What are the Benefits of BOI Accreditation?

• Learn more about the requirements for the Board of Investments or BOI registration and accreditation.
• Identify the benefits of BOI accreditation and maximize the agency’s incentives.
• Determine the eligibility requirements so that your company can use the benefits of BOI accreditation.

The Philippines is an attractive investment destination because of its location in the Asia Pacific region. The workforce is also fluent in English, which means they’re easier to train and integrate into your international team. Filipinos also have a diverse skill set that your company can benefit from. You can outsource various tasks to employees in the country such as accounting and bookkeeping, customer service, IT, search engine optimization, and other services.

As a foreign-owned company doing business in the Philippines, you can benefit from fiscal and non-fiscal incentives. The Board of Investments or BOI is an agency in the country that can offer you benefits when you register and get accreditation. Companies also get PEZA accreditation along with the BOI to maximize the incentives that both agencies provide.

What are the benefits of BOI accreditation and registration?

BOI registration and accreditation allows your company to access fiscal and non-fiscal benefits that include the following:

Non-Fiscal Benefits

1. Accreditation enables companies to arrange a work from home (WFH) setup for its employees.
2. Simplified customs processes whenever a company imports products.
3. BOI registration and accreditation allows companies to employ foreigners.

These are just a few of the non-fiscal incentives your company can benefit from after accreditation. It also comes with fiscal incentives.

Fiscal Benefits

Some of the benefits of BOI accreditation include financial incentives such as the following:

1. Export producers can get a tax credit on semi-manufactured products, raw materials, and supplies.
2. BOI accredited companies are exempt from export tax, duty, import and fees as well as wharfage dues.
3. Extra deductions from taxable income for labor costs; however, this cannot be used with the income tax holiday.
4. Extra deductions from taxable income for essential infrastructure projects; however, this cannot be used along with the income tax holiday incentive.

One of the major benefits of BOI accreditation is the income tax holiday or ITH. This incentive has different categories such as:

1. A pioneer new project can get an ITH of up to six years.
2. A non-pioneer new project can get an ITH for up to four years.
3. An expansion project can get an ITH for up to three years. However, the exemption is only for incremental sales revenue/volume.

You can learn more about the benefits of BOI accreditation when you find a business partner that can assist you with the process.

What companies fit the pioneer status category?

Some companies can get a pioneer designation to expand the incentives they can get. Your company can get this status if it meets the following criteria:

1. Companies that process or manufacture goods or raw materials that have yet to be produced in the country on a commercial scale. This doesn’t include packaging or assembly of such goods or raw materials.
2. Companies that use a unique and untested system of production, design, method, or processing of raw materials, elements, or finished goods.
3. Companies can get pioneer status if they engage in agricultural activities and/or services that contribute to the Philippines’ objectives of self-sufficiency.
4. Companies involved in the production of non-conventional fuels.
5. Companies involved in the manufacture of equipment which use non-conventional sources of energy.

It helps to seek the assistance of a local business partner to fully understand the exemptions and incentives your company can benefit from. They can provide you with the information you need and guide you through the process.

What are the eligibility requirements for BOI registration and accreditation?

Before you can leverage the benefits of BOI accreditation, you’ll need to meet the agency’s eligibility requirements. Your company is eligible if:

1. Filipino-owned companies that propose to engage in or already engage in IPP-listed activities whether it’s a pioneer project or not.
2. 100% foreign-owned domestic corporations that engage in pioneer projects wherein 70% of their products or services are for export and if the projects they propose are in BOI designated less developed areas. Companies in this category must obtain 60% Filipino ownership within 30 years from the time of their registration. However, an exemption is granted when 100% of their production is exported. Some companies that fit this description include Business Process Outsourcing, Call Centers, and other outsourcing services.

What are the requirements for BOI registration?

Once you know your company is eligible for BOI incentives, you’ll need to submit the required documents that allow you to start the registration and accreditation process. Some of the documents you need to submit include:

1. Registration Certification from the Securities and Exchange Commission (SEC)
2. Income Tax Return
3. Audited Financial Statement
4. Filled out BOI Application Form 501
5. Project Report
6. Board resolution of a company’s duly authorized signatory/representative

When you have these requirements ready, you can move the process to its next steps. Consider working with a Philippines-based company for your BOI registration.

Where to find a reliable business partner in the Philippines?

Finding a business partner in the Philippines reduces the stress you have to deal with when you need accounting services or go through the process of BOI and PEZA registration. You’ll miss out on incentives that allow your company to save money and maximize its potential, if you don’t leverage the incentives that certain agencies provide.

Manila Bookkeepers is an accounting firm in Makati that can assist you with your BOI registration and accreditation. Their team can provide you with the assistance you need to complete the whole process. They can assist you with eligibility assessment, submission of requirements and application, operational compliance, and approvals and incentive optimization. They can assist you in fully understanding and leveraging the benefits you can get from the BOI and if you also get PEZA accreditation. After you get certification, Manila Bookkeepers makes sure you abide by the regulations and policies of the BOI. They make sure your company is fully compliant, so you don’t lose the incentives you get.

Manila Bookkeepers also provides other services that you might need such as payroll processing, management accounting, CFO services, transfer pricing services, and other similar accounting and financial services.