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Philippines

Philippines

Capital City
Manila

Official Language (s)
Filipino and English

Language required for filings
English

Currency
Philippine Peso (PHP)

Population
100.6 million

GDP
$751.770 billion

Corporate tax rate
30%

Foreign exchange controls
Foreign currency may be remitted freely outside the Philippines. However, restrictions may apply when purchasing foreign currency from the Philippine banking system.

Known for it’s expertise in the ICT sector, The Phillipines have a global presence with their Business Processing Outsourcing (BPO) and ever expanding growth in the sector. Strategically located in the fastest growing region and flanked by two great trade routes the Pacific Ocean and the South China Sea, the Philippines is an ideal base for business, placed at the crossroads of international shipping and airlines.


1.0 Business in the Philippines
Department of Trade & Industry (DTI)

Department of Trade & Industry (DTI) regulates busineses in the country. There are several main types of businesses :
  • Corporations
  • Branch
  • Representative Office
  • Partnership

For more info visit :http://www.dti.gov.ph


Department Labor & Employment

The relationship between employers and employees in the Philippines is regulated by the Department of Labor & Employment.

The relationship between employers and employees in Malaysia is regulated by The Ministry of Human Resource.
1.1 Types of Employment

There are several types of employment that is recognized :

  • Permanent
  • Project
  • Seasonal
  • Casual
  • Fixed – Period
1.2 Mininum Wage

P481 for workers in the non-agriculture sector and to P444 for workers in the agriculture sector.

1.3 Annual Leave

The minimum number of annual leaves are 5.

1.4 Employees Compensation Program

A required form of social security contribution by employer for 1% of monthly employee salary credit.

For more info visit :http://www.dole.gov.ph


2.0 Taxation
Under Bureau of Internal Revenue
2.1 Corporate Tax

Under Bureau of Internal Revenue, the rate for for domestic and resident foreign corporations are at a flat rate of 25%.

For non resident status companies the tax would be flat at 25%

For more info visit :http://www.hasil.gov.my

2.2 Value Added Tax (VAT) / Goods & Services Tax (GST)

VAT with a standard rate of 12%. VAT can only be levied and charged if the business is registered under VAT Registered Business with an annual turnover of taxable supplies reach the prescribed threshold of P1,919,500.00.

For more info visit :http://www.bir.gov.ph