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LUCITA P. REYES
Executive Director
Industry Development Group
Board of Investments
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E.O. 226 – Omnibus Investments Code of1987, as amended
2012 Investment Priorities Plan
R.A. 9513 - Renewable Energy Act of 2008
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To qualify for BOI registration, the proposed activity
must be in the Investments Priorities Plan (IPP).
RE development is declared a priority investment
activity that will regularly form part of the annual IPP,
unless declared otherwise by law.
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Regular List:
1. Agriculture/ Agri-business and Fishery
2. Creative Industries/Knowledge-Based Services
3. Shipbuilding
4. Mass Housing
5. Iron and Steel
6. Energy7. Infrastructure
8. Research and Development
9. Green Projects
10. Motor Vehicles
11. Strategic Projects
12. Hospital/Medical Services
13. Disaster Prevention, Mitigation & Recovery
Projects
Renewable Energy ( under R.A. 9513 – RE Act 2008)
Ecological Solid Waste Management
Tourism
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COVERAGE
exploration, development,and/or utilization of energy
sources adoptingenvironmentally-friendly
technologies
POWER PROJECTS QUALIFIEDFOR ITH ENTITLEMENT
Only power plants utilizingenvironmentally-friendly
energy sources and
technologies
PROJECTS EXEMPTED FROMNVA REQUIREMENT
Projects that utilize raw
materials or semi-processedraw materials that are notlocally produced or not in
sufficient quantity
PROJECTS QUALIFIED FORREGISTRATION
Only projects that haveachieved financial closing
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Other Qualifications
For power generation projects, only revenues from powergenerated and sold to the grid, other entities and/orcommunities may be entitled to ITH.
Power projects contiguous to existing generating facilitiesconsidered as expansion projects; if the existing base loadplant has consistently dispatched at least 80% of theirregistered capacity for the past 3 years, project may beconsidered new.
ITH shall not exceed 10% of the total revenue of generatedpower.
DOE endorsement
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Other qualifications for PIONEER status:
Power supply projects located in missionary areas or
off-grid areas not receiving subsidies from PSALM
With projects cost of at least the peso equivalent of
US$1.5 million per megawatt;
Projects with NVA of at least 30%
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INCENTIVEIncome Tax Holiday
(ITH)4 – 6 years (max of 8 years)
ITH Bonus 3 years provided the firm meets certain conditions
Importation of Capital Equipment, Spare
Parts and Supplies (Under E.O. 70)0% duty-free
Wharfage Dues and Export Tax, Duty,Impost and Fees
Exempted
Simplification of Customs Procedures Available
Employment of Foreign Nationals Foreign nationals may be employed in supervisory,
technical or advisory positions within 5 years from a
project’s registration, extendible for limited periods.
The positions of president, general manager, and
treasurer or their equivalents, of foreign-owned
registered firms may be retained by foreign nationals
for a longer period.
All foreign employees may bring with them their
spouses and unmarried children under 21 years of
age.
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(Under the Mandatory List of the 2012 IPP)
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Approval: December 16, 2008
Effectivity: January 30, 2009
Nationwide consultation on the drafting of the RE Act IRR
IRR Effectivity: June 12, 2009
Coverage: Biomass, Solar, Wind, Geothermal, Ocean, Hydro
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RE Sources
• Geothermal
• Hydro• Wind
• Solar
• Ocean
Other RE Sources• Biomass
• Biofuels
Mandatory List: RE
RE facilities including
hybrid system RE equipment/
components
Feedstock/biomass forbiofuel
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For RE Developer
1. 7-year Income Tax Holiday (ITH).
2. 10-year Duty-free Importation of RE
machinery, equipment and materials
3. Special tax rates on realty and other taxes
on civil works, equipment, machinery.
4. Net Operating Loss Carry-Over (NOLCO)
5. Corporate Tax Rate of ten percent (10%)
on net taxable income after seven (7)
years of ITH
6. Accelerated Depreciation.
7. Zero Percent Value-Added Tax Rate
8. Tax Exemption of Carbon Credits
9. Tax Credit on Domestic Capital Equipment
and Services. - value-added tax and
custom duties
For RE Equipment Manufacturers
1. Tax and Duty-free Importation ofComponents, Parts and Materials
2. Tax Credit on Domestic CapitalComponents, Parts, and Materials
3. 7 years Income Tax Holiday fromthe date ofrecognition/accreditation
4. Zero-rated Value Added TaxTransactions
Note: Items in bold font are incentives
administered by BOI
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RE Developer RE Commercial’n
BOI
Registration
BOI
Registration
DOE Accreditation
BOI registration is required to qualify foravailment of incentives
REGISTRATIONS OF PROJECTS
DOERegistration
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DOEIssuance of Endorsement
(per transaction basis)
BOIIncentives Administration
(Issuance of
Certifications)
INCENTIVES AVAILMENT
BOCBIR
RE Developers/Equip’t
Manufacturers
ApplicationEndorse-ment
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Due diligence assistance
Information support
Visit program development & investment briefing
Business matching
Business registration facilitation
Fast tracking of applications for registration
Assistance with Local Government Unit (LGU) requirements
Aftercare Service Presence of government network to quickly respond to
concerns Supervision & monitoring
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