21st
ANNUAL
CREBA NATIONAL CONVENTION
18 October 2012
The Legend Hotel, Palawan
2012 IPP
REAL ESTATE
INVESTMENT
GUIDELINES AND
INCENTIVES
Presentation Outline
Part I - 2012 Investments Priorities Plan
Part II - Specific Activities Involving Real Estate Development
Part III - Qualifications for BOI Registration and Incentives Entitlement
Part IV - BOI Incentives
The IPP is an over-all plan prepared annually by
the BOI, which includes and contains specific activities
and generic categories of economic activity wherein
investments are to be encouraged.
Its preparation and formulation is undertaken through
the concerted efforts of the IPP Inter-Agency Working
Group headed by BOI in coordination with the PMS,
NEDA, DOF and other concerned government
agencies such as DA, DOE, DOT, DOST and DOTC.
Investment Priorities Plan (IPP)
2012 INVESTMENT
PRIORITIES PLAN
Agribusiness
Creative/Knowledge-based
Disaster PMR
Energy
Green Projects
Hospitals
Infrastructures
Iron and Steel
Mass Housing
Motor Vehicle
R & D/ Training
Shipbuilding
Strategic Projects
Books
Mining
Petroleum Products
PWD Support
Renewable Energy
Tourism
Solid Waste Management
Water Supply
Manufactured Products
Services Exports
Activities Supporting Exports
PREFERREDMANDATORY
EXPORTS
MASS HOUSING
1. Development of Low-cost Housing
(Selling Price > P 400,000 < P 3.0 million)
2. Manufacture of Modular Housing Components
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Selling price per unit of above P400,000 to P3.0 million
Must be new or expanding
Minimum of 20 livable units in a single site/building
Conformance with BP 220/PD 957
General Requirements:
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Compliance with the socialized housing requirement (SHR)
through the following modes:
Development of new settlement directly undertaken by the
registered entity
Joint venture with LGUs, BOI-accredited NGOs, the National
Housing Authority (NHA),a subsidiary of the BOI-registered
entity, or a developer accredited by the HLURB
Slum upgrading or renewal of areas
Compliance with SHR completed within ITH availment period and
should be proportionate to the number of low cost housing units being applied for ITH for the taxable year
General Requirements:
888
Socialized Housing Requirement(under Section 18 of RA 7279)
Horizontal
20% of total subdivision area; or
20% of total subdivision project cost
Vertical
20% of total floor area of qualified saleable
low cost housing units
999
Horizontal Housing Projects
Vertical Housing Projects
Must be located in areas zoned and classified
for residential purposes in conformity with CLUP
and zoning of LGU
At least 51% of total floor area devoted to
housing
Donation/Direct Participation to BOI-accredited
NGOs for community development
Equivalent to 30% of 20% of building
construction cost; or
Not less than 40% of estimated ITH
101010
New Projects Newly organized/formed enterprise
Existing enterprise but with new investments in an area not contiguous to its existing
mass housing projects
Expansion Projects
Unfinished projects Converted projects
Annex or additional to existing projects
Adjacent projects
111111
Completed projects with booked sales, in general,
not qualified for registration
ITH entitlement
3-year ITH (NCR, Metro Cebu, Metro Davao)
4-year ITH
For un-incorporated ventures, only developers
may qualify for registration
Interest income from in-house financing not
entitled to ITH
Others
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Modular Housing Components
Covers the manufacture of modular housing
components preferably using indigenous materials
Includes the following:
Roof/framing systems
Wall/partition systems
Flooring systems
Door/window systems
Finishing/ceiling systems
To avail of ITH, Firm should sell 50% of total annual
production to mass housing projects
◄
TOURISM (R.A. 9593)
1. Transportation Facilities
2. Accommodation Facilities
3. Health & Wellness Facilities
4. Retirement Villages
5. Historical Destinations
Establishment and operation of:
• Accommodation facilities such as but not limited
to hotels, resorts, apartment hotels, tourist inns,
motels, pension houses, private homes for
homestay, ecolodges, condotels, serviced
apartments, and bed and breakfast facilities;
• Convention and exhibition facilities or “meetings,
incentives, conventions and exhibition” (MICE)
facilities;
• Amusement parks;
• Adventure and ecotourism facilities;
• Sports facilities and recreational centers;
Tourism Facilities (outside TEZs)
Establishment and operation of:
• Theme parks;
• Health and wellness facilities such as but not
limited to spas, tertiary hospitals, and ambulatory
clinics;
• Agri-tourism farms and facilities; and
• Tourism training centers and institutes
Development of retirement villages.
Restoration/ preservation and operation of
historical shrines, landmarks and structures
Tourism Facilities
Hotel projects/apartment hotels/serviced
apartments/condotels classified as first class or
deluxe by the Department of Tourism (DOT) and
costing at least the Philippine equivalent of
US$100,000/room
Resort projects classified as “AAA” by the DOT and
with project cost of at least the Philippine Peso
equivalent of US$10 million
Projects located in LDAs
Any of the following may qualify for pioneer
status:
Modernization of hotels classified as first class or
deluxe by the DOT with a project cost of at least
the Philippine Peso equivalent of US$10,000/ room
Amusement parks/ theme parks with minimum
project cost of the Philippine Peso equivalent of
US$10 million involving the development of sites or
attractions considered as novel in the Philippines
Adventure and ecotourism facilities/agri-tourism
farms and facilities with a project cost of at least
the Philippine Peso equivalent of US$5 million.
Any of the following may qualify for pioneer
status:
Condotel/apartment hotel/serviced apartment/
tourist inn/pension house/motel, must cater to
tourists/guests to qualify for registration. Each unit
must have fully equipped kitchen and laundry
facilities.
Income arising from gaming and mall operations
are not qualified for ITH.
For modernization projects, replacement of
carpets, pillows, mattresses and other similar items
shall be excluded from the computation of the ITH
rate of exemption.
General Guidelines
Health Spa
• This covers the establishment and operation of
destination spa, resort/hotel spa, therapeutic
centers,traditional healing (e.g., Philippine “hilot”,
“dagdagay”, “ventossa”, etc.), and other
alternative healing and medical care services.
• Projects that cost at least the Philippine Peso
equivalent of US$20 million may be granted pioneer
status.
Health and Wellness Facilities
Tertiary Hospital
• Covers tertiary hospitals with a minimum of (fifty) 50
rooms (suites and private rooms only) and with a
minimum project cost of at least the Philippine Peso
equivalent of US$10 million.
Ambulatory Clinics
• Covers services such as elective (non-emergency)
surgical treatment of out-patients
• Includes comprehensive ophthalmologic surgery,
dermatology, cosmetic procedure, plastic and
reconstructive surgery, cosmetic dentistry, and medical
care
Health and Wellness Facilities
All applications for registration must be endorsed by the Department of Tourism (DOT).
DOT accreditation must be submitted prior to ITH availment. Only income derived from tourism-related activities shall be entitled to ITH.
General Guidelines
Retirement Villages
A retirement village must have a minimum of four (4) hectares of contiguous land
Project cost must be at least the Philippine peso equivalent of US$ 10 million
Retirement villages with a minimum area of twenty (20) hectares may qualify for pioneer status (6-yrs ITH)
Applications must be endorsed by the Philippine Retirement Authority (PRA). PRA accreditation must be submitted prior to ITH availment.
Restoration/ preservation and operation
of historical shrines, landmarks and
structures
Covers the conservation, preservation or restoration of national sites or properties.
Projects undertaking the conservation and
preservation, restoration or maintenance of historico-
cultural heritage that includes any of the following may qualify for registration:
• National shrines, monuments, and/or landmarks
• Local historical sites/properties classified, identified, and listed in the National Registry of
Historic Structures
• Cultural properties, treasures and/or artifacts
Restoration/ preservation and operation
of historical shrines, landmarks and
structures
Any of the following historic-cultural heritage
projects may qualify for pioneer status:
• Residential projects with a project cost of at
least PhP10 million, or
• Other structures with a project cost of at least
PhP20 million.
HOSPITAL/ Medical Services
Development and Operation of Primary,
Secondary and Tertiary hospitals
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• Covers the establishment and operation of medical
facilities including primary, secondary, tertiary
hospitals and ambulatory facilities.
• Only revenues from the provision of medical and
diagnostic services shall be entitled to ITH. Revenues
from operating a pharmacy, food services and any
other non-treatment related services will not be
eligible for ITH.
General Requirements:
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• Secondary care hospitals with a minimum capacity
of 50 beds and an investment cost of at least the
Philippine Peso equivalent of US$2.5 million may
qualify for pioneer status
• Only facilities outside of Metro Manila may qualify
for registration.
• Prior to availment of ITH, registered projects must
submit copies of license to operate issued by the
DOH and Philhealth Accreditation.
General Requirements:
Incentives For BOI-Registered Enterprises
Entitlement and availment of incentives shall be
subject to the terms and conditions set forth under
the relevant law and the project’s Certificate of
Registration as well as the rules and regulations of
the implementing/administering agency.
Omnibus Investments Code of 1987 (E.O. No. 226)
• Income Tax Holiday (ITH)
• Duty exemption on imported capital
equipment, spare parts and accessories
Income Tax Holiday
Exemption from Income Tax levied by the
National Government
Type of BOI Registration No. of Years of ITH
New & Pioneer 6
New & Non-Pioneer 4
Expansion 3
Project located in LDA 6
Modernization 3
BOI Incentives
Duty-free Importation of Capital Equipment
(EO 70)
Duty-free importation of capital equipment, spare
parts and accessories of BOI-registered new and
expanding enterprises, provided that:
a. They are not manufactured domestically in
sufficient quantity, of comparable quality and at
reasonable prices; and
b. They are reasonably needed and will be used
exclusively by the enterprise in its registered
activity, unless prior approval of the BOI is
secured.
BOI Incentives
BOI REGISTRATION
SIMPLIFIED
No more detailed 5 year Financial Projections
required for 95% of projects
Only 4 page Application form (inclusive of
supporting schedules)
Endorsements from other agencies required only
after BOI approves the project
Board action 2 weeks after filing
CONNECTIVITY
facebook.com/invest.phl twitter.com/boiphilippines
Board of Investments-Main Office
385 Sen. Gil Puyat Ave. Makati City
Email: [email protected]
Tel. (02) 897-6682
BOI CebuGround Flr. LDM Bldg.Lapu-Lapu St., Cebu City Tel. No. (032) 412-1945/44
BOI Davao4th Flr. Mintrade Bldg., cor. Monteverde & Sales Streets, Davao CityTel. No. (082) 222-4677
BOI Cagayan de OroMuñoz Bldg., 52nd Business Center cor. Tiano Gaerlan Street,
Cagayan de Oro City
Tel. No. (088) 857-4867
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