The BGA Philippines Team, led by Managing Director Victor Andres Manhit, prepared an update for clients on the Board of Investments’ domestic roadshow for the 2026-2028 Strategic Investment Priority Plan.

Context:

  • The BGA Philippines team was invited to attend the domestic roadshow for the 2026-2028 Strategic Investment Priority Plan (SIPP) July 10, organized by the Board of Investments (BOI). The 2026-2028 SIPP, which was signed in May and publicly released in early June, identifies priority activities eligible for incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, as amended.
  • Department of Finance Secretary Frederick Go, who also chairs the Fiscal Incentives Review Board, in his keynote address described the SIPP as a key government initiative to strengthen industries and create lasting economic value. The updated SIPP groups priority activities into three tiers: Tier 1 strengthens sustainable growth, Tier 2 accelerates industry competitiveness and resilience and Tier 3 invests in the future. He emphasized that amid increasing global competition for investment, the CREATE MORE Act and the SIPP support a strategic, outcomes-driven approach to investment promotion by strengthening competitiveness, improving ease of doing business, reducing costs and ensuring a predictable investment environment. Secretary Go emphasized that the government’s inclusive growth strategy supports export-oriented industries and region-specific priorities.
  • Director of the Investments Policy and Planning Service of the BOI Sandra Marie S. Recolizado presented the key features of the 2026 SIPP and the changes from the 2022 SIPP. She clarified that inclusion in the SIPP does not automatically entitle a project to incentives because projects must still meet the qualification requirements under the General Policies and Specific Guidelines XX (GPSG), which the BOI is currently formulating to implement the 2026 SIPP. The BOI recently concluded public consultations for the GPSG.

Significance:

  • The incentives framework encourages investment in less developed areas through longer incentive periods and gives greater support to high-value investments. Export-oriented and domestic-oriented enterprises may qualify for income tax holidays and enhanced deductions, although only export-oriented enterprises may opt for the special corporate income tax. Incentives granted before the CREATE Act goes into effect remain protected until December 31, 2034, or until the expiration of the applicable incentive period. Recolizadoalso highlighted the importance of enhanced deductions for multinational companies given the implementation of the global minimum tax in several jurisdictions starting in 2026.
  • The incentives and duration of entitlement depend on the industry tier.
    • Tier 1 covers industries considered foundational to the country’s economic and social development.
      • Among the new priority activities under agriculture, fishery and forestry are reforestation, forest management and similar activities that generate carbon credits.
      • For manufacturing, the 2026 SIPP identifies specific priority manufacturing activities, replacing the 2022 SIPP’s broad coverage of all qualified manufacturing activities. Hyperscalers have been added as part of the creative and knowledge-based industries.
      • Mobile health care services have been included under health care and disaster risk reduction management services.
      • Data centers with no embedded power sources are now covered under telecommunications infrastructure, while integrated logistics services, or fulfillment centers, are eligible, provided they offer the minimum required services.
      • A new energy subcategory covers the exploration and development of energy sources, such as natural gas, while excluding coal mining or extraction. Finally, sustainability-driven activities now include commercial and industrial rainwater harvesting systems; activities under the Extended Producer Responsibility Act; green transition projects for micro, small and medium enterprises; and carbon capture and storage.
    • Tier 2 covers activities that are not undertaken locally or that address supply chain gaps and import substitution. While some activities overlap with Tier 1, Tier 2 gives priority to projects that introduce capabilities not available in the Philippines. New priority activities include defense-related services, integrated desalination plants, import-substituting activities, the use of locally produced alternative-fueled vehicles in public land transport and sustainable aviation fuel.
    • Tier 3 covers future-oriented and innovation-driven industries. New priority activities include aerospace, wafer fabrication, defense-related manufacturing, hydrogen and nuclear energy, cybersecurity, data science and quantum technologies. To support these industries, Tier 3 also covers research laboratories and facilities, research and development hubs, centers of excellence, science and technology parks, startup enablers, incubators and space-related infrastructure. It was likewise clarified that data centers with embedded power sources fall under Tier 3, while those without embedded power sources are classified under Tier 1.

We will continue to keep you updated on developments in the Philippines as they occur. If you have any questions or comments, please contact BGA Philippines Managing Director Victor Andres Manhit at vmanhit@bowergroupasia.com. 

Best regards, 

BGA Philippines Team 

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Managing Director

Dindo is recognized as one of Manila’s most well-connected and savvy advisers on developments in government and business in the Philippines. Concurrent with his role as managing director for the BGA Philippines office, he is also the founder and managing director of the Stratbase Group and president of its policy think tank, the Stratbase Institute for Strategic and International Studies.  Since 1991, Dindo has served as a member of the faculty and is the former chair of the Political Science Department and a senior fellow of the La Salle Institute of Governance at the De La Salle University, Manila. He has authored numerous papers on good governance, political, electoral and educational reform. He specializes ... Read More