Investment Laws


•  EO No. 226, otherwise known as the Omnibus Investment Code of 1987 – implemented by BOI to provide incentives to local and foreign enterprises.

•  RA No. 7042, also known as the Foreign Investments Act of 1991-law that liberalized the entry of foreign investments and established the Foreign Investment negative List (FINL).

•  RA No. 7916 or the Special Economic Zone Act of 1995 – law passed to encourage economic growth through the development of ecozones.

•  RA No. 7652, otherwise known as the Investor’s Lease Act – long term lease of 50 years, extendable by another 25 years foreign investors.


Executive Order No. 226 , otherwise known as the Omnibus Investments Code, was enacted in 1987 to develop the country’s industries, establish a competitive investment environment and discourage monopolies. The law provides a host of incentives to registered investments and sets into place systematic procedures by which local or foreign companies or business projects can easily register.

An important aspect of the law is the provision of incentives, fiscal and non-fiscal, to preferred areas of investments, pioneer or non-pioneer, export production as well as rehabilitation or expansion of existing operations.

Pioneer enterprises are registered enterprises engaged in the manufacture and processing of products or raw materials that are not yet produced in the Philippines in large volume.

It also involves the design, formula or system applied as well as agricultural, forestry and mining activities, the services and energy sectors. Non-pioneer enterprises refer to all registered producer enterprises not included in the pioneer enterprise list.

Qualified projects, depending on their category, are granted a host of incentives, including income tax holidays, tax credits, tax and duty exemption for imported raw materials and equipment, hiring of foreign labor, exemption from contractors tax, simplified customs procedure, and other tax incentives.

Investors are assured the right to repatriate of profits and earnings, payment of foreign loans and interests, and freedom from

Source: Board Of Investments (BOI)

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