It was part of a year-long celebration of ACCRALAW’s golden anniversary and a way of giving back to its valued clients. The presenters provided insights on what prompted the government to pass these legislations, considering the challenges of foreign clients and their costs for doing business in the country.
The 2020 and 2021 priority activities are generally carried over as Tier 1 activities. They focus on job and value creation, and support for strategic or emerging industries. Export- and BPO- related activities, major infrastructure, and telecommunications projects fall under Tier 1 category. The incentives on EV-related projects align with the PSA’s clarificatory amendment. EVs are not considered as PUVs . Foreign investors may now engage in the public transport business, especially using EVs.
Government endorsed defense-related activities are now considered priority projects. The Foreign Investments Act amendment removed substantial export requirements, which in the past foreign investors had to meet to undertake such projects. The focus of the incentives is on the registered activity and not on the location of activity . It follows that the unregistered activities of an entity registered with an Investment Promotions Agency may be subject to a default taxation regime even if such activities are carried out inside the IPA administered special zone. The government has yet to clarify the extent of local government units’ authority over unregistered activities inside the special zones.