Friday, November 02, 2007 BOI offers incentives to registered enterprise By Joy Romares-Sevilla
THE Davao Regional Extension Office of the Board of Investments (BOI) has been offering incentives to businesses registered with the agency.
Among these incentives include the income tax holiday, additional deduction on labor expense, Value Added Tax (VAT) zero rating for qualified exporters, tax credit on portion of domestic breeding stocks and genetic materials, tax credit on raw materials, supplies and semi-manufactured products used in the manufacture of export of products, and employment of foreign nationals.
BOI reported that for the income tax holiday, the incentive is offered for four years in developed areas and six years in less developed areas for new projects, while the same incentive will be given for three years for expansion projects.
Other incentives of a BOI registered enterprise are the simplification of customs procedures; the unrestricted use of consigned equipment for a period of ten years from the date of registration; the privilege to operate a bonded manufacturing or trading warehouse subject to the Bureau of Customs rules an regulations; the exemption from wharfage uses and export taxes, duty, impost and fees; tax exemption on breeding stocks and genetic materials; additional deduction for necessary and major infrastructure works; and duty free or reduced duty importation.
BOI reported that the qualification for registration is focused on the projects and activities listed in the 2007 Investment Priorities Plan of the board.
The projects and activities include in the plan are agriculture/agribusiness and fishery, ICT, electronics, motor vehicle products, energy, infrastructure, tourism, shipbuilding/shipping, iron and steel, research and development/training institutions, and machinery and equipment.
