You are on page 1of 10



- Foreign Nationals
- Former Filipino Citizens (Natural-born)


Liberalize the entry of foreign investments (non-

cash assets) into the country.
Investment Rights (former Filipino):

1. Cooperatives
2. Rural Banks
3. Thrift banks and private development banks
4. Financing companies

-Sec. 9 of the amended Foreign Investments Act

Businesses Exclusive to Filipino Nationals:

1. List A - 60% / 40 % - Foreign Equity


2. List B - - small and medium-sized

domestic market enterprise with paid-in
equity capital of less than US $200,000

-Sec. 8 of the amended Foreign Investments Act

AGENCY Type of Business Requirements

SEC Domestic corpo or Application form, AOI,

partnerships which are Name verification slip,
non-Philippine nationals Bank certificate of
deposit, ACR, ICR, SIRV,
VISA 13, etc

SEC Foreign Corpo at least US $30,000

BTRCP, DTI-NCR Single Proprietorships, - Refer RA 7042

Applications for Metro - Refer RA 1180

Provincial Extension Corporations/ - Refer RA 7042

Offices of the SEC Partnerships - Refer RA 1180

Provincial Offices of the Sole Proprietorships - Refer RA 7042

DTI - Refer RA 1180
Investment Priorities Plan (IPP) an annual plan of
priority industries and service areas that are encouraged
through the grant of fiscal and non-fiscal incentives.

Objective: - uplift the well-being of the poor and the marginalized

- enhance global competitiveness of Phil. Industries
- ensure sustainable development
- take advantage of global and international devt.


1. at least 50% of production is for exports (Filipino-owned)

2. at least 70% of production is for exports (foreign-owned)

- Omnibus Investments Code of 1987, as amended


1. Income Tax Holiday (ITH)

- new projects with a pioneer status for 6 years
- new projects with a non-pioneer status for 4 years
- expansion projects for 3 years
new or expansion projects in less developed areas for 6
years regardless of status
- modernization projects for 3 years. Exemption is limited
to incremental sales revenue/ volume

2. Duty free importation of Capital Equipment

- 0% duty with corresponding 12% VAT until the
effectivity of EO 528 on 2011.
3. Duty free implementation of spare parts
- 0% duty with corresponding 12% VAT until the effectivity of EO 528
on 2011.

4. Exemption from taxes and duties on imported spare parts

- for export producers with customs bonded warehouse exporting at
least 70% of production.

5. Exemption from wharfage dues and export tax, duty, impost and fees
- exports of non-traditional export products are exempt from
wharfage dues and any export tax, impst and fees.

6. Tax and duty free importation on breeding stocks and genetic materials.

7. Tax Credits:
a. duty portion of domestic breeding stocks and genetic materials
b. for taxes on raw materials
8. Additional deductions from taxable income

a. Available for the first 5 years from registration,

additional deduction from the taxable income
equivalent to 50% of the wages of additional skilled
and unskilled workers in the direct labor force.
(deduction will be doubled in an LDA)

b. Additional deduction for necessary and major

infrastructure works.
1. Employment of foreign nationals
- may be employed in supervisory, technical or advisory
positions within 5 years from registration.

2. Simplification of customs procedures:

- importation of equipment, spare parts, raw materials, supplies
and exports of processed products

3. Unrestricted use of consigned equipment

- re-export bond is posted

4. Access to Bonded Manufacturing/Trading Warehouse System

- in all areas