[Ask the Tax Whiz] What should investors look out for in 2026 Strategic Investment Priority Plan?

With the approval of Memorandum Order No. 47, the Philippine government has unveiled the updated 2026 Strategic Investment Priority Plan (SIPP) developed by the Board of Investments (BOI) in close coordination with the Department of Trade and Industry (DTI), the Fiscal Incentives Review Board (FIRB), and various Investment Promotion Agencies (IPAs).

The 2026 SIPP serves as the Philippines’ investment roadmap through 2028, providing a blueprint for the government to grant fiscal and non-fiscal incentives to registered business enterprises (RBEs) under the CREATE MORE Act. 

What’s new with the 2026 SIPP? 

The 2026 SIPP is built upon the previous 2022 SIPP. Both frameworks are created to provide a list of activities that may qualify for CREATE MORE Act tax incentives, and use a three-tier policy to organize the following activities.  

But compared to its predecessor, the 2022 SIPP puts greater emphasis on manufacturing, infrastructure, and essential services to support the country’s post-pandemic recovery. The updated 2026 SIPP broadens support for innovation, clean energy, and technological advancements, centered on artificial intelligence, quantum computing, cybersecurity, and advanced renewable energy. 

Key activities for each Tier: 

Tier I: modern basic needs, sustainability-driven, and climate-related projects.

Tier II: defense-related services, projects that address industrial value-chain gaps, and food security-related activities,

Tier III: technological advancements such as artificial intelligence, quantum computing, cybersecurity, hydrogen, nuclear energy, and advanced R&D. 

The 2026 SIPP also removes some activities listed in the previous framework, such as motor vehicle inspection centers, facilities engaged in the scrapping, treatment, storage, and disposal of old public utility vehicles.

Another notable change is the addition of coal mining and production as priority activities, the inclusion of export activities recognized as covered by special laws, and the introduction of priority investment areas for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), such as halal enterprises (halal, kosher, and organic), halal tourism, and Shari’ah-compliant investments. 

Overall, the 2026 SIPP reflects a shift towards the government’s investment strategy. More than a list of incentive-eligible activities, it serves as a targeted roadmap to pursue economic transformation and national competitiveness. 

How can RBEs benefit from this new investment roadmap? 

The 2026 SIPP was published on June 2, 2026, in the Official Gazette, and will take effect 15 days after its publication in accordance with the National Internal Revenue Code.

Upon its effectivity, Local Government Units (LGUs) and other government offices are mandated to cooperate with IPAs and comply with RA 11032 or the Ease of Doing Business (EODB) and Efficient Government Service Delivery Act of 2018 to ensure a streamlined process of licenses, permits, and other requirements. 

Under the CREATE MORE Act, projects that are qualified within the 2026 SIPP can receive tax incentives for 14 to 27 years, depending on the location and tier of their enterprises. 

For the Philippine Economic Zone Authority (PEZA) and enterprises located within PEZA economic zones, the implementation of this framework is substantial, specifically those in sectors of export, manufacturing, renewable energy, logistics, technology infrastructure, and advanced industrial activities, as they are in a position to be key beneficiaries of the new mandate. 

Similarly, the Information Technology and Business Process Association of the Philippines (IBPAP) and the broader IT-BPM sector gain significant advantages with AI, advanced technologies, and digital transformation initiatives, after becoming a highlight of this new government investment strategy. 

This recalibrated approach for providing tax incentives signals that the government is positioning the country as an investment hub for innovation and sustainability. Instead of focusing on quantity, it now targets industries that can be major drivers of stable economic growth, providing a straightforward path on where the government focuses its development efforts, building a more competitive and dependable business model for foreign investors. – Rappler.com

Mon Abrea is a Global Tax Policy Expert and Chief Tax Advisor of the Asian Consulting Group (ACG), the Philippines’ premier tax advisory and investment consulting firm—providing tax strategy, compliance, and policy advisory services to multinational corporations, foreign investors, and government institutions. For strategic tax advisory, CONSULT ACG, or you may also send an email to consult@acg.ph to host investment and tax briefing in key cities across Asia, Middle East, Oceania, Europe and North America.