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Government Incentives
● BoI tax incentives
- The Philippine Bureau of Internal Revenue ( BIR ) offers most offshore contact centers and other BPO solutions companies operating in the Philippines a primary four-year exemption (and a supplementary two-year extension) from Philippine corporate income taxation.
- These incentives are available upon successful application to the Philippine BoI.
● Clark , PEZA and Subic tax and duty incentives
- Alternatively, offshore contact centers and other BPO solutions companies in the Philippines can qualify for a six-year corporate income tax exemption and a first-year customs duty exemption from the Philippine BIR, permitting the duty-free importation of capital equipment for startup operations.
- These incentives are available upon successful application to relevant authorities and agreement to locate inside an approved zone, including the Clark Special Economic Zone (formerly Clark Air Base, Pampanga), Philippine Economic Zone Authority ( PEZA ) (various locations) and/or Subic Special Economic and Free Port Zone (formerly Subic Bay Naval Base, Olongapo).
● Necessary procedures
Table below presents a checklist of various regulatory procedures necessary for doing business in the Philippines and for securing available Philippine Government incentives.
Checklist of regulatory procedures necessary for doing business in the Philippines
|
Regulatory procedure |
Relevant agency |
Estimated processing time |
|
Registration |
Securities and Exchange Commission (SEC ) |
2 weeks – 1 month |
|
Registration for corporate income tax exemptions under Executive Order 226 – or – Registration for corporate income tax and customs duty exemptions available from the PEZA |
BoI – or – PEZA |
3-6 months |
|
Registration of foreign investments for purposes of capital repatriation and profit remittances |
Bangko Sentral ng Pilipinas ( BSP ) |
1 week or less |
|
Securing Tax Identification Number (TIN ) |
BIR |
2 weeks – 1 month |
|
Securing locational clearance / business permit |
Metro Manila Development Authority (MMDA ) Makati City Hall |
1 week or less |
|
Securing an employer’s Social Security System ( SSS ) number |
SSS |
1 week or less |
|
Securing membership in the government health care benefits system |
Philippine Health Insurance Corporation ( PhilHealth ) |
1 week or less |
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