Question & AnswerQ&A (MEMORANDUM ORDER NO. 61)
The legal basis is Section 300 of the National Internal Revenue Code of 1997 (NIRC), as amended by Republic Act No. 11534, known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The Board of Investments (BOI), in coordination with the Fiscal Incentives Review Board (FIRB), investment promotion agencies (IPAs), other government agencies administering tax incentives, and the private sector.
Tier I includes all activities listed in the 2020 Investment Priorities Plan; Tier II includes activities that promote a competitive and resilient economy with focus on green ecosystems, health, defense, industrial gaps, and food security; Tier III includes research and development activities and highly technical manufacturing promoting advanced digital production technologies and innovations.
The CREATE Act mandates the formulation of the SIPP and enforces the rules for tax incentives and investments. It also requires approval of the SIPP by the President and guides its content and implementation.
Activities include electric vehicle assembly and manufacture of EV parts, establishment of EV infrastructure, manufacture of energy efficient maritime vessels and equipment, smart grid devices, bioplastics, renewable energy, energy efficiency projects, energy storage technologies, and integrated waste management.
Manufacturing supporting the Vaccine Self-Reliance Program, production of medicines, active pharmaceutical ingredients, and specialty hospitals as endorsed by agencies like the Department of Health and Department of Science and Technology.
Government agencies are enjoined to issue necessary regulations for synchronized and integrated implementation of the SIPP, and no government body shall adopt any policy contrary to or inconsistent with the SIPP and relevant laws.
Local government units shall coordinate with concerned investment promotion agencies (IPAs) to comply with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA No. 11032) to facilitate project registration and implementation.
It establishes a one-stop action center to facilitate and expedite the setting up and conduct of registered projects or activities.
Additional activities must comply with Section 296 of the CREATE Act and for Tier III activities, must be duly endorsed by relevant agencies such as the Department of Science and Technology.