Glossary

The terms, agencies and laws on this site, in plain words

Each entry says what the term means and why it matters to an investor. Links go to the official source where one exists.

Search the glossary 48 terms

Laws and programmes

RA 11032Ease of Doing Business and Efficient Government Service Delivery Act of 2018: Sets maximum processing times for government transactions: 3 working days for simple, 7 for complex and 20 for highly technical applications, counted from complete requirements. Why it matters: It is the yardstick every permit on this site is measured against. arta.gov.ph →
3-7-20RA 11032 processing standards: Shorthand for the 3, 7 and 20 working-day limits in RA 11032. Why it matters: A step past its limit is counted as late.
Automatic approvalDeemed approval under RA 11032: When an agency does not act on a complete application within its time limit, the application is deemed approved, except where the law excludes it. Why it matters: It can unblock a stalled permit; confirm with your case officer before relying on it.
Zero contactZero-contact policy under RA 11032: Officials processing an application may not meet or talk to the applicant outside official channels while it is pending. Why it matters: A request for an off-the-books meeting or payment can be reported.
Green LaneExecutive Order 18, February 2023: A fast track for strategic investments. Certified projects get one BOI desk, the One-Stop Action Center for Strategic Investments, that coordinates their permits with other agencies. Why it matters: BOI estimates it cuts processing time by about half; this site compares that with its own figures. boi.gov.ph →
CREATE MORERepublic Act 12066 (2024): The law that updated the CREATE Act investment incentives: income tax holidays, the 5% tax on gross income and enhanced deductions. Why it matters: Decides how long your tax holiday lasts and what follows it.
SIPPStrategic Investment Priority Plan: The government list of activities that can receive incentives, ranked Tier I to Tier III. Why it matters: A higher tier means a longer tax holiday.
Negative ListForeign Investment Negative List: Activities where foreign ownership is limited or not allowed. Why it matters: Check it first if you plan to own 100% of the company.
Investors’ Lease ActRepublic Act 7652: Lets foreign investors lease private land for up to 50 years, renewable once for 25. Why it matters: Foreign companies cannot own land, so this is the usual route.
RHQ and ROHQRegional headquarters, Republic Act 8756: An RHQ is a cost centre that earns no local income; an ROHQ may serve affiliates for fees. Why it matters: They need different capital and are taxed differently.

Incentives

ITHIncome tax holiday: Years with no corporate income tax. Why it matters: Runs 4 to 7 years depending on location category and SIPP tier.
5% tax on gross incomeSpecial corporate income tax (SCIT): A 5% tax on gross income earned, in place of national and local taxes, for qualifying export enterprises after the holiday. Why it matters: Usually lower than the regular corporate rate.
Enhanced deductionsEnhanced deductions regime (EDR): Extra deductions on power, labour, research, training and other costs, as an alternative to the 5% rate. Why it matters: The option for firms selling mainly in the Philippines.
Location categoryCREATE MORE location tiers: Metro Manila; metropolitan areas and areas next to Metro Manila; and all other areas. Why it matters: Projects further from Metro Manila get a longer holiday.
IPAInvestment promotion agency: A body such as BOI, PEZA, CDC or SBMA that registers projects for incentives. Why it matters: You register with one IPA, depending on where and what you build.
FIRBFiscal Incentives Review Board: Approves incentives for projects above ₱15 billion. Why it matters: Those projects can get 20 years of incentives after the holiday instead of 10.

Agencies and partners

ARTAAnti-Red Tape Authority: Enforces RA 11032 and takes complaints through eCMS and Tala. Why it matters: Where validated delays are escalated. arta.gov.ph →
BOIBoard of Investments: Registers projects for incentives, endorses regional headquarters and runs the Green Lane desk. Why it matters: The usual incentive route outside economic zones. boi.gov.ph →
PEZAPhilippine Economic Zone Authority: Registers economic zones, IT parks and IT buildings, and the companies located in them. Why it matters: The incentive route for plants and IT-BPM offices inside zones. peza.gov.ph →
CDC and SBMAClark Development Corporation; Subic Bay Metropolitan Authority: Run the Clark and Subic freeports and register the companies located there. Why it matters: Your zone authority if you locate in Clark or Subic.
BCDABases Conversion and Development Authority: Develops former military bases, including New Clark City. Why it matters: Master developer and landlord for New Clark City. bcda.gov.ph →
SECSecurities and Exchange Commission: Registers companies, licenses foreign branches and regional headquarters, and licenses fund managers. Why it matters: Usually your first filing.
BIRBureau of Internal Revenue: Registers businesses for tax. Why it matters: Needed before you can invoice or hire.
BSPBangko Sentral ng Pilipinas: The central bank. Licenses banks and supervises investment houses. Why it matters: Your regulator if you set up a bank or investment house.
DOLE and BIDepartment of Labor and Employment; Bureau of Immigration: DOLE issues the Alien Employment Permit; BI issues the work visa. Why it matters: Often decides when foreign managers can start.
DENR-EMBEnvironmental Management Bureau, Department of Environment and Natural Resources: Issues the Environmental Compliance Certificate. Why it matters: Needed before building most plants.
FDAFood and Drug Administration: Licenses drug, food and medical device makers. Why it matters: Usually the longest step for pharmaceutical plants.
BFPBureau of Fire Protection: Inspects buildings and issues the Fire Safety Inspection Certificate. Why it matters: A common hold-up for local permits.
LGU and BPLOLocal government unit; Business Permits and Licensing Office: The city or municipality, and the office that issues the mayor’s or business permit. Why it matters: Every business needs one, inside or outside a zone.
PCCIPhilippine Chamber of Commerce and Industry: The national chamber of commerce; its local chambers collect reports and monitor compliance. Why it matters: A partner of the foundation.
OSAC-SIOne-Stop Action Center for Strategic Investments: The BOI desk that runs the Green Lane. Why it matters: Your single contact if your project is certified. boi.gov.ph →

Permits and channels

ECCEnvironmental Compliance Certificate: DENR clearance that a project meets environmental rules. 20 working days by rule, 40 for environmentally critical projects. Why it matters: Often runs in parallel with local permits.
FSICFire Safety Inspection Certificate: BFP certificate needed for the business and occupancy permits. Why it matters: Few LGUs can process it online yet.
LTOFDA License to Operate: The FDA licence a drug or food maker needs, issued after a Good Manufacturing Practice (GMP) inspection of the plant. Why it matters: Cannot start until the plant is built.
AEPAlien Employment Permit: The DOLE permit a foreign national needs to work in the Philippines. Why it matters: Comes before the work visa.
eBOSSElectronic business one-stop shop: The online one-stop shop each LGU must offer for business permits under RA 11032. Only 115 of 1,642 LGUs are fully compliant. Why it matters: Where it works, local permits can be filed online.
Central Business Portalbusiness.gov.ph: The national portal for registrations such as SEC, BIR, SSS, PhilHealth and Pag-IBIG. Why it matters: One place for most national filings. business.gov.ph/home →
eCMS and TalaARTA complaint channels: ARTA’s online complaint system, and Tala, its AI-assisted channel for complaints and service requests. Why it matters: Where a local business can file a complaint directly. ecms.arta.gov.ph/sign-up-user.html →
eGovPHNational e-government app and portal: The government’s app and portal for many agency and LGU services. Why it matters: Another way in to local services. e.gov.ph →

Measures on this site

Working days (w.d.): Weekdays, excluding public holidays. Why it matters: RA 11032 limits are counted in working days.
Time-to-operate: Working days from the first complete filing to the last government permit or utility connection needed to start operating. It does not include building or fitting out the facility, buying equipment or hiring. Why it matters: The headline figure on the landing page; add your own construction schedule on top.
Median: The middle value: half of projects take less time, half take more. Why it matters: Less affected by a few extreme cases than an average.
8 in 10 finish within80th percentile: Eight out of ten projects finish within this many working days. Why it matters: A safer number to plan a schedule around.
Late steps: The share of steps that ran past their RA 11032 standard. Why it matters: Shows where delays concentrate.
Modelled sampleDemo data: Figures built from legal standards and published processing times, not measured reports. Why it matters: Every time figure in this demo is one.
B-READYWorld Bank Business Ready: The World Bank’s yearly comparison of business environments, which replaced Doing Business. Why it matters: Our definitions follow its business entry topic. worldbank.org/en/businessready →
IT-BPM and GCCIT and business process management; global capability centre: Offices that provide IT, back-office or specialist services, for clients or for their own group. Why it matters: They usually locate in PEZA IT parks or IT buildings.
CBDCentral business district: A city’s main office district, such as Makati, BGC or Ortigas. Why it matters: Where regional headquarters and financial firms usually locate.