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Application for Extension of Income Tax Holiday
BOI extension application form for income tax holiday
Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: REPUBLIC OF THE PHILIPPINES
BOARD OF INVESTMENTS
APPLICATION FOR EXTENSION OF INCOME TAX HOLIDAY
Under Art. 39(a)(1) of E.O. 226
I.
INFORMATION ABOUT APPLICANT
Applicant
T.I.N.
Office Address
:
:
:
Telephone No.
Official Representative
Date of Registration
Registration No.
Registered Activity
:
:
:
:
:
Status
/
/
/
/
(Please Check)
/ New – Pioneer
/ New - Non-Pioneer
/ New – Non-Pioneer w/ Pioneer Incentives under Art. 40(a)
/ Expanding w/ Pioneer Incentives under Art. 40(a)
Committed Start of Commercial Operations
Actual Start of Commercial Operations
Regular ITH Period
:
Data on Past Availments
II.
________ years
(number)
:
:
:
From _____________ to _____________
(mo./yr.)
(mo./yr.)
The firm has been granted extension by the Board for
(_number_) years covering the period from (___mo./yr.___)
to (___mo./yr.___) using the _______________ criterion.
PERIOD APPLIED FOR EXTENSION
__________ years or From (____________) to (__________)
(number)
mo./yr.
mo./yr.
III.
CRITERIA USED (Please check)
/ /
/ /
/ /
Capital equipment to labor ratio
Net foreign exchange earnings/savings
Cost of indigenous raw materials
IV.
COMPLIANCE WITH CRITERIA (Fill up appropriate line and refer to Annexes A1 to
A3 for supporting computation)
a.
Capital equipment to labor ratio : $_________ per worker (A1)
b.
Net foreign exchange earnings/savings (A2)
Year 1
$___________
c.
Year 2
$___________
Year 3
$___________
Average
$___________
Ratio of cost of indigenous raw materials to total raw materials cost (A3)
Average Ratio ________%
Done in ___________________ this day of _______________________
____________________________
APPLICANT
REPUBLIC OF THE PHILIPPINES )
)
S.S.
SUBSCRIBED and SWORN to before me this ______ day of __________________,
______ in the __________________________ affiant exhibiting to me his Community Tax
Certificate No. ______________ issued at ______________________ on _________________.
Doc. No.
Page No.
Book No.
Series of
_________
_________
_________
_________
NOTARY PUBLIC
Until December 31, ________
PTR No. _________________
Issued at ________________
Issued on ________________
Note: In order not to be penalized, applications for extension must be filed with the BOI prior
to the filing of the Income Tax Return (ITR) on the extension year.
Annex A1
COMPUTATION OF COMPLIANCE
CAPITAL EQUIPMENT TO LABOR RATIO CRITERION
Formula to compute the capital equipment to labor ratio
Derived $ cost of equipment
Average No. of Direct Labor
The derived ratio should not exceed US$10,000:1 worker to be eligible for extension
Notes :
a. The cost of equipment shall be taken from the machinery and equipment asset account
of the Audited Balance Sheet and supporting schedule pertaining to the registered
activity covering the taxable year immediately preceding the period applied for
extension and which equipment cost shall be converted to its foreign exchange cost
equivalent using the prevailing exchange rate set by PRD-BOI at the time of
acquisition.
In case of consigned equipment, the foreign exchange value shall be taken from the
itemized list of consigned machinery and equipment submitted with the application.
b. Direct Labor – those qualified under Rule II, Sec. 1(g) of the Rules and Regulations In
the Availment of Income Tax Holiday Extension but not including line supervisors,
warehousemen, quality control personnel outside the production line, utility and
maintenance personnel.
The direct labor count shall be taken from the applicant’s payroll sheets and verified
with the supporting documents showing remittances of SSS premiums and/or
withholding taxes due to BIR and shall represent an average of the month end labor
count for the same taxable year as in item (a).
Annex A2
COMPUTATION OF COMPLIANCE
NET FOREIGN EXCHANGE EARNINGS/SAVINGS CRITERION
Compute the net foreign exchange earnings/savings by following the computation
format below:
Foreign Exchange Proceeds
Export Sales
Less :
Foreign Exchange Costs
Imported Raw Materials
Imported Supplies/Spare Parts
Depreciation of Imported Equipment
Others
Net Foreign Exchange Earnings
Sales Volume of Registered Product
Multiply by
Average CIF cost in $ per unit of product
Equivalent Sales in $
Less :
Foreign Exchange Costs
Imported Raw Materials
Imported Supplies/Spare Parts
Depreciation of Imported Equipment
Others
Net Foreign Exchange Savings
YR 1
YR 2
YR 3
TOTAL
$
$
$
$
$
=====
$
=====
$
=====
$
======
YR 1
__ units
x
US$/unit
$
YR 2
__ units
x
US$/unit
$
YR 3
__ units
x
US$/unit
$
TOTAL
$
$
=====
$
=====
$
=====
$
======
The net foreign exchange earnings/savings should be at least US$500,000 annually for the
three-year period.
In case this is not met, the derived average foreign exchange earnings/savings for the threeyear period should at least be US$500,000 to qualify for extension and which average shall be
computed as follows:
Total Net Foreign Exchange Earnings/Savings for Three Years
------------------------------------------------------------------------ ≥ $500,000.00
3
Notes :
a.
In case of foreign exchange earnings criterion Export sales value for the first three years of commercial operation shall be taken
from the certified sales summary report submitted with the application.
In the case of indirect and constructive export sales, the total peso denominated
sales value for each year shall be converted into its foreign exchange equivalent
using the corresponding annual average exchange rate set by PRD-BOI and if
not available, the rate set by CB.
b.
In case of foreign exchange savings criterion –
Check first whether the registered product is listed in the IPP at the time of
registration. If so, proceed with the computation.
The equivalent foreign exchange values of local sales of the registered product
shall be derived by multiplying the annual sales volume reflected in the summary
report with the established average annual CIF cost in foreign exchange per unit
of the registered product.
The industry group shall verify and validate the CIF cost used by the applicant
prior to its adoption in the evaluation report.
c.
The foreign exchange costs/expenses shall be taken from the certified Summary of
Imported Costs submitted with the application.
FOREIGN EXCHANGE EARNINGS CRITERION
EXPORT SALES SUMMARY REPORT FORMAT
A.
DIRECT EXPORTS
Summary of Export Sales
For the Period (Year 1)
Date
Invoice No.
Total for Year 1
Value
(US$)
Quantity
_______
======
Exchange
Rate
_______
US$
======
Value
(PhP)
BCM
Reference
________
PhP
======
(Follow same format for Years 2 and 3)
B.
CONSTRUCTIVE EXPORTS (sales to CBw, PEZA, embassies, etc.)
Summary of Export Sales
For the Period (Year 1)
Name of Exporter/Buyer A ____________________________________________
Date
Invoice No.
Sub-total
Quantity
Value (PhP)
__________
__________
PhP
========
========
Name of Exporter/Buyer B ____________________________________________
Date
Invoice No.
Sub-total
Grand Total: Year 1
(follow same format for years 2 and 3)
Quantity
Value (PhP)
__________
========
__________
PhP
========
========
========
C.
INDIRECT EXPORTS (sales to CBw, PEZA, embassies, etc.)
Summary of Sales to Direct Exporters
For the Period (Year 1)
Name of Direct Exporter A _____________________________________________
Date
Invoice No.
Sub-total
Quantity
Value (PhP)
__________
__________
PhP
========
========
Name of Direct Exporter B _____________________________________________
Date
Invoice No.
Sub-total
Grand Total: Year 1
Quantity
Value (PhP)
__________
========
__________
PhP
========
========
========
(follow same format for years 2 and 3)
FOREIGN EXCHANGE SAVINGS CRITERION
LOCAL SALES SUMMARY REPORT FORMAT
Summary of Local Sales
For the Period (Year 1)
Date
Invoice No.
Total for Year 1
(follow same format for years 2 and 3)
Quantity
Value (PhP)
========
========
FOREIGN EXCHANGE COSTS FOR THE FIRST THREE YEARS
IN US DOLLARS
Nature of Expenditure
1.
Raw materials imported from own
account
2.
Imported supplies used in the production
of registered products
3.
Imported spare parts of machinery and
equipment used in the production of
registered products
4.
Other imported materials used in
production purchased from
traders/importers (e.g. chemicals, etc.)
5.
Machinery and equipment imported from
own account
6.
Depreciation of imported machinery and
equipment used in production
7.
Rental payment on consigned/leased
machinery and equipment
8.
Freight, insurance and handling charges
paid for in foreign currency
9.
Interest expense/s on CB-approved/
registered foreign loans
10.
Remuneration of foreign personnel paid
for in foreign currency
11.
Others (Please specify)
Year
Annex A3
COMPUTATION OF COMPLIANCE
INDIGENOUS RAW MATERIAL CRITERION
Compute the ratio of cost of indigenous raw materials to total raw materials cost by
following the computation format below:
YR 1
YR 2
YR 3
YR 4
YR 5
TOTAL
A. Total Cost of Raw Materials per AFS
PhP
PhP
PhP
PhP
PhP
PhP
B. Cost of Indigenous Raw Materials
1
2
3
Total B
PhP
PhP
PhP
PhP
PhP
PhP
PhP
PhP
PhP
PhP
PhP
PhP
Total (B)
----------- x 100 ≥ 50%
Total (A)
The derived ratio should not be lower than fifty percent (50%)
Notes :
a.
The annual cost of raw materials for all taxable years prior to the extension shall be
derived from the Manufacturing Cost Statement of the AFS.
b.
The annual cost of indigenous raw materials shall be taken from the certified Breakdown
of Raw Material Components submitted in support of the AFS. The indigenous raw
materials applied for should not be those excluded by the Board.
c.
A five year computation period was used for illustration purposes only. In actual cases,
this may differ depending on year of extension applied for.
