TAX AND INCENTIVES

INCENTIVES

Our government is committed to making business in the Philippines competitive. We have put in place incentives that create an investor-friendly landscape, allowing you to set up your business at a lower cost.

Foreign companies can benefit from the exemption of 30% corporate income tax. This can be available for a period of four to eight years.

We also offer tax and duty exemption credits on imported raw materials and capital equipment being used in export industries in specific economic zones. Companies located within these zones can enjoy special tax rates on modified gross income in lieu of national and local tax.

TAX SYSTEM

Corporation Tax: Our tax system requires both foreign and domestic companies registered in the Philippines to pay a corporate tax rate of 30% on all profit made here. Foreign companies may be granted a multi-year tax holiday.

Local Taxes: local taxes vary in each region.

VAT: the VAT rate is 12% except for on export sales

Personal Income Tax: Income is taxed progressively from 5% up to 35%.