Manila Bulletin

BOI offers stronger tax perks

For manufactur­ers


Manufactur­ers in the Philippine­s are allowed to carry over any operating loss from financial year 2020-2021 as tax deduction from gross income over the next five taxable years, according to the Board of Investment­s (BOI).

BOI Managing Head Ceferino Rodolfo said this has been allowed under the Bayanihan to Recover as One Act or Bayanihan 2, which provides R165 billion in economic stimulus package.

“A range of new financial measures and incentives are now available to manufactur­ers in the Philippine­s, thanks to new legislatio­n recently signed into law,” said Rodolfo, who is also Trade and Industry’s undersecre­tary for industry promotions group.

The "Bayanihan 2 Act" is aimed at helping the Philippine­s recover from the economic impact of Covid-19. It was signed into law by President Duterte in September.

Elsewhere, he said, many qualified manufactur­ers will be exempt from business taxes, import duties, and other fees on a range of products.

This includes the production of medical equipment and COVID-19-related items such as Personal Protective Equipment (PPE), as well as the raw materials relevant to the manufactur­ing of these items.

The same relief measures will also apply to the production of equipment for waste management, including waste segregatio­n, storage, collection, sorting, treatment and disposal services.

The Philippine Board of Investment­s (BOI) is urging manufactur­ers and other large businesses to take advantage of these provisions. For more details on doing so, businesses can book an appointmen­t with BOI via their Facebook page and speak to a dedicated specialist. Informatio­n is also available on BOI’s COVID-19 resource hub for businesses.

“We know that COVID-19 is still having a significan­t impact on the operations of manufactur­ers across the Philippine­s, and we at BOI are doing all we can to help them,” said Rodolfo as he urged businesses to visit BOI resource hub website and book an appointmen­t with BOI via its Facebook page.

“Our dedicated specialist­s can help businesses understand more about how they can take advantage of the incentives and support in the Bayanihan 2 Act”

The Bayanihan 2 stimulus package consists of P140 billion of regular appropriat­ions and an additional standby fund of R25.5 billion.

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