Omnibus Investments Code of 1987

Implementing body of Books One to Five of the Code.
Composed of 7 governors: Secretary of Trade and Industry (Chairman), 3 DTI Undersecretaries, and 3 members from government/private sectors.
Qualifications: Filipino citizens, 30 years or older, competent in relevant fields.
Powers include preparing annual Investment Priorities Plan, approving registered enterprises, resolving disputes, recommending immigration permits for foreign nationals, and ensuring compliance with Code provisions.
May cancel or suspend registrations for violations and delays.
Can impose performance bonds, refund incentives, and regulate investment by foreigners.
Responsible for rules, regulations, feasibility studies, data compilation, and policy recommendations.

Chairman presides meetings, reports to President, liaises for joint ventures, and proposes policies.
Vice-Chairman manages BOI, prepares meeting agendas, assists investors, and acts in Chairman's absence.

"Registered Enterprise": Entity under Philippine laws registered with BOI, excluding banking and financial intermediaries.
"Pioneer Enterprise": Engages in manufacturing/processing goods or activities new or essential to national goals.
"Non-pioneer Enterprise": Other registered producer enterprises.
"Investment Priorities Plan": BOI's detailed annual plan identifying preferred economic activities eligible for incentives.
"Foreign Investments" and "Philippine National" define ownership and control criteria relevant to registration and incentives.
"Tax Credit": Certificate of credit against taxes, valid 10 years, not taxable as income.

BOI annually prepares IPP detailing economic activities qualifying for incentives.
Includes studies on demand, supply, regional factors, export potential, and infrastructure.
President approves or returns IPP for revision.
Amendments allowed but vested rights of registered enterprises protected.
IPP published in newspapers and implemented by government agencies.

Qualifications include Filipino ownership (minimum 60%), economic viability, compliance with IPP, and accounting systems for preferred projects.
Applications filed with BOI are automatically approved if not acted upon within 20 working days.
Evaluation criteria include ownership, economic returns, capacity, foreign exchange utilization, local resource use, technology application, and equity distribution.
Certificate of Registration issued specifying enterprise details and terms.

Protection of investments per Constitution.
Foreign investors entitled to repatriate investments and earnings at prevailing exchange rates.
Protection from expropriation except for public use with just compensation.
Restrictions on requisition except during war or emergency.

Income Tax Holiday: 6 years for pioneer, 4 years for non-pioneer; extensions possible under conditions.
Additional deduction for labor expenses, doubled in less-developed areas.
Tax and duty exemptions on imported capital equipment with conditions.
Tax credit for purchase of domestic capital equipment qualifying under conditions.
Exemption from contractor's tax.
Simplified customs procedures and unrestricted use of consigned equipment.
Employment of foreign nationals allowed under specific terms, with training requirements.
Exemptions and tax credits for breeding stocks and genetic materials.
Tax credit on duties for raw materials used in exports.
Access to bonded warehouses and exemptions on spare parts importation.
Exemption from export-related taxes and fees.

President empowered to rationalize incentives schemes.
Refund and penalties in case of cancellation.
Incentives limited to preferred activity portions for enterprises with multiple areas.

Foreign equity limited to 40% in non-registered enterprises unless prior BOI approval granted under certain conditions.
Prior registration required with BOI and Central Bank.
Licenses required for foreign business entities to operate, subject to specified requirements including resident agent, capitalization, office establishment, reporting, and protections for local stakeholders.
Violations can cause license cancellation and fines.

Foreign entities may establish regional headquarters in Philippines with license from SEC and BOI recommendation.
Must meet minimum requirements, including certification of international trade function, authorized Board resolution, remittance obligations, and restrictions on income sources and management participation.
Expatriate personnel entitled to multiple entry visas and various tax exemptions.
Regional HQs enjoy income tax exemptions and exemption from local taxes and fees.
Tax and duty-free importation of training materials and limited importation of motor vehicles.

Multinational companies may establish regional warehouses for spare parts, components, and raw materials storage with BOI license.
Must follow strict operating, storage, and customs rules.
Tax incentives for goods destined for re-export; taxes apply if goods enter local market.
Warehousing period extended with fees; violations subject to forfeiture and penalties.

Aliens investing at least $75,000 ($50,000 in some cases) can obtain special visa.
Requirements include good moral character and no communicable diseases.
Annual reports required to maintain visa.

Authority may allow foreign nationals employment in supervisory/technical/advisory positions.
Tax incentives on merchandise entering and leaving zones, with special provisions for exports and local sales.
Additional local tax exemptions and incentives on real estate and equipment.

BOI empowered to issue implementing rules and impose fines for non-compliance.
Applications and supporting documents confidential.
Appeals from BOI decisions must be filed directly to the Supreme Court; orders immediately executory.