QuestionsQuestions (MEMORANDUM ORDER NO. 61)
Under Section 300 of the National Internal Revenue Code (NIRC), as amended by Republic Act No. 11534 (CREATE Act), the Board of Investments (BOI), in coordination with the FIRB and other stakeholders, must formulate the SIPP to be submitted to the President for approval.
Executive Order No. 226, the “Omnibus Investments Code,” as amended, is referenced as the framework under which the 2020 Investment Priorities Plan (IPP) was signed.
The 2020 IPP was signed by the President on 18 November 2020 and took effect on 06 December 2020.
Through FIRB Resolution No. 05-21 dated 14 April 2021, the FIRB adopted the 2020 IPP and its General Policies and Specific Guidelines as a transitional SIPP pending the issuance of the newly formulated SIPP.
It endorsed the newly formulated SIPP as presented in its meeting on 07 February 2022.
FIRB Resolution No. 001-22 dated 21 February 2022 adopted the proposed SIPP and endorsed it to the BOI for approval by the President.
BOI Board Resolution No. 08-21 dated 25 March 2022 approved the submission of the newly formulated SIPP to the President for approval in compliance with Section 300 of the NIRC, as amended, and Rule 4, Sections 2 and 7 of the CREATE Act IRR.
It is aligned with the updated Philippine Development Plan 2017–2022 and the long-term vision of the Inclusive Innovation Industrial Strategy (i3S) of the Department of Trade and Industry and Pagtanaw 2050 of DOST’s National Academy of Science and Technology.
Tier I includes all activities listed in the 2020 Investment Priorities Plan (as amended by Memorandum Circular No. 2021-005), unless listed under Tier II or Tier III in the SIPP.
Examples include EV assembly and EV parts/components/systems, EV infrastructure, manufacture of energy efficient maritime vessels and equipment, electronics for smart grid and renewable energy (including wearable solar devices), bioplastics and biopolymers, renewable energy, energy efficiency and conservation projects, energy storage technologies, and integrated waste management, disposal, and recycling.
Examples include manufacturing in support of the Vaccine Self-Reliance Program or other health-related programs endorsed by DOH/DOST (or similar agencies), medicines, active pharmaceutical ingredients (APIs), and specialty hospitals.
Defense-related activities as endorsed by the Department of National Defense (DND), Armed Forces of the Philippines (AFP), or National Security Council (NSC).
Activities addressing value chain gaps in sectors such as steel, textiles, chemicals, green metals processing (e.g., copper, cobalt, nickel), crude oil refining, and lab-scale wafer fabrication.
Products/services critical for food security or supporting green/organic agriculture as endorsed by DA or PCAARRD, including integrated food production and processing (e.g., dairy), production/adoption of hybrid seeds in the NSIC Crop Variety Registration, manufacture of animal vaccines/pesticides/fertilizers, and agricultural/fisheries machinery and equipment and parts/components.
Tier III focuses on advanced, innovation-driven and high-technology activities, including R&D and Industry 4.0 technologies (e.g., robotics, AI, additive manufacturing, data analytics, nanotechnology, biotechnology), highly technical manufacturing and commercialization of IP/R&D output, and establishment of innovation support facilities such as R&D hubs and science/tech parks.
Additional activities that comply with Section 296 of the CREATE Act can qualify under Tiers II and III, provided the additional activities under Tier III are duly endorsed by relevant agencies such as DOST.
All government agencies must issue necessary regulations to implement the SIPP in a synchronized and integrated manner and must not adopt policies inconsistent with the SIPP and relevant laws. IPAs must facilitate and expedite, as far as possible, the setup and conduct of registered projects/activities through the one-stop action center under Section 310 of the NIRC (as amended).
It takes effect fifteen (15) days after its publication in a newspaper of general circulation or in the Official Gazette, as required under Section 303 of the NIRC, as amended by the CREATE Act.