DTI issues IRR for job-generating firms seeking perks

The Department of Trade and Industry (DTI) on Friday came out with the implementing rules that would guide job-generating industries seeking incentives under the 2012 Investment Priorities Plan (IPP).

The implementing rules and regulations (IRR) were approved on Sept. 4.

Among the IRR’s provisions were that incentives entitlements would be based on the project’s value-added contributions to the domestic economy, job generation, multiplier effect, and measured capacity.

“If national interest requires,” the BOI may deny registration of projects engaged in the export of a product. This includes industry inputs that are in short supply domestically.

To encourage countryside investments, the IRR will enable  firms that locate in less developed areas to get more benefits, while those in congested urban centers will have limited incentives perks.

“Projects in any of the less developed areas shall be entitled to pioneer incentives and additional deduction from taxable income equivalent to 100 percent of expenses incurred in the development of necessary and major infrastructure facilities unless otherwise specified in specific guidelines,” the IRR said.

According to the guidelines, unless projects are engaged in service-type activities or expanding export-oriented projects, “the locational restriction applies to the National Capital Region wherein projects may not be entitled to ITH.”

Trade Secretary Gregory Domingo said the rules would take effect 15 days from publication.

The 2012 IPP lists the priority sectors that are eligible for incentives. These include agriculture/agribusiness and fishery; shipbuilding; mass housing; iron and steel; and energy.