Region 7 — officially known as Central Visayas — is one of the Philippines’ most dynamic economic regions. Comprising Cebu, Bohol, Negros Oriental, and Siquijor, it serves as a vital hub for manufacturing, tourism, information technology, and exports.
But beyond its natural strengths, Region 7’s growth is being accelerated by one powerful legal and economic tool: the Board of Investments (BOI).
Under the Omnibus Investments Code (E.O. 226) and the CREATE Act (R.A. 11534), the BOI grants tax and non-tax incentives to businesses that contribute to national and regional development.
For investors and entrepreneurs in Central Visayas, knowing which industries qualify for BOI incentives can be the key to unlocking growth, competitiveness, and sustainability.
Here’s a lawyer’s breakdown of the top industries in Region 7 that can benefit the most from BOI incentives — and why registering under BOI can give you a powerful legal and financial advantage.
1. Manufacturing and Industrial Processing
Cebu is a recognized manufacturing powerhouse in the Visayas, producing goods ranging from furniture and ship parts to electronics and processed food.
The BOI recognizes manufacturing as a priority industry under the Strategic Investment Priority Plan (SIPP) because it generates employment, promotes exports, and drives regional industrialization.
Eligible projects include:
Shipbuilding and ship repair
Food and beverage manufacturing
Garments, textiles, and footwear
Automotive parts and electronics assembly
Furniture and handicrafts for export
BOI Incentives:
Income Tax Holiday (ITH) for 4–6 years
Duty-free importation of capital equipment
Enhanced deductions for power, training, and labor expenses
VAT zero-rating on local purchases
⚖️ Legal Note: Under Section 17 of the Omnibus Investments Code, BOI-registered manufacturers are legally protected from arbitrary withdrawal of incentives — ensuring long-term business stability.
2. Information Technology (IT) and Business Process Outsourcing (BPO)
Cebu City is known as the IT capital of the Visayas. Its fast-growing digital sector — from software development to shared service centers — is eligible for BOI incentives under innovation-driven and high-value services.
Eligible activities:
IT-enabled services (call centers, software design, animation)
Data centers and cloud computing
Artificial Intelligence (AI) and automation services
Research and development (R&D)
BOI Incentives:
Income Tax Holiday up to 7 years for pioneer projects
Enhanced deductions on training, R&D, and domestic input usage
Exemption from duties and taxes on imported IT equipment
💼 Pro Tip: IT companies operating outside Metro Manila, like those in Cebu or Dumaguete, may qualify for additional years of tax holiday under the government’s regional dispersal program.
3. Tourism and Hospitality
Tourism is the lifeblood of Bohol and Siquijor, with Cebu also serving as an international gateway. The BOI actively supports investments in eco-friendly resorts, accommodations, and tourism infrastructure.
Eligible projects include:
Hotels, resorts, and spa facilities
Eco-tourism and sustainable travel enterprises
Tourism transport and travel operations
Theme parks and convention centers
BOI Incentives:
Income Tax Holiday (ITH) for 4–6 years
Duty-free importation of tourism-related equipment
VAT zero-rating for qualified local purchases
Enhanced deductions for sustainable energy and workforce housing
🌴 Legal Perspective: To qualify, tourism projects must comply with the Tourism Act of 2009 (R.A. 9593) and obtain endorsement from the Department of Tourism (DOT) prior to BOI registration.
4. Renewable Energy and Green Industries
With the growing demand for sustainable energy, Region 7’s solar, wind, and biomass projects are eligible for BOI registration under the Renewable Energy Act of 2008 (R.A. 9513).
Eligible projects include:
Solar and wind farms
Biomass and waste-to-energy plants
Energy-efficient building systems
Water treatment and recycling facilities
BOI Incentives:
Income Tax Holiday (ITH) up to 7 years
Zero percent VAT on renewable energy purchases
Duty-free importation of capital equipment
Accelerated depreciation on renewable assets
⚖️ Legal Reminder: BOI-registered renewable energy projects can also stack incentives with those under the Department of Energy (DOE) — maximizing fiscal benefits legally.
5. Agribusiness and Food Processing
Agriculture remains a vital economic pillar in Bohol and Negros Oriental. The BOI provides incentives to agribusiness ventures that enhance productivity, food security, and export capacity.
Eligible projects include:
Agri-processing and packaging plants
Cold storage and warehousing
Aquaculture and livestock production
Farm-to-market logistics systems
BOI Incentives:
Income Tax Holiday (ITH) for 4–6 years
Additional deduction on labor and training
Duty-free importation of agricultural machinery
VAT exemption on importation and qualified purchases
🌾 Legal Insight: Agribusiness projects must comply with Department of Agriculture (DA) regulations and secure environmental permits under the DENR before BOI registration is approved.
6. Infrastructure and Logistics
As Region 7 continues to develop, logistics and infrastructure projects play a central role in regional connectivity.
Eligible projects include:
Transport terminals, cold chains, and logistics hubs
Warehousing and distribution facilities
Port and airport development projects
Digital and telecommunications infrastructure
BOI Incentives:
Income Tax Holiday (ITH) up to 6 years
Zero-rated VAT on logistics-related services
Duty-free importation of heavy equipment
Enhanced deduction for domestic input usage
🚚 Pro Tip: Logistics enterprises in Cebu and nearby islands are vital to the national supply chain, making them eligible for priority registration under the SIPP.
Final Thoughts
From Cebu’s industrial hubs to Bohol’s resorts and Negros Oriental’s agribusiness farms, Region 7’s diverse economy stands to gain significantly from BOI incentives.
But to legally qualify, investors must:
Align their business activity with the Strategic Investment Priority Plan (SIPP)
Secure all permits and registrations
File their application with the BOI Central Visayas Office
Maintain compliance to retain tax benefits
In short, BOI registration is more than an administrative process — it’s a legal pathway to growth, stability, and profitability.
If you’re ready to expand your business in Central Visayas, consult a BOI-accredited consultant or legal expert who can help you navigate the requirements and secure your tax incentives properly.
📍 CBOS Business Solutions Inc. helps Cebu-based entrepreneurs and investors register with the BOI, process compliance documents, and access government incentives designed to help your business grow — 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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