The Film Development Council of the Philippines (FDCP) is calling on film and audiovisual (AV) companies to apply for the 2020 Investments Priorities Plan (IPP), a tax incentive offered through the Department of Industry – Board of Investments (DTI-BOI).
Signed by President Rodrigo Duterte on Nov. 18, the 2020 IPP is a list of preferred investment areas that may be given investment incentives to boost and modernize the Philippine Economy, generate massive levels of decent jobs nationwide, and help solve societal issues on employment, among others.
These investment areas include services that involve original content such as animation and film (motion picture production) wherein approved projects may be entitled to an Income Tax Holiday (ITH) for a maximum of four years with a validity of three years (2020 to 2023) and subject to annual review to accommodate any changes.
Income from sales, advertisements, tickets/box office returns, royalties including publication rights, and rentals for special showing within the incentive period may also be entitled to ITH.
“As a heavily affected industry especially by the pandemic, we are grateful to the national government for heeding our plight by including the film and audiovisual industry in the IPP priority sectors. The tax incentives from the DTI-BOI will greatly help our film and audiovisual companies as they continue to keep the industry afloat during these trying times,” said FDCP Chairperson and CEO Liza Diño.
“We hope our companies that invest in their projects will look into applying for the program for a much-needed incentive,” Diño added.
In an Advisory issued on June 1, the FDCP encouraged film and audiovisual companies to apply to the 2020 IPP for a chance to receive fiscal incentives. “The FDCP enjoins all production companies to apply for the 2020 IPP Incentives and commits to assist stakeholders during the application process,” Diño stated.
According to the DTI-BOI, film and audiovisual companies may apply their film projects under the 2020 IPP subject to the following:
• The applicant must be a producer (of film, TV, and other AV content) that has financially invested in a project.
• The project must be applied prior to its commercial release (on any platform).
• One application must be lodged per project.
• All projected financial expenses must be submitted.
As the concerned national film agency, the FDCP may provide an endorsement if required by the DTI-BOI. The endorsement will be on a per-project basis. The FDCP together with the DTI-BOI will also conduct an orientation on the IPP tax incentives and application process.
Applications for the 2020 IPP must be lodged through the DTI-BOI. The requirements for the application are as follows:
• BOI Form 501 for projects with PHP 15 million and above budget
• BOI Form 001 for projects with PHP 3 million and below budget
• BOI Form 002 for projects between PHP 3 million to PHP 15 million
• Checklist of attachments
For more information, contact the BOI Project Evaluation and Registration Division at 8683-3538 or [email protected].
