This covers transport (air, water and mass rail transport), water (water supply and/or distribution), logistics, energy (power generation projects using renewable and other energy sources adopting environmentally-friendly technologies, power generating plants located in missionary areas, and privatized plants), mass housing, physical infrastructure, pipeline projects for oil and gas, and projects under the Build-Operate-Transfer (BOT) Law.

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a. Transport

This covers air, water and mass rail transport.

Air Transport operations includes passenger and/or cargo operation classified as a public utility.

- Lease with option to purchase aircraft may be allowed.

- Pure lease may be allowed provided that the lease contract is for a minimum of five (5) years; Provided further, that the lease may be renewed on a yearly basis.

- Acquisition of additional aircraft/s may be registered as new project.

**Any of the following may qualify for pioneer status:

Serving the missionary/developmental routes, as indicated in the Certificate of Public Convenience and Necessity (CPCN) Air transport projects involving purchase/lease-purchase of brand new aircraft.

For lease-purchase, the option to purchase should be exercised before the end of the 4th year of ITH availment

All applications for registration must be endorsed by the Civil Aeronautics Board (CAB). Such endorsement must contain information on the routes to be served.

Prior to start of commercial operation of each aircraft, the registered enterprisemust submit a Certificate of Airworthiness issued by Civil Aviation Authority of the Philippines (CAAP).

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b. Water Transport

This covers domestic, overseas, and RORO shipping, and towing and salvaging operations

(a) Domestic/inter-island shipping

This covers pure cargo, passenger, and passenger-cargo vessel operations including Roll-On/Roll-Off Terminal System (RRTS) operations.

The following are the qualifications for registration:

-RORO vessels must not be more than fifteen (15) years old and must be at least 250 gross tonnage (GT) for those serving primary routes and at least 100 GT for those serving the secondary, tertiary and developmental routes.

-Tankers must be double-hulled and not more than ten (10) years old

-High-speed passenger crafts must not be more than five (5) years old

-Vessels other than tankers and hi-speed passenger crafts must be at least 200 GT and must not be more than fifteen (15) years old

**Age of the vessel shall be reckoned from the date of launching as indicated in the vessel?s Certificate of Construction.

Any of the following may qualify for pioneer status:

RORO operator/enterprise serving the secondary, tertiary or developmental routes, as indicated in the Certificate of Public Convenience (CPC) issued by Maritime Industry Authority (MARINA) Acquisition of brand new vessels.

(b) Overseas shipping

The following are the qualifications for registration:

-Must be a Philippine shipping enterprise accredited with the MARINA

-Vessel must be registered and operated under the Philippine Flag

-Vessels must be at least 500 GT and must not be more than fifteen (15) years old

-Acquisition of brand new vessels may qualify for pioneer status.

-Acquisition of additional vessel/s may be registered as new project.

Lease or charter of foreign-owned vessel with option to purchase may be allowed. Pure lease or bareboat charter may be allowed provided that the lease contract is for a minimum of five (5) years; Provided further, that the lease may be renewed on a yearly basis.

All applications for registration must be endorsed by the MARINA. Such endorsement should contain information on the routes to be served.

Vessels for tourism purposes must also be endorsed by the Department of Tourism (DOT).

Prior to start of commercial operation of each vessel, the registered enterprise must submit a Certificate of Seaworthiness issued by MARINA.

(c) Towing and salvaging operations

This covers the provision of towing and salvaging services to a vessel on sea, ocean, lake, canal or river.

Towing involves the provision of services by a tugboat to a ship owner by pulling, pushing, hauling, or dragging the latter?s vessel to a designated place or port.

Salvaging pertains to the rescue of a seriously damaged/incapacitated ship that may include refloating and towing of the ship to a safe place. It also pertains to the removal of a sunken or wrecked ship, derelict or hazards including cargoes thereof.

The following are the qualifications for registration:

The project must engage in both towing and salvaging operations

The tugboat or vessel used for salvaging must not be more than ten (10) years old

**Only income from salvaging operations may be entitled to ITH. All applications for registration must be endorsed by the Philippine Ports Authority (PPA), the Philippine Coast Guard (PCG), and other concerned government agencies with respect to the salvaging operations.

a. Mass Rail Transport

This covers mass rail transport system for passengers and cargoes in line with the transport development plans and programs of the Department of Transportation and Communications (DOTC).

b. Water Supply and/or Distribution

This covers the supply and/or distribution of water.

Supply of water shall be limited to supply of bulk water extracted from its natural source, except shallow and deep wells, and treated for commercial purposes.

Distribution activity must involve extraction of water from natural source, except shallow and deep wells, treatment and installation of a piping network that includes water main service pipelines and flow metering systems. Applicants must submit a copy of its Certificate of Public Convenience (CPC) or its equivalent.

Projects involving any of the foregoing areas of water operations dedicated to a particular industrial estate, industrial community, or subdivision are not qualified for registration under this listing.

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c. Logistics

This covers ports, terminals, natural gas refueling stations, warehouses, and post harvest facilities.

(1) Ports

This covers the development and operation of airports and seaports. All applications for registration must be endorsed by the CAAP or the PPA, whichever is applicable.

(2) Terminals

This covers the development and operation of the following:

(a) Passenger/intermodal terminals

The following are the qualifications for registration:

- Must have new facilities with parking, comfort rooms, ticketing and reservation office, air-conditioned waiting area and provide shuttle services; and

- Must cater to shipping lines or airlines and/or different land transportation systems (rail system, buses, taxis, etc.).

(b) Cargo terminals/Container yards

The following are the qualifications for registration:

- Must have new facilities; and

- Must have a system of ingress and egress to prevent traffic buildup/obstruction of thoroughfares on a 24-hour basis as certified by the appropriate DOTC/Metropolitan Manila Development Authority (MMDA) traffic management office.

(c) LNG/CNG storage terminals

The following are the qualifications for registration:

- Must have new facilities;

- Must cater to shipping vessels and land transport or a combination of both; and

- Must cater to at least one (1) clientele, other than the proponent?s own business.

Prior to start of commercial operation, the registered enterprise must submit a copy of its Permit to Operate issued by the Department of Energy (DOE).

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(d) Natural gas refueling stations

This covers the establishment and operation of natural gas refueling station and related infrastructures and facilities in accordance with relevant Philippine National Standard (PNS).

Foreign-owned corporations must comply with the Retail Trade Law (R.A. 8762).

Prior to start of commercial operation, the registered enterprise must submit a copy of its Permit to Operate issued by the DOE.

(3) Warehouses

This covers the establishment and operation of warehouses complete with stateof-the-art facilities.

(4) Post Harvest Facilities

This covers the establishment and operation of cold storage, freezing, bulk handling and storage facilities.

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d. Power Generation Projects

This covers any of the following:

(1) Those utilizing renewable energy sources such as biomass, solar, wind, geothermal, hydro and tidal

(2) Other energy sources adopting environmentally-friendly technologies

(3) Power generating plants located in missionary areas

(4) Those under the Power Sector Asset and Liabilities Management (PSALM) privatization plan

Any of the following may qualify for pioneer status:

- Power generation projects using renewable energy sources

- Power generating plants located in missionary areas

Projects that cost at least the Philippine Peso equivalent of US$1 million per megawatt may be granted pioneer status but with non-pioneer incentives.

Only income from the sale of electricity generated from the plant shall be entitled to ITH.

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e. Low-Cost and Socialized Mass Housing

Low cost housing refers to a housing program for low and middle-income groups substantially constructed by the private sector as a business venture.

Socialized housing refers to a housing program or project covering houses and lots undertaken by the government or private sector for underprivileged and homeless citizens.

The following are the qualifications for registration:

General requirements:

The cost of housing units shall not exceed the amount for socialized and low cost housing as set by the Housing and Urban Development Coordinating Council (HUDCC)

All low cost mass housing projects, new or expansion, are required to provide socialized housing equivalent to at least 20% of the total project cost. For horizontal mass housing projects, developers are required to develop an area for socialized housing equivalent to at least 20% of the total subdivision area or total subdivision project cost within the same city or municipality, whenever feasible.

Must be new or expanding mass housing project

Minimum of twenty (20) livable dwelling units in a single site or building Project shall conform with the design standards set forth in the Rules and Regulations to Implement B.P. 220 and other related laws

(1) Requirements for horizontal housing projects:

Land development components for housing sites must contain provisions for road system, drainage system, water supply system, power system, sewage system in conformity with the minimum design standards for B.P. 220 and provisions for amenities and utilities

Mass housing projects must be located in areas zoned and classified for residential use/purposes in conformity with the approved Comprehensive Land Use Plan and Zoning of the concerned Local Government Unit (LGU)

A project shall be considered as an expansion if it will locate adjacent or contiguous to an existing mass housing project owned by the same entity and shall share common facilities with the existing project.

(2) Requirement for vertical housing projects:

At least 51% of the total floor area, excluding common facilities and parking areas, must be devoted to housing units

Any of the following may be considered as an expansion project:

Unfinished projects, the construction of which had stopped for at least one (1) year. Only the unsold units may qualify for registration Conversion to low cost or socialized housing project of a building originally intended for commercial, office spaces, or exclusive condominiums Construction of additional floors or annexes intended for mass housing units

Projects that have already been completed and have incurred sales (booked sales) of housing packages shall, in general, not qualify for registration.

The ITH shall be limited only to the revenue generated from the registered housing project. There shall be no double availment of similar incentives for socialized housing projects that avail of incentives under R.A. 7279 or the Urban Development and Housing Act (UDHA).

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f. Physical Infrastructure

This covers the development, including rehabilitation, upgrading, and/or expansion, and/or operation of tollroads, highways, railways, roads, bridges, and power transmission lines.

This also covers the establishment of telecommunication infrastructure as endorsed by National Telecommunications Commission (NTC).

Power transmission line projects under the PSALM privatization plan may qualify for registration.

Application for registration of “power transmission line” projects must include a Certificate of Compliance from the Energy Regulatory Commission (ERC) under the Electric Power Industry Reform Act (EPIRA).

Upgrading of existing physical infrastructure may be registered as a NEW project provided that the cost of upgrading already approximates at least 90% of the cost of constructing a new physical infrastructure, as certified by appropriate agency.

If the cost of upgrading the physical infrastructure is less than 90% of the cost of constructing a new physical infrastructure, the project may be registered as a modernization activity but not entitled to ITH.

For projects that will involve the development and operation of physical infrastructure to be undertaken by separate entities, both the developer and operator may qualify for registration. However, the developer may be entitled only to incentive on capital equipment directly needed for the operation of the physical infrastructure.

**Projects that cost at least the Philippine Peso equivalent of US$100 million may be granted pioneer status but with non-pioneer incentives

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g. Pipeline Projects for Oil and Gas

Application for registration on the establishment of infrastructure for transport of petroleum products and natural gas, petrochemical, and similar products, must include proof of filing of an application for Authority to Operate Pipeline System with the DOE.

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h. Projects under the BOT Law

Application for registration must include an endorsement from concerned government agency or corporation or LGU, a copy of supply contract, and other relevant supporting documents.

BOT projects that cost at least PhP1.0 billion may be granted pioneer status but with non-pioneer incentives.

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Triple I can set-up your Project in the Philippines, and register with the BoI for tax incentives:

• Business Registration in the Philippines

• Preparation of your BoI application documents

• Philippines Office Set-up

• Completion and Awarding of BoI certificate

• Ongoing accounting works quarterly with BoI

• Filing with BIR to receive tax incentives

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Back to the Board Of Investments BoI, Check out 2010 Investment Priorities Plan to see which businesses can avail of tax incentives