FDCP Advisory No. 01: Encouraging Producers to Apply for Fiscal Incentives under 2020 Investment Priorities Plan (IPP)
June 01, 2021
Republic of the Philippines
Office of the President
FILM DEVELOPMENT COUNCIL OF THE PHILIPPINES
ADVISORY NO. 01
Series of 2021
In the exigency of service, the Film Development Council of the Philippines releases this Advisory to film and audiovisual stakeholders in the country regarding the 2020 Investments Priorities Plan (IPP), which was approved by the President on 18 November 2020.
1. The 2020 IPP. The 2020 IPP is a list of investment priority sectors or preferred investment areas that may be given investment incentives. The 2020 IPP aims to modernize the Philippine Economy, generate massive levels of decent jobs across the country and help solve societal issues on employment, housing, transportation, and safe and secure travel, among others.
2. Coverage. Among the priority sectors in the 2020 IPP included the Strategic Services, which also covers services that involve original content such as animation, motion picture production, software development including the development of learning management systems, game development, healthcare information management systems, and engineering design.
3. Incentive. The registered enterprise shall be entitled to following fiscal incentives:
- Income Tax Holiday (ITH) for a maximum of four (4) years for new projects and three (3) years for expansion projects. Income from sales, advertisements, tickets/box office returns, royalties including publication rights, and rentals for special showing earned by the producer within the incentive period may be entitled to ITH;
- Duty free importation of capital equipment, spare parts, and accessories at zero duty (only capital equipment, spare parts, and accessories directly needed and exclusively used in its operation shall be entitled to zero duty)
The 2020 IPP has a validity of three years (2020-2023) subject to annual review to accommodate any changes.
4. Eligibility for Film and Audiovisual Producers. As per the Department of Trade and Industry – Board of Investments (DTI-BOI), film and audiovisual producers may apply their film projects under the 2020 IPP subject to the following:
a. The applicant must be a producer/production company (of film, TV, and other AV content) that has financially invested in a project.
b. The project must be applied prior to its commercial release (on any platform).
c. One application must be lodged per project.
d. All projected financial expenses must be submitted.
5. FDCP Endorsement. The DTI-BOI may consult and/or require an endorsement from a concerned national agency such as the FDCP for film and audiovisual productions. The endorsement will be on a per-project basis.
6. Submission of Applications. Applications for the 2020 IPP must be lodged through the Department of Industry – Board of Investments (DTI-BOI). Attached are the following forms and checklist of attachments for the application for the 2020 IPP:
a. BOI Form 501 for projects with 15 M and above budget
b. BOI Form 001 for projects with 3 M and below budget
c. BOI Form 002 for projects between 3 M - 15 M
d. Checklist of attachments
The FDCP enjoins all production companies to apply for the 2020 IPP Incentives. Further, the Agency commits to assist during the application process.
For more information, please contact the Infrastructure and Services Industries Service of the Board of Investments at 8683-3538 / [email protected].
For information and widest dissemination.
USEC. MARY LIZA B. DIÑO
Chairperson and CEO
2. DTI Memorandum Circular No. 2021 - 001 on General Policies and Specific Guidelines to Implement the 2020 Investment Priorities Plan
MEMORANDUM CIRCULAR NO. 2021-001 - GENERAL POLICIES AND SPECIFIC GUIDELINES TO IMPLEMENT THE 2020 INVESTMENT PRIORITIES PLAN.pdf
June 23, 2021
June 17, 2021
May 26, 2021
May 26, 2021