If you’re a business owner in Region 7—which includes Cebu, Bohol, Negros Oriental, and Siquijor—you’re in one of the most promising investment destinations in the Philippines. The region’s strong tourism, technology, and manufacturing sectors make it an attractive location for both local and foreign investors.
But to truly maximize your growth potential, there’s one powerful legal tool every entrepreneur should know about: BOI registration.
The Board of Investments (BOI), under the Department of Trade and Industry (DTI), grants a range of tax and non-tax incentives to qualified enterprises under the Omnibus Investments Code of 1987 (Executive Order No. 226) and the CREATE Act (Republic Act No. 11534).
Below are the top BOI incentives available for businesses in Region 7—and why you should take full advantage of them.
1. Income Tax Holiday (ITH)
One of the most significant benefits for BOI-registered enterprises is the Income Tax Holiday, which exempts businesses from paying income taxes for up to four to six years.
The duration depends on factors such as the nature of the project and its location. Businesses in Region 7, particularly those operating outside highly urbanized zones, can often qualify for extended tax holidays.
📌 Example: A manufacturing company in Bohol or Siquijor may be granted a longer ITH period than one operating in Metro Cebu, as an incentive to promote countryside development.
2. Duty-Free Importation of Capital Equipment
BOI-registered companies are entitled to duty-free importation of machinery, spare parts, and accessories that are not manufactured locally in sufficient quantity or quality.
For Region 7 enterprises engaged in industrial production, agriculture, or tourism, this means lower startup costs and access to high-quality equipment without heavy import duties.
📜 Legal Basis: Section 105 of the Tariff and Customs Code of the Philippines, in relation to the Omnibus Investments Code.
3. Employment of Foreign Nationals
Businesses that require specialized technical or managerial expertise can legally employ foreign nationals under BOI registration privileges.
This is particularly beneficial for Region 7’s growing BPO, IT, renewable energy, and tourism industries, where foreign experience can boost competitiveness.
📌 Lawyer’s Note: Such employment must comply with the Labor Code and Alien Employment Permit (AEP) regulations issued by the Department of Labor and Employment (DOLE).
4. VAT Zero-Rating and Tax Deductions
Under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, BOI-registered firms may qualify for VAT zero-rating on local purchases directly related to their registered projects.
In addition, they can claim:
Additional deductions for labor expenses (up to 50% for businesses operating outside Metro Manila, including Region 7)
Accelerated depreciation of equipment
Deductible training expenses for improving employee skills
These incentives make Cebu and neighboring provinces more cost-efficient and attractive for investors.
5. Simplified Import and Export Procedures
The BOI also provides streamlined customs and import/export procedures, significantly reducing administrative delays.
For Cebu-based exporters, this means faster clearance of goods and smoother logistics—critical for industries like furniture, processed foods, and technology manufacturing.
📜 This aligns with the Ease of Doing Business and Efficient Government Service Delivery Act (RA 11032), ensuring faster and more transparent processes.
6. Exemption from Wharfage Dues and Export Tax
Export-oriented businesses in Region 7 may also enjoy exemption from wharfage dues, export tax, and other port-related fees.
This directly benefits Cebu’s port-based industries and logistics companies, strengthening their ability to compete globally.
7. Government Support and Priority Assistance
Aside from tax relief, BOI-registered enterprises are entitled to priority assistance from government agencies. This includes access to financing, streamlined business permits, and participation in investment promotion programs.
📌 Example: The BOI Cebu Extension Office works closely with local governments in Region 7 to ensure investors receive fast, coordinated assistance for permits, infrastructure support, and incentives.
Why BOI Incentives Matter for Region 7 Businesses
Region 7’s economy continues to expand rapidly, driven by tourism, manufacturing, information technology, and export trade. By registering with the BOI, businesses can:
✅ Lower operational costs
✅ Strengthen market competitiveness
✅ Attract both local and foreign investors
✅ Align with government-supported industries
These incentives are not merely financial benefits—they are legal privileges designed to promote national and regional development.
Final Thoughts
Registering your business with the BOI is more than a compliance move; it’s a strategic investment decision backed by law.
For Cebu and Region 7 entrepreneurs, these incentives provide the foundation for sustainable growth, profitability, and long-term success.
To ensure proper compliance and maximize your benefits, it’s best to consult a qualified business lawyer or BOI-accredited consultant who understands the legal and procedural nuances of registration.
With the right legal guidance, your business can confidently enjoy the full spectrum of BOI incentives available in Region 7.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
Leave a Reply