A framework for the grant of incentives to qualified industries under the government’s Strategic Investment Priorities Plan (SIPP) was recently adopted by the Fiscal Incentives Review Board (FIRB).
The SIPP aims to attract high-value, labor-intensive investments that will create more jobs and further sharpen the Philippines’ competitiveness in the global market.
As provided in the newly signed Corporate Recovery and Tax Incentives for Enterprises (CREATE) law that rationalized the country’s corporate tax incentives for investors, this framework puts flesh into the SIPP.
The menu and length of incentives that would be offered to corporations or investors will depend on the tier classification of the enterprise applying for the investment perks.
For instance, Tier 3, which covers sectors considered “critical to the structural transformation and industrial revolution of the economy”, will receive the longest period of incentives.
This SIPP framework was drafted by the Department of Trade and Industry (DTI)-Board of Investments (BOI). The three-tier structure of the incentives offered to priority investors is already contained in the CREATE law.