Chapter 15 pEZA and BOI Registereq Enterprises i eo y of the government il folowing State policies and mandate in the 1987 Gone nto rrameie alls the |, Namely: 1) "The State recognizes the indis, private enterprise, and provide: Art. II) Pensable role of the ° i Private sect 'S Incentives to needs cristal led investments." (Sec. 20, 2) The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and ado it mi them competitive.” (Sec. 12, Art. XII) ae In pursuance of these policies, the government shall actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people especially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their living condition through the establishment, among others, of special economic zones in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments. DEFINITION OF TERMS: Special economic zones (SEZ) — hereinafter referred to as the ECOZONES, ae er taal with highly developed or which have the potential fo be developed into aor Se a tourist/yecreational, commercial, banking, investment and financial cen! ae Malte contain any or all of the following: industrial estates (IEs), export processing shall be managed and trade zones, and tourist/recreational centers. The ECOZONE ria term *Customs Operated ‘ORY. ‘a SEPARATE CUSTOMS TERRIT! fost gente a rational territory of the Philippines onto 7 prchioed boundaries of the ECOZONES except those areas sectiea sec one ant andior presidential proclamations to have the status of speci free ports.” 553Di » fi BO/ Registered. Exters,. PEZA a rie fren 0 tat of nd sbi ard doeopeg Ft feos eanwots management a4 wth pas canoer go at pet rr oy bg a feast se cf Pe cammaniy oes a a spied indus eset ph troy, ecnanty ofred ey ae ccna Indust estate (LE) — Sting ‘Export processing 20ne (eP2) rmatoals ee fom dats, axes and ober impor restrictions. ne — nied pond rea al oof ny a a, Fe a et ots ay be wot iets Cashing 2 at ead dor oerase ana wo beg sujet pg OH rel ol efter npr poss te fee toe seo a nach (enemy sabe ecto mot cates, nm ay Enlepises wn te zone at grated prerenatiaxteatentard imitans pg lenient Special economic zones were granted special tertory various tax and duty incentives such as under RA 7227 otherwise known as the “Bases Conversion ary Development Act of 1992" t enhance the benefits to be derived from the Subic any Clark miltary reservations... RA 7227 was later amended under RA 9400 ip ‘effectively extend the same benefits enjoyed in Subic to the Clark Freeport Economic Zone (Clark FEZ). Under this law, Clark FEZ is considered a customs torrtory separate and distinct from the Philippine Customs territory. Thus, 25 ‘opposed to importations into and establishments in the Philippines customs territory, which are fully subject to Philippine customs and tax laws, importations into and establishments located within the Clark FEZ (FEZ Enterprises) enjoy special incentives, including tax and duty-free importations. More specifically Clerk FEZ enterprises shall be entited to the Freeport status ofsthe zone and a 5% preferential income tax rate on its gross income in lieu of national and local taxes (Secretary of Finance and CIR vs. Ecozone Plastic Enterprises Corporation, GR No. 210588 dated Nov. 29, 2016 and RMC 38-2017 dated April 7, 2017), Business establishments operating within the ECOZONES shall be entitled the fiscal incentives as provided for under Presidential Decree No. 66, the lew creating the Export Processing Zone Authority, or those provided under Book VI of Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987. Furthermore, tax credits for exporters using local materials as inputs shal ery the same benefits provided for in the Export Development Act of 1994. 554 LEZ, AM ed BOY Rey , 2 TAXATION OF PEZA ReGistep Str Enter tie Generally, PEZA registred erjane ENTERPRise 5 ta + INCOME TAX HOLIDAY) PEZA registered ent ise sh taxes reckoned fom the sche an eM samen (New projet i loess fr Pears, eae Projects with a non for si (6) year, flows Expansion projects for tree 8) —— for four (4) years, PIONEER ENTERPRISE shay, * nonnnl ilasre ets espag Cersfoman oy elonet, ste ou mar eo Pa or fished ond wich sree arden pee 1 ergne ne itt gia, te a wt lege rl specs of psy a ee determined by the Board, in consultation eo Pe ‘sbi and hh esl oe tana o 1 Aeclated spc ratonal cod and Soc beneis of hep or beater gal v ton og stra pga rst cy waste ho pots ocrneio brn eugene cxnviotal sues oie oe cnn toon ful orsores low potin naan peas Prove, habe ra oa ay rg as ms imove isnt ses ego me or aoe rib mo soak ek ot re ee Pa fuer, Tt epg tr hal 2 tS i ean ga ep ane ete pot nT Meret 2 Non-pioner enterprise shalincde al gsr pce rs eran Pioneer enterprises PEzirgltedenerprses ae equed serue nO Income Tax Holiday and incentves, , attachment to their Annual Income Tax Retum with the BIR as prot he entitlement to their tax incentives, ‘of EOOZONE The tax incentives shall apply to registered Meo enterprises during period of registration wih PEZA FY eg tion ject to the NIRC provisions. oe apo. reper Unrelated Activites wil be subject to: 555PEZA and BO Refistered t Ente 108 INCOME 5% SPECIAL TAXON GROSS INCOME snierpices ae eu ‘ater the ITH period, PEZA oni Speci Tax on Gross Income and IN LIEU of al ta % Specal Tax on Gio HRN 7498)..“GOSS Income" eter a es Sr peared rm th registered acy. net of soles ae 28 gross rovers Seg and mins StF S228 Or drect costs acc, ae aduton made fr adinstraive expenses orinctental nag Me a given taxable period) ry National ang 5% FORMULA IN COMPUTING THE GROSS INCOME: Gross slesrevenves oe Less | sles scours Sales returns and allowances Gay Netsales Les: Cost of salesiict costs Gross incom ines hepa Sl oioGon saree eve fm Bessy wi eae rea aaa mis let as cee zr tf al se, marge and eps ee a eran gentry ie 1-2) ‘Alowable Deductions from Gross Income Earned for purposes of computing the 5%, tax (RR 11-2005) 4% ECOZONE Expr Enlerises, Free Trade Enterprises and Domestic Make Enters = Direct salaries, wages ot labor expenses Production superisin salaries Raw matele usd inthe manufacture of products Decrees in Gods in Process Accourt(nermedate Goods) Decrease in Fished Gods Account Supplies and Fuels sed in roducion Depredaton of Machinery and equpment used in production and that porton othe bung owned or ensued thats used exclusively inthe production of goods ‘+ Rent and uty charges associated wih buitng, equipment and warehouses used in production + Financing charges associated wi xed assets ised inthe producton the amour ot ich were not previously captalzed © ECOZONE DevlpeOpertr, Facies, Utes, Tourism Enterprises: Dirac salaris, wages oto expenses Serve supenisn sles * Direct materials, supplies used '* Depreciation of machineries and equipment used inthe recition of registered services _and that portion ofthe builing owned or constructed tha is used exclusively inte tention of rsd seve ‘© Rent and utlty charges for buildings and capital equipment used inthe renditon of registered serves ‘= Financing charges associated with fined assets used inthe registered business the aroun of wich wre ol prevous capiaized 556 ae VELA wad typ ed) Ylslerd sharing of 5% Gross in, lertri METAR (RR 1247 og J Enterprises shal, ine Mende by developers), pay a tx equ et hes re, 1 tax shall be shared and gighy ae 1 5% b; } di treasurer's office where the nes to the nat ste e special Economic Zone (Ec mterprng. 2" arisditon of more than ene 3h) Sted Imniialty trom tho 23 np) OY 0” fumed scarcer we implement withholding Taxes, PEZA registered companies a for unregistered operations. However eon exempted from being a withholding agent Then 4 compan to be assessed by BIR, if there wil be ature to want ne Wg Withnolding Tax on Wages, Expanded vaste 3 Fina eee part of PEZA registered enterprise, ing Tax tom eal apie onthe Exemption of PEZA Reg. Enterprises Licenses and Foes (PEZA Memorandum eco es Local Taxes, lum Cireular 2004-024) All PEZA registered ecozone local oral 3 fiscal incentives [TTH, 5% GIT ini property property tax owned by developers, andor ox voratnn machinery and equipment, Yow nara pie, sy a eae production inputs}, including Logistic Facies enterprises, at corms, having to secure ail LGU permis, cra tor enterprises, which ich ae ented to any leu of rational and local axes excep) PEZA restored enters, avaling of Tinea ex payment ofa local ates, lenses, mpl an ees xe easoae provided that these enterprises shal ao be scp fom pet property taxes on machnedes and equpment they aa br we n bar production operations during the fet 3 years of ue such nace and equipment PEZA registered enterprises, avaling of the 5% GIT incentve a ‘exempted from payment of all national and local taxes, except real proerty tax ‘owned by developers xed operationslactvites) made by ‘TAX TREATMENT of Sales (from registe ae Jide of the separate customs PEZA registered entorprises into or ous territory (RMC 74-99). . 1. Tax Treatment of Sales Made by a Vat Reg. ‘Supplier from Customs Temitory to stered Enterprise 7 sal 3 aces tax regime, in eu ofl taxes, excep re] POP 567 eenPEZA and BOI Refistered Extey & ses indirect export, hence, consider ) ’ d) 2) a LLLA Upon expiry of the income 1 ‘exemption from all atone, 2% (0 gross revenues deri returns and allowanc deduction is made fo taxable period) “ed BOY Ray Ryistered, (aly Holey - 5 I and local mes fal : imposter Duce se a am ‘2 88 ae eer antago, es Fone Ae 5 ay, re se cores first three (3) years of operation of sna oe & attached oral estate stabs exons a edt Exemption ftom expanded withing nr, I propery ares INFORMATION TECHNOLOGY ENTERPRISE a) » 9 Income Tax Holy (TH) 100k ee * 4years ITH for Non-pioneer pr ea ce + 6 years ITH for Pinger ren cae ae ITH Extension year may be gars ret comps (one rerio equivalent tone TH extension year} one et entitlement period shall not exceed eight (8) years: eee ©The average natin exchange earns ange carigs ott Yeas of pean atest S500 ©The cpa ecupmeno labret te pret os na x to forthe year mmediy preceang tes onasser ee for3 years ifr Exparcon poet eps eoron Project forthe fest tee 3) Upon expiry ofthe Income Tax Hoay- 5% Speci Tax on Gress neon and excemption from al national and local taxes. (Goss nome” rls gure (¢gross revenues derived fromthe egtered act nett sles Saco ses felums and allowances and mieus cost of sales or dr cox ut bere ary deduction is made for administrative expenses or incident loses cng agen taxable period). Tax and duty fee importation of eupment nd pats. Exemption fom wharfage des on mport spent of equpment VAT zero-ating of local purchases of goods and saves, ncn ated telecommuniclions, elec pver, water bls and ase ne bal, uct {8 complane wit Buren nal Revers rd PEZA ge Exemption from payment of any ad allocl goverment renoe Sri are fae h eco ae tax, Dut machines Instaed end operated in the mon ze ‘manufacturing, processing orforindustal purposes shat not be sbjto ayant ‘Of roal estate Laces fr the fist he (3) years of operation of sen marines Production equipment not tached to the ral eta sha be exam roperty taxes. Ercmplon fam expands wr 559 melLocATOR (a= qualified unde sw ECONOMIG ZONE NOTE Hotday TH (85 8 0 Neng 3, TOURIS! qe a) Four (4) years of nee a Fo ores PEM yoiay- 5% S08 TOL OM SSS iam 5) pen vor oe MEBMEpal tanes CEES MCOME EF 0 Gg gal an 50 ah oat) Otro actmy Net sles discs Se, remot eres aries OM Ps Sop fsa Of Ct COS but boy ware a ents onda esses de) Sedtcton mo 98 and ‘or administrative & 2, 9 me Sites mpraion et ae gods and sevices, ies 3) VAT Zero. Rating oe, electric power, and water ils 19 lang. var 2 mar 9 ln fom eer pense sc reigasTOURSMENTERPRE yon cme sy om seni NDIA Tone 6 foi me op ‘of the Income Tax oy peel atonal nde ts ws (Gross Income" refers 10 FOSS Sales or yr bs iy rte ec ee ac sf tl tr Be no feb Soro. vine sw {aa ern i Se ane eet ete ee er rts on, iy (Rt a au | Eee cs tive expenses oF i a 5, AGRO-INDUSTRIAL ECONOMIC ZONE ENTERPRISE ‘2) Four (4) years of Income Tax Holiday ) Fou yeas the Income Tax Holiday - 6% Special tax on Gross Income and 8) Upon xy ° ) Uren ero al rational and lca faxes. (ross Income” refers to gross sles erat ea deve tom terested atv), net of sales discounts, sls md mins cost of sles or dec! costs but before ary retums and allowances ar Geducton is made for administrative expenses or incidental losses during a given taxable period) ) Tax and duty fre importation of production equipment and machineries, breeding stocks, fam implements including spare parts and supplies ofthe equipment and machineries. <4) Exemption rom expor taxes, wharfage dues, impost and fees. @) VAT Zero Rating on local purchases of goods and services, including land based telecommunications, electric power, and water bills. 1) Exemption fom payment of local government fees such as Mayor's Permit Business Permit, permit on the Exercise of profession/Occupation/Calling, Health Certificate Fee, Sanitary Inspection Fee, and Garbage Fee 6. ECONOMIC ZONE LOGISTICS SERVICES ENTERPRISE 2) Exemption from duties and taxes on raw materials, semi-finished goods for re-sale Bomtiea ees cutting, altering for subsequent sale to PEZArodite ing Enterprises, for dire fe ynment to one rect export or for consignme 560 PEZA and BOI Registered Exte ; VAT Zero Rating on raw materials or che ©) Grd sipping tobe sourced iecaly "Packing vsuslinspcion, storage ECONOMIC ZONE DEVELOPER / OPERATOR anutacuing Economic Zone Developer 74, Meesieal Tax on Gross Income ae eee texcopt re8l propery tax on land owned by the Leon teal 28 ca tats, Income” refers to gross sales or gross revenues derives fen pe eeoPer. (Gross eof sales dScouns, sales retums and alwances a ye eased acty ‘rect costs but before any deduction is made fein mits Ost of sles or incidental losses during a given taxable periog) Administrative expenses o arzoro rating of local purchases txempton ftom expanded withing tax ee ‘except yrOF x on land owned by the IT Part auton ee Ee tet 2 Pak On (Se Incidental losses during a given taxable period) Penses oF arte ine ec ‘7. Tourism Economic Zone Developer / Operator ‘Special 5% Tax on Gross Income and exemption from all national and local taxes, ‘except real property tax on land owned by the Tourism Economic Zone Developer. (-Gross Income” refers to gross sales or gross revenues derived from the registered activity, net of sales discounts, sales returns and allowances and minus cost of sales or direct costs but before any deduction is made for administrative expenses or incidental losses during a given taxable period) + VAT Zero rating of local purchases + Exemption from expanded withholding tax 7.4, Medical Tourism Economic Zone Developer / Operator ‘Special 5% Tax on Gross Income and exemption from all national and local taxes, ‘except real property tax on land owned by Medical Toutism Zone Developer. (’Gross Income" refers to gross sales or gross revenues derived from the registered activity , net of sales discounts, sales retuns and allowances and minus cost of sales or direct costs but before any deduction is made for administrative ‘expenses or incidental losses during a given taxable period). + VAT Zero rating of local purchases. * Exemption from expanded withhol tax 7.8. Agro-Industrial Economic Zone Developer / Operator ‘exemption from all national and local taxes, = Special 5% Tax on Gross income and ‘except real property tax on land owned by the Agro-Industril Economic Zone Developer. "Gross Income" refers to gross sales or gross revenues derived fom the registered activity, net of sales discounts, sales retums and allowances ant minus cost of sales or direct costs but before any deductions made fo ‘administrative expenses or incidental losses during a given taxable period) + VAT Zero rating of local purchases ‘* Exemption from expanded withholding tax 561pEzA aed BOT Ryistered | Enteric ecteayn noi srement Econom Zane DeVOREFgxemption fom al ational and ioc Sao Tovon Gus xen nora Econo Zag, Sn Rae a a ane re rh on soe inet of sales discounts, be mens sli ine rei See or rot cots Du Defoe wd alowan Banna aclaprateae nos pttoate ey moet eae ain Are gx |. FACILITIES ENTERPRISES a iB ie Zone Faces EO ra | exemption from all national and local ta "Special 5% Tax on GIs et ted by dovelopers. ("Gross Income” relgan gS except ol propery 1x on Oe ag rom te registered actly. net of exe ayo sates or ss rveryancas and minus coat of ales Or dct cone ug ea or aria exenoes or eral ose Cangagrenate od) . 0 oF a 1 EATERS ter etcondd wtotaing tax 1 eee natn fo ra a land owned by developers. ("Gross Income” refers to epi operon none Sree, Cos ene tn secede mero detonate se Sea roo ern cof se Gea during a given taxable period) eee oe edd cree a era ees ee een clnaehal en ete except real property tax on land owned by developers. (“Gross Income” refers to. za ey xen red corey sree, Coc pene! ee es rete ae as Te Fer ste erence during a given taxable period) . ee cane catia 9. ECONOMIC ZONE UTILITIES ENTERPRISE * ‘Special 5% Tax on Goss Income an exemption from all national and local taxes, except real property tax on land owned by developers. (“Gross Income” refers to {GOSS sles or gross revenues derived from the registered activity, net of sales discounts, sales retums and allowances and minus cost of sales or direct costs but before any deduction is made for adminstaive expenses or incidental losses uring a given taxable period) {VAT Zero rating offal purchases Exemption from expanded withholding tax 562 eh EZA anu BO), PEZA and BOI Rejistered Enters NoN-FISCAL INCENTIVES; © eff ort-Export Pr implied Impor-Export Procedures (Electronic im ‘rSttomated Exper Documeniaton Systm" "POY Perit Sytem ang ee er ee scene a, FDA sislered Economic \dVisory positions. 4. Special Non-Immigrant Visa with Muti fesident foreign nationals in a PEZAreq Investor/s, Officers, and Employees in positions, and their spouses and unmarrio ge. PEZA extends Visa Facilitation Assi spouses and dependents, pEZA BOARD nonstate econ et Me os ee wei year teen acne ch The director general shall be assisted by three (3) deputy dire a each for pole and panning, admiistaton and operations wns ches by the PEZA Board, upon the recommendation of the direcor general. The Gepaly directors general shall be atleast thity-five (35) years old, with proven probity ana integrity and with a degree in economics, business, public administration. nw, ‘management or its equivalent, They must have career executive service elgiilty ‘The Board shall be composed of the director general as ex officio chairman with eight (8) members as follows: the Secretaries or their representatives of the Department of Trade and Industry, the Department of Finance, the Department of Labor and Employment, the Department of the Interior and Local Government, the National Economic and Development Authority, and the Bangko Sentral ng Plipinas, one (1) representative from the labor sector, and one (1) representative from the investors/business sector in the ECOZONE. SUMMARY OF BUSINESS ACTIVITIES THAT ARE ELIGIBLE FOR PEZA TAX INCENTIVES as of October 31, 2016: + Export Manufacturing Information Technology Service Export Tourism Medical Tourism ‘Agro-industrial Export Manufacturing ‘Agro-industrial Bio-Fuel Manufacturing Logistics and Warehousing Services Economic Zone Development and Operation Faclities Providers Utiities 563Bureau of Investment (BOI) Registered Enterprises Executive Order No. 226 — FISCAL INCENTIVES. A Sax Exemption, Tax Credit, Additional Deduction from Gross Income 1 Operating Economic Zone Map 25 a October 31, 2016: = 73 Manufacturing Economic 343 Information Technology Parks/Centers 21 Agro-Industrial Economic Zone 19 Tourism Economic Zones 2 Medical Tourism Parks/Centers ‘Omnibus Investment Code of 1987 Income Tax Holiday Just like a PEZA registered enterprise, a BOI registered enterprise shal be exempt from the payment of income taxes [Income Tax Holiday (ITH)) Feckoned from the scheduled start of commercial operations, as follows: ‘New projects with a pioneer status for six (6) years; 9 New projects with a non-pioneer status for four (4) years; 9 Expansion projects for three (3) years, ITH Extension years may be granted if Project complies with the following criteria, (one criterion is equivalent to one ITH extension year), provided that the total ITH entitlement period shall not exceed eight (8) years. However, compared to a PEZA registered enterprise, a BO! registered enterprise shall be subject to regular taxes imposed under the Tax Code, as ‘amended, after the ITH period. New registered firms may avail themselves of a bonus year in each of the following cases: ‘a. The indigenous raw materials used in the manufacture of the registered product must at least be fifty percent (50%) of the total cost of raw materials for the preceding years prior to the extension unless the board prescribes a higher percentage; Or b. The ratio of total imported and domestic capital equipment to the number of workers for the project does not exceed US$ 10,000 to one (1) worker; Or 5 c. The net foreign exchange savings or earings amount to at least 'US$500,000 annually during the first three (3) years of operation. I? no case shall the registered pioneer firm avail of the ITH for 2 pe exceeding eight (8) years. PEZA and BOT Registered Ent prises ramnuacturing warehouse shall be onal intemal revenue taxes on its F consigned equipment or those exemption from tax@S and duties on imported spare parts A registered enterprise with a bonded ‘exempt from customs duties and nator excoriation of required suppliesispare pa imported with incentives, exemption from wharfage dues and ex Exterprises registered under the IPP wil be ghan Cah fhe date of registration to avail of the exemption tram oa acy eet from ‘port tax, duty, impost and fees All Importation of breeding stocks and genetic materials within ten (10) on the date of registration or commercial operation RE Xicu Tax credits a. Tax credit on tax and duty portion of domestic breedin ing stocks and genet materials. A tax credit equivalent to one hundred potoent 00%) oie value of national internal revenue taxes and customs duties on local breeding stocks within ten (10) years from date of registration or commercial operation for agricultural producers. b. Tax credit on raw materials and supplies. A tax credit equivalent to the national internal revenue taxes and duties paid on raw materials, supplies and semi-manufacture of export products and forming part thereof shall be granted to a registered enterprise. ‘Additional deduction from Taxable Gross Income a. Additional Deductions for Labor Expense (ADLE) For the first five (5) years from date of registration, a registered enterprise shall be allowed an additional deduction from taxable income equivalent to fifty percent (50%) of the wages of additional skilled and unskilled workers in the direct labor force. The incentive shall be granted only if the enterprise meets a prescribed capital to labor ratio and shall not be availed of simultaneously with ITH. This additional deduction shall be doubled or became one hundred percent (100%) if the activity is located in a Less Develop Area (LDA) The privilege, however, is not granted to mining and forestry-related projects as they would naturally be located in certain areas to be near their source of raw materials. 565Ses PEZA and BOD Refistered Exties, ~ / >. Additonal deduction for necessary and major inrastructre wor A registred enters looaing in LDAS oF in areas de, sai st Oe A to ‘eae an amour equine OPENS MCUTES he gy De en, ‘of necessary and major infrastructure works. 7 The fem may aay ompor captalewubment, Par pas and aco, at 1% ty rate fom date of region oF up io June 5, 2006 pues rece ore no 313 ant mpleenting res and reglabong 1 B. Zoro-rated value added tax (0% vat) “The BO endorses tothe BIR to (2) ypes of zero-ated (0%) vat 7 For purchases of raw mati and suppes Used nthe manufac, veh form pat ofthe registere export product. as + For purchases of goods, senfces, oF properties of firms export hundred percent (100%) ofthe produc. (Motor vohicies arena cose xcept specatzed vehces suchas backhoe, fork ete NON-FISCAL INCENTIVES 1. Employment of foreign nationals A registered enterprise may be allowed to ‘employ foreign nationals in supervisory, technical or advisory positions for five (6) years ftom date of registration. The position of president, general manager and treasurer of foreign-owned registered enterprises or their equivalent shal however not be subject to the foregoing limitations 2. Simplification of customs procedures for the importation of equipment, spare parts, raw materials and supplies and exports of processed products. 3. Importation of consigned equipment for 2 period of 10 years from date of registration, subject to posting of a re-export bond. 4. The privilege to operate a bonded manufacturing/trading warehouse subject to ‘customs rules and regulations. INVESTMENT PRIORITIES PLAN (IPP) ‘The Board of Investments (BO!) issues the Investment Priorities Pian (PP) annually which isa list of promoted areas of investments eligible for government incentives. Article 27 provides that, not ater than the end of March of every yea the Board of Investments, after consultation with the appropriate government agencies and the private sector, shall submit to the President an Investment Priorities Plan: Provided, however, That the deadline for submission may be ‘extended by the President (Art. 27) 566 ZA aud BOD Regi No economic avy shal be incudeg ine i ss shown 10 be economzaly,tchncaly ag feet Ponty Pan unesygh investigation and analysis by the Board, male ives ‘re Board shall take ito account the following ‘2. Primarily, the economic soundness of the specif economic intemal rate ofretum PME aE 8 shown by ts The extent of contribution ofan activity to Cc. Other indicators or comparative advantag d, Measured capacity as defined in Article 20: and fe, The market and technical aspects and considera , proposed to be included rations ofthe actvty € specific developmental goal Inany ofthe declared prefered areas of investment, the Board may designate as pioneer areas the spectc products and commoxites that mee! he requrerronts af Atle 17 ofthis Code and review yeary whether such actvty, a deerme oy the Board, shall continue as pioneer, otherwise, it shall be considered ay nor, pioneer and accordingly listed as such in the Investment Priorities Pian or removes ‘fom the Investment Priorities Plan APPROVAL OF THE INVESTMENT PRIORITIES PLAN. ‘The President shall prociaim the whole or part of such plan as in effect: or iteratively, retum the whole or part of the plan to the Board of Investment for revision. Upon the effectivity of the plan or portions thereof, the President shall issue all necessary directives to all departments, bureaus, agencies or Instrumentalities of the government to ensure the implementation ofthe pian by the ‘agencies concerned in a synchronized and integrated manner. No government body shall adopt any policy or take any course of action contrary to or inconsistent withthe plan ‘Amendments to IPP ‘Subject to publication requirements and the criteria for investment priority ‘determination, the Board of Investments may, at any time, add additional areas in the plan, ater any of the terms ofthe decaration of an investment area or the ignation of measured capacities, or terminate the status of preference. Inno 280, however, shall any amendment ofthe plan impair whatever rights may have ‘keady been legally vested in qualified enterprises which shall continue to enjoy ‘Such rights to the full extent allowed under this Code. The Board shall not accept 567PEZA and BOI Reyistered 2 Ester of th applications in an area of investment porto the approval ofthe same as a ‘area nor after approval ofits deletion 2s a preferred area of investment *°"*treq Publication Upon approval of te pln in whol Pat, oF upon a amenament nee te len er he amerent, Speaiying and ae’ fn prof areas of mvesinent an he corespordng measured cape he a a vee a) newspanr of general Croat anf orc abe hall bo open fr applcation unt publication of an amencment or deletion aS Sa fe Boo tpoves regen of enlrses Whey ceneaty 2 REGISTRATION OF ENTERPRISES (Art. 32) ‘Qualifications for Registration under of IPP To be entitled to registration under the Investment Priorities Plan, an applicant ‘must satisfy the Board that: 1. Heisactizen of the Philippines, n case the applicant isa natural person, orn ‘case ofa partnership or any other association itis organized under Philpng iaws and that at least sity percent (60%) ofits capital is owned and contraieg by ctzens of the Philippines; or in case of a corporation or a cooperative, is organized under Philippine laws and that atleast sixty per cent (60%) of the capital stock outstanding and entitled to vote is owned and held by Philippine rationals 2s defined under Article 15 of tis Code, and at least sixty per cent (60%) ofthe members of the Board of Directors are citizens of the Philippines, 2. The applicants proposing to engage ina prefered project listed or authorized in the curent Investment Priories Plan within a reasonable time tobe fied by the Board o, if not so listed, at leas fity percent (50%) ofits total production is for export or itis an existing producer which will export part of producion Under such conditions andlor limited incentives as the Board may determine; or that the enterprise is engaged or proposing o engage inthe sale abroad of (port products bought by it from one or more export producers; or the enterprise is engaged or proposing to engage in rendering technica, professional or other services or in exporting television and mation pictures and musical recordings made or produced in the Philippines, either directly oF through a registered trader. 3. The applicant is capable of operating on a sound and efficient basis of contbutng tothe national development of the prefered area in partulr are of the national economy in general: and 4. Ifthe applicant is engaged or proposes to engage in undertaking of activites ‘other than preferred projects, it has installed or undertakes to install 20 ‘accounting system adequate to identify the investments, revenues, costs: & Profits or losses of each preferred project undertaken by the enterP*s? 568 PEZA and BOI Registered Ex ately from the aggregate investment reve Josses of the whole enterprise or to establish o oy ferred project if the Board should so {plementation ofthis Code, terbrises J NURS, costs and profits oF }parate corporation for each Fequire to facilitate proper pPLICATION Applications shall be filed with the Board, an the date appearing therein and stamped onthe a date of official acceptance, Whenever nece People's Economic Councils, shall consult the Prceplablty of locating the registered enterprise wi ‘recorded in a registration book ‘palcation shall be considered 8sary, the Board, through the Communities affected on the thin their community (Art. 33), APPROVAL AND REGISTRATION PROCEDURES ‘The Board is authorized to adopt rules and regulations to facitate ection ‘on applications filed with it; prescribe crteia for the evaluation of sever! ‘applications fled in one preferred area; devise standard forms forthe use of applicants and delegate to the regional offces of the Deparment of Trade and Industy the authority to receive and process applications for enterprises to be lected in theic respective regions. Appications fled shall be ‘considered auiomatically approved if not acted upon by the Board within twenty (20) working days fom official acceptance thereof (Ar. 34) APPEAL FROM BOARD'S DECISION ‘Any order or decision of the Board shall be final and executor aftr thirty (0) days from its promulgation. Within the said period of thirty (30) days, said order ‘or decision may be appealed to the Office of the President. Where an appeal has been filed, said order or decision shall be final and executory ninety (90) days after the perfection of the appeal, uniess reversed (Art. 36). CERTIFICATE OF REGISTRATION A registered enterprise under this Code shall be issued a certificate of ‘egistation under the seal ofthe Board of Investments and the signature of is Chairman andlor such other ofcer or employee ofthe Board as it may empower and designate for the purpose. The cetficate shall bein such form and style asthe Board may determine and shal state, among other maters: 2. The name of the registered enterprise. b. The preferred area of investment in which the registered enterprise is Proposing o engage. 569)~*~ PEZA and BOI Reistered (ap The nature of the activity it is eee OF proposin, whether pioneer or non-pioneer, and the registered cap, Ind ra enterprise; and aCity Nd |. The other terms and conditions to be observed by the enterprise by virtue of the registration (Art. 37). ot, "se 570