The DOST-TAPI Tax and Duty Exemption Assistance Program supports Filipino inventors by assisting in the issuance of tax and duty exemption certifications. This certification is used when applying for tax relief through the Bureau of Internal Revenue (BIR) or customs duty exemption via the Department of Finance (DOF). The program operates under Republic Act No. 7459, the “Inventors and Invention Incentives Act of the Philippines,” which promotes innovation by offering tax privileges for commercially viable, new, and original inventions.
These tax and customs duty exemptions are provided as incentives to Filipino inventors who have secured patents or registrations for their inventions and have achieved commercial production. These incentives are processed through the Department of Science and Technology-Technology Application and Promotion Institute (DOST-TAPI), which certifies the eligibility of inventors based on compliance with BIR and DOF regulations. The tax privileges may also be extended to heirs or assignees in the case of the inventor’s death. If you are interested in the program, then this guide can help.
Program Overview
The DOST-TAPI Tax and Duty Exemption Assistance Program was established to support homegrown innovation through economic incentives for Filipino inventors. Developed under the administrative authority of the DOST-TAPI, it provides certification services that enable inventors to request tax and duty relief for their patented technologies. This initiative operates under the authority of the DOST Administrative Order No. 015, Series of 2020, which implements specific provisions of R.A. 7459 to streamline access to exemption privileges. Its primary mandate is to evaluate documentary compliance and certify qualified inventions as meeting the criteria for exemption under BIR and DOF regulations. The program aims to reduce financial barriers for local inventors, allowing them to focus resources on scaling production and contributing to national productivity.
1lObjectives
Objectives of the DOST-TAPI Tax and Duty Exemption Assistance Program:
- To assist Filipino inventors in securing tax and duty exemption certifications for their patented inventions, utility models, or industrial designs.
- To streamline the evaluation and certification process required for applications submitted to the Bureau of Internal Revenue (BIR) and the Department of Finance (DOF).
- To help reduce the cost of production by facilitating exemptions on income tax and import duties related to innovation and commercialization.
- To encourage wider commercialization of locally developed inventions by providing financial relief and administrative support.
- To promote gender-equal access to government assistance for both men and women inventors through fair and responsive service delivery.
- To support national economic development by helping inventors transition from concept to commercial-scale production.
What Are the Benefits?
Approved applicants may receive the following exemptions:
- Tax exemption for income generated from the sale of the invention, valid for up to 10 years
- Customs duty exemption on machinery, equipment, spare parts, and raw materials imported for the production of the invention, provided these are not available locally in adequate quantity, quality, or price
Note: As per BIR Ruling No. 011-2016, tax exemption applies to the inventor and not to companies or entities that market or manufacture the invention.
They can also get financial and administrative benefits that help reduce operational costs and support the commercialization of their inventions:
- Certification for tax exemption on income earned from the sale of the invention for up to ten (10) years
- Certification for customs duty exemption on imported machinery, equipment, raw materials, and spare parts necessary for production
- Support in complying with BIR Revenue Regulation No. 19-93 and DOF Department Order No. 121-93
- Formal recognition of commercial-scale production, which may assist in securing government loans or grants
- Extended exemption privilege to legal heirs or assignees of the inventor in case of death
- Access to DOST-TAPI assistance in processing and validation through the Screening Committee
- Inclusion in the official monitoring and endorsement system that confirms the invention’s economic viability and local value
Who Can Apply
To qualify for the DOST-TAPI Tax and Duty Exemption Assistance Program, applicants must at least satisfy the following eligibility criteria:
- Individual Filipino Inventors
- Must be a Filipino citizen
- Must possess a valid Letters Patent, Utility Model (UM), or Industrial Design (ID) Registration issued by the Intellectual Property Office of the Philippines (IPOPHL)
- Must be the actual developer of the invention, utility model, or industrial design
- Must be producing the invention on a commercial scale (with sales exceeding ₱200,000 in any 12-month period)
- Heirs or Assignees of Deceased Inventors
- Must be the legal heir or officially designated assignee of the original inventor
- The invention must still be validly registered under IPOPHL
- The invention must continue to be commercially produced
- Must be able to present supporting documents proving succession or assignment of rights
- Duly Registered Business Entities Owned by Inventors
- Must be a registered business (with a valid DTI or SEC registration) operated by the inventor/applicant
- Must have a valid Business Permit issued by the local government
- Must be engaged in the commercial manufacture and sale of the registered invention, UM, or ID
- Must have proof of sales and production at a commercial scale
- Members of Accredited Inventors’ Organizations
- Must be an inventor who is an accredited member of the Filipino Inventors Society (FIS)
- Must obtain a certification from the FIS stating the invention is new/original and being commercially produced
- Must comply with the documentation requirements of either the BIR or DOF for exemption purposes
Each applicant must also submit complete supporting documents and undergo technical validation and approval by the Screening Committee (SC) under RA 7459.
Requirements
For a complete information on the required documents, please see the list that follows:
For Tax Exemption Application
- Application letter (original signed)
- Duly Accomplished Request Form
- Certified true copy of FIS Certification
- that the invention is NEW and ORIGINAL and the technology is newly
- developed by local researcher or adopted locally from foreign sources
- that the manufacture and/or sale of the invention products from technology developed is made on a commercial scale
- Certified photocopy of Letters Patent/Utility Model (UM) Registration / Industrial Design (ID) Registration
- Deed of Assignment (if there is any)
- Certified copy of recent Business Permit
- Proof of first commercial sale (e.g., Official Receipt)
- Latest Income Tax Return
- Tax Identification Number and registration as non-VAT tax payer
- DTI or SEC Registration Certificate or Mayor’s Permit
- Supporting documents showing commercial-scale production
- Brief company profile (must include number of employees, recent company sales,expected growth rate of the company within five (5) years)
- Signed Data Privacy Consent Form
For Duty Exemption Application
- Application letter with import documents
- Bill of lading, airway bill. Parcel post notice or shipping documents;
- TIN, commercial invoice and packing list;
- Other relevant documents concerning shipment.
- Duly Accomplished Request Form
- Certified photocopy of Letters Patent/UM/ID Registration
- Sworn statement on necessity of importation and that the imported articles are actually, directly and exclusively needed and are not for sale, hire, or barter
- DTI Certification that items (machinery, equipment, raw materials and spare parts) are not available locally in sufficient quantity, comparable quality and reasonable price
- Recent Business Permit/Mayor’s Permit
- DTI/SEC Registration Certificate
- Quantity, specifications, and end uses of imported items
- Detailed material balance for production
- Proof of commercial-scale production
- Latest Income Tax Return
- Company profile which include number of employees, recent company sales, expected growth rate of the company within five (5) years
- Data Privacy Consent Form
- Certification from regulatory bodies (if applicable)
- Deed of Assignment (if there is any)
Step-by-Step Application Process
To apply, simply follow these steps:
Step 1. Submit Application
Submit a formal request with complete documentary requirements to DOST-TAPI through:
- Email: info@tapi.dost.gov.ph
- In-person: TAPI Building, DOST Compound, Gen. Santos Avenue, Bicutan, Taguig City
Step 2. Internal Review
- The Records Section forwards your submission to the Office of the Director (1 working day)
- The Office of the Director reviews and forwards to the relevant program manager or division (2 working days)
- The Screening Committee Secretariat checks document completeness (1 working day)
Step 3. Notification and Validation
- If documents are complete, you’ll receive a notification that your application is under evaluation
- If documents are incomplete, you must submit missing items within 45 days
- Validation visit may be conducted (14 working days), followed by report submission and SC deliberation (15 working days total)
Step 4. Certification Issuance
- If approved, you’ll receive a certificate signed by the Screening Committee Chairperson
- You can then submit this certification to the BIR or DOF
Step 5. Submit the Application for Tax or Duty Exemption
Where to Submit BIR/DOF Documents
Once you get the DOST-TAPI certification, you may submit the request to the following offices:
- For Tax Exemption: Commissioner of Internal Revenue, Legal and Legislative Division, 7th Floor, BIR National Office, BIR Road, Diliman, Quezon City
- For Duty Exemption: Department of Finance, Roxas Boulevard corner Pablo Ocampo Street, Manila
Where to Get the Certification Request Forms
You can download the official application forms and complete guidelines for the DOST‑TAPI Tax and Duty Exemption Assistance Program here: http://www.tapi.dost.gov.ph/faqs/issuance-of-certification-for-tax-and-duty-exemption-application-under-7459
This includes:
- Annex A – Tax Exemption Request Form
- Annex B – Duty Exemption Request Form
- Annex C – Data Privacy Consent Form
Make sure to review the eligibility criteria and checklist before downloading and submitting the appropriate annex form.
Cost and Processing Timelines
The DOST‑TAPI Tax and Duty Exemption Assistance Program has no application fee—filing your request and supporting documents is completely free of charge. The complete internal process—from initial submission through Screening Committee evaluation—typically takes up to 37 working days (assuming all documentary requirements are met). Once approved, expect to receive your certificate within this timeframe before proceeding with your tax or duty exemption application, the duration of which will depend on the office concerned.
Additional Guidelines
You may also want to take note of the following:
- Approved applicants must maintain accurate records and file annual tax returns for BIR monitoring
- The Revenue Office or DOF may inspect facilities and imported items
- The Screening Committee is composed of representatives from DOST, DTI, DA, DENR, and the Filipino Inventors Society
Need More Help?
For more information, you may contact them via the following:
- Phone: (+632) 8 5821450 local 2168
- Email: info@tapi.dost.gov.ph