Government offers added perk for foreign investors

The government is willing to offer an additional incentive to foreign investors in light of the continuing global economic uncertainty.

Board of Investments (BOI) Managing Head Gregory Domingo said the new incentive would give interested foreign investors a six-year window to avail themselves of a 12-year income tax holiday.

"However, the additional incentive would be extended only to investments deemed by the government as strategic industries," Domingo said.

The list of strategic industries as well as the six-year window for availment of a 12-year income tax holiday would still have to be approved by the Department of Finance, the Department of Trade and Industry and the National Economic and Development Authority.

Earlier, the government submitted changes to the Omnibus Investment Act for Congress to deliberate on.

The government proposes to extend the income tax holiday from the current six-eight years to 10 years plus two more years.

As a sweetener, the government also plans to allow potential investors a six-year window to avail themselves of the 12-year holiday.

The DTI is confident that the DOF will not oppose the six-year window proposal saying that a tighter incentive program could result in actual revenue loss for the government.

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