Tax and Licenses Consulting

Does taxation leave you scratching your head?

We have experienced accountants and tax attorneys who have successfully helped other companies deal with a wide range of Philippine tax requirements and issues.

Tax & Licenses Consulting

Our tax consultation services aims to help companies like yours by supplementing your accounting department, safeguarding your investment, mitigating risk and making the most of available opportunities through proper tax and financial planning. Our team of qualified tax attorneys, and accountants makes sure that your company is tax-compliant and has the right tax strategies.

Types of Philippine Taxes

Tax Incentives

Businesses registered with the Board of Investments (BOI) or the Philippine Economic Zone Authority (PEZA) enjoy tax holidays and exemptions as well as other fiscal and non-fiscal incentives. Contact us for more information on the advantages of having a BOI or PEZA accreditation.

Corporate Income Tax

Resident foreign corporations are taxed on net income derived from sources within the Philippines at a rate of 30%. Generally, nonresident foreign corporations are taxed on gross Philippine-sourced income at a rate of 30%.

Regional operating headquarters (ROHQs) that don’t derive income from the Philippines are not subject to income tax. If they do have Philippine-sourced income, then a tax rate of 10% applies.

Excise Taxes

Imported articles as well as those produced in the Philippines are subject to taxation. Specific and ad valorem excise taxes are levied on goods such as distilled spirits, wine and liquor; tobacco products; manufactured oils and other fuel products; automobiles; mineral products; saccharine; yachts and other pleasure or sports vessels; and non-essential goods.

Percentage Taxes

Certain entities are subject to percentage taxes, which are typically imposed on gross receipts. These include non-VAT businesses or individuals with gross annual sales that don’t exceed PHP1,919,500. Banks and non-bank finance firms, life insurance companies, operators of communication equipment for overseas, and international common carriers are also subject to percentage tax with varying rates.

Real Property Tax

A real property tax is imposed on owners of real property at a rate based on the property’s assessed value and location.

Value Added Tax (VAT)

Value Added Tax (VAT) at a rate of 12% of the gross selling price is levied on virtually all sales of goods and services in the Philippines. Entities are subject to VAT when their gross sales or receipts exceed PHP1,919,500.

Withholding Taxes

Resident and nonresident foreign corporations are subject to withholding taxes.

• 5% on capital gains on the sale of shares (not over PHP100,000) that are not traded in the stock exchange. An additional 10% tax is withheld for the amount in excess of PHP100,000.
• 6% final tax on the sale of non-business real property.
• A final tax of 32% on the grossed-up monetary value of fringe benefits (with allowable exceptions) granted to non-rank-and-file employees.

For nonresident foreign corporations, withholding taxes include:

• 30% on dividends from a Philippine corporation. The rate may be reduced if the nonresident corporation’s country has a tax treaty with the Philippines or allows a tax credit.
• 20% on interest on foreign loans, unless a tax treaty allows for a reduced rate.
• 30% on royalties and technical assistance and service fees, unless a reduction is allowed under a tax treaty.

For in-depth tax consultation, visit this blog post: Tax Consultation on FilePino’s website.

Our Tax Consultation Services

• Tax Planning
• Tax Compliance
• Tax Accounting
• Requests for BIR Rulings
• Tax Refund/Credit Applications
• Tax Treaty Relief Applications
• Transfer Pricing
• Preparation and Filing of Tax Returns
• Obtaining Tax Incentives
• Tax Due Diligence