Generally, under Book I of E.O. 226 or the Omnibus Investments Code of 1987, a qualified enterprise may enjoy certain benefits and incentives provided it invests in preferred areas of investments enumerated in the Investment Priorities Plan (IPP). The plan is issued annually by the BOI and contains the list of areas of investments eligible for government incentives.
Upon registration with BOI, a qualified enterprise is entitled to the following fiscal and non-fiscal incentives:
- Income tax holiday;
- Exemption from taxes and duties on imported spare parts;
- Exemption from wharfage dues and export tax, duty, impost and fees;
- Modified duty rate for capital equipment by virtue of E.O. 313*;
- Tax credits; and
- Additional deductions from taxable income.
- Employment of foreign nationals;
- Simplification of customs procedures;
- Importation of consigned equipment; and
- The privilege to operate a bonded manufacturing/trading warehouse subject to custom rules and regulations.
*Modified by E.O. 528