FIRB adopts incentive framework
The Fiscal Incentives Review Board (FIRB) has adopted the Strategic Investment Priorities Plan (SIPP) framework, which determines the perks for key industries eligible under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
In a statement, the Department of Finance (DoF) said industries will be divided into three tiers, depending on their ability to attract investments.
Companies under Tier 3 will cover sectors considered “critical to the structural transformation and industrial revolution of the economy.”
They will receive the longest period of incentives (11-17 years). These are research and development activities; breakthroughs in health and science; generation of new knowledge; commercialization of patents, industrial designs, copyrights and utility models; and highly technical manufacturing activities.
Companies under Tier 2 will receive 10-17 years of tax perks. Sectors include companies that are manufacturing supplies and parts not being produced in the Philippines.
Sectors under Tier 1 will receive tax incentives for 9-16 years. These sectors include modern agriculture and food processing; design-focused industries like furniture, games and toys, jewelry and garments; energy efficiency and environment-friendly activities; health and medical products; industrial parks; and ports, airports and seaports.
