INVESTMENT PRIORITIES PLAN

THE BOARD OF INVESTMENTS (BOI) ISSUES THE INVESTMENT PRIORITIES PLAN (IPP)
ANNUALLY WHICH IS A LIST OF PROMOTED AREAS OF INVESTMENTS ELIGIBLE FOR
GOVERNMENT INCENTIVES. THIS PAGE CONTAINS THE SPECIFIC GUIDELINES FOR
ENERGY PROJECTS CULLED FROM THE INVESTMENT PRIORITIES PLAN.
Income Tax Holiday
New projects with a pioneer status for
(6) years.

New projects with a non-pioneer

status for (4) years

Expansion projects for (3) years

PIONEER ENTERPRISE
Engaged in manufacture, processing
or production.

Uses design formula, scheme, method,

process or system of production or
transformation

Engage in agricultural, forestry and

mining activities
Produce non-conventional fuels or
manufactures equipment which
uses non-conventional sources of
energy.

It companies with projects which

introduce a significant innovation in
technology or which cost as the
current IPP requires and are set up
in the first five years of activities
5% SPECIAL TAX ON GROSS INCOME
On GROSS INCOME, and IN LIEU of all taxes,
NATIONAL AND LOCAL, except REAL PROPERTY TAX
(imposed on lands, buildings, improvements, and
machinery)
AFTER : (Derived from the registered activities) net of sales
discounts, sales returns and allowances minus direct cost

BEFORE: Any deduction from administrative, marketing,

selling and/or operating expenses or incidental losses
PEZA-registered enterprises
are required to:
Secure their Certificate of Income Tax Holiday
and Certificate of Incentives.

Apply to registered operations of ECOZONE

enterprised during the period of registration
with PEZA.
Any unregistered operations are subject to NIRC
provisions, thus FINAL WITHHOLDING TAXE and CAPITAL
GAINS TAX, will apply.

Net income from UNRELATED ACTIVITIES sill be subject

to 30% RCIT. (Regular Corporate Income Tax)
Sharing of 5% Gross Income Tax
3% will be distributed to the NATIONAL
GOVERNMENT.

2% percent will be distributed to the

TREASURER’S OFFICE, where the registered
office is located.

IN CASE OF ECOZONE: encompasses more than

1 municipality, the share will be from 2%.
EXEMPTION FROM PAYMENT OF REAL
PROPERTY TAXES IN:
 Machineries and equipment they acquire for use in
their production operations during the first 3 years of
use of such machinery and equipment.
Exemption of PEZA reg. Enteprises from LGU
permits and local taxes, licences and fees.
ALL PEZA registered enterprised which are entitles to ITH, 5% GIT,
duty free importation of equipments are exempted from having to
secure all LGU permits.

Exempted from payment of Local Taxes, licences, imposts and fees.