITH availment.
XV. SUPPORT TO THE NATIONAL FRAMEWORK STRATEGY ON

CLIMATE CHANGE
In pursuit of the National Framework Strategy on Climate Change, projects seeking BOI
registration are encouraged to contribute to any of the following in their respective activities:
• Intensification of the development and utilization of renewable and environment-

friendly alternative energy resources/technologies.
• Promotion of models to improve the transport sector’s efficiency and modal shifts.
• Conversion of public utility vehicles to LPG and renewable energy sources, and the
expansion of/shift to more efficient mass transport systems.
• Promotion of green infrastructure practices through climate-smart technologies,
climate-proofing processes and construction of energy-efficient buildings.
• Installation of energy-efficiency and climate-proofing mechanisms for public infrastructure,
cultural facilities, and socio-economic infrastructure (including telecommunications
facilities) through appropriate standards and inventory mechanisms.

General Policies
• Development of energy-efficient and climate-resilient human settlements through

government and private sector housing programs, and public awareness campaigns.
• Promotion of a watershed approach towards Reduction of Emissions from
Deforestation and Forest Degradation (REDD+) planning, implementation and
enforcement, pursuing options to improve the protection and sustainable management
of forests, and the enhancement of forest carbon stocks and biodiversity.
• Rehabilitation and development of watershed resources through resource use
improvement and governance improvement.
• Enhancement of ecosystem services to control droughts, floods and landslides.
• Prioritization of protection/ management of mangroves, estuaries, sea grasses, coral
reefs and beaches as a management unit to derive maximum benefits from synergistic
interactions of these five (5) ecosystems that result in enhanced marine productivity.
• Management and expansion of the sink potential of marine ecosystems such as
coral reefs and mangroves.
• Reduction of climate change risks and vulnerability of natural ecosytems and
biodiversity through ecosystem-based management approaches, conservation
efforts, and sustainable environment and natural resource (ENR)-based economic
endeavors such as ecotourism.
• Increase of the resilience of agriculture communities through the development of
climate change-sensitive technologies, establishment of climate-proof agricultural
infrastructure and climate-responsive food production systems, and provision of
support services to the most vulnerable communities.
• Improvement of climate change resilience of fisheries through the restoration
of fishing grounds, stocks and habitats and investment in sustainable and climate
change-responsive fishing technologies and products.
• Establishment of mechanisms to identify, monitor and control diseases brought about
by climate change; and improvement of surveillance and emergency response to
communicable diseases, especially climate-sensitive water-borne and vector diseases.
• Enhancement of institutional and technical capacity to facilitate the paradigm shift
from disaster response to disaster preparedness and mitigation.
• Enhancement of national monitoring, forecasting and hazard warning systems; and
improve effectiveness of early warning systems available to communities.
XVI. PROJECTS CRITICAL TO THE ENVIRONMENT
New and expansion projects shall be required to secure an Environmental Compliance

Certificate pursuant to P.D. No. 1586 (Philippine Environmental Impact Statement System)
and other clearances under relevant environmental laws.
A Certificate of Non-Coverage (CNC) issued by the Environmental Management Bureau

(EMB) shall be submitted for projects that are not critical to the environment.
Registered projects are encouraged to participate in the Philippines’ Eco-labeling Program

(ELP), when applicable.

XVII. FOOD PROCESSING PROJECTS
All registered food processing projects shall submit an international quality standard
certification from relevant certifying institutions.
XVIII. INTERNATIONAL CERTIFICATION
All enterprises that will register under this IPP are encouraged to acquire international
certification such as ISO 9000 certification, Quality Standards (QS) or other similar
certifications to improve efficiency and global competitiveness.
XIX. EQUIPMENT
In general, registered enterprises will use brand new equipment and apply production
processes that meet environmental standards.
XX. PROJECTS IN THE AUTONOMOUS REGION IN MUSLIM MINDANAO
The ARMM List covers priority activities that have been identified by the Regional Board
of Investments of the ARMM (RBOI-ARMM) in accordance with E.O. No. 458.
Projects in the Autonomous Region in Muslim Mindanao (ARMM) should register with
the BOI-ARMM.
XXI. PROJECTS WITH REVENUES DERIVED FROM CARBON CREDITS

PURSUANT TO THE KYOTO PROTOCOL
Revenues from the sale of carbon credits through certified emission reduction (CER)
units generated from registered activity may be considered as part of the income entitled
to ITH, provided that the enterprise made representation at the time of application for
registration that such projects would earn CER units.
Projects with foreign exchange earnings generated from CER units of at least more than
50% of their total revenues may be registered as export-oriented projects.
XXII. OUTSOURCING OF PRODUCTION PROCESS OR SERVICES
Portion/s of the production process or services of the registered activity may be

outsourced provided that the core activity or the integrated nature of operation is
undertaken by the registered enterprise.
XXIII. PUBLIC WELFARE CONSIDERATION
The BOI may deny applications for registration for reasons of public health or morals.

PART III
SPECIFIC GUIDELINES

Part III
S PECIFIC GUIDELINES
A. CONTINGENCY LIST
Job Saving/Creation Projects
1. This covers existing projects and/or activities affected by the global economic
crisis that will at least retain investments and either maintain current number of
workers, reinstate laid-off workers to equal their pre-crisis number, or increase
current number of workers.
Enterprises maintaining their workers applying retention schemes such as

assignment of workers to tasks other than their regular tasks, reduction of
working hours, etc. may be qualified.
Workers shall refer to personnel directly engaged in the registered activity

excluding line supervisors, warehousemen, quality control personnel outside the
production line, utility and maintenance personnel and subcontracted labor.
The determination of the number of workers to be maintained is on the basis of

the number of workers before the enterprise was affected by the crisis. For this
purpose, the firm shall submit proof showing the number of workers before the
2008 global economic crisis and the current workers at the time of application such
as certified true copies of SSS contribution payment return and BIR Form 1601 - C.
For purposes of ITH under this Contingency List, start of commercial operation
shall be the date when a particular enterprise actually begins generating positive
Earnings Before Interest, Taxes and Depreciation Allowance (EBITDA).
To qualify for registration under this list, the enterprise must prove that its
operation has been affected by the global economic crisis impairing its viability
as reflected in its Audited Financial Statements (AFS). The Board may, however,
consider other factors that will establish the causal link between the present
condition of the enterprise vis-à-vis the global economic crisis.
BOI-registered enterprises shall waive their remaining incentives provided for

under their existing registrations in order to qualify for the applicable incentives
under this List.
2. This also covers new projects of micro and small enterprises pursuant to R.A.
No. 9501.

Specific Guidelines
The projects enumerated in Annex “A” are not qualified under this listing.
NOTE: The Contingency List is a temporary inclusion in the IPP to enable existing
enterprises to recover from the effects of the global economic crisis and will be delisted
upon an official pronouncement by the National Economic Development Authority
(NEDA) that the crisis no longer exists.
B. REGULAR LIST
1. Agriculture/Agribusiness and Fishery
This covers production and processing of agricultural and fishery products,

including their by-products and wastes, biofuels, feeds and fertilizers.
This also covers biotechnological products and services.
a. Commercial production
This covers the production of agricultural, fishery and livestock products for
commercial purposes.
b. Commercial processing
This covers the conversion of agricultural, fishery and livestock products, their by-
products and wastes, to a form ready for further processing or final consumption.
The following are the qualifications for registration:
• Processing of agricultural products should involve domestically produced

raw or semi-processed agricultural products. Those involving imported
agricultural products, raw or semi-processed, may qualify for registration,
provided that the finished/final product is for export, or the project
qualifies for pioneer status.
• The production of refined sugar, cooking oil, and rice should comply
with the applicable provisions of the Philippine Food Fortification Act of
2000 (R.A. No. 8976); production of iodized salt should comply with the
applicable provision of the ASIN law (R.A. No. 8172).
Qualifications for registration of rice millers:
1. Must be a National Food Authority (NFA) licensed rice miller

2. Milling recovery must not be less than 70% and the milled rice must
meet the following specification:
a. Whole kernels must not be less than 75%

b. Brokens must not be more than 5 %

c. Damaged grains including yellow/discolored kernels and brewers

must not be more than 1.5 %
d. Moisture content must not be more than 14%
c. Biofuels
This covers the production of biofuel crops and/or processing of biomass materials.
Production of crops for use as feedstock supply and processing of biomass

materials must be consistent with the Philippine Biofuels Program under R.A.
No. 9367.
d. Feed Milling
This covers processing of agricultural, fishery and livestock products and

wastes into feeds, excluding those for game animals, fowls and other species
for pet/pleasure purposes.
e. Fertilizer
This covers the manufacture of inorganic fertilizer and production of

organic fertilizer.
Production of organic fertilizer for own use may be entitled to capital

equipment incentive only.
f. Biotechnological Products and Services
This covers the extraction of higher value substances from agricultural

and forest-based raw materials through bioprocessing. This also covers the
development of modern biotech products for commercial purposes.
All applications for registration must be endorsed by the concerned

Competent National Authority.
Projects that cost at least the Philippine Peso equivalent of US$20 million may be
granted pioneer status but with non-pioneer incentives.
2. Infrastructure
This covers transport (air, water and mass rail transport), water (water supply and/
or distribution), logistics, energy (power generation projects, projects/activities
under the PSALM privatization plan, power generation projects located in
missionary areas, and rehabilitation of power plants), waste management facilities,

Specific Guidelines
mass housing, physical infrastructure, pipeline projects for oil and gas, and projects
under the Build-Operate-Transfer (BOT) Law.
a. Transport
This covers air, water and mass rail transport.
(1) Air Transport
Air transport operation includes passenger and/or cargo operation for

commercial purposes.
Lease with option to purchase an aircraft may be allowed.
Pure lease may be allowed provided that the lease contract is for a
minimum of five (5) years.
Acquisition of additional aircraft/s may be registered as new project.
Any of the following may qualify for pioneer status:
• Serving the missionary/developmental routes, as indicated in the

Certificate of Public Convenience and Necessity (CPCN)
• Air transport projects involving purchase/lease-purchase of brand
new aircraft. For lease-purchase, the option to purchase should be
exercised before the end of the 4th year of ITH availment
All applications for registration must be endorsed by the Civil

Aeronautics Board (CAB), when applicable. Such endorsement must
contain information on the routes to be served.
Prior to start of commercial operation of each aircraft, the registered

enterprise must submit a Certificate of Airworthiness issued by Civil
Aviation Authority of the Philippines (CAAP).
(2) Water Transport
This covers domestic, overseas, and Roll-On/Roll-Off (RORO) shipping.
(a) Domestic/inter-island shipping
This covers pure cargo, passenger, and passenger-cargo vessel

operations including RORO Terminal System operations.

• Must be a Philippine shipping enterprise accredited with the

Maritime Industry Authority (MARINA)
• Vessel must be registered and operated under the Philippine Flag
• RORO vessels must not be more than fifteen (15) years old and must
be at least 250 gross tonnage (GT) for those serving primary routes.
• Tankers must be double-hulled and not more than ten (10) years old
• High speed passenger crafts must not be more than five (5) years old
• Vessels other than tankers and high speed passenger crafts must be
at least 200 GT and must not be more than fifteen (15) years old
Age of the vessel shall be reckoned from the date of launching as

indicated in the vessel’s Class Certificate.
• RORO operator/enterprise serving the missionary routes, as

indicated in the Certificate of Public Convenience (CPC) issued
by MARINA
• Acquisition of brand new vessels
(b) Overseas shipping
• Must be a Philippine shipping enterprise accredited with the MARINA

• Vessel must be registered and operated under the Philippine Flag
• Vessels must be at least 500 GT and must not be more than fifteen
(15) years old
Acquisition of brand new vessels may qualify for pioneer status.
Acquisition of additional vessel/s may be registered as new project.
Lease or charter of foreign-owned vessel with option to purchase may

be allowed.
Pure lease or bareboat charter may be allowed provided the lease contract
is for a minimum of one (1) year; Provided further, that any replacement of
vessels shall be covered by the enterprise’s existing registration involving
the leased vessel, which shall be valid for at least five (5) years.
All applications for registration must be endorsed by the MARINA.

Specific Guidelines
All vessels must be seaworthy and must obtain valid Class and Statutory
Certificates as required by MARINA.
(3) Mass Rail Transport
This covers mass rail transport system for passengers and cargoes
in line with the transport development plans and programs of the
Department of Transportation and Communications (DOTC).
b. Water Supply and/or Distribution
This covers the supply and/or distribution of water.
Supply of water shall be limited to supply of bulk water extracted from

surface water sources and treated for commercial purposes.
Distribution activity must involve extraction of water from surface water

sources, treatment and installation of a piping network that includes water
main service pipelines and flow metering systems. Applicants must submit a
copy of its Certificate of Public Convenience (CPC) or its equivalent.
Projects involving any of the foregoing areas of water operations dedicated

to a particular industrial estate, industrial community, or subdivision are not
qualified for registration under this listing.
c. Logistics
This covers ports, terminals, natural gas refueling stations, warehouses, post
harvest facilities and relocation of oil terminals.
(1) Ports
This covers the development and operation of airports and seaports.
All applications for registration must be endorsed by the CAAP or the

Philippine Ports Authority (PPA), whichever is applicable.
(2) Terminals
(a) Passenger/Intermodal terminals
• Must have new facilities with parking, comfort rooms,

ticketing and reservation office, air-conditioned waiting area
and provide shuttle services; and

• Must cater to shipping lines or airlines and/or different land

transportation systems (rail system, buses, taxis, etc.).
(b) Cargo terminals/Container yards
• Must have new facilities; and

• Must have a system of ingress and egress to prevent traffic
buildup/obstruction of thoroughfares on a 24-hour basis
as certified by DOTC, Metropolitan Manila Development
Authority (MMDA) and/or other Competent National
Authority.
(c) LNG/CNG storage terminals
• Must have new facilities;

• Must cater to shipping vessels and land transport or a
combination of both; and
• Must cater to at least one (1) clientele, other than the
proponent’s own business.
Prior to start of commercial operation, the registered enterprise

must submit a copy of its Permit to Operate issued by the
Department of Energy (DOE).
(d) Natural gas refueling stations
This covers the establishment and operation of natural gas

refueling station and related infrastructures and facilities in
accordance with relevant Philippine National Standard (PNS).
Foreign-owned corporations must comply with the Retail Trade

Law (R.A. No. 8762).
Prior to start of commercial operation, the registered enterprise

must submit a copy of its Permit to Operate issued by the DOE.
(3) Warehouses
This covers the establishment and operation of IT-enabled and

automated warehousing facilities.

Specific Guidelines
(4) Post Harvest Facilities
This covers the establishment and operation of cold storage, freezing,

bulk handling and storage facilities.The refrigeration system should use
non-ozone depleting substances.
(5) Relocation and putting up of a new oil terminal
Projects that cost at least PhP1 billion may be granted pioneer status
but with non-pioneer incentives.
All applications for registration must be endorsed by the DOE.
All applications for registration must show such project’s compliance

with appropriate land use/zone plans including safety and security
measures prescribed by the local government unit (LGU)/agency that
approved the same.
d. Energy
This covers any of the following:
(1) Grid-connected power generation projects except oil-fired plants

(2) Missionary power generation projects located in off-grid and Qualified
Third Party (QTP) areas
(3) Rehabilitation of power plants
(4) Projects/activities under the PSALM privatization plan
All PSALM-privatized power generation projects must involve rehabilitation

of plant facilities.Whenever applicable, plant efficiency should increase by 50%
for hydro electric and diesel engine power generating plants and thermal
efficiency should increase by 50% for coal and oil fired thermal power
generating plants to qualify for ITH.
Only income based on approved contracts by the Energy Regulatory

Commission (ERC) may be entitled to ITH.
• Power generation projects using renewable energy sources

• Power generating plants located in missionary areas
• Projects that cost at least the Philippine Peso equivalent of US$1 million
per megawatt but with non-pioneer incentives
• Privatized power generating plants but with non-pioneer incentives
• Rehabilitation of power plants but with capital equipment incentives only

e. Waste Management Facilities
This covers the establishment of toxic and hazardous waste (THW)

treatment facilities.
• Must involve treatment, storage and disposal (TSD)

• Must be capable of handling toxic and hazardous waste (THW)
• Must handle only locally-generated wastes.
Prior to start of commercial operation, the registered enterprise must submit

a copy of its TSD Facility Permit issued by the EMB of the Department of
Environment and Natural Resources (DENR). If handling radioactive wastes,
the registered enterprise must submit a License to Operate a Radioactive
Waste Management Facility from the Philippine Nuclear Research Institute
(PNRI) of the DOST in addition to the TSD Facility Permit.
f. Low-Cost and Socialized Mass Housing
Low cost housing refers to a housing program for low and middle-income
groups substantially constructed by the private sector as a business venture.
Socialized housing refers to a housing program or project covering houses

and lots undertaken by the government or private sector for underprivileged
and homeless citizens.
General requirements:
• The cost of housing units shall not exceed the amount for socialized
and low cost housing as set by the Housing and Urban Development
Coordinating Council (HUDCC)
• All low cost mass housing projects must comply with the socialized
housing requirement by developing an area for socialized housing
equivalent to at least 20% of the total subdivision area or total subdivision
project cost for horizontal housing and 20% of the total cost of building
construction and site preparation for vertical housing projects whether
within or outside the same city or municipality.This may be done through
any of the following modes:
о Development of a new settlement;

о Slum upgrading or renewal of areas for priority development either
through zonal improvement programs or slum improvement and
resettlement programs; and

Specific Guidelines
о Joint-venture projects with either the local government units or any

of the housing agencies.
• Must be new or expanding mass housing project

• Minimum of twenty (20) livable dwelling units in a single site or building
• Project shall conform with the design standards set forth in the Rules and
Regulations to Implement B.P. No. 220 and other related laws
(1) Requirements for horizontal housing projects:
• Land development components for housing sites must contain

provisions for road system, drainage system, water supply system,
power system, sewage system in conformity with the minimum design
standards for B.P. No. 220 and provisions for amenities and utilities.
• Mass housing projects must be located in areas zoned and classified

for residential use/purposes in conformity with the approved
Comprehensive Land Use Plan and Zoning of the concerned LGU.
A project shall be considered as an expansion if it will locate adjacent or

contiguous to an existing mass housing project owned by the same entity
and shall share common facilities with the existing project.
(2) Requirement for vertical housing projects:
• At least 51% of the total floor area, excluding common facilities

and parking areas, must be devoted to housing units
Any of the following may be considered as an expansion project:
• Unfinished projects, the construction of which had stopped for at

least one (1) year. Only the unsold units may qualify for registration
• Conversion to low cost or socialized housing project of a building
originally intended for commercial, office spaces, or exclusive
condominiums
• Construction of additional floors or annexes intended for mass
housing units
Projects that have already been completed and have incurred sales (booked
sales) of housing packages shall, in general, not qualify for registration.
The ITH shall be limited only to the revenue generated from the registered
housing project.

There shall be no double availment of similar incentives for socialized

housing projects that avail of incentives under R.A. No. 7279 or the Urban
Development and Housing Act (UDHA).
Projects in less-served areas, as may be determined by the Board, may be

entitled to four (4) years ITH otherwise, three (3) years. In general, projects
in NCR may be entitled to three (3) years.
g. Physical Infrastructure
(1) This covers the development, including rehabilitation, upgrading, and/or

expansion, and/or operation of tollroads, highways, railways, roads, and
bridges.
(2) This also covers the establishment of telecommunication infrastructure

as endorsed by National Telecommunications Commission (NTC).
Upgrading of existing physical infrastructure may be registered as a new

project provided that the cost of upgrading already approximates at least 90%
of the prevailing cost of constructing a new physical infrastructure, as certified
by Competent National Authority.
If the cost of upgrading the physical infrastructure is less than 90% of the
prevailing cost of constructing a new physical infrastructure, the project may
be registered as a modernization activity but not entitled to ITH.
For projects that will involve the development and operation of physical
infrastructure to be undertaken by separate entities, both the developer and
operator may qualify for registration. However, the developer may be entitled
only to incentive on capital equipment directly needed for the operation of
the physical infrastructure.
Projects that cost at least the Philippine Peso equivalent of US$100 million
may be granted pioneer status but with non-pioneer incentives.
h. Pipeline Projects for Oil and Gas
This covers the establishment of infrastructure for transport of petroleum

products and natural gas, petrochemical, and similar products.
All applications for registration must be endorsed by the DOE and/or other
concerned Competent National Authority.

Specific Guidelines
i. Projects under the BOT Law
Application for registration must include an endorsement from concerned

government agency or corporation or LGU, a copy of supply contract, and
other relevant supporting documents.
BOT projects that cost at least PhP1.0 billion may be granted pioneer status
but with non-pioneer incentives.
3. Manufactured Products
This covers shipbuilding and the manufacture of machinery and equipment

including their parts and components, other transport equipment (air, water and
land) including their parts and components, cement, modular housing components
(for mass housing projects) and iron and steel products.
This also covers manufacture of chemical compounds or biological substances,

other than food, intended for use in the treatment, prevention or diagnosis of
disease in humans or animals, including:
a. articles recognized in official Pharmacopoeia or national drug formulary;

b. articles intended for use as a component of the articles in one (1) above; and
c. herbal and/or traditional drugs which are articles of plant or animal origin
used in alternative medicine.
a. Shipbuilding
This covers shipbuilding and ship repair.
Shipbuilding refers to the design, construction, outfitting, equipping and

launching of any type of ship.
Ship Repair refers to the overhaul, alteration, modification or repair of hull,

machinery, equipment, outfits and components of any type of ship.
Prior to start of commercial operation, the registered enterprise may be

required to submit a copy of a Certificate of Registration or its equivalent
from the MARINA or other Competent National Authority.
• Shipbuilding or ship repair facilities with a minimum lifting capacity of

20,000 DWT
• Shipbuilding or ship repair facilities with a minimum berthing capacity of
7,500 DWT

Projects that cost at least the Philippine Peso equivalent of US$10 million may
be granted pioneer status but with non-pioneer incentives.
b. Machinery and Equipment
This covers the manufacture of machinery and equipment including its parts
and components.
Mere assembly (screwdriver assembly) of machinery and equipment shall not

qualify for registration.
Projects that cost at least the Philippine Peso equivalent of US$20 million may
c. Other Transport Equipment
This covers the manufacture of other transport equipment (air, water and
land) including their parts and components.
(1) Aircraft and Its Parts and Components
This covers the following:
(a) Manufacture or assembly of power-driven fixed-wing aircraft or

power-driven aircraft supported by one or more rotors;
(b) Manufacture and/or assembly of aircraft engine, engine parts
and other aircraft parts and components such as fuselage, wing,
stabilizer, rudder, landing gear; and
(c) Complete overhauling or rebuilding of aircraft to original design
specifications.
(2) Other Water Transport and Its Parts and Components
This covers boatbuilding and the manufacture of parts and components.
Boatbuilding refers to the design, construction, outfitting and launching of

watercrafts with sizes below 24 meters in length but not less than 3 GT.
Prior to start of commercial operation, the registered enterprise may

be required to submit a copy of a Certificate of Registration or its
equivalent from the MARINA or other Competent National Authority.
(3) Motor Vehicle and Its Parts and Components
This covers the assembly or manufacture of motor vehicles under

the Motor Vehicle Development Program (MVDP) provided there is
investment in the production of major parts and components.

Specific Guidelines
This also covers the manufacture of parts and components of motor vehicles.
The following are the qualifications for registration for the assembly or
manufacture of motor vehicles:
• Must be registered participants of good standing under the MVDP and

must invest in the production of major parts and components such as
engine, transmission, power train, differential, body, motorcycle frame,
fuel, tank, swing arm, plastic injection parts and die cast products
• Existing MVDP participants must have minimum additional investments
of Philippine Peso equivalent of US$5 million for passenger cars and
commercial vehicles, and US$2 million for motorcycles
• New assemblers must comply with the minimum investment
requirement under E.O. No. 877 plus the additional minimum
investment requirement under the preceding bullet
Investments in parts and components manufacturing as required for

the assembly or manufacture of motor vehicles shall be in any of the
following schemes:
• Equity investment, either minor or major stockholdings in new or

existing motor vehicle parts manufacturing company
• Investments in in-house motor vehicle parts manufacturing
• Cost-sharing schemes with existing motor vehicle parts
manufacturing companies in terms of tooling and/ or modernization/
upgrade of facilities
• Participation under the DTI’s SME Assistance Program
• Other investments that BOI may consider for the development of the
motor vehicle industry
Projects complying with any of the following may qualify for pioneer status:
• New investments of at least US$50 million for Passenger Cars and

Commercial Vehicles, and US$4 million for motorcycles, which may
include acquisition of existing assets or facilities
• Exports of at least 10,000 units for Passenger Cars and Commercial
Vehicles, 30,000 units for motorcycle and 500 units for buses per
annum of completely-built-up (CBU) motor vehicles
• Incremental investments of at least US$20 million for Passenger Cars,
Commercial Vehicles and Buses, and US$1 million for motorcycles for
Modernization/Expansion projects
• Manufacture/assembly of brand new three or four-wheel Philippine
utility vehicles for cargos and/or passengers
• Manufacture of alternative fuel vehicle

Alternative fuel vehicle covers the manufacture of the following brand

new vehicles powered by alternative sources, as classified accordingly
under Section 1 of Article 1 of E.O. No. 877 (passenger cars, commercial
vehicles and motorcycles):
о Hybrid vehicles – vehicles that run on electric batteries and

gasoline/diesel/other fuels
о Electric Vehicles – vehicles that run solely on electric power
о Flexible-fuel vehicles – vehicles that run on gasoline/diesel in
combination with alternative fuel such as but not limited to:
- Bioethanol vehicles that run on gasoline and a minimum

ethanol content/blend of at least 20%
- Biodiesel vehicles that run on a diesel and a minimum biodiesel
blend/content of at least 10%
о Compressed Natural Gas Vehicles – vehicles that run on

Compressed Natural Gas (CNG)
Projects involving the manufacture of parts and components complying

with any of the following may qualify for pioneer status:
• Manufacture of transmission/engines
• Manufacture of tool & die to produce chassis and engine
• Common facility for forging/metal stamping of motor vehicle parts
and components
d. Cement
This covers the manufacture of cement whether or not integrated with

quarrying. New finishing mills may be considered for registration.
Existing cement manufacturers, which will put up new facilities or expand

existing operations, must show compliance of at least 85% utilization based
on clinker capacity2 of their existing plants and no existing plant shall fall
below 85% utilization based on clinker capacity2.
New cement manufacturer, with Interlocking Directors, regardless of whether

their interest in an existing cement manufacturing company is nominal or
substantial, must show compliance of at least 85% utilization based on clinker
capacities2 of said existing cement manufacturing company.
The same proof of compliance shall also be required from new cement
manufacturing companies consisting of stockholders of an existing cement
manufacturing company.
2
Clinker capacity is based on the industry association’s submitted data as of January 2010.

Specific Guidelines
The 85% utilization based on existing clinker capacity2 imposed on cement

manufacturers as referred to under paragraphs two (2) and three (3) above,
is a continuing requirement for the qualified project to avail of ITH.
e. Modular housing components
This covers the manufacture of modular housing components using new and
environment-friendly materials or technology. These include roof/framing
systems, partition systems, flooring systems, door/window systems, finishing/
ceiling systems, and plumbing/sewerage systems.
The firm shall sell at least 70% of total annual production to mass housing projects.
Applicants must submit proof/certification from the Competent National

Authority that its products/systems are modular.
f. Iron and Steel Products
This covers the manufacture of refined iron ore, e.g., pig iron, hot briquetted
iron (HBI), direct reduction iron (DRI) and primary steel products.
This also covers the manufacture of flat products (hot-/cold-rolled coils,

plates and sheets; tin plates; galvanized and pre-painted sheets in coils; roll-
formed steel sheets provided integrated with galvanizing and pre-painting
facilities) and long products (bars, wire rods and seamless pipes and tubes).
All iron and steel products must be compliant with the PNS, if applicable.
Production of steel products involving simple processes such as cutting,

grooving, ribbing or a combination thereof is not qualified for registration.
g. Drugs and Medicines
This also covers manufacture of chemical compounds or biological substances,

other than food, intended for use in the treatment, prevention or diagnosis of
disease in humans or animals, including:
(1) articles recognized in official Pharmacopoeia or national drug formulary;

(2) articles intended for use as a component of the articles in one (1)
above; and
(3) herbal and/or traditional drugs which are articles of plant or animal
origin used in alternative medicine.
2
Clinker capacity is based on the industry association’s submitted data as of January 2010.

4. Business Process Outsourcing (BPO)
This covers voice and non-voice IT-enabled services including procurement

and sourcing services, contact center, business/knowledge processing, software
development, animation, data transcription, engineering design, and ICT
support services.
A contact center project must have a minimum investment cost of Philippine Peso
equivalent of US$2,500 per seat to qualify for registration. This amount covers the
cost of equipment (hardware and software), office furniture and fixture, building
improvements and renovation, and other fixed assets except land, building and
working capital.
• If equipment used were leased, the same should be converted to assets in

terms of commercial interest rates and amortized over a five-year period
• If equipment were consigned, the same should have an assigned value to be
considered part of project cost
• Introduces a major innovation in technology

• With project cost of at least the Philippine Peso equivalent of US$5 million
(excluding cost of land and building) to be put up during the first year of
operations.
All ICT projects shall install internal security system compliant with BS 7799 or
its equivalent.
5. Creative Industries
This covers non-BPO IT-enabled services and film, TV and theater arts production.
Non-BPO IT-enabled services include development of original digital content for
video games or game development.
For film, TV and theater arts production, the BOI may consult and/or require
an endorsement from concerned Competent National Authority such as Film
Development Council of the Philippines (FDCP), National Historical Institute
(NHI) and the National Commission for Culture and Arts (NCCA).
Registration of film, theater and TV productions is on a per project basis.
All films, TV and theater productions with at least 50% of revenues derived from
export may qualify for pioneer status.

Specific Guidelines
Only income derived from sales, advertisements, tickets/box office returns,

royalties including publication rights, and rentals for special showing earned by the
producer within the incentive period may be entitled to ITH.
6. Strategic Activities
1. This covers projects that exhibit high social economic returns and require
large investments that will significantly contribute to the country’s economic
development taking into consideration any two (2) of the following:
a. Minimum project investment cost of the peso equivalent of US$ 300

Million
b. Employment generation of at least 1,000
c. Use of new, emerging and technologically advanced products/services
involving breakthrough processes and innovation
2. This also covers major projects of global companies intended to be located

only in one country as a regional hub where the Philippines is one of the
short-listed countries for investment location.
A global company is one that has manufacturing and/or services operations

in at least two (2) countries.
Projects under Strategic Activities will be approved upon determination by the

Board in consultation with the DOF, NEDA and other concerned Competent
National Authority.
7. Green Projects
1. This covers the production of goods (such as but not limited to capital
equipment, lighting, and construction materials), the utilization of which
would lead to either the efficient use of energy, natural resources, raw
materials, or minimize/prevent pollution.
2. This also covers systems/processes that would involve the application of

cleaner and more efficient technologies on carbon and/or other greenhouse
gases emission reduction.
a. reduce greenhouse gas emissions

b. use less natural resources
c. create less waste
d. affordable products/goods
Green Projects covers only projects other than those already listed in this IPP.

8. Disaster Prevention, Mitigation and Recovery Projects
1. This covers projects that will prevent or mitigate adverse impacts of calamities
and disasters, which may include installation of flood control systems;
installation of early warning systems for typhoons, earthquake occurrences,
tsunami and volcanic eruptions; manufacture of goods critical to disaster
management; construction of dikes; salvaging operations; and installation of
power generating and auxiliary equipment.
For projects involving installation of power generating and auxiliary equipment,

this shall be limited to those that are in areas declared by the President under
State of Calamity in view of the extensive effects of power crisis.
Salvaging pertains to the rescue of a seriously damaged/incapacitated ship that

may include refloating and towing of the ship to a safe place. It also pertains
to the removal of a sunken or wrecked ship, derelict or hazards including
cargoes thereof.
Only income from salvaging operations may be entitled to ITH.
2. This also covers projects to rehabilitate areas affected by calamities and

disasters, which may include rebuilding of roads and bridges after earthquakes/
flooding, volcanic eruptions, and oil spill clean-up.
For projects that will involve the development and operation of physical
infrastructure to be undertaken by separate entities, both the developer and
operator may qualify for registration. However, the developer may be entitled
only to incentive on capital equipment directly needed for the operation of
the physical infrastructure.
3. This further covers training for disaster preparedness, mitigation or recovery/

rehabilitation/reconstruction.
All applications for registration must be endorsed by concerned Competent

National Authority.
Disaster Prevention, Mitigation and Recovery Projects covers only projects other
than those already listed in this IPP.
9. Research and Development and Innovation
This covers commercial and in-house R & D activities, establishment of Centers of

Excellence (COE), innovation, and skills development training institutions.

Specific Guidelines
a. Research & Development
This covers all R & D activities including the establishment of testing

laboratories, and Clinical Research Organization (CRO) that will conduct
clinical trials.
Applications for registration must be endorsed by the DOST, or other

concerned Competent National Authority.
The registered CRO must submit a copy of Permit for Clinical Investigational
Use (PCIU) issued by Food and Drugs Administration (FDA) before the
conduct of each clinical trial.
b. Center of Excellence (COE)
This covers the establishment of incubation centers and common service

facilities.
Projects that cost at least the Philippine Peso equivalent of US$ 2 million may
c. Training/Learning Institutions
This covers institutions specializing in the development of skills for the

activities listed in this IPP.
The following are the requirements for registration:
• The curriculum must be approved by either the Technical Education

and Skills Development Authority (TESDA) for training courses or
Commission on Higher Education (CHED) for degree courses or
other concerned government agencies/authority and endorsed by the
appropriate industry association.
• The registered education/training/learning institutions must provide
training laboratories and equipment, if applicable.
d. Innovation
Innovation refers to the development of a new or improved product,

processes and technology, which may be patentable, in support of the
activities listed in the IPP.

II. MANDATORY LIST
A. Revised Forestry Code of the Philippines (P.D. No. 705)
This covers extensive plantation of forest land of tree crops, except fruit trees, for
commercial and industrial purposes.
Tree crops include timber and non-timber species such as rubber, bamboo, rattan, etc.
(excluding fruit trees) for commercial and industrial purposes.
New project refers to the development of any public or private land to plantation of
timber and non-timber producing species to supply the raw material requirements of
forest-based industries. It also includes plantation with existing tree crops, which have
not yet reached commercial harvest.
Each Industrial Tree Plantation (ITP) project must have an approved and issued forest
management/development agreement such as:
• Socialized Industrial Forest Management Agreement (SIFMA)

• Integrated Forest Management Agreement (IFMA)
• Private Forest Development Agreement (PFDA)
• Community-based Forest Management Agreement (CBFMA)
In general, ITP projects are not entitled to ITH.
B. Philippine Mining Act of 1995 (R.A. No. 7942)
This covers the exploration, development and utilization of mineral resources.
1. Exploration of mineral resources including those covered by exploration permits

or mineral agreements may qualify for pioneer status.
2. Mining, quarrying and/or processing of metallic and non-metallic minerals (except

those involving riverbed operations, cave mining and beach mining)
ITH may be granted to domestic or export-oriented mining projects engaged in

any of the following (a.1 to b.2):
a. Mining and/or processing of metallic minerals
a.1. The mining and/or mineral processing projects require a process or

technology other than the normal or usual processes or technology
to mine and/or process the minerals.
a.2. For copper and gold project, a hurdle on the magnitude of investments
equivalent to US$50 million for gold and US$300 million for copper

Specific Guidelines
a.3. For nickel, chromite and iron projects, an additional processing step
that will add further value to the mineral end product is required (e.g.,
ferronickel, mixed sulfides, pig iron, ferrochrome, refractory bricks)
b. Quarrying and/or processing of non-metallic minerals
b.1 Must support a domestic downstream industry, e.g., clay for ceramic
manufacturing, silica for glass manufacturing
b.2 For processing of marble and/or other dimension stones, must export
at least fifty percent (50%) of production, if Filipino-owned or at least
seventy percent (70%), if foreign-owned
Mere quarrying of non-metallic minerals and processing of aggregates are not

entitled to ITH.
All projects must have a mine life of at least ten (10) years.
All projects must locate outside the National Capital Region and must have the necessary
permits/licenses from concerned Competent National Authority.
C. Printing, Publication and Content Development of Books or

Textbooks (R.A. No. 8047)
This covers printing, re-printing, publication and content development of books

or textbooks.
Book is defined as a printed non-periodical publication of at least forty-eight (48) pages,

exclusive of cover pages, published in the country and made available to the public.Textbook
is an exposition of generally accepted principles in one subject, intended primarily as a
basis of instruction in a classroom or pupil-book-teacher situation.
Content development of books consists of the following:
a. Development of new technologies directly related to book printing or publishing,

such as but not limited to digitization, electronic books (E-books), internet-based
archiving and retrieval systems, electronic content creation and development
systems, educational and/or “how-to” audio-visual presentations with or without
interactive segments, and the like
b. Research and development activities directly related to book printing or publishing,
such as but not limited to translation, editing, analysis and/or interpretation of text
and materials into local dialects or adaptation/application to the domestic setting
Application for registration shall be on a per book or title basis and must be endorsed
by the National Book Development Board (NBDB).

D. Downstream Oil Industry Deregulation Act of 1998 (R.A. No. 8479)3,4
This covers refining, storage, distribution, and marketing of petroleum products.
1. Oil refining refers to the manufacture of all petroleum products as defined under R.A.
No. 8479 through distillation, conversion and treatment of crude oil and other naturally
occurring petroleum hydrocarbons. This may include expansion, modification and
modernization of a refinery, resulting in an increase in existing volume of production,
and/or improvement in the quality of petroleum products in conformance with the
PNS, the Clean Air Act, and other applicable laws and regulations.
2. Storage refers to the business of receiving/discharging and storing petroleum

crudes and/or products of others for compensation or profit.
3. Distribution refers to bunkering and fuels shipping and transport. Fuels shipping
and transport cover shipping and transport through land such as tank trucks,
lorries and pipeline and tankers, and barges for the fuels to get to the points
or areas where they are needed. Bunkering covers the activity of selling fuel
for direct use by a vessel, usually for water and air transport, through a smaller
transport vessel.
Distribution projects are limited to those utilizing brand new equipment and
double-hulled vessels.
4. Marketing covers the following:
a. Retailing of petroleum products refers to selling of petroleum products or

fuels in retail generally directed to the end users, through dispensing pumps
in gasoline stations or in packaged containers such as drums for the liquid
fuels or metal cylinders for LPG that are compliant with PNS. This includes
the establishment and operation of gasoline stations and LPG retailing.
For gasoline retailing stations, except those locating in LDAs listed in this IPP,
the applicant shall be required to invest a minimum capital of PhP10 million
per station, excluding land, or such amount as may be determined jointly by
BOI and DOE for augmentation purposes, as the need arises; Provided, that
foreign retailers shall comply with the requirements provided under R.A.
No. 8762, otherwise known as the Retail Trade Liberalization Law, and its
implementing rules and regulations.
b. Fuels bulk marketing refers to the selling of petroleum products or fuels

in wholesale through tank trucks, lorries, double-hulled vessels/tankers,
barges or pipelines, which may be sourced from one’s own storage facilities.
3
In general, not entitled to Income Tax Holiday.
4
Entitled to Income Tax Holiday if registered under R.A. No. 8479 (Downstream Oil Deregulation Act).

Specific Guidelines
Investment shall include underground tanks and other equipment intended

for fuels retailing through outlets such as gasoline stations and LPG outlets.
c. A combination of storage, distribution, and marketing activities.
For storage, marketing and distribution, only investments of new industry participants
may be entitled to incentives.The applicant shall submit an endorsement from the DOE
certifying that the applicant is a new industry participant with new investments.
Projects involving storage, marketing and distribution of petroleum products may be

entitled to ITH when located in government identified logistics hubs, LDAs or 30
poorest provinces; otherwise, projects will only be entitled to capital equipment and
other non-fiscal incentives under E.O. No. 226.
Refinery projects, in general, may be entitled to ITH under E.O. No. 226. Blending alone,
within or outside the refinery, may only be entitled to capital equipment and other
non-fiscal incentives.
Projects registered under R.A. No. 8479 are entitled to the incentives provided therein.
E. Ecological Solid Waste Management Act of 2000 (R.A. No. 9003)
This covers the establishment of waste recycling facilities5 integrated with manufacturing
facility using as inputs 100% locally generated solid waste materials or scraps from the
recycling facility to produce semi-finished or finished product.
Recycling integrated with manufacturing facility refers to the treating of waste or

used materials (i.e., biodegradable, non-biodegradable, recyclable, special and residual)
through a process of making them suitable for beneficial use and for other purposes,
which includes any process wherein solid waste materials are transformed into new
products in such a manner that the original products may lose their identity, and which
may be used as raw materials for the production of other goods or services.
5
F. Philippine Clean Water Act of 2004 (R.A. No. 9275)
This covers the establishment of industrial wastewater treatment facilities, and sewage
collection integrated with treatment facilities and the adoption of water pollution
control technology, cleaner production and waste minimization undertaken through
BOT or non-BOT schemes.
Activities such as 5S and Good Housekeeping are not qualified for registration.
5
In general, not entitled to Income Tax Holiday

Industrial wastewater treatment facilities and sewage collection integrated with

treatment facilities may be entitled to ITH.
Projects adopting water pollution control technology, cleaner production and waste
minimization are only entitled to capital equipment incentive.
All applications for registration must be endorsed by the DENR, the Laguna Lake
Development Authority (LLDA) or other concerned Competent National Authority.
Projects that will employ new or proprietary technologies shall submit an Environmental
Technology Verification (ETV) issued by the DOST.
G. Magna Carta for Disabled Persons (R.A. No. 7277)
This covers the manufacture of technical aids and appliances for the use and/or
rehabilitation of disabled persons, and the establishment of special schools, homes,
residential communities or retirement villages solely to suit the needs and requirements
of persons with disability.
Disabled Persons are those suffering from restriction or different abilities, as result of a
mental, physical or sensory impairment, to perform an activity in the manner or within
the range considered normal for a human being.
Manufacturing of technical aids and appliances used by disabled persons includes but
not limited to the following:
• Walk-in baths designed for people with disabilities

• Commode chairs
• Braille books
• Hoists and lifting chairs designed for incapacitated people, including stair lifts
• Wheelchairs, scooters and automobiles using special controls or assistive
technology designed for people with disabilities
• Hearing-aids
• Artificial limbs, orthotics, prosthetics and orthopedic braces
• Automatic/mechanical lifts to be attached to motor vehicle
All applications for registration must be endorsed by the Department of Social Welfare
and Development (DSWD).
H. Renewable Energy (RE) Act of 2008 (R.A. No. 9513)
This covers RE developers of renewable energy facilities, including hybrid systems, and
manufacturers, fabricators and suppliers of locally produced RE equipment and components.

Specific Guidelines
All applications for registration must submit DOE Certificate of Registration or

Certificate of Accreditation.
RE developers of renewable energy facilities, including hybrid systems, and

manufacturers, fabricators and suppliers of locally-produced RE equipment and
components shall, at the time of their application for registration, elect to be governed
by the provisions of E.O. No. 226 or R.A. No. 9513, provided that such election
once made shall be final; Provided, That those who elect to be governed by E.O. No.
226 shall be covered by its laws, rules, regulations, policies and guidelines, including
incentives and incentives administration.
I. The Tourism Act of 2009 (R.A. No. 9593)
This covers tourism enterprises that are outside the tourism enterprise zones (TEZs)
and are engaged in the following:
1. Tour operations;
2. Tourist transport services whether for land, sea and air transport for tourist use; and
3. Establishment and operation of:
- Accommodation establishments such as but not limited to hotels, resorts,
apartment hotels, tourist inns, motels, pension houses, private homes for homestay,
ecolodges, condotels, serviced apartments, and bed and breakfast facilities;
- Convention and exhibition facilities or “meetings, incentives, conventions and
exhibition” (MICE) facilities;
- Amusement parks;
- Theme parks;
- Health and wellness facilities such as but not limited to spas, tertiary hospitals,
and ambulatory clinics;
1. Tour operations cover packaged inbound tour services rendered to tourists from
transport, accommodation, recreation to guided tours and other related services.
• Must own at least two (2) service vehicles

• Must be equipped with IT-enabled reservation system
• Must employ Department of Tourism (DOT)-accredited tour guides
2. Tourist transport services whether for land, water and air transport for tourist use
All tourist transport operators must have terminal, hangar, berthing/docking facilities.

Applications for registration of water and air transport operators must be endorsed
by MARINA or CAAP, respectively.
3. Tourism-related facilities:
- Accommodation establishments such as but not limited to hotels, resorts,
apartment hotels, tourist inns, motels, pension houses, private homes for homestay,
ecolodges, condotels, serviced apartments, and bed and breakfast facilities;
- Convention and exhibition facilities or “meetings, incentives, conventions and
exhibition” (MICE) facilities;
- Amusement parks;
- Theme parks;
- Health and wellness facilities such as but not limited to spas, tertiary hospitals,
and ambulatory clinics;
For condotel/apartment hotel/serviced apartment, 100% of the total number of

units/rooms per building must cater to tourists/guests to qualify for registration.
Each unit must have fully equipped kitchen and laundry facilities.
• Hotel projects/ Apartment Hotels / Serviced Apartments / Condotels

classified as first class or deluxe by the DOT and costing at least the Philippine
equivalent of US$100,000/room
• Resort projects classified as “AAA” by the DOT and with project cost of at
least the Philippine Peso equivalent of US$10 million
• Projects located in LDAs
• Modernization of hotels classified as first class or deluxe by the DOT with a
project cost of at least the Philippine Peso equivalent of US$ 10,000/ room
• Amusement parks/ theme parks with minimum project cost of the Philippine
Peso equivalent of US$10 million involving the development of sites or
attractions considered as novel in the Philippines
• Adventure and ecotourism facilities/ Agri-tourism farms and facilities with a
minimum lot area of fifty (50) hectares
Health and Wellness
a. Health Spa
This covers the establishment and operation of destination spa, resort/hotel

spa, and traditional healing and therapeutic centers, e.g., Philippine “hilot”,
“dagdagay”, “ventossa”, etc.

Specific Guidelines
Projects that cost at least Philippine Peso equivalent of US$ 20 million may
b. Tertiary Hospital
Tertiary hospitals with a minimum capacity of 100 beds and with investment
cost of at least the Philippine Peso equivalent of US$10 million may qualify
for pioneer status.
c. Ambulatory Clinics
This covers services such as elective (non-emergency) surgical procedures

ranging from minor to major operations, where patients are discharged within
the day for continuing post-operative care. This includes comprehensive
ophthalmologic, dermatologic, cosmetic, and reconstructive surgeries, etc.
Prior to start of commercial operation, the registered enterprise must submit

a copy of its License to Operate from the Department of Health (DOH).
Tourism Training Centers and Institutes
The following are the requirements for registration:
• The curriculum must be endorsed by the appropriate industry association

and approved by either the TESDA for training courses or CHED for degree
courses or other concerned government agencies/authority.
• The registered education/training/learning institutions must provide training

laboratories/On-the-Job facilities and equipment.
Projects under this listing are subject to standards to be adopted by the BOI in
consultation with the DOT.
Applications must be endorsed by DOT.
DOT accreditation must be submitted prior to ITH availment. Only income derived
from tourism- related activities shall be entitled to ITH.
III. EXPORT ACTIVITIES
This covers the production/manufacture of non-traditional export products, export services

and activities in support of exporters.

A. Production and Manufacture of Export Products
This covers the production/manufacture of non-traditional export products and with

export requirement of at least 50% of its output, if Filipino-owned or at least 70%, if
foreign-owned.
Export products include electronics, garments and textiles (including brassieres, gloves
and mittens, and infant’s wear), footwear and leather goods, furniture, jewelry, marine
and aquaculture, mineral products and others.
New manufacturing projects with direct production cost of at least the Philippine Peso
equivalent of US$10 million may qualify for pioneer status. (NOTE: This provision is a
temporary inclusion in the IPP to enable enterprises to recover from the effects of the
global crisis and will be delisted upon an official pronouncement by the NEDA that the
crisis no longer exists.)
B. Export Services
This covers services activities rendered to clients abroad and paid for in foreign
currency with export requirement of at least 50% of its revenue. If Filipino-owned or
at least 70%, if foreign-owned.
Mere deployment of people or individual practice of profession abroad is not qualified

for registration.
C. Activities in Support of Exporters
This covers activities directly supporting export producers as follows:
1. Manufacture of parts/components and materials and supplies directly/reasonably

needed in the production of the export product;
2. Services comprising a portion of the manufacturing process;
3. Product testing and inspection;
4. Repair and maintenance; and
5. Logistics services
These General Policies and Specific Guidelines shall take effect immediately upon publication.
By authority of the Board:
EFREN V. LEAÑO
Executive Director
Management Services Group

Annex A
ANNEX “A”
Projects Not Qualified Under the Contingency List and MSE Projects
• Banks and financial institutions (as provided under Article 11 of E.O. No. 226)
• Retailing business as defined under R.A. No. 8762
• All services except those qualified under the Regular List
• Small-scale mining as defined under P.D. No. 1899 and R.A. No. 7076
• Activities that are restricted/regulated by law or ordinances for reasons of security, defense
and risk to health and morals (e.g., beerhouse; “health clubs”; manufacture/distribution of
dangerous drugs; race track operations and forms of gambling, among others)
• Activities of non-Philippine nationals engaged in small and medium-sized domestic market
enterprises that are not qualified under the Foreign Investment Act (R.A. No. 7042) as
amended by R.A. No. 8170
• Non-agricultural basic consumer goods
• Personal care products
• All existing power and infrastructure projects with sovereign guarantee or granted ITH
• Other activities as may be determined by the Board
* * * * * * * * * * * * * * * * * * * * * * * * NOTHING ELSE FOLLOWS * * * * * * * * * * * * * * * * * * * * * * * *

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Maximizing Opportunities of a Stronger Philippine Economy

Part 1: Priority Investment Areas

Part II: General Policies

INVESTMENT PRIORITIES PLAN 2010 1

FA_IPPBOI INSIDES.indd 1 8/13/10 11:29 AM

II. Mandatory List

III. Export Activities

2 BOARD OF INVESTMENTS PHILIPPINES

FA_IPPBOI INSIDES.indd 2 8/13/10 11:29 AM

M EMORANDUM ORDER NO. 314

APPROVING THE 2010 INVESTMENT PRIORITIES PLAN

INVESTMENT PRIORITIES PLAN 2010 3

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The macroeconomic fundamentals coupled with timely fiscal

By “Maximizing Opportunities of a Stronger Philippine Economy” and with the

Mabuhay tayong lahat!

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INVESTMENT PRIORITIES PLAN 2010 5

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P RIORITY INVESTMENT AREAS

“ART. 7 Powers and Duties of the Board. x x x

Job Saving/Creation Projects

Enterprises registered under this list may be entitled to ITH.

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1. Agriculture/Agribusiness and Fishery

This also covers biotechnological products and services.

This also covers manufacture of chemical compounds or biological substances, other

1. articles recognized in official Pharmacopoeia or national drug formulary;

4. Business Process Outsourcing (BPO)

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8. Disaster Prevention, Mitigation and Recovery Projects

This further covers training for disaster preparedness, mitigation or recovery/

9. Research and Development and Innovation

This covers commercial and in-house R&D activities, establishment of Centers of

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II. MANDATORY LIST

P.D. 705 Revised Forestry Code of the Philippines2

This covers the exploration and development of mineral resources, mining,

R.A. 8047 Book Publishing Industry Development Act

This covers printing, re-printing, publication and content development of

This covers refining, storage, distribution, and marketing of petroleum

R.A. 9003 Ecological Solid Waste Management Act of 2000

This covers the establishment of waste recycling facilities.2

This covers the establishment of industrial wastewater treatment

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R.A. 7277 Magna Carta for Disabled Persons

R.A. 9513 Renewable Energy Act of 2008

This covers developers of renewable energy facilities, including hybrid systems.

This also covers manufacturers, fabricators and suppliers of locally-produced

III. EXPORT ACTIVITIES

This covers the following:

A. Manufacture of Export Products

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