Doing business in the Philippines

Where foreign investment is invited

• BPO
• Electronics (support industries)
• Automotive parts and components
• Agri-business, including palm oil and rubber
• Processed food
• Tourism
• Infrastructure
• Construction

Why investors choose the Philippines

A generally liberalised services industry, competitive wages and low operating costs, a strategic logistics position in ASEAN + 3, and an adaptable, English-speaking workforce suited to knowledge and business-process work.

Tax incentives: PEZA and BOI

PEZA (Philippine Economic Zone Authority)

Registration brings an income tax holiday of four, six or eight years, depending on whether the project is pioneer or non-pioneer. After that, the enterprise pays a 5% special tax on gross income in place of local and national taxes. Operations must be located in a PEZA zone, building, IT park or technology park. Registration usually takes about 21 working days from submission of complete documents.

BOI (Board of Investments)

For activities listed as investment priorities or that are export-oriented. Registered firms can get four to eight years of income tax holiday and four to six years of exemption from local business taxes. Companies do not have to relocate to a zone. Foreign investors need an equity investment in a Philippine corporation.

What the firm does

Checks whether the business and its activity are eligible, prepares the registration, and identifies the economic zones, IT parks, technology parks and IT buildings where the operation can locate to qualify.

Figures and incentive terms are as published in the firm’s own guide. Rules change; confirm current requirements with the firm before relying on them.