D. SPECIFIC GUIDELINES
I. PREFERRED ACTIVITIES
a. Motor vehicle (excluding motorcycles, e-bikes and golfcarts) and motor vehicle parts and components
This covers the assembly of motor vehicles, manufacture of parts and components, research & development, research/testing laboratories, and technical vocational education and training institutions.
(1) Motor Vehicle (excluding motorcycles, e-bikes and golf carts)
Projects must include the manufacture of parts and components.
Any of the following may qualify as new:
- Projects that will involve the establishment of a factory complete with production machinery/equipment and facilities.
- Projects of an existing motor vehicle manufacturer/assembler of passenger car/commercial vehicle that involves the production of a new model or a full model change (FMC) provided there is new investment of at least Php 200 million.
Any of the following may qualify for pioneer status:
- Projects on the manufacture/assembly of alternative fuel vehicle and electric vehicles. Alternative fuel vehicles include hybrid vehicles, and flexible-fuel vehicles.
- Manufacture/assembly of brand new three or four-wheel Philippine utility vehicles for cargos and/or passengers.
The project’s ITH Rate of Exemption shall be proportionate to the Logistics Efficiency Index (LEI).
(2) Parts and components
- Body panel stamping
- Engines, transmissions, and transaxle
- Large injection moulded parts
- Bumpers; instrument panel; door trims; center console; grill; wheel house finisher; lamps; shock absorber; wiper motor/blade; engine mounts; electric power steering; combination meter; instrument cluster; chassis & sub-frame; interior finishing; switches; seat mechanism; retractable seat belts; window regulator; constant velocity joints/transmission; aluminium radiators; plastic fuel tanks; fuel pumps; brake system and components; evaporators and condensers; relays; flame laminated automotive fabric; door & rear view mirrors; automotive glass; engine parts & assembly; and transmission parts & assembly
- Controller assembly, motor, and battery (other than lead acid) for electric vehicle
Original Equipment Manufacturer (OEM) parts and components may qualify for pioneer status.
b. Shipbuilding including parts and components
This covers shipbuilding, manufacture of parts and components, research & development, and technical vocational education and training institutions.
This covers the construction of ships that are at least 500 GT and the manufacture of parts and components.
Registered enterprises must comply with Department of Labor and Employment (DOLE) Department Circular No. 1 series of 2009 on the Guidelines on Occupational Safety and Health in Shipbuilding, Ship Repair and Shipbreaking Industry.
Prior to start of commercial operation, the registered enterprise must submit a copy of its License to Operate or its equivalent from the Maritime Industry Authority (MARINA) or other concerned agency.
(2) Parts and components
This covers the manufacture of parts and components such as but not limited to fit-outs, pumps, marine engines, navigational equipment, marine boilers, and propellers.
c. Aerospace parts and components
This covers the manufacture of aerospace parts and components, and support activities (e.g., R&D activities, research/testing laboratories, and technical vocational education and training institutions).
This covers the production of the Oleochemicals, Petrochemicals and derivatives, and Chlor-Alkali Plants products, research & development, and research/testing laboratories.
(1) Oleochemical Products
Oleochemical products include the manufacture of fatty acid and fatty alcohol.
(2) Petrochemical products and its derivatives
Petrochemical products and its derivatives include, but are not limited to, the manufacture of derivatives from ethylene such as ethylene dichloride (EDC) and vinyl chloride monomer (VCM); olefins and polyolefins [Polyethylene (PE), Polypropylene (PP), Polystyrene (PS), and Polyvinyl Chloride (PVC)], derivatives from propylene, derivatives from mixed C4, and aromatic derivatives.
(3) Chlor-Alkali Plant Products
Chlor-Alkali plant products include the manufacture of chlorine, alkali (caustic soda), and hydrochloric acid (muriatic acid).
e. Virgin paper pulp
This covers the production of pulp integrated with forest plantation, research & development, and technical vocational education and training institutions.
f. Copper wires and copper wire rods
This covers the manufacture of copper wire rods and enamelled wires, research & development, and technical vocational education and training institutions.
(1) Copper Wire Rod
Projects must have a minimum production capacity of 12,000 MT per year and would produce wire rods compliant with applicable international or Philippine National Standards for the production of copper wires and cables.
(2) Copper Wires
This covers the production of copper enamel wires. All enamelled wire products must be compliant with the applicable Philippine National Standards (PNS).
g. Basic iron and steel products, steel grinding balls, long steel products (billets and reinforcing steel bars), and flat hot/cold-rolled products.
All iron and steel products must be compliant with the applicable Philippine National Standards (PNS).
h. Tool and Die
This covers the production of dies and molds, research & development, and technical vocational education and training institutions.
- Simple, compound and progressive dies for metal stamping or metal forging
- Molds for die casting, for plastic injection or blow molding, glass blow molding, forging, encapsulation molds
- Jigs and fixtures for metal cutting and metal forging.
2. Agribusiness and Fishery
a. Commercial production (Subject to geographical supply considerations. In the case of poultry and livestock production, this is limited to areas in ARMM, Mindoro and Palawan)
(1) Coconut, corn, cassava, coffee, cocoa, fisheries, poultry and livestock;
(2) High value crops – rubber, spices, vegetables and fruits;
(3) Emerging commodities – sampaloc, jackfruit, peking duck, native pigs, siling labuyo, peanuts, monggo, and achuete.
All projects must be endorsed by the Department of Agriculture (DA).
b. Commercial processing (Subject to geographical supply considerations. In the case of poultry and livestock production, this is limited to areas in ARMM, Mindoro and Palawan)
(1) Extraction of higher value substances from agricultural and fishery raw materials through bioprocessing; or
(2) Conversion of agricultural and fishery products or wastes to a form ready for further processing or final consumption.
Commercial processing of agricultural products should involve the use of domestically-produced raw or semi-processed agricultural products, unless these inputs are not locally available (NLP) or are not in sufficient quantity (NISQ).
If using imported raw or semi-processed agricultural products that are locally-produced (LP) or in sufficient quantity (ISQ), the project may qualify for registration, provided that the finished/final product is for export, or the project qualifies for pioneer status.
c. Production of animal and aqua feeds excluding those for game animals, fowls and other species for pet/leisure purposes.
d. Commercial production of organic and inorganic fertilizers and pesticides.
e. Modernization of sugar mills which will increase mill efficiency measured in terms of Overall Recovery (OAR) rate to at least 85%.
f. Mechanized agriculture support services, e.g. harvesting, land preparation, spraying/dusting and other related agricultural service.
g. Agriculture support infrastructures, e.g. facilities for drying, cold chain storage, blast freezing, bulk handling and storage; packing houses; trading centers; ice plants in Less Developed Areas; AAA slaughterhouse; research & development/testing facilities; technical vocational education and training institutions; and AAA dressing plant.
For projects under (c) (d) (f) and (g) above supporting agricultural commercial production, the qualification for registration is subject to the geographical market conditions, industry roadmaps and industry clustering strategies.
a. Integrated Circuit Design
This covers research & development, technical vocational education and training institutions, and all logic & circuit design techniques required to design integrated circuits (ICs).
b. Creative Industries/ Knowledge-Based Services (Covers start-ups of small newly incorporated domestic players/enterprises only.)
This covers the start-ups of small newly incorporated domestic players/enterprises engaged in the following activities:
- Software development (Covers only those with own Intellectual Property that are developed for commercial sale)
- Game development
- Health Information Management Systems
c. Ship repair
This covers repair of all types of vessels and offshore structures.
Ship repair facilities must have a dry-docking facility with a minimum capacity of 1,500 DWT.
Prior to start of commercial operation, the registered enterprise must submit a copy of its License to Operate or its equivalent from the MARINA or other concerned agency.
d. Charging stations for electric vehicles
This covers the establishment of charging stations for electric vehicles. The charging stations could refer to a ‘service station’ designed to simultaneously fast charge multiple vehicles similar to gasoline/diesel stations or a network of at least 5 charging stands.
Application for registration must be accompanied by an endorsement from the Department of Energy-Investment Promotion Office (DOE-IPO).
e. Maintenance, Repair and Overhaul (MRO) of aircraft
This covers R&D activities and the establishment of research/testing laboratories, Centers of Excellence and technical vocational education and training institutions in support of the manufacturing of aerospace parts and components (or maintenance, repair and overhaul of aircraft).
f. Industrial waste treatment
This covers the establishment of treatment facilities for toxic and hazardous wastes (THW) from an industrial operation.
The following are the qualifications for registration:
- Must involve treatment, storage and disposal (TSD)
- Must be capable of handling THW
- Must handle only locally generated industrial wastes.
Prior to start of commercial operation, the registered enterprise must submit a copy of its TSD Registration Certificate issued by the Environmental Management Bureau (EMB) of the DENR.
4. Economic and Low-Cost Housing (horizontal and vertical) (Based on a price ceiling of Php3.0 million and subject to geographical considerations)
This covers the development of economic and low-cost housing and the manufacture of modular housing components.
a. Economic and Low-Cost Housing
The following are the qualifications for registration:
- The selling price of each housing unit shall be more than Php450,000.00 but not exceeding Php3.0 million;
- Minimum of 20 livable dwelling units in a single site or building;
- Must be new or expanding economic/low-cost housing project;
- For vertical housing projects, at least 51% of the total floor area, excluding common facilities and parking areas, must be devoted to housing units.
In cases of un-incorporated joint venture and similar arrangements between landowner and developer wherein the sharing scheme is in terms of the number of lots or units built, only the share of the developer may qualify for registration.
Projects that have already been completed and have incurred sales (booked sales) of housing packages shall not qualify for registration.
Any of the following may be considered as an expansion project:
- Construction of additional floors or annexes intended for housing units;
- If the project will locate adjacent or contiguous to an existing housing project owned by the same entity and shall share common facilities including access to the existing project.
All economic/low-cost housing projects must comply with the following:
- Socialized housing requirement (SHR) by building socialized housing units in an area equivalent to at least 20% of the total registered project area or total BOI registered project cost for horizontal housing and 20% of the total floor area of qualified saleable housing units for vertical housing projects.
This may be done through any of the following modes:
- Development of a new settlement directly undertaken by the registered entity;
- Development of a new settlement through joint venture arrangements with any of the following:
- Local Government Unit,
- Affiliate or other related enterprise of the BOI-registered entity,
- Developer accredited by the HLURB.
In the case of joint venture projects, the BOI registered entity shall be required to provide proof of funds transferred to the implementing entity.
- Development of a new settlement through donation of land with basic infrastructure facilities (roads, water system, etc.) and/or construction materials intended for the calamity stricken areas as identified in the “Comprehensive Rehabilitation and Recovery Plan of the Areas Battered by Yolanda” in partnership either with any of the housing agencies, relevant LGUs, or with HLURB accredited NGOs.
In lieu of the above modes for compliance with the SHR, vertical housing projects may opt to donate provided: (1) the donation is made to BOI accredited NGO and (2) the amount to be donated shall be equivalent to 30% of (20% of the building construction cost based on the actual number or equivalent total floor area of qualified saleable low cost housing units) or not less than 40% of the estimated ITH. Equivalent total floor area refers to the sum total of the floor area of all the registered low-cost housing units.
- For purposes of ITH availment, compliance with the 20% socialized housing requirement shall be computed based on the actual units sold during the ITH availment period. Failure to submit proof of compliance shall result to forfeiture of ITH for that particular taxable period.
- Non-compliance with the 20% SHR on previous registrations using the ITH-based Compliance (IBC) shall result in denial of applications for registration for succeeding projects.
- Project shall conform with the design standards set forth in the Rules and Regulations to Implement B.P. No. 220/P.D. No. 957 and other related laws.
Eligible projects in NCR, Metro Cebu, and Metro Davao may only be granted three (3) years ITH unless the SHR compliance of the said projects would be undertaken in any of the identified calamity-stricken areas in the “Comprehensive Rehabilitation and Recovery Plan of the Areas Battered by Yolanda”. In such cases, said projects may be eligible to four years of ITH.
Interest income arising from in-house financing shall not be entitled to ITH.
Application for registration must be accompanied by a copy of the Development Permit issued by HLURB or concerned LGU.
Prior to registration, horizontal housing project applicant must submit copies of License to Sell (LTS) and Certificate of Registration (CoR) issued by HLURB. For vertical housing project, applicant may submit a copy of its temporary LTS provided that the copies of the final LTS and CoR shall be submitted prior to start of commercial operation.
b. Modular Housing Components
This covers the manufacture of modular housing components preferably using indigenous materials. These include roof/framing systems, wall/partition systems, flooring systems, door/window systems, and finishing/ceiling systems.
Application for registration must be accompanied by an endorsement from Accreditation of Innovative Technologies for Housing (AITECH).
5. Hospitals (Subject to geographical considerations.)
This covers the establishment and operation of general and specialty hospitals and other health facilities.
Any of the following may qualify for registration:
- General Hospitals (Level 1, 2 and 3) in any of the locations listed in Annex C-1,
- General Hospital Level 3 in any of the locations listed in Annex C-1A,
- Specialty Hospitals and Other Health Facilities outside Metro Manila. Other Health Facilities include:
- Custodial Care Facilities (excluding those for rehabilitation owing to substance abuse),
- Diagnostic/Therapeutic Facilities (excluding Clinical Laboratory, Drug Testing Laboratory, Laboratory for Drinking Water Analysis), and
- Specialized Out-Patient Facilities (excluding In-Vitro Fertilization Center and Stem Cell Facility).
- Geriatric Care Facilities.
Only revenues derived from medical and diagnostic services rendered by the registered entity shall be entitled to ITH. Income from lease/rent, and revenues from any other non-treatment related services will not be eligible for ITH.
Prior to start of commercial operation, the registered enterprise must submit the License to Operate from the Bureau of Health Facilities and Services of the DOH, where applicable.
Prior to availment of ITH, the registered enterprise must submit a copy of its Certificate of PhilHealth Accreditation, where applicable.
a. Exploration and Development of Energy Sources (including energy crops or upstream biofuels)
(1) Exploration and Development of Energy Sources
Exploration and development of energy sources should be covered by a valid service contract with the DOE.
Exploration projects shall only be entitled to duty free importation of capital equipment.
(2) Energy Crops
Only new plantations/growing areas dedicated for energy feedstock may qualify for BOI registration.
Applications for registration must be accompanied by a certification from the DA as provided under Section 4 of Joint Administrative Order (JAO) No. 2008-1, Series of 2008 (Guidelines Governing the Biofuel feedstock production under R.A. 9367)
b. Power generation plants (Subject to capacity installation gap based on DOE’s five-year supply-demand forecast or up to 2019, i.e., if forecast is 6000MW, then the first 6000MW capacity receives the incentives, and said installation gap will be divided among areas in Luzon, Visayas and Mindanao.)
This covers power generation projects utilizing conventional fuels (i.e., coal, diesel, bunker, natural gas, and geothermal), waste heat and other industrial wastes. Only projects that will respond to the capacity installation gap based on DOE’s five-year supply-demand forecast and will operate on or before 2019 may qualify for registration. Availment of ITH shall be on a first to operate basis.
Registration of projects shall be based on the below indicative allocation of the installation target in accordance with the Energy Supply-Demand Outlook of the Department of Energy (DOE) as of February 2015 and may be subject to re-allocation based on regional power demand and supply situation.
|Luzon (in MW)||1,300||500||500||500||50|
|Visayas (in MW)||150||50||50||50||100|
|Mindanao (in MW)||50||50||50||100||100|
Power projects that are built contiguous to its existing generating facilities shall be considered as expansion projects. However, if the existing base load power plant has consistently dispatched at least 80% of its registered capacity for the past 3 years, the project to be registered may be considered new.
Revenues of base load plants derived through the Wholesale Electricity Spot Market (WESM) shall not be entitled to ITH.
Within one (1) year from the date of registration, projects with loan components in their financing scheme must have achieved Financial Close; otherwise the project’s registration shall be subject to automatic cancellation. As evidence of financial closing, the enterprise shall submit a certification, in a form and substance satisfactory to BOI, issued and addressed by the lenders to BOI confirming the financial agreements are in full force and in effect.
Power generation projects located in missionary areas or off-grid areas may qualify for pioneer status.
c. Ancillary services
(1) Drilling Services for Geothermal Projects
(2) Support services such as frequency regulation and contingency reserves, voltage control, load following, reactive power support, and black start capability which are necessary to support the transmission capacity and energy that are essential in maintaining power quality and the reliability and security of the grid.
d. Energy efficiency projects
This covers the establishment of energy efficiency-related facilities and the manufacture of equipment for use in energy efficient systems.
Projects should utilize energy sources adopting environmentally-friendly technologies that comply with the Clean Air Act, the Environmental Impact System law, the Biofuels Act, where applicable, and other relevant environment laws.
Applications for registration must be accompanied by an endorsement from the Department of Energy (DOE).
7. Public Infrastructure and Logistics
a. Airports and seaports (includes RO-RO ports) for cargo and passenger
The qualification for registration of projects is based on the government’s infrastructure development policy and other relevant plans.
Application for registration must be accompanied by an endorsement from the Civil Aviation Authority of the Philippines (CAAP) or the Philippine Ports Authority (PPA), whichever is applicable.
b. Air, land and water transport (limited to brand new ships, aircraft, seaplanes, RO-RO; buses, boats, mass rail – limited to capital equipment incentive only)
(1) Air Transport
This covers passenger and/or cargo air transport operation for commercial purposes.
Lease with option to purchase an aircraft may be allowed. Acquisition of additional brand new aircraft may be registered as new.
Application for registration must be accompanied by an endorsement from 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 copy of the Certificate of Airworthiness issued by Civil Aviation Authority of the Philippines (CAAP).
Only revenues derived from cargo air freight fares, passenger air fares, and revenues on refund, cancellation and rebooking fees shall be entitled to ITH. Incidental revenues such as those earned from excess baggage (including prepaid baggage), seat selector options, merchandise sales such as sale of meals/beverages, souvenirs, travel related products and other commodities, package tours and other incidental revenues as may be determined by the Board shall not be entitled to ITH.
(2) Land Mass Transport
This covers mass transport using brand new buses that run on electric batteries, and/or compressed natural gas.
The following are the qualifications for registration:
- Must utilize buses with at least Euro IV-compliant engine and using Euro IV fuel, if applicable; and
- Must have own terminal and garage that can accommodate all the buses under its franchise(s).
Application for registration must be accompanied by a copy of the application for franchise with the Land Transportation Franchising & Regulatory Board (LTFRB).
Prior to start of commercial operation, the registered enterprise must submit a copy of its original LTFRB Franchise Verification with Original Receipt.
(3) Water Transport
This covers domestic/inter-island shipping, i.e. pure cargo, passenger, and passenger-cargo vessel operations including RORO Terminal System operations.
Tankers, High-speed Craft, RORO Vessels serving primary routes and Passenger/Cargo vessels having gross weight of 150 GT and above may qualify for registration.
Application for registration must be accompanied by an endorsement of the project and proof of accreditation of the shipping enterprise by MARINA.
Prior to start of commercial operation, the registered enterprise must submit proof that the vessel is registered with MARINA and a copy of the vessel’s Class and Statutory Certificate as required by MARINA.
RORO operator/ enterprise serving missionary routes, as indicated in the Certificate of Public Convenience (CPC) issued by MARINA, may qualify for pioneer status.
Acquisition of additional brand new vessel/s may be registered as new project.
(4) Mass Rail
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).
c. LNG Storage and Regasification Facility
This covers the establishment and operation of natural gas storage and regasification facilities in accordance with relevant Philippine National Standards (PNS).
LNG gasification plants may be located on land and/or on floating barges.
The following are the qualifications for registration:
- Must have new facilities
- Must cater to power plants, industrial plants, commercial establishments, etc.
- Must cater to at least one (1) clientele, other than the proponent’s own business.
The registered enterprise must submit a copy of its Permit to Operate issued by the DOE prior to start of commercial operations.
d. Bulk water treatment and supply
Bulk water supply projects must involve extraction of water from its natural source, except shallow and deep wells, and water treatment for commercial purposes. The water treatment facility shall cover the minimum basic process flow of a treatment plant (i.e. screening, mixing, flocculation, sedimentation, filtration and chlorination) with capacity sufficient to handle the volume of raw water to be supplied to its target service area.
Only new bulk water treatment and supply projects may qualify for registration. Supply of water (or distribution) should include extraction of water, treatment and installation of distribution lines and flow metering systems. Treated water should be in accordance with the PNS for Drinking Water.
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.
Application for registration must be accompanied by a copy of the Water Permit.
Prior to start of commercial operations, the registered enterprise must submit a copy of the Certificate of Public Convenience (CPC), if applicable.
Applications covering both supply and distribution projects shall be unbundled showing the revenue and cost structure of each.
8. PPP Projects
This covers projects implemented under Republic Act 6957, as amended by Republic Act 7718 (Amended Build-Operate-and-Transfer Law).
Application for registration must be accompanied by an endorsement from the Public-Private Partnership (PPP) Center.
II. EXPORT ACTIVITIES
This covers the manufacture of export products, services exports and activities in support of exporters.
1. 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.
In the export of mineral products, the Specific Guidelines for R.A. No. 7942 of this IPP shall apply suppletorily.
2. Services Exports
This covers service 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.
This also covers non-voice business processing operations such as administrative and business services including analytics, data management, engineering and architectural services.
Mere deployment of people or individual practice of profession abroad is not qualified for registration.
For contact centers, project must have a minimum investment cost of the Philippine Peso equivalent of US$5,000 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 as part of the project cost.
In the case of contact centers, revenues shall be unbundled to show the breakdown of servicing domestic and overseas markets.
3. Activities in Support of Exporters
This covers activities directly supporting export producers as follows:
- Manufacture of parts/components and materials and supplies directly/ reasonably needed in the production of the export product;
- Services comprising a portion of the manufacturing process;
- Product testing and inspection;
- Repair and maintenance; and
- Logistics services.
This also covers service providers to foreign film and television production projects in the country as endorsed by the Philippine Film Export Services Office (PFESO) as mandated by E.O. No. 674.
III. SPECIAL LAWS
1. Industrial Tree Plantation (Industrial Tree Plantation (ITP) is also known as Industrial Forest Plantation (IFP) based on DENR AO 1999-53)
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.
In cases of tree plantations that are joint venture agreements with other private entities, community organizations or government entities, only the share of the registered enterprise may be entitled to ITH.
Application for registration must be accompanied by an endorsement from the DENR.
2. Exploration, Mining, Quarrying and Processing of Minerals
This covers the exploration and development of mineral resources, mining/quarrying and processing of metallic and non-metallic minerals.
Mining/quarrying and mineral processing projects are limited to capital equipment incentives.
Application for registration must be accompanied by a copy of the Exploration Permit, Mineral Production Sharing Agreement (MPSA), or Financial or Technical Assistance Agreement (FTAA), whichever is applicable.
3. Publication or Printing of Books
This covers content development intended for books and publication of books in print or digital format.
The following may qualify as new:
- New book titles (original works, and original text with annotations), and
- First format by which the new book title will be produced or published. The succeeding format (example; print to digital, or vice versa) by which the same title is published will be regarded as “Expansion.”
Re-prints, revisions, and succeeding editions of existing titles will not qualify for registration.
For unpublished content, application for registration may be on a per book title or a maximum of five (5) book titles per application.
For publishing, the following will apply:
- A minimum of 10 titles with 1,000 copies each for its first print run, in case of printed books; and
- A minimum of 10 titles each, in case of e-books.
Application for registration must be accompanied by an endorsement from the National Book Development Board (NBDB).
4. Refining, Storage, Marketing and Distribution of Petroleum Products
This covers refining, storage, distribution, and marketing of petroleum products.
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.
For storage, marketing and distribution, only investments of new industry participants may be entitled to incentives.
Application for registration must be accompanied by an endorsement from the DOE certifying that the applicant is a new industry participant with new investments.
For storage, marketing and distribution, petroleum products excluding liquefied petroleum gas (LPG), shall be sourced from the new industry participants as defined under R.A. No. 8479, except in cases of emergency supply situation.
For projects that involve more than one activity, i.e., storage, marketing and distribution, each must be unbundled showing the revenue streams and costs for each activity.
Blending of petroleum products alone may only be entitled to capital equipment and other non-fiscal incentives.
Applicant enterprises shall elect to be governed by the provisions of E.O. No. 226 or R.A. No. 8479 at the time of their application for registration, provided that such election once made shall be final.
5. Rehabilitation, Self-Development and Self-Reliance of Persons with Disability
This covers the manufacture of technical aids and appliances for the use and/or rehabilitation of persons with disability, and the establishment of special schools, day care centers, homes, residential communities or retirement villages solely to suit the needs and requirements of persons with disability.
Manufacturing of technical aids and appliances used by persons with disability includes but is not limited to the following:
- Walk-in baths designed for persons 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 persons with disabilities;
- Artificial limbs, orthotics, prosthetics and orthopedic braces;
- Automatic/mechanical lifts to be attached to motor vehicle.
Application for registration must be accompanied by an endorsement from the Department of Social Welfare and Development (DSWD).
6. Renewable Energy
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.
Application for registration must be accompanied by a copy of the DOE Certificate of Registration, Certificate of Accreditation or DOE endorsement, whichever is applicable.
Applicant enterprises shall elect to be governed by the provisions of E.O. No. 226 or R.A. No. 9513 at the time of their application for registration.
This covers tourism enterprises that are outside the tourism enterprise zones (TEZs) and are engaged in the following:
a. Tourist transport services whether for land, sea and air transport for tourist use;
b. Establishment and operation of:
- Accommodation establishments such as but not limited to hotels, resorts, apartment hotels, tourist inns, motels, pension houses, private homes for home stay, eco-lodges, condotels, serviced apartments, and bed and breakfast facilities;
- Convention and exhibition facilities or “meetings, incentives, conventions and exhibition” (MICE) facilities;
- Amusement parks;
- Adventure and eco-tourism facilities;
- Sports facilities and recreational centers;
- Theme parks;
- Health and wellness facilities such as but not limited to spas;
- Agri-tourism farms and facilities; and
- Tourism training centers and institutes.
c. Development of retirement villages;
d. Restoration/ preservation and operation of historical shrines, landmarks and structures.
(1) Tourist transport
This covers transport services whether for land, water and air transport for tourist use.
Land transport covers the operation of brand new, world-class buses and/or mini-buses/coasters. The quantity or number of units of vehicles that may be allowed shall be determined based on the number of tourist arrivals in the area or the ratio of hotel/resort facilities/rooms.
Tourist transport operators must have garage, hangar or berthing/docking facilities.
Application for registration of water and air transport operators must be accompanied by an endorsement from MARINA or CAAP, respectively.
Prior to start of commercial operation, the registered tourist land transport operator must submit a copy of Certificate of Public Convenience (CPC).
(2) Tourism-related facilities
(a) Accommodation facilities
Condotel/apartment hotel/serviced apartment/ tourist inn/pension house/motel, must cater to tourists/guests to qualify for registration. For condotel/apartment hotel/serviced apartment, each unit must have fully equipped kitchen and laundry facilities.
Income arising from gaming and mall operations are not qualified for ITH.
For modernization projects, replacement of carpets, pillows, mattresses and other similar items shall be excluded from the computation of the ITH rate of exemption.
For hotels and resorts:
- The quantity or number of units of buses and/or mini-buses/coasters that may be allowed shall be determined based on the number of tourist arrivals in the area or the ratio of hotel/resort facilities/rooms.
- Accommodation establishments locating in the following areas shall not be entitled to ITH:
- Metro Manila;
- Cebu City;
- Mactan Island; and
- Boracay Island.
Only income directly attributable to revenue generated from the hotel operations, specifically from room accommodation and income from food and beverage outlets within the hotel owned by the registered enterprise shall be qualified for ITH.
(b) Health and Wellness
This covers the establishment and operation of destination spa, resort/hotel spa, therapeutic centers, traditional healing (e.g., Philippine “hilot”, “dagdagay”, “ventossa”, etc).
(c) 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.
Application for registration must be accompanied by an endorsement from the Department of Tourism (DOT).
Prior to ITH availment, the registered enterprise must submit a copy of DOT accreditation.
Only income derived from tourism-related activities shall be entitled to ITH.
(3) Retirement Village
Locators engaged in the activities listed in the IPP that are related to retirement business may be registered as separate activity.
(4) Restoration/ preservation and operation of historical shrines, landmarks and structures
This covers the conservation, preservation or restoration of national sites or properties.
Projects undertaking the conservation and preservation, restoration or maintenance of historico-cultural heritage that includes any of the following may qualify for registration:
- National shrines, monuments, and/or landmarks
- Local historical sites/properties classified, identified, and listed in the National Registry of Historic Structures
- Cultural properties, treasures and/or artifacts.
Application for registration must be accompanied by an endorsement from the National Historical Commission of the Philippines (NHCP).