Issuing authority; effectivity; publication
- The order is issued by the President of the Philippines and is signed by RODRIGO ROA DUTERTE.
- The order 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.
Enjoined compliance and consistency obligations
- Government agencies and entities must implement the 2020 IPP through the issuance of the necessary regulations for a synchronized and integrated implementation.
- No government body may adopt any policy or take any course of action contrary to or inconsistent with the IPP and relevant laws.
- In granting incentives, the Board of Investments must ensure consistency with State policies under EO No. 226 and the national goals under Republic Act No. 11469 (“Bayanihan to Heal as One Act”) and Republic Act No. 11494 (“Bayanihan to Recover as One Act”).
Board annual reporting duty
- The Chairman of the Board of Investments must render an annual report to the President on the accomplishments and implementation of the IPP.
Preferred activities for investment (IPP)
The preferred activities under the 2020 IPP include the following categories and qualified sub-activities.
All Qualified Activities Relating to the Fight against the COVID-19 Pandemic include:
- Essential Goods, covering production/manufacture of medicines, medical equipment and devices, personal protective equipment (PPE), surgical equipment and supplies, laboratory equipment and its reagents, medical supplies, tools, and consumables such as sanitizers and cleaning materials (including sodium hypochlorite and povidone iodine), and the production/manufacture of raw materials, semi-finished/intermediate goods, and machinery and equipment for producing the foregoing.
- Repurposing of manufacturing activities to produce the listed COVID-19 products.
- Essential Services, covering provision of services such as crematoriums, health waste treatment and disposal, laboratories, test facilities, hospitals, and quarantine facilities.
- Additional COVID-19 related products and services, subject to the determination by the Board, including those under National Government or agency/local government unit programs to fight COVID-19 or mitigate its impact.
Investments outside congested urban areas include qualified activities, subject to the determination by the Board, supporting programs to generate employment opportunities outside congested urban areas (including the Balik Probinsya Program or similar Government programs).
For activities under the qualified listing for employment-generation outside congested urban areas, the Board may provide up to 6 years of Income Tax Holiday upon determination that the activities are highly essential to attain the national goal under Republic Act No. 11469, to mitigate or avoid a serious threat to lives, health, safety, and security of Filipinos and address long-term adverse effects on livelihood and severe disruption of economic activities.
Manufacturing, agriculture, services, housing, infrastructure
All Qualified Manufacturing Activities including Agro-Processing cover:
- Manufacture of industrial goods and processing of agricultural and fishery products, including Halal and Kosher food, into (a) semi-finished/intermediate goods for inputs in other goods, or (b) finished products or consumer goods for final consumption.
- Manufacture of modular housing components and machinery and equipment including parts and components.
- For Metro Manila, only modernization projects may qualify for registration.
Agriculture, Fishery and Forestry cover:
- Commercial production of agricultural, fishery, and forestry products.
- Nurseries, hatcheries, postharvest facilities, and other support services and infrastructures.
- For Metro Manila, only agricultural infrastructure and support services and urban agriculture projects may qualify for registration as new, expansion, or modernization.
Strategic Services include:
- IC Design: logic and circuit design techniques to design integrated circuits (ICs).
- Creative Industries/Knowledge-Based Services: IT-BPM services for the domestic market (e.g., contact centers, data analytics) and those involving original content such as animation, software development, game development, healthcare information management systems, and engineering design; and digital or technological start-ups/activities.
- Maintenance, Repair, and Overhaul (MRO) of aircraft: MRO of all types of aircraft.
- Charging/Refueling Stations for Alternative Energy Vehicles: except LPG-run vehicles.
- Industrial Waste Treatment: establishment of treatment facilities for toxic and hazardous wastes (THW) from industrial operations.
- Telecommunications: establishment of connectivity facilities for fixed and mobile broadband services; only new players may qualify for registration.
- State-of-the-art Engineering, Procurement, and Construction: engineering design, procurement, and construction for industrial plants and infrastructure.
Healthcare and Disaster Risk Reduction Management Services cover:
- Establishment and operation of general and specialty hospitals, and other medical/healthcare facilities including drug rehabilitation, quarantine and evacuation centers.
Mass Housing cover:
- Development of mass housing units based on a price ceiling of Php2.0 Million.
- In-city low-cost dwelling projects for lease/rent.
- For Metro Manila, only in-city low-cost dwelling for lease/rent may qualify for registration.
Infrastructure and Logistics including LGU-PPPs cover:
- Establishment and operation of physical infrastructures vital to economic development and prosperity, including airports, seaports, (air, land and water) transport, LNG storage and regasification facilities, pipeline projects for oil and gas, bulk water treatment and supply, training facilities, testing laboratories, and domestic industrial zones.
- PPP projects initiated and/or implemented by Local Government Units (LGUs).
Innovation; inclusive business; environment; energy
Innovation Drivers include:
- R&D activities, conduct of clinical trials (including drug trials), establishment of Centers of Excellence, innovation centers, business incubation hubs, smart cities, fabrication laboratories (fablabs)/co-working spaces, and development of mobility solutions and digital trade.
- Commercialization of new and emerging technologies; uncommercialized patents on products and services; and products of locally undertaken R&D, including:
- Agricultural biotechnology tools
- Disaster mitigation/prevention hardware or software
- Hardware or software for increasing agricultural productivity
- Mechanized means for natural resources conservation
- Portable technologies
- Hardware or software for prevention of disease outbreaks
- Remote monitoring devices or systems
- Professional services for remote sensing
- Hardware or software for upgrading local industries
- Photonics and Nanotechnology
- Natural health products
- Startup and startup enablers under Republic Act No. 11337 (Innovative Startup Act).
Inclusive Business (IB) Models include:
- Business activities of medium and large enterprises (MLEs) in the agribusiness and tourism sectors that provide business opportunities to micro and small enterprises (MSEs) as part of their value chains.
- IB projects may qualify for Pioneer status.
Environment or Climate Change-Related Projects include:
- Manufacture/assembly of goods and establishment of energy efficiency-related facilities, except those covered under Republic Act No. 11285 (Energy Efficiency and Conservation Act), where utilization would significantly lead to efficient use of energy, natural resources or raw materials; minimize/prevent pollution; or reduce greenhouse gas emissions.
- Green ship recycling based on international standards.
- Establishment of privately-owned materials recovery facility.
Energy includes:
- Power generation projects utilizing conventional fuels (coal, diesel, bunker, natural gas), waste heat and other wastes.
- Establishment of battery energy storage systems.
Export activities and special laws
Export Activities include:
- Production and manufacture of export products.
- Services Exports.
- Activities in support of exporters.
Special Laws mandate inclusion in the IPP for purposes of incentives for:
- Industrial Tree Plantation (P.D. 705)
- Mining (R.A. 7942) (limited to capital equipment incentive)
- Publication or Printing of Books/Textbooks (R.A. 8047)
- Refining, Storage, Marketing and Distribution of Petroleum Products (R.A. 8479)
- Rehabilitation, Self-Development and Self-Reliance of Persons with Disability (R.A. 7277)
- Renewable Energy (R.A. 9513)
- Tourism (R.A. 9593)
- Energy Efficiency and Conservation (R.A. 11285)
BARMM priority investment areas (2020–2022)
The 2020–2022 BARMM Proposed Lists establish the following priority investment areas for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
EXPORT ACTIVITIES include:
- Export Trader and Service Exporters
- Support Activities for Exporters
AGRICULTURE, AGRIBUSINESS, AQUACULTURE and FISHERY include:
- Agriculture and Agribusiness, covering all types of agricultural production, farming, plantation, processing or manufacturing so long as the land for such activities is based in BARMM; including value-chain/value-adding, logistical and supply chain agribusiness activities based in or involving BARMM agricultural products or the farmers of the region, including silo-storage and drying facilities.
- Aquaculture and Fishery, covering aquamarine industry, inland water resources, seaweeds, fishing; fishpond and other marine/inland/brackish water farming such as abalone farms, shrimp farming, or crab fattening; establishment of hatcheries or breeding of fingerlings and processing of such marine and inland water resources.
BASIC INDUSTRIES include:
- Production of pharmaceuticals such as antibiotics, traditional or herbal medicines and related activities such as bio-prospecting.
- Textile or garments; water supply and treatment; ice plant refrigeration.
- Traditional craft like boat building.
- Production of organic and inorganic fertilizers.
- All types of heavy breaking, ship repair and servicing.
- Dredging for industrial purposes and landfill.
- Cement production and concrete aggregates.
INFRASTRUCTURE AND SERVICES include:
- Strategic infrastructure projects such as railways, bridges, toll ways, flood control, and support industries like sand and gravel, batching plants and pre-mixing of cements; air, land and water transportation.
- Telecommunications, including construction and creation of international gateway facilities both satellite-linked or linked by terrestrial and submarine cables for internet connectivity, so long as these are based in BARMM and hold BARMM franchise, or service BARMM areas to and from BARMM to increase inter-connectivity and support regional integration.
INDUSTRIAL SERVICE FACILITIES include:
- Industrial centers or industrial estates including testing and quality control laboratories; manpower training and demonstration centers; vocational and technical skills services and facilities; call centers and IT-related enterprises such as business process outsourcing; tool and dye shops and similar facilities.
- Metal casting and metal working; furniture and fixtures; ceramics and tile-making; petrochemical complex and industrial gases.
ENGINEERING INDUSTRIES include:
- Engineering products, electronics and telecommunication products.
- Fabrication of construction materials including pre-fabricated construction materials using new technologies (e.g., 3D printing) or indigenously sourced materials.
LOGISTICS include:
- Logistics, supply chain and logistics network industry; shipping, hauling and trucking; cargo shippers and forwarders; bulk carrier; warehousing and depots; storage; and other logistics facilities principally based in BARMM, including transshipment hubs and services using BARMM ports, airports or located near its special economic zones.
- Ports industry and allied industry in BARMM, including ancillary services such as arrastre and stevedoring.
BIMP–SAGA related investment enterprises include:
- Enterprises using the BIMP-EAGA framework on trade and investments located or with base of operations in Brunei; Sabah and Sarawak in Malaysia; Maluku, Sulawesi, Kalimantan and Irian Jaya in Indonesia; and Mindanao and Palawan in the Philippines that invest and engage in economic activity in BARMM, including traditional cross-border trade and age-old barter trading to encourage formalization of peripheral shadow economies.
TOURISM include:
- Establishment of tourism-related facilities and attractions; tourism-related services; hotel and restaurants catering to BARMM tourists; Halal-based tourism.
- Tourist accommodation facilities; tourist transport facilities; development of retirement villages including health or medical facilities and other amenities.
HEALTH AND EDUCATION SERVICES AND FACILITIES include:
- Establishment of private hospitals, medical clinics, wellness centers, primary education, secondary education, tertiary education (colleges, universities and vocational-technical schools), and ancillary or support services such as teacher training centers.
HALAL INDUSTRY includes:
- Halal-related business enterprise obtaining necessary Halal certification or operating under Islamic (Shariah) law principles.
- Halal is defined as permissible products and services under Islamic Law.
INVESTMENT OPERATIONS UNDER REPUBLIC ACT NO. 11439 include:
- Investment operations carried out by an Islamic Bank through Shari’ah-compliant arrangements, contracts and structures (e.g., mudarabah, partnership, istisna’a construction and manufacture arrangements) in the priority areas listed under the BARMM IPP, pursuant to Republic Act No. 11439.
ENERGY includes:
- Energy investments in upstream and downstream industries such as power generation, transmission and distribution.
- Off-grid and Small Power Utility Groups (SPUG) areas as priority areas for investments and incentives.
- Construction of sub-stations and transmission and distribution towers, consistent with the need to address frequent power outages from man-made and natural disaster causes.
Registration qualifications; location; transition note
- Project registration for certain priority areas is subject to qualification criteria to be defined and clarified by the Board in implementing guidelines (subject to the criteria on the qualification for registration of projects to be defined and clarified by the Board in the implementing guidelines).
- Certain healthcare location-based incentives are subject to a positive list of location as endorsed by the DOH (subject to positive list of location as endorsed by the DOH).
- Contact centers and non-voice business processing activities located in Metro Manila may no longer qualify for incentives with the Board of Investments under Executive Order No. 226 (Omnibus Investments Code of 1987, as amended), starting year 2023, unless an earlier period is provided under transition provisions in the 2nd tax reform package on rationalization of incentives that Congress may subsequently enact.