QuestionsQuestions (MEMORANDUM ORDER NO. 50)
It was issued pursuant to Article 29 of Executive Order (EO) No. 226 (s. 1987), also known as the Omnibus Investments Code of 1987, as amended.
It takes effect fifteen (15) days after its publication in a newspaper of general circulation, as required under Article 31 of the Omnibus Investments Code of 1987.
They must issue the necessary regulations to ensure synchronized and integrated implementation. They are enjoined from adopting policies or taking actions inconsistent with the IPP and relevant laws.
In granting incentives, BOI must ensure attainment of and consistency with state policies under EO 226 and the national goals under RA 11469 (Bayanihan to Heal as One Act) and RA 11494 (Bayanihan to Recover as One Act).
The Chairman of the BOI shall render an annual report to the President on accomplishments and implementation of the IPP.
Preferred activities include (1) Essential Goods—production/manufacture of COVID-19 related medicines, medical equipment/devices, PPE, surgical equipment/supplies, lab equipment/reagents, medical supplies, tools/consumables (e.g., sanitizers, sodium hypochlorite, povidone iodine), and repurposing of manufacturing; and (2) Essential Services—crematoriums, health waste treatment/disposal, laboratories, test facilities, hospitals, quarantine facilities, and other COVID-19-related products/services as determined by the Board.
The IPP states this is “subject to the determination by the Board,” allowing inclusion of other products/services related to COVID-19 programs by national government/agencies/LGUs.
The BOI may provide up to 6 years of Income Tax Holiday for qualified activities under the specified listing (on employment outside congested urban areas).
The Board must determine that the activity is highly essential to attaining the national goal under RA 11469—mitigating or avoiding serious threat to lives/health/safety/security of Filipinos and addressing long-term adverse effects on livelihood and severe disruption of economic activities.
For Metro Manila, only modernization projects may qualify for registration.
For Metro Manila, only agricultural infrastructure and support services and urban agriculture projects may qualify for registration as new, expansion, or modernization.
Telecommunications: “Only new players may qualify for registration.”
The development of mass housing units must be based on a price ceiling of Php 2.0 million.
For Metro Manila, only in-city low-cost dwelling for lease/rent may qualify for registration.
It states that such activities located in Metro Manila may no longer qualify for incentives availment with BOI under EO 226 starting 2023, unless an earlier period is provided pursuant to transition provisions under the 2nd tax reform package on rationalization of incentives.
Any Halal-related business enterprise that obtains the necessary Halal certification or operates under Islamic (Shariah) law principles shall be covered; “Halal” refers to permissible products/services under Islamic law.
It prioritizes energy because BARMM has the lowest household electrification rate (34% vs. national 74%). It covers upstream and downstream energy investments (power generation, transmission, distribution) and prioritizes off-grid and SPUG areas, including ancillary investments like sub-stations and transmission/distribution towers.