Question & AnswerQ&A (DOE)
Republic Act No. 8479 is commonly known as the Downstream Oil Industry Deregulation Act of 1998.
The guidelines cover refining, storage, distribution, and marketing of petroleum products.
Refinery involves oil refining, oil processing, and oil movement and storage within the refinery, including manufacturing petroleum products through distillation, conversion and treatment of crude oil and other hydrocarbons.
The applicant must submit an endorsement from the DOE certifying that the applicant is a natural or juridical person with new investments.
Gasoline retailing stations must invest an amount equivalent to Ten Million Pesos (P 10M) as a minimum capital requirement, excluding land.
Incentives are available for a period of five (5) years from the date of registration, except for the Income Tax Holiday which is reckoned from the date of commercial operation.
ITH exempts income derived from the registered activity from income tax for five years starting from the date of commercial operation.
An additional deduction of 50% of the wages corresponding to the increased number of direct laborers is allowed, and this deduction is doubled if the activity is in a Less Developed Area.
The equipment must not be domestically manufactured in sufficient quantity or comparable quality, must be reasonably needed and exclusively used in the registered activity, and must have prior BOI approval endorsed by DOE.
Yes, they may opt to be governed by RA 8479 by securing DOE endorsement and surrendering their EO 226 Certificate of Registration, with incentives restricted to the remaining period.
First, file an application for DOE endorsement with supporting project details and compliance; then, upon DOE endorsement, file for BOI registration, which includes evaluation, approval, and issuance of the Certificate of Registration.
The BOI Governing Board must render a decision within twenty (20) working days after official acceptance of the application.
The application is automatically approved, subject to normal and additional conditions imposed by the Board.
Yes, registered persons may employ foreign nationals in supervisory, technical, or advisory positions for five (5) years from the date of registration.