Which tax incentives, grants and programs can support an AI project in the Philippines — from CREATE MORE and PEZA to DOST and BOI — explained honestly, with no promises.

dgm is an independent osFoundry implementation partner — not affiliated with osFoundry’s developer (the company OS LLC), and it has not yet completed any client integrations.

The Philippines has a substantial set of tax incentives and grants through national agencies and the investment-promotion system, but they need to be understood honestly: these instruments reward registered export and IT-BPM activity, and fund research, startups and capability — not the purchase of finished AI software.

What the scheme actually gives

  • CREATE MORE incentives (RA 12066) — income tax holidays, the 5% Special Corporate Income Tax and the Enhanced Deductions Regime for registered business enterprises.
  • PEZA and the BOI — ecozone and Strategic Investment Priority Plan incentives for registered export/IT-BPM and priority activities.
  • DOST and DICT — Grants-in-Aid, PCIEERD/PCAARRD funds and digital programs for research, startups and capability.
  • The honest cost wedge — foreign AI/SaaS now carries 12% VAT (RA 12023) and, where a royalty, a 25% final withholding tax — so plan around added cost, not a subsidy.

Does it fund buying AI software?

No scheme pays an ordinary company for an AI software subscription; the benefits accrue to a registered enterprise’s own tax bill or fund research and startups. A platform such as osFoundry lowers the cost structurally through usage-based pricing and the BYOK principle — which helps more than waiting for support that does not cover software.

Important note

This article is general information and is not legal, tax or grant advice. Tax incentives, grants, rules and rates change, and only the relevant authorities (among them the National Privacy Commission, the Bureau of Internal Revenue, PEZA, the Board of Investments, the Bangko Sentral ng Pilipinas and the SEC) decide eligibility and awards. dgm is not a registered business enterprise, accredited incentive provider or intermediary. Always confirm the current terms with the official source or a qualified tax or legal adviser.

How dgm helps

dgm is an independent implementation partner that helps businesses in the Philippines adopt osFoundry — from identifying the first practical use case, through building it, to connecting AI to the systems you already use. dgm works independently of osFoundry’s developer (the company OS LLC) and has not yet completed any client integrations; everything above is therefore a description of the service offered, not a delivered result. If you would like to look at a sensible first step, dgm is happy to think it through with you. Arrange a no-obligation conversation with dgm.