Companies planning to expand or invest in the Philippines have been urged to review the newly approved 2026 Strategic Investment Priority Plan (SIPP), which grants qualified projects access to a range of tax incentives, including income tax holidays, enhanced deductions, and value-added tax exemptions.
Approved by President Ferdinand Marcos Jr. through Memorandum Order No. 47 on 21 May, the 2026 SIPP serves as the government’s updated roadmap for industries and activities eligible for fiscal incentives under the CREATE MORE Act. The measure is aimed at attracting investments, generating jobs, and supporting priority sectors of the economy.
The plan classifies eligible investments into three tiers, with higher-tier projects entitled to longer incentive periods.
Tier I covers a broad range of industries tied to basic needs and sustainability, including agriculture, fisheries, manufacturing, healthcare, logistics, energy, water treatment, waste management, and climate-related projects.
Tier II focuses on activities considered critical to national development, such as food security, defense-related services, renewable energy, electric vehicles, crude oil refining, and import-substituting industries.
Tier III covers advanced and innovation-driven sectors, including artificial intelligence, cybersecurity, semiconductor wafer fabrication, nuclear and hydrogen energy, biotechnology, and research and development.
The government said the SIPP aligns with key national development strategies, including AmBisyon Natin 2040, the Philippine Development Plan 2023–2028, PAGTANAW 2050, and the Trabaho Para sa Bayan Plan.
Under the memorandum, investment promotion agencies are directed to facilitate the establishment of registered projects and coordinate with local government units and national agencies to streamline permits and approvals through one-stop action centers.
Government agencies administering incentives have likewise been instructed to issue the necessary implementing regulations and ensure that policies remain consistent with the investment plan.
The Board of Investments said enterprises with activities listed under the SIPP may qualify for incentives such as income tax holidays, a 5-percent special corporate income tax, enhanced deductions, duty-free importation of capital equipment and raw materials, as well as VAT exemption and VAT zero-rating privileges.
