REGISTRATION

OF PROJECTS
WITH BOI
UNDER THE CREATE ACT (RA 11534)

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

ABOUT US

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

PHILIPPINE INVESTMENT PROMOTION PLAN

Manufacturing & Logistics Tourism Cluster Agro-Industrial

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

PRIORITY SECTORS

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

BOI CEBU

BOI Cebu Extension Office caters to

the whole of Visayas, facilitating Eastern Visayas
investments into its three •
•
administrative regions—
•
Western (Region 6), •
•
Central (Region 7), and Eastern •
(Region 8) Visayas. •
•

Western Visayas
•
• Central Visayas
• •
• •
• •
• •
• •
• •
•
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

BUSINESS REGISTRATION PROCESS

Business Name Mandatory Business Other

Registration Registration Permit Permits
START

END
City and
Barangay
Halls

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

BUSINESS REGISTRATION PROCESS

OPTIONAL REGISTRATION FOR INCENTIVES

Manufacturing & Logistics Tourism Agro-Industrial

BEFORE

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

REGISTRATION WITH BOI

INCENTIVES AVAILMENT

CREDIBILITY

QUALIFICATIONS
•

•
•
•
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

 INCENTIVES PACKAGE
UNDER THE CREATE ACT
WHAT INCENTIVES ARE AVAILABLE?

Income Tax Holiday (ITH) for 4-7 years ENHANCED DEDUCTIONS

•
• Depreciation Allowance

Special Corporate Income Tax (SCIT) at 5% or

Labor Expense 50%
Enhanced Deductions (ED)
•
Research & Development 100%

•
Training Expense 100%
Duty Exemption on Importation of Capital Equipment,
Raw Materials, Spare Parts, or Accessories Domestic Input Expense 50%
•

Power Expense 50%

Value Added Tax (VAT) Exemption on Importation and
Reinvestment Allowance 50%
VAT Zero-rating on local purchases
•
Enhanced Net Operation Loss
Carry Over (NOLCO)

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

 ENHANCED DEDUCTIONS

Depreciation Allowance (Buildings 10%, Domestic Input Expense (50%)

Machinery & Equipment 20%) Apply to domestic input that are directly related to and actually
Assets that are directly related to the registered enterprise’s used in the registered export project or activity of the registered
production of goods and services other than administrative and business enterprise
other support services

Labor Expense (50%) Power Expense (50%)

Does not include salaries, wages, benefits, and other personnel
costs incurred for managerial, administrative, indirect labor, and
support services

Research and Development (100%) Reinvestment Allowance to the

Apply to R&D directly related to the registered project or Manufacturing Industry (Up to 50%)
activity of the entity

Training Expense (100%) Enhanced Net Operating Loss Carry-Over

Apply to trainings given to Filipino employees engaged
directly in the registered business enterprise’s production of
goods and services

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

WHAT INCENTIVES ARE AVAILABLE?

INCENTIVES​ DOMESTIC​ EXPORT​

Income Tax Holiday (ITH)​ ​4-7 years ​4-7 years

Special Corporate Income Tax

Not Applicable 10 years (SCIT/ED)*​
(SCIT) at 5%​

Enhanced Deductions (ED)​ ​5 years 10 years (SCIT/ED)*

Duty Exemption on Importation​ ​12 years ​17 years

VAT Exempt & VAT Zero-Rating​ Not Applicable ​17 years

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

PROGRESSION OF INCENTIVES (EXPORT)

LOCATION TIER I TIER II TIER III

4 years ITH + 5 years ITH + 6years ITH +

National Capital Region 10 years ED/SCIT 10 years ED/SCIT 10 years ED/SCIT

Metropolitan Areas or
Areas Contiguous and 5 years ITH + 6 years ITH + 7 years ITH +
10 years ED/SCIT 10 years ED/SCIT 10 years ED/SCIT
Adjacent to NCR

All Other Areas 6 years ITH + 7 years ITH + 7 years ITH +

10 years ED/SCIT 10 years ED/SCIT 10 years ED/SCIT

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

PROGRESSION OF INCENTIVES (DOMESTIC)

LOCATION TIER I TIER II TIER III

4 years ITH + 5 years ITH + 6 years ITH +

National Capital Region 5 years ED 5 years ED 5 years ED

Metropolitan Areas or
Areas Contiguous and 5 years ITH + 6 years ITH + 7 years ITH +
5 years ED 5 years ED 5 years ED
Adjacent to NCR

All Other Areas 6 years ITH + 7 years ITH + 7 years ITH +

5 years ED 5 years ED 5 years ED

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFICATIONS FOR
BOI REGISTRATION
QUALIFICATIONS – PROJECT TYPE

NEW EXPANSION MODERNIZATION

•
•
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFICATIONS – INDUSTRY TIER

TIER I TIER II TIER III

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER I (PREFERRED)

Reliance Producers Cooperatives (Cavite) Tsuneishi Heavy Industries (Cebu)

Qualified Activities Relating to the Activities in Support of Government Programs All Qualified Manufacturing Activities
Fight against COVID-19 (Balik Probinsya, Bagong Pag-asa) including Agro-Processing

ACE Medical Center (Tagbilaran, Bohol)

Agriculture, Fishery, and Forestry Strategic Services (Creative Healthcare and Disaster Risk Reduction
Industries and Telecommunications) Management Services

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER I (PREFERRED)

Cebu Landmasters Inc. (Cebu) Mactan-Cebu International Airport (Cebu) University of the Philippines FabLab (Cebu)
Mass Housing (Economic and Infrastructure and Logistics including LGU- Innovation Drivers (Incubation Hubs,
Low-Cost Housing) PPPs (Airports, seaports, mass transport) Fablabs, Co-Working Spaces)

Kennemer Foods International (Davao) Malitbog Geothermal Power Station (Leyte)

Inclusive Business Models Environment or Climate Change-Related Projects Energy (Power Generation Projects
(Agribusiness and Tourism) (Ship Recycling, Material Recovery Facility) Using Conventional Fuels)

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER I (SPECIAL LAWS)

Industrial Tree Plantation Mining and Quarrying Activities (R.A. Publication or Printing of Refining, Storage, Marketing and
(P.D. No. 705) 7942) (limited to capital equipment Books/Textbooks (R.A. 8047) Distribution of Petroleum Products
incentive) (R.A. 8479)

Anjo World Theme Park (Cebu) San Lorenzo Wind Farm (Guimaras)
Rehabilitation, Self-Development, and Self- Tourism (R.A. 9593) Renewable Energy (R.A. 9513)
Reliance of Persons with Disability (R.A. 7277)

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER I (EXPORT)

Production and Manufacture of Services Exports (Voice and Non-Voice

Export Products Business Processing Operations)

Big Blue Logistics Corporation (Cebu) Laguindingan Technopark (Cagayan de Oro)

Activities in Support of Exporters Activities in Support of Exporters
(Logistics, Cold Storage) (Domestic Industrial Zone)

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

AGRICULTURE, FISHERY AND FORESTRY
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

MASS HOUSING

a. Economic and Low-Cost Housing

⚬
￭

￭
￭

⚬ Application must be accompanied by a copy of the Development

Permit issued by DHSUD or the concerned LGU

⚬ Prior to registration, the applicant must submit copies of the License

to Sell and Certificate of Registration issued by DHSUD
Casa Mira Iloilo

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

MASS HOUSING
⚬

Casa Mira Iloilo

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

MASS HOUSING

b. In-City Low Cost Dwelling for Lease/Rent

⚬

⚬
￭

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

ENERGY PROJECTS
•

San Miguel Global Power

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER II
Green Ecosystems
•

•
•
•
•

Health-related Activities
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER II
Industrial Value-Chain Gaps
•
•
•
•

Defense-related activities
•
•
•

Food Security-related activities

•
•
•
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFICATIONS FOR TIER II
To qualify under Tier II, the project must:
Engage in activities that address the industry
value chain gap or import-substituting

Supported with a study/strong justification

•

Secure an endorsement
•

Comply with the qualifications for registration

•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

QUALIFIED ACTIVITIES UNDER TIER III

R&D and activities adopting advanced digital production

technologies of the 4th Industrial Revolution*
•
•

Highly technical manufacturing and production of

innovative products*
•
•

Innovation support facilities*

•
•

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

REGISTRATION PROCESS

Secure Submit Project Endorse to

endorsement application evaluation Board to act on
and permits for BOI and site visit application
• • • •

•
• • •

• •
•
•
Certificate of
• • Registration
• •

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

APPLICATION FOR REGISTRATION

Should be the same

as stated SEC/DTI
Registration

Supported by
Corporation's Board
Resolution authorizing a
representative to
transact, execute, and
sign in behalf of the firm

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

 APPLICATION FOR REGISTRATION

Actual location of
the project (can
be different from
Office Address)
Capacity applied for
registration not lower
than projected yearly Export
production/sales in requirement of
SCHEDULE 5 at least 50% if
Filipino-owned,
or at least 70% if
foreign-owned

Highlight the following:

• Description and
use of
product/service
• Technology
• Compliance with
BOI Guidelines

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

APPLICATION FOR REGISTRATION

For expansion and

modernization projects,
plant & machinery layout
providing distinction as to
existing or currently
installed facilities vs
proposed facilities applied
for BOI registration
List of raw
materials
(imported and
local) with usage
cost and usage rate

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

APPLICATION FOR REGISTRATION

For goods/products,
indicate production
volume and sales volume.

For services, indicate

sales volume.

Indicate unit of
measure for
production and sales
volume for products
and services

Indicate selling
price/service fee and
sales value for all
projects and activities

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

APPLICATION FOR REGISTRATION

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

APPLICATION FOR REGISTRATION

No gaps in
timetable

Total cost
should tally with
SCHEDULE 4
Total cost
should tally with
SCHEDULE 7

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

ATTACHMENTS
• Secretary’s Certificate (BOI Template)
⚬

• Business Registration (SEC/DTI Certificate of

Registration, Latest Amended Articles of Incorporation,
By-Laws, & Latest GIS), if applicable
⚬

• Endorsement/Certification/Permit/License to Operate
• Perspective View and Picture of Product/s (Google Map)
• Process Flowchart
• Proof of Loan, if applicable (Schedule 8)
• Conglomerate Structure, if applicable
• Copy of Contract/JV Agreement, if applicable

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

ATTACHMENTS
• Financial Projections (Excel File)
⚬

⚬
⚬
⚬
⚬

• Audited Financial Statements (Existing Companies)

⚬

• Business Model (BOI Template)

⚬

• Integrity Pledge (BOI Template)

⚬

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

ITH COMPUTATION

2024 2025 2026 2027 2028

GROSS SALES/REVENUES 500,000,000 550,000,000 605,000,000 665,500,000 732,050,000

Net Income Before Tax (NIBT) 67,000,000 91,450,000 119,232,500 150,725,125 186,345,481

TAX DUE 16,750,000 22,862,500 29,808,125 37,681,281 46,586,370

INCOME TAX HOLIDAY 16,750,000 22,862,500 29,808,125 37,681,281 46,586,370

General Rules:

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

SCHEDULE OF FEES

FILING FEE
Project Cost Filing Fee

REGISTRATION FEE

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph

REGISTRATION FEATURES

•
•

•
•

www.boi.gov.ph
www.boi.gov.ph

Board of Investments - Cebu Extension Office Email: boicebu@boi.gov.ph Website: www.boi.gov.ph