In today’s fast-changing global economy, the Philippines stands out as an emerging hub for investment and innovation. Behind this progress is the Board of Investments (BOI), the government’s lead agency for promoting business growth and industrial development.
For both local entrepreneurs and foreign investors, understanding the role of BOI is crucial—not only for compliance but also for maximizing opportunities and incentives available under Philippine law.
What is the BOI?
The Board of Investments (BOI) is an attached agency of the Department of Trade and Industry (DTI) tasked with driving investments into industries that will accelerate the nation’s economic development.
BOI does more than regulate—it empowers. By offering incentives, creating investor-friendly policies, and supporting priority industries, BOI ensures businesses grow while contributing to the country’s long-term prosperity.
BOI’s Role in Business Growth
1. Attracting Local and Foreign Investments
BOI serves as the Philippines’ primary investment promotion agency, actively encouraging capital inflows into key sectors such as manufacturing, infrastructure, IT-BPM, renewable energy, and agribusiness.
2. Granting Fiscal and Non-Fiscal Incentives
Perhaps the most recognizable function of BOI is granting business incentives, including:
Income Tax Holiday (ITH) of up to 6 years
Duty-free importation of equipment and raw materials
VAT zero-rating on qualified transactions
Simplified customs procedures
Employment of foreign nationals in specialized roles
💡 Why this matters: These incentives reduce costs and increase competitiveness—fueling faster growth for enterprises.
💡 Lawyer’s Insight: For foreign investors, BOI registration may allow 100% foreign ownership, which is normally restricted under the Foreign Investment Negative List (FINL).
3. Supporting Strategic Industries
BOI identifies industries under the Strategic Investment Priority Plan (SIPP), focusing on sectors that drive national progress. These include renewable energy, healthcare, transportation, IT-BPM, agribusiness, and infrastructure.
💡 Legal Note: Aligning your business with BOI’s priority list significantly increases eligibility for incentives.
4. Promoting Inclusive and Sustainable Development
BOI encourages investments not only in Metro Manila but also in countryside and less-developed areas, promoting balanced regional growth.
Incentives are often enhanced for projects outside major cities.
Focus is placed on green and sustainable industries.
💡 Pro Tip: Locating in a less-developed area can extend your Income Tax Holiday and provide added benefits.
5. Enhancing Business Confidence and Credibility
A BOI Certificate of Registration does more than grant tax perks—it also signals that your enterprise is government-recognized and supported. This builds credibility with:
Banks and financial institutions
Investors and business partners
Clients and stakeholders
Final Thoughts
The role of BOI in Philippine business growth cannot be overstated. It is not just an incentive-granting body—it is a strategic partner for entrepreneurs and investors seeking to thrive in the local and global marketplace.
By aligning with BOI, businesses enjoy tax relief, operational ease, and government support, while contributing to the broader vision of national development.
Planning to grow your business in the Philippines? Our legal team can help you assess eligibility, prepare your BOI application, and secure the incentives you deserve. Contact us today and start building your BOI advantage.
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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