If you’re an entrepreneur or investor in Region 7 (Central Visayas) — which includes Cebu, Bohol, Negros Oriental, and Siquijor — the Board of Investments (BOI) offers one of the best opportunities to reduce your tax burden while expanding your business legally and strategically.
Under the CREATE Act (Republic Act No. 11534) and the Omnibus Investments Code of 1987 (E.O. 226), BOI-registered enterprises can enjoy tax holidays, enhanced deductions, and other fiscal incentives — provided they qualify under specific criteria.
But how exactly can a business in Region 7 qualify for these BOI tax incentives? Let’s break down the steps — from eligibility to application — in clear, lawyer-approved language.
Step 1: Determine If Your Business Is Qualified Under the Strategic Investment Priority Plan (SIPP)
The Strategic Investment Priority Plan (SIPP) is the government’s blueprint for industries entitled to BOI incentives. It identifies business activities that promote economic development, innovation, and job creation across the country — including in Visayas.
For Region 7 investors, the following industries are typically prioritized:
Manufacturing and export-oriented production
Renewable energy and power generation
Agribusiness and food processing
IT and digital services
Logistics and supply chain management
Tourism and eco-friendly projects
📜 Legal Tip: Check the latest SIPP list published by the BOI or consult a BOI-accredited consultant before filing. Only projects listed as “priority activities” can qualify for tax incentives under the law.
Step 2: Choose the Right Business Structure
To qualify for BOI incentives, your enterprise must be properly registered and compliant with Philippine business laws. This means:
Registering your entity with DTI, SEC, or CDA
Securing BIR registration and local permits
Complying with nationality and ownership requirements
Foreign investors may own up to 100% of a BOI-registered business if the project qualifies under the export enterprise or pioneer status category. Otherwise, foreign equity may be limited based on the Foreign Investments Negative List (FINL).
⚖️ Pro Tip from a Lawyer: Review your ownership structure carefully before filing. Ineligible equity composition can cause delays or disqualification from incentive grants.
Step 3: Prepare a Comprehensive Project Study
The BOI requires applicants to submit a Project Study — a document demonstrating the economic viability and contribution of your business to national development.
Your Project Study should include:
Business overview and objectives
Market analysis and financial projections
Employment generation estimates
Environmental compliance (if applicable)
Location details (especially if within Region 7)
This study will be evaluated to determine if your project aligns with the BOI’s developmental priorities and whether it merits fiscal incentives.
Step 4: File Your BOI Application
Once your business structure and documents are in order, you can proceed to file your BOI application.
Applications may be filed online through the BOI One-Stop Shop System (BOI eRegistration Portal) or manually at the BOI Regional Office in Cebu City.
Basic requirements include:
Accomplished BOI Application Form
Business Registration Documents (SEC/DTI/CDA)
Project Study and Feasibility Report
Audited Financial Statements (for existing firms)
Board Resolution (for corporations)
Proof of Location or Lease Contract
🕐 Timeline: BOI processing usually takes 30–45 working days, depending on the completeness of documents and the project’s complexity.
Step 5: Undergo Evaluation and Board Approval
After submission, your application will undergo:
Pre-screening by the BOI Evaluation Division
Review and endorsement by the BOI Investment Promotions Group
Final approval by the BOI Board of Governors
If approved, you will receive a Certificate of Registration (COR) and Terms and Conditions of Registration, which formally grant your business access to fiscal incentives.
Step 6: Avail of BOI Tax Incentives
Once registered, you may now enjoy the incentives under the CREATE Law, such as:
Income Tax Holiday (ITH): 4–7 years of exemption from income tax
Enhanced Deductions: Additional deductions for power cost, training, R&D, and labor expenses
Duty-Free Importation: On capital equipment, raw materials, and spare parts
VAT Zero-Rating: On local purchases and imports directly related to BOI operations
⚖️ Legal Reminder: Always maintain compliance with BOI reporting requirements. Failure to file annual reports or performance commitments can lead to suspension or revocation of your incentives.
Step 7: Maintain Compliance and Renewal
BOI-registered firms must submit Annual Reports detailing their performance, employment generation, and tax savings.
If you expand or change business operations, you must file for amendment or renewal of your BOI registration to ensure continuous eligibility for tax benefits.
🧾 Pro Compliance Tip: Keep your bookkeeping, tax filing, and financial reports accurate — the BOI often coordinates with the BIR and DTI to verify compliance.
Why BOI Tax Incentives Matter for Region 7 Businesses
Region 7 is one of the country’s fastest-growing economic zones, home to industrial parks, IT hubs, and tourism projects.
By registering with the BOI, Cebu and Visayas entrepreneurs can:
Reduce operational costs through tax savings
Improve access to foreign capital and technology
Strengthen business credibility and competitiveness
Support the government’s regional development agenda
In short, BOI registration is not just a legal step — it’s a smart investment strategy.
Final Thoughts
Qualifying for BOI tax incentives in Region 7 may seem complex, but with proper guidance and documentation, it’s an achievable goal for visionary entrepreneurs.
If you plan to expand or register your business in Cebu or nearby provinces, consult a legal and business registration expert to ensure your compliance and maximize your incentives under the law.
📍 CBOS Business Solutions Inc. helps Cebu entrepreneurs register with BOI, process compliance documents, and access the full range of tax incentives legally and efficiently.
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.
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