The Board of Investments (BOI) has approved the investment incentives for the modernization and virus-proofing of the tourism industry following a request from Department of Tourism (DOT) Secretary Bernadette Romulo-Puyat.
The DOT discussed with tourism stakeholders the possible measures for business continuity such as upgrading facilities for clients’ health, safety and wellness. Hotels and resorts, meetings, international conventions, and events (MICE) facilities as well as tourist transport companies nationwide are among tourism enterprises eligible to apply for investment incentives.
As stated in the Department of Trade and Industry’s (DTI) official website, the tax incentives to be granted by BOI are income tax holiday for a period of three years and duty-free importation of capital equipment (only VAT will be paid) for tourism projects that will be renovated to enhance health and safety features and processes. The income tax holiday to be given will be prorated according to the amount of upgrade or renovation.
“Tourist accommodation facilities who would like to undertake improvements to make their facilities COVID-proof may consider registration of such with the BOI as modernization projects subject to qualification requirements. For existing tourism accommodation facilities in Boracay, which is currently covered by the locational restriction policy, the BOI will look into the possibility of likewise qualifying their COVID-proof improvements as modernization projects that may be entitled to a three-year income tax holiday (ITH) incentive,” says Trade Secretary and BOI chair Ramon Lopez.
Tourist transport should be locally-assembled vehicles with sanitation features such as barriers, payment portals, deionizers and seat organizers for sanitation kits. Upgrades for tax incentives include renovations of guest rooms, food and beverage outlets, function and meeting rooms, and recreation and common areas. Laundry, kitchen, housekeeping, employee and back of house facilities will also be modernized. The incentive also permits buildings to be installed with partial and movable partitions, built-in thermal scanners, hygiene gates and booths, non-touch door lock systems and elevator control panels, and improved water and air ventilation systems.
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