The Philippines has lately overhauled its fiscal landscape to invite international investors. With the signing of the CREATE MORE Act, businesses can now leverage competitive savings that match neighboring Southeast Asian markets.
Understanding the New Tax Structure
One of the key feature of the 2026 tax system is the cut of the Income Tax rate. Registered Business Enterprises (RBEs) availing the Enhanced Deductions Regime (EDR) are now eligible to a reduced rate of 20%, down from the previous twenty-five percent.
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In addition, the duration of tax benefits has been lengthened. Strategic projects can nowadays gain from fiscal holidays and deductions for up to twenty-seven years, offering sustained predictability for multinational operations.
Key Incentives for Modern Corporations
Under the latest regulations, businesses located in the country can utilize several impactful deductions:
100% Power Expense Deduction: Industrial firms can now claim 100% of their electricity expenses, vastly reducing operational burdens.
Value Added Tax Benefits: The requirements for 0% VAT on local purchases have been simplified. Benefits now apply to goods and services that are essential to the business project.
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Duty-Free Importation: Corporations can bring in machinery, raw materials, and spare parts free from imposing customs duties.
Hybrid Work Support: Notably, tech companies operating in ecozones can nowadays implement work-from-home (WFH) setups effectively losing their tax tax incentives for corporations philippines eligibility.
Streamlined Local Taxation
In order to boost the business climate, the Philippines has created the Registered Business Enterprise Local Tax. Instead tax incentives for corporations philippines of navigating diverse city fees, eligible corporations may remit a single fee of up to 2% of their earnings. This removes bureaucracy and makes reporting much simpler for business entities.
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How to Register for These Benefits
To apply for these corporate tax breaks, businesses should register with an tax incentives for corporations philippines Investment Promotion Agency (IPA), such as:
Philippine Economic Zone Authority (PEZA) – Ideal for manufacturing businesses.
Board of Investments (BOI) – Suited for local market enterprises.
Specific Regional Agencies: tax incentives for corporations philippines Such as the Subic Bay Metropolitan Authority (SBMA) or CDC.
In conclusion, the tax incentives for corporations in the Philippines offer a modern approach designed to spur tax incentives for corporations philippines growth. Regardless of whether you are a tech firm or a massive industrial plant, navigating these laws is essential for maximizing your ROI in the coming years.