BOI Registration Philippines: Unlock Incentives For Priority Projects

December 23, 2025

BOI registration in the Philippines provides government incentives for businesses aligned with the Strategic Investment Priority Plan (SIPP), promoting investments in manufacturing, green projects, IT services, and infrastructure without functioning as a business license.

This endorsement from the Board of Investments under the Department of Trade and Industry (DTI) offers income tax holidays, duty exemptions, and other benefits, but requires meeting eligibility criteria, preparing detailed documentation, and completing the application process via the One Window Investment Facilitation (OWIF) portal.

What BOI Registration Entails and Who Qualifies

BOI registration serves as an investment endorsement rather than operational licensing, targeting projects that support national development goals through the SIPP framework. Both Filipino-owned and foreign-owned enterprises qualify if their activities match SIPP-listed priorities such as advanced manufacturing, renewable energy, agribusiness, IT-BPM, or health services.

Projects are classified as Pioneer (new products/processes inadequately supplied locally) or Non-Pioneer, and as Export Enterprises (50%+ service exports for Filipino-owned or 70%+ goods exports; 70% for foreign-owned services) versus Domestic Market Enterprises, influencing incentive duration and conditions.

Eligibility Criteria and Qualifying SIPP Activities

SIPP identifies preferred economic activities eligible for BOI incentives, which are updated periodically to reflect changing development needs. Common qualifying sectors include manufacturing essential goods like food or medical supplies, infrastructure/logistics, green initiatives (renewables, energy efficiency), R&D/technology, agribusiness/fisheries, strategic IT-BPM/creative services, health/medical services, and projects in less-developed areas.

Foreign-owned firms typically register as Export Enterprises; Domestic Market projects cap foreign ownership at 40% unless laws allow otherwise, with stricter thresholds like minimum investments or preferred locations.

BOI vs PEZA Registration Comparison

Companies must choose between BOI and the Philippine Economic Zone Authority (PEZA) based on location, operations, and incentives, as both target export-oriented projects but differ structurally.

PEZA requires an ecozone location with streamlined zone-managed customs/bonded operations, ideal for high-export firms needing integrated infrastructure; BOI allows operations anywhere, suiting mixed-market or non-zone projects with standard customs but location flexibility.

Aspect	BOI Registration	PEZA Registration
Location	Anywhere in the Philippines	Designated ecozones/buildings
Best For	Mixed export/domestic, flexible sites	Pure export, zone infrastructure
Customs	Standard processes	Integrated zone facilitation
Incentives	ITH, enhanced deductions	ITH + VAT/duty on imports

Key Incentives Available through BOI Approval

BOI-registered projects gain fiscal and non-fiscal incentives tailored to classification, location, and industry, significantly improving cash flow and competitiveness. Primary benefits include Income Tax Holiday (ITH): up to 6 years for Pioneer Projects, 4 years for Non-Pioneer, with NCR-outside extensions.

Post-ITH enhanced deductions cover depreciation, labor, R&D; duty-free imports of capital goods/raw materials/spares; VAT zero-rating on local purchases for exports; and BOI endorsement for foreign nationals in supervisory/technical roles.

Prerequisites before BOI Application Submission

BOI applications require full baseline compliance to avoid rejection, as incomplete local registrations or undercapitalization frequently cause denials during technical review.

Core Prerequisites:

SEC/DTI business registration for corporations, partnerships, or sole proprietorships.
BIR Taxpayer Identification Number (TIN) and Certificate of Registration.
Local Government Unit (LGU) Mayor’s/Business Permit for office/facility.
Sufficient paid-up capital meeting foreign ownership thresholds where applicable.

Supporting Documents:

BOI Form 501 (notarized application).
Comprehensive Project Study/Business Plan covering market, technical, and financial aspects.
5-year financial projections (Income Statement, Balance Sheet, Cash Flow).
Principal stockholders’ financial proof or the latest Audited Financial Statements (AFS).
SEC/DTI certificates, Articles of Incorporation, By-Laws.
Board resolution authorizing the application, lease/title proof, equipment list, organizational chart, and affidavits.

Completing these prerequisites establishes project credibility and demonstrates operational readiness, streamlining the OWIF submission and evaluation phases.

Step-By-Step BOI Application through OWIF Portal

BOI’s One Window Investment Facilitation (OWIF) portal streamlines submissions digitally, from account creation to COR issuance. Process: register company account; complete online form selecting SIPP activity; upload scanned docs; pay non-refundable filing fee; undergo technical evaluation/review of project study/financials.

Respond to clarifications/presentations; secure board/Management Committee approval; pay registration fee for Certificate of Registration (COR) detailing activity, terms, incentives.

OWIF account creation and form completion.
Document upload and fee payment.
Technical evaluation and clarifications.
Board approval and COR issuance.

Pioneer and Non-Pioneer Project Classifications

Pioneer status grants superior incentives for innovative/gap-filling projects like new manufacturing processes/products inadequately supplied locally. Non-Pioneer covers other SIPP activities, with shorter ITH but still substantial benefits.

Classification affects evaluation rigor; Pioneers undergo deeper technical scrutiny.

Export vs Domestic Market Enterprise Rules

The BOI distinguishes Export from Domestic Market Enterprises based on revenue orientation, affecting eligibility, incentives, and foreign ownership flexibility.

Export Enterprise Rules:

Filipino-owned: ≥50% service export revenue or ≥70% goods export value, paid in foreign currency.
Foreign-owned: ≥70% service/goods export thresholds.
Includes non-voice BPO (analytics, engineering, data management) serving foreign clients.
Qualifies for VAT zero-rating on local purchases

Post-Registration Compliance Obligations

COR holders must adhere to timelines, activity scopes, reporting (quarterly/annual), and performance commitments like employment/investment targets. Non-compliance risks result in suspension/cancellation of the incentive.

BOI And CREATE Act Synergies

The CREATE Act complements BOI with enhanced deductions, special CIT rates post-ITH for qualifying firms. BOI projects leverage both frameworks.

Frequently Asked Questions On BOI Registration

Common queries clarify BOI’s role and mechanics for prospective applicants.

Q: What exactly is BOI registration?
BOI registration grants fiscal/non-fiscal incentives for SIPP-aligned activities supporting national goals; it is an endorsement, not a license.

Q: What is the Strategic Investment Priority Plan (SIPP)?
SIPP lists priority sectors/industries eligible for incentives, guiding BOI/PEZA approvals.

Q: Who qualifies for BOI registration?
Filipino/foreign-owned enterprises with SIPP-listed activities; exports ease foreign qualification.

Q: What is the difference between Pioneer and Non-Pioneer?
Pioneers (new/essential activities) get 6-year ITH, whereas Non-Pioneers get 4 years.

Final Thoughts

BOI registration unlocks ITH, duty exemptions, and enhanced deductions for SIPP-aligned projects, distinguishing Pioneer/Export from Non-Pioneer/Domestic via OWIF applications post-SEC/BIR/LGU setup.

Companies weigh BOI’s location flexibility against PEZA’s zone efficiencies, preparing robust project studies/financials for approval while committing to post-COR compliance.

Ready to Pursue BOI Registration for your Philippine Project?

Align your activities with the latest SIPP, complete the SEC/BIR/LGU prerequisites, and prepare a robust project study with 5-year financial projections for OWIF submission to secure incentives such as ITH and duty exemptions. Start your application planning today with the help of our experts: