BOI Approves the 2026 Strategic Investment Priority Plan

The Department of Trade and Industry (DTI), through the Board of Investments (BOI), has issued Memorandum Order No. 47, Series of 2026, approving the 2026 Strategic Investment Priority Plan (SIPP). The 2026 SIPP serves as the principal framework for identifying investment activities eligible for fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and the CREATE MORE Act. It retains the three-tier investment classification adopted under the 2022 SIPP, aligning investment incentives with the country’s industrial development priorities and emerging economic opportunities.

Under the 2026 SIPP, registered business enterprises may qualify for fiscal incentives, including Income Tax Holidays (ITH), the Special Corporate Income Tax (SCIT), and Enhanced Deductions (EDs). The scope and duration of these incentives vary depending on the classification of the registered activity, with higher-tier activities eligible for longer incentive periods in recognition of their greater strategic importance and investment complexity.

Tier I covers Modern Basic Needs and Sustainability-Driven Industries, focusing on sectors that generate employment and support essential economic activities. Eligible activities include agriculture, value-adding manufacturing, healthcare, information technology and business process management (IT-BPM), aircraft maintenance, repair, and overhaul (MRO), and environmental infrastructure such as waste and wastewater treatment facilities, bulk water distribution systems, and climate change-related projects that reduce greenhouse gas emissions, lead to efficient use of resources, or minimize/prevent pollution.

Tier II focuses on industries that strengthen the country’s industrial capabilities, supply chain resilience, and national security. Covered activities include integrated circuit (IC) design, crude oil refining, processing of strategic and critical minerals and green metals, electric vehicle (EV) component manufacturing, EV infrastructure, renewable energy facilities, and the manufacture of energy-efficient vessels and aircraft. The incentives under this tier are intended to support industrial transformation and import-substituting activities.

Tier III covers Science, Technology, and Innovation-related Activities, prioritizing research and development (R&D), commercialization of patents, industrial designs, copyrights, and utility models, artificial intelligence (AI) and data science, quantum technology, aerospace, and other advanced technologies. The 2026 SIPP likewise extends incentives to supporting facilities, including technology startup ecosystems, space-related infrastructure, and off-grid data centers to promote innovation and strengthen the Philippines’ competitiveness in high-value industries.