BOI IPP Guidelines – Preferred Activities: Agriculture/Agribusiness and Fishery

This covers commercial production and commercial processing of agricultural, herbal and fishery products (including their by-products and wastes).

This also covers agriculture- and fishery-related activities such as irrigation, post-harvest, cold storage, blast freezing, and the production of fertilizers and pesticides.

A. Commercial Production

This covers the production of agricultural (crops, poultry and livestock) and fishery products.

In general, crop production should involve new plantation areas to qualify for registration.

This also covers intercropping of high value crops as identified by the Department of Agriculture (DA).

Application for registration must be accompanied by an endorsement from the DA.


B. Commercial Processing

This covers the following:
• Conversion of agricultural and fishery products, their by-products and wastes, to a form ready for further processing or final consumption;
• Extraction of higher value substances from agricultural and forest-based raw materials through bioprocessing as endorsed by the concerned government agency; and
• Production of animal and aqua feeds excluding those for game animals, fowls and other species for pet/leisure purposes.

Processing of agricultural products should involve domestically produced raw or semi-processed agricultural products, unless the raw or semi-processed raw materials are not locally produced (NLP) or not in sufficient quantity (NISQ).

If using imported raw or semi-processed agricultural products that are locally produced (LP) or in sufficient quantity (ISQ), the project may qualify for registration, provided that the finished/final product is for export, or the project qualifies for pioneer status.


C. Services in Support of Agriculture, Agribusiness and Fishery

1. Irrigation

This covers irrigation system primarily intended to render service to agricultural farms.

Irrigation system shall include water source, distribution lines and control mechanisms. The system may also include prime movers, pumps, generators and transformers. System capacity is expressed in terms of cubic meters of irrigation water per year.

Only revenues generated from services rendered to other agricultural farms may be entitled to Income Tax Holiday (ITH).


2. Harvesting Services

This covers mechanized harvesting services.


3. Post Harvest Facilities

This covers the establishment and operation of the following facilities:
– Cold storage,
– Freezing,
– Bulk handling and storage,
– Packing houses,
– Trading centers,
– Ice plants in LDAs, and
– Triple A slaughterhouses as endorsed by the National Meat Inspection Service (NMIS).

Only revenues generated from services rendered to other agricultural enterprises may be entitled to ITH.

Reference: (accessed June 18, 2014).