Monitoring and Compliance

of the Projects Registration

Atty. MARJORIE O. RAMOS-SAMANIEGO
Director, Legal and Compliance Service
26 June 2015

COVERAGE
I.

Sectoral Compliance
a.
b.
c.
d.
e.
f.
g.
h.

Prior to Start of Commercial Operations (SCO)

Prior to ITH Availment
Shipbuilding
Export Enterprises
Iron and Steel
Energy
Horizontal Mass Housing Projects
Vertical Mass Housing Projects

II. Mandatory Compliance

a.
b.
c.

Reportorial Requirements
Tree Planting Requirement
Notification and Prior Permission Requirement

III. Social Responsibility and Good Governance Compliance

IV. Application of Certificate of Entitlement (COE)

I. SECTORAL COMPLIANCE
A.

Prior to Start of Commercial Operations (SCO)

Type of Project

Required Submission

Energy Projects

Certificate of Compliance (COC) issued by ERC

Water Transport Projects

Proof that the vessel is registered under the Philippine Flag

Shipbuilding

License to Operate or its equivalent

Air Transport

Certificate of Airworthiness issued by CAAP

Land Mass Transport

Copy of its original LTFRB Franchise Verification with Original

Receipt

Hospitals

License to Operate from the Bureau of Health Facilities and

Services of the DOH, where applicable

Bulk water treatment and

supply/ Tourist transport

Copy of the Certificate of Public Convenience (CPC), if

applicable

Others as may be required by the Board

I. SECTORAL COMPLIANCE
B. Prior to ITH availment
1.
Proof of increase of stockholders equity;
2.
Environmental Compliance Certificate (ECC) pursuant to P.D. No. 1586, or
Certificate of Non-Coverage (CNC), whichever is applicable;
3.
DOT/PRA/PhilHealth (Hospitals) accreditation, if applicable;
4.
Others as may be required by the Board.
C. Export Enterprises
1.
Export at least 50% of its production, if Filipino-owned
2. Export at least 70% of its production, if Foreign-owned
D. Shipbuilding
1.
Department of Labor and Employment (DOLE) Department Circular No. 1
series of 2009 on the Guidelines on Occupational Safety and Health in
Shipbuilding, Ship Repair and Shipbreaking Industry.

I. SECTORAL COMPLIANCE
E. Iron and Steel
All iron and steel products must be compliant with the applicable Philippine
National Standards (PNS) or International Standards
F. Energy
Proof of financial close within 1 year from date of registration
G. Housing Projects Compliance with the 20% Socialized Housing Requirement
Duly notarized Affidavit executed by a licensed engineer or architect indicating
the area or number of lots and units and the construction costs on the
development of compliance project, including:

Horizontal Housing Projects

1.

Proof of compliance (LTS-HLURB) on 20% of the total subdivision area or

20% of total subdivision project cost must be developed and allocated for
socialized housing

I. SECTORAL COMPLIANCE
Horizontal Mass Housing Projects
2. Mode of compliance may be in any of the following:
i. New Settlement
ii. Joint Venture Projects
Proof of Compliance

1. If development of new settlement:

a.

Certified true copy of license to sell for the main project and the compliance of
project

2. If development of new Settlement through Joint Venture Arrangements:

a. Certified true copy of the License to Sell for the main project and the compliance
project; and
b. Original copy of a duly notarized JVA or MOA indicating:
The amount of contribution;
The particular block numbers of the housing project being allotted to the main
subdivision project under the current JVA; and
The creation of a special bank account for the JV receipt showing contribution.

Vertical Housing Projects

Proof of compliance
1.

Either the following schemes; otherwise the ITH for that particular taxable year
shall be deemed forfeited:
a.
b.

2.

Investment: 20% of total saleable area; or

Direct Participation Scheme (at the option of the registered developer):
i.
30% X (20% of the Building Construction Cost) ; or
ii.
40% of ITH

Submission of documents, as follows:

a. MOA between the registered enterprises and NGO
b. Certificate of Completion by NGO of houses built for site inspection

The SHR must be complied prior to ITH availment and subject to ocular
inspection of actual houses constructed.

II. MANDATORY COMPLIANCE

A. Reportorial Requirements
REPORT S

DUE DATE

BOI Form No. S-1

Annual Report on Actual Operations

Calendar year: April 30

Fiscal year: 4 months after the end of fiscal
year

Annual Audited Financial Statements

Thirty (30) days from the date of filing with the

BIR

Annual Income Tax Return

Thirty (30) days from the date of filing with the

BIR

BOI Form No. S1-2

Semestral Report on Actual Investments,
Employment and Sales

Thirty (30) days after the end of each semester

Other information that the Board may

require with respect to the registered project
at any given time

As required.

II. MANDATORY COMPLIANCE

Late filing and/or non-submission of reports and other
requirements shall be subject to fines, penalties, and
cancellation in accordance with the rules.
The enterprise shall designate an authorized representative,
by virtue of a Board Resolution, duly certified by its Board
Secretary, who shall undertake transactions with the BOI.
The enterprise shall notify BOI, in writing, of any changes in
its Address of Record, within ten (10) calendar days after such
change.

II. MANDATORY COMPLIANCE

B. Tree Planting Requirement
Minimum of 100 trees/seedlings to be planted/ donated per
registered project within 1 year from date of BOI registration
Proof of compliance must be submitted within one (1) year
from the date of its registration; otherwise, application for
availment of any incentive by the firm shall not be accepted
by the Board.
Proof of compliance must be duly certified by the Local
Government Unit/Donee.

II. MANDATORY COMPLIANCE

C. Notification and Prior Permission Requirement
The enterprise shall SECURE PRIOR PERMISSION of the BOI before doing
any of the following acts:
1.
2.
3.

Transfer ownership and/or control of the enterprises;

Engage in an undertaking other than the preferred project covered by its
registration;
Expand its capacity, with or without incentives.

The enterprise shall NOTIFY the BOI of the following acts:

1.

2.
3.

Invest in, extend loans, or buy bonds, in substantial amount, from any
enterprise either in the Philippines or abroad. This does not apply to bonds
issued by the Philippine Government;
Issue stock convertible into voting stocks; or
Buy its own stocks.

III. SOCIAL RESPONSIBILITY AND GOOD

GOVERNANCE COMPLIANCE
The enterprise shall:
1. be committed to the tenets of Good Corporate
Governance;
2. adopt measures intended to reduce climate change risks in
support of the National Framework Strategy on Climate
Change;
3. obtain applicable certifications based on internationallyrecognized standards;
4. undertake meaningful and sustainable Corporate Social
Responsibility (CSR) activities in the locality where the
project is implemented.

IV. APPLICATION FOR CERTIFICATE OF

ENTITLEMENT
When to File

Prior to filing of Income Tax Return (ITR)

Where to File

Legal and Compliance Service, 2/F Industry

& Investment Bldg., 385 Sen. Gil Puyat
Ave., Makati City

Requirements

The enterprise must be in GOOD

STANDING. It is compliant with the terms
and conditions of registration

Filing Fee

Php 1,500.00

Thank you.