One of the advantages of business process outsourcing registration in the Philippines is the tax incentives available to foreign investors. The Board of Investments (BOI) offers tax benefits for companies which are a majority foreign-owned enterprise if they export at least 70% of their production (more than 40% foreign equity) or the project is in one of the less-developed areas mentioned in the IPP (Investment Priority Plan).
To avail of BOI incentives the company must be a domestic corporation. Foreign branch offices
To register with the Board of Investments a BPO must fill out an application form with the basic company details, type of project and submit a 5 year business plan with projected profit and loss sheet with and without BOI incentives. IT BPO businesses are required to invest a minimum of USD 2,500.00 per seat. The USD 2,500.00 investment per seat may include:
Cost of equipment (hardware and software), office furniture and fixture, building improvements and renovation, and other fixed assets except land, building and working capital.
Business Process Outsourcing Activities under IT BPO
- Customer Contact Centers
- Medical Transcription
- Software Development
- Business Process Outsourcing (accounting, financial services, HR, administrative and overheard operations, audit)
BOI Tax Incentives for BPO
Tax incentives given by the Board of Investments to the IT BPO industry consist of:
- 4 year Income Tax Holiday (extendable)
- Duty free importation of capital equipment
- No Taxes and Duties on Imported Spare Parts
- No Wharfage Dues And Export Tax, Duty, Impost
- Exemption from Local Business Tax
Other Non Tax Incentives for Business Process Outsourcing:
Employment of foreign nationals in supervisory, technical, or advisory positions for a period of five years from date of registration. This restriction does not apply to the positions of president, general manager and treasurer of enterprises that are majority owned by foreign investors.
Spouses and unmarried children below 21 years old are permitted to enter and reside in the Philippines during the employment period.
BOI Registration Philippines Business Outsourcing
Once your Philippines BPO has all the necessary documents to apply for BOI Registration your application can be submitted to the Project Evaluation and Registration Dept. of the BOI.
Dayanan Philippines Business Consultant is your gateway to facilitate registration of your Philippines Business Process Outsourcing company with the BOI. Contact us right now to know more.