Regulatory Environment

The Philippines features a business-friendly regulatory environment and aggressively markets the country to IT-BPO and GIC investors. IT-BPO and GIC have been identified as one of five priority development industries for the country. Investors enjoy competitive fiscal and non-fiscal incentives:

Capital-related

• Simplified customs procedures
• Simplified import and export procedures
• Duty-free importation of capital equipment

Operations-related

• Training grants for finishing schools (TESDA vouchers)
• Exemptions on local taxes and permits
• VAT exempt inputs
• Permanent resident status for foreign investors and immediate family members
• Assistance in the promotion of economic zones to local and foreign locator enterprises

Taxation

• Income tax holiday or a four-year exemption from corporate income tax, extendable up to eight years, with the option to pay a special 5% tax on gross income in lieu of all national and local taxes after the tax holiday
• Exemption from duties and taxes on imported capital equipment, spare parts, supplies, raw materials
• Exemption from wharfage dues and export taxes, imposts, and fees