Philippines’ New Strategic Investment Priority Plan: What Foreign Investors Need to Know in 2025

March 27, 2025

As the Philippines positions itself as a prime investment hub in Southeast Asia, the government has rolled out its latest Strategic Investment Priority Plan (SIPP) for 2025-2028, a comprehensive blueprint designed to attract foreign capital, spur economic growth, and foster sustainable development. Crafted by the Board of Investments (BOI) in coordination with various government agencies and private stakeholders, this updated plan builds on previous frameworks while aligning with the Marcos administration’s socioeconomic agenda. With a focus on high-impact sectors, generous investment incentives, and a streamlined application process, the SIPP Philippines offers a compelling case for foreign investors eyeing opportunities in this dynamic market as of March 24, 2025.

What Is the Strategic Investment Priority Plan?

The Strategic Investment Priority Plan defines the Philippines’ approach to prioritizing economic activities that qualify for fiscal and non-fiscal benefits, aiming to drive long-term growth. Here’s what foreign investors need to know about its core elements in 2025:

Definition and Purpose: The SIPP is a three-year roadmap identifying industries and activities eligible for investment incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, signed into law on November 11, 2024, succeeding the original CREATE Act of 2021.
Historical Context: Building on the 2022 SIPP, which took effect on June 11, 2022, and the transitional 2020 Investment Priorities Plan, the 2025 iteration refines priority sectors to reflect current economic needs and global trends.
Tiers of Priority: The plan categorizes activities into three tiers—Tier I for job creation and essential sectors, Tier II for competitive and resilient industries, and Tier III for innovation and technology-driven projects—each offering tailored tax incentives in the Philippines.
Review Cycle: Valid until mid-2028, the SIPP undergoes a review every three years, with the BOI and Fiscal Incentives Review Board (FIRB) ensuring it adapts to emerging challenges and opportunities.
Government Backing: Anchored on the Philippine Development Plan and the Inclusive Innovation Industrial Strategy, the SIPP aligns with national industrial development goals, job generation, and sustainability.

This framework signals the Philippines’ commitment to creating a business-friendly environment, making it a critical tool for investors navigating the investment priority plan 2025.

Investment Incentives Under the Strategic Investment Priority Plan

The SIPP Philippines offers a robust package of investment incentives to attract foreign capital, balancing immediate tax relief with long-term benefits. Below are the key offerings for 2025:

Income Tax Holiday (ITH): Eligible businesses enjoy an ITH ranging from four to seven years, depending on the project’s location and industry tier, providing a significant initial tax break to offset setup costs.
Special Corporate Income Tax (SCIT): Post-ITH, export-oriented enterprises can opt for a 5% SCIT on gross income for up to 10 years, a competitive rate compared to the standard 25% corporate tax.
Enhanced Deductions (ED): Domestic market enterprises may claim ED for five to ten years after the ITH, covering expenses like labor, training, and infrastructure, further reducing taxable income.
Duty-Free Importation: Investors benefit from exemptions on duties and taxes for importing capital equipment, raw materials, and spare parts, lowering operational costs significantly.
VAT Exemptions: Value-added tax exemptions on imports and zero-rating on local purchases directly tied to registered projects enhance cash flow for qualifying firms.
Extended Periods: For highly desirable projects with at least PHP 50 billion in capital or generating 10,000 jobs within three years, the total incentive period can extend up to 40 years, subject to FIRB approval.

These tax incentives, detailed in the CREATE MORE Act, position the Philippines as an attractive destination for Philippine investment opportunities, particularly in high-growth sectors.

Key Sectors in the 2025 Strategic Investment Priority Plan

The investment priority plan 2025 targets industries poised to deliver economic impact and innovation, offering foreign investors a clear path to profitability. Here’s a breakdown of the prioritized sectors:

Renewable Energy: Projects in solar, wind, and biomass energy qualify under Tier I, supporting the Philippines’ clean energy goals and offering stable returns amid global demand.
Advanced Manufacturing: Tier II includes high-tech manufacturing, such as semiconductors and electric vehicle components, which taps into global supply chains and export markets.
Healthcare and Education: Enhanced focus on medical facilities and international education cities under Tier III aims to bolster human capital and attract knowledge-based investments.
Agriculture and Food Security: Agribusiness, including high-tech farming and fishery, falls under Tier I, addressing domestic needs while opening export avenues.
Infrastructure and Logistics: Mass housing, transport, and logistics projects under Tier I promise long-term growth as urbanization accelerates.
Innovation and Technology: Tier III prioritizes research and development, startups, and IT-BPM services, fostering a tech-savvy workforce and cutting-edge solutions.

These sectors reflect the benefits of a Strategic Investment Priority Plan, aligning investor interests with national development priorities and creating a win-win scenario.

How to Qualify for Investment Incentives Philippines

Qualifying for the SIPP Philippines requires meeting specific criteria set by the BOI and Investment Promotion Agencies (IPAs), ensuring investments align with national goals. Here’s what foreign investors must satisfy in 2025:

Project Listing: The proposed activity must be explicitly listed in the SIPP, covering Tiers I, II, or III, as determined by the BOI’s evaluation process.
Performance Metrics: Firms must commit to measurable targets—such as job creation or export quotas—tracked over an agreed-upon period, ensuring tangible economic contributions.
Accounting Standards: An adequate accounting system must separate the registered project’s revenues, costs, and profits from other operations, or a separate corporation may be required.
Compliance Requirements: Adherence to e-receipting and e-sales under the National Internal Revenue Code, plus annual beneficial ownership reports, ensures transparency.
Location Factors: Incentives vary by region. The National Capital Region offers shorter ITH periods, while less-developed areas provide longer benefits, encouraging balanced growth.
Export Orientation: To access the full suite of incentives, including SCIT, export enterprises must commit to at least 70% of production for overseas markets.

Meeting these standards unlocks the benefits of a Strategic Investment Priority Plan, with the BOI and IPAs like the Philippine Economic Zone Authority (PEZA) facilitating the process.

How to Apply for the Strategic Investment Priority Plan

Applying for incentives under the SIPP Philippines involves a structured process overseen by IPAs to expedite approvals while ensuring compliance. Here’s a step-by-step guide for foreign investors in 2025:

Step 1: Verify Eligibility: Confirm that your project aligns with the SIPP’s listed activities by reviewing the latest plan, available through the BOI or trusted providers like Triple i Consulting.
Step 2: Choose an IPA: Based on your business model, select an appropriate agency—BOI for export-oriented or pioneer projects, PEZA for ecozone-based firms, or others like TIEZA.
Step 3: Prepare Documentation: Submit a feasibility study, audited financial statements, project report, and proof of compliance with SIPP criteria tailored to your chosen IPA’s requirements.
Step 4: File Application: Lodge your application with the selected IPA, which reviews it for completeness and alignment with the investment priority plan 2025.
Step 5: Await Approval: The IPA evaluates within weeks, with projects exceeding PHP 15 billion escalated to the FIRB for final approval, ensuring a rigorous yet efficient process.
Step 6: Begin Operations: As mandated by the SIPP guidelines, incentives commence upon the start of commercial operations within three years of registration.

Given the complexity of documentation and compliance, seeking expert assistance is critical. Triple i Consulting, accessible at tripleiconsulting.com, is a trusted provider that simplifies this intricate process with its ISO-certified expertise in Philippine investment opportunities.

Benefits of the Strategic Investment Priority Plan for Foreign Investors

The SIPP Philippines delivers substantial advantages for foreign investors, enhancing profitability and market positioning in 2025. Here’s why it’s a game-changer:

Cost Reduction: Tax incentives in the Philippines, such as ITH and duty exemptions, slash initial and operational expenses, boosting return on investment.
Market Access: Priority sectors align with global demand—think renewable energy and tech—offering seamless entry into export markets and domestic supply chains.
Long-Term Stability: Extended incentive periods, up to 40 years for mega-projects, provide predictability, which is required for capital-intensive ventures.
Competitive Edge: The 5% SCIT for exporters undercuts regional tax rates, making the Philippines a cost-effective base compared to neighbors like Vietnam or Thailand.
Government Support: IPAs expedite setup and operations, cutting red tape and fostering a welcoming environment for foreign capital.
Sustainability Focus: Incentives for green projects enhance corporate social responsibility profiles, appealing to eco-conscious investors and consumers.

These benefits underscore why the investment priority plan 2025 is a cornerstone of the Philippines’ economic strategy, with Triple i Consulting poised to guide investors through its complexities for maximum gain.

Final Thoughts

The Philippines’ Strategic Investment Priority Plan for 2025-2028 marks a bold step toward economic revitalization, offering foreign investors a lucrative blend of tax incentives, priority sector access, and streamlined processes. As of March 24, 2025, this plan reinforces the country’s appeal as an investment destination and aligns with global trends in sustainability and innovation, promising substantial rewards for those who act decisively. With the BOI projecting PHP 1.75 trillion in investment pledges this year—following a record USD 1.62 trillion in 2024—the SIPP Philippines is a beacon for growth-minded businesses.

Is Assistance Available?

Yes, Triple i Consulting offers expert guidance to navigate the intricate SIPP application process, ensuring compliance and optimizing benefits. Contact us today to schedule an initial consultation with one of our experts: