Business Opportunities

The Government Investment Incentives of doing business in the Philippines, particularly in the Province of Catanduanes provide a better Business Opportunities for Foriegn and Local Investors. Doing business in Catanduanes has promising benefits. Aside from the low labor cos t , the Government has investment incentives to prospective investors. Two agencies under DTI, the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) give separate incentives to investors.

I. Doing Business in Catanduanes

a. Location and boundaries

Catanduanes is bounded by Maqueda Channel on the West, Lagonoy gulf on the South, Philippine Sea on the North and East.

b.Infrastructure facilities

One secondary airport
Two national ports
Five municipal ports
One local exchange carriers
Two mobile phone companies
One facsimile station
Four cable TV stations
Three radio stations
Proposed Industrial Estates/Ecozones

c. Potential investment areas

  Agri-industrial ventures
  Abaca fiber and derivatives
  Lasa production and processing
  Support services
  Business Process Outsourcing

d. Local Incentives

Exemption from the payment of building permit fees and other fees and charges, mayor's permit fees, business sales taxes, fees and charges within 3 years from the start of commercial operations.

Exemption from the basic real property tax accruing to the general fund, imposed under the Tax Code of Virac for a period of 2 years from the date of approval by the Municipal Investment Incentive Board.[Go Top]

II. Cost of Doing Business

a. Registration Fees

Corporations and Partnerships (Securities and Exchange Commission)
Incentives Availment (Board of Investments)
Business Name Registration-Single Proprietorships (Department of Trade and Industry.
Regulation and Consumer Protection, DTI)
Local and National Tax
Corporate Income Tax
Income Tax Rates as Passive Income of Domestic / Resident Corporation
New Taxes for Corporations under the Tax Reform Act of 1997
Preferential Income Tax Rates for Non-Resident Corporations
Individual Taxation
Value Added Tax
Stock Transaction Tax / Income Tax Rate for Special Corporation

b. Manpower Resources

Minimum Wage (Manufacturing Sector)
Work Day
Overtime Remuneration
Night-Shift Differential Pay
Service Incentive Leave
Salaries and Wages

c. Mandatory Employment Contribution

13th Month Pay
Social Security System
Philhealth
Home Development & Mutual Fund

d. Utilities

Electricity Rates
Water Rates
Sewerage Treatment
Gas and Fuel Costs
Telecommunication Rates
Internet Service Fees

e. Transportation

f. Power

g. Water

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III. Investment Incentives

Two agencies under DTI, the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) give separate incentives to investors as long as they meet a number of criteria.

Board of Investments (BOI)

The BOI, the lead investment promotion agency of the government issues the Investment Priority Plan (IPP) annually. Under Book I of the Omnibus Investments Code, an investor may enjoy certain benefits and incentives provided he invests in preferred areas of investments found in the current IPP. Incentives include tax exemptions and concessions. An enterprise may still be entitled to incentives even if its business activity is not listed in the IPP as long as it has:

At least 50% of its production is for exports, if Filipino owned

At least 70% of its production is for exports, if majority foreign-owned (or more than 40% equity)

Philippine Economic Zone Authority (PEZA)

The PEZA was established under Republic Act 7916 or the Special Economic Zone Act of 1995. Its main mission is to spur the growth and diversification of exports by attracting foreign investors to locate their manufacturing plants, their regional warehouses or their IT companies in the country's economic zones. Currently, there are 150 economic zone locations in different sites all over the country. [Go Top]