BOI Registration & Incentives in the Philippines

The Board of Investments (BOI) is the Philippines’ primary investment promotion agency for enterprises operating outside special economic zones. BOI registration gives qualifying businesses access to the incentive package created by the CREATE Act (RA 11534, 2021) and significantly expanded by the CREATE MORE Act (RA 12066, signed November 2024) — without any requirement to locate inside a PEZA ecozone or other designated zone.

Who Qualifies

To register with the BOI, your activity must appear in the Strategic Investment Priority Plan (SIPP) — the tiered list that replaced the old Investment Priorities Plan under CREATE. The SIPP is maintained by the Fiscal Incentives Review Board (FIRB) and covers a broad range of sectors including:

• Export manufacturing and processing
• Agriculture, agri-industry, and food processing
• Tourism infrastructure
• Research, development, and innovation
• Energy, infrastructure, and logistics
• Healthcare and education
• IT-BPM and creative industries

The SIPP assigns activities to Tier 1, Tier 2, or Tier 3, with higher tiers attracting longer ITH periods and more favourable post-ITH regimes. High-value or high-impact projects in less-developed areas attract the most generous packages.

The Incentive Package Under CREATE MORE

Income Tax Holiday (ITH): A full exemption from corporate income tax from the start of commercial operations. The ITH period ranges from four to seven years depending on tier and location — with longer holidays for Tier 3 activities and enterprises located outside the National Capital Region.

Post-ITH regime (your choice of one):

• Special Corporate Income Tax (SCIT) at 5% on gross income earned — available to qualifying export enterprises under CREATE MORE. This is the same rate historically associated with PEZA zones, but now accessible to BOI registrants outside zones.
• Enhanced Deductions (EAED): Pay the regular corporate income tax rate (25%, or 20% for eligible SMEs) with a package of above-the-line enhanced deductions, including additional deductions for R&D, employee training, domestic inputs, and infrastructure spending. The EAED is typically better suited to enterprises with high domestic costs or those that want to retain full domestic income tax deductions.

The post-ITH incentive period is 10 years, giving qualifying enterprises up to 17 years of total incentive coverage (7-year ITH + 10-year SCIT or EAED). Under CREATE MORE, some high-impact projects may access extended incentive periods of up to 27 years.

Duty exemptions: Import of capital equipment, spare parts, and raw materials directly used in the registered activity is duty-free during the incentive period.

VAT benefits: Local purchases of goods and services directly related to registered activities qualify for VAT zero-rating — a meaningful cash-flow benefit for enterprises with significant domestic procurement.

How BOI Differs From PEZA

The key practical difference: BOI has no zone location requirement. You register the activity, not the premises. This makes BOI better suited for:

• Service businesses operating from commercial office space anywhere in the Philippines
• Manufacturing enterprises with existing facilities outside PEZA zones
• Projects where PEZA zone availability or lease costs are a constraint

The trade-off is that PEZA zones offer a more integrated operating environment (infrastructure, one-stop-shop administration, and historically clearer VAT zero-rating on local purchases). See the PEZA vs BOI comparison for a fuller breakdown.

The Registration Process

1. Confirm eligibility — verify your activity and tier under the current SIPP.
2. Prepare the application — project description, feasibility study or project brief, financial projections, organisational profile, and compliance documents.
3. Submit to BOI — online via the BOI portal or in person at the BOI office (Makati). Standard processing is approximately 20 working days once the application is complete.
4. BOI issues a Certificate of Registration specifying your registered activity, incentive tier, incentive period, and performance commitments (employment targets, export ratios, or investment thresholds).

Performance commitments are binding — BOI conducts annual compliance reviews, and failure to meet commitments can result in suspension or cancellation of incentives.

How Chamberlain Helps

Chamberlain advises on BOI eligibility under the current SIPP and manages the registration application alongside your company incorporation. See our pricing page for fixed-fee options, or book a consultation to confirm whether your activity qualifies.

For an overview of the CREATE MORE incentive framework, see the CREATE MORE Act guide. To compare BOI and PEZA, see the PEZA vs BOI page.