NAME OF PURPOSE 

CONDITION/APPLIED TO  PROCESS % DISCOUNT THAT CAN BE

TAX ENJOYED BY THE COMPANY/
BENEFITS
ECO-TAX To support Part of a zoning area like BOI Registration Requirement BOI INCENTIVES
(EO No. 226 companies by EPZA, PEZA, LISP 1. SEC Certificate of Tax-related
and RA No. being part of Registration  Income tax holidays- 100%
7916) the eco-zone FOR BOI INCENTIVES 2. Audited FS (contains exemption from corporate
projected financial reports income tax
Filipino-owned enterprises is for 5years and ITR for the  six (6) years (If pioneer
eligible if they engage in past 3 years if applicable) and if located in less
activity listed in IPP – pioneer 3. Board resolution of duly developed areas)
project or not authorize company  four (4) years (If new
signatory and non-pioneering
Domestic Foreign Corporation 4. Accomplished BOI project)
(100% fully owned) is eligible Application Form 501 (vary  three (3) years (If for
ONLY if they engage in per industry) and Project expansion/modernizatio
pioneer projects and can satisfy report (contains projects n projects)
any of this: related to listed in IPP)  Duty exemption on imported
 70% of services or capital equipment, spare parts,
products are for For Procedure, click link: and accessories.
exports. Board of Investments - BOI  Exemption from wharfage dues
 Proposed projects are to Registration in the Philippines and export tax, duty, impost
be undertaken in listed (philippinesbusinessregistration.co and fees.
areas as less developed m)  Tax exemption on breeding
by the BOI. stocks and generic materials
 Must gain 60% Filipino Usual processing time is 10-20  Tax credits on imported raw
ownership within workings days depending on type materials
30years unless plans to of industry. NO DEADLINE set for  Tax and duty-free importation
100% export BOI registration. of consigned equipment
 Additional deduction for labor
Foreign Companies to engage PEZA Registration Requirements expense
in non-pioneer projects – 1. Application Form Nontax-related
foreign ownership limited to 2. Project Brief (Composed of  employment of Foreign
40% unless 70% annual Corporate Profile, Nationals
production is for export Technical, Market,  simplification of customs
Economic, and Financial procedures for imported
Activities Recommended by Aspect of Ecozone products
BOI: Projected Projects)  importation of consigned
 Information 3. Anti-Graft Certificate equipment
Technology- Business 4. SEC Certificate of
Processing Outsourcing  privilege to operate a bonded
Registration, Articles of manufacturing/trading
 Knowledge Process
Incorporation and By-laws warehouse (subject to custom
Outsourcing
5. Applicant’s Notarized rules and regulations)
 Legal Process
Outsourcing Undertaking
 Call Center Agencies 6. Secretary’s certificate
 Offshoring Companies authorizing the application PEZA INCENTIVES
 All incentives of BOI
 Staff Leasing/ for registration with PEZA
eligibility (mentioned above)
Augmentation  Preferential final tax of five
Companies PEZA Registration Process: percent (5%) of gross income
1. Submission of application in lieu of all national and local
FOR PEZA INCENTIVES form and other requirements taxes, after the income tax
stated above in the Office of holiday expires.
Foreign Corporations must Director General of PEZA  Exemption from contractor’s
establish their business in any (payment for application tax
of ECOZONE areas in the varies depending on type of  Tax credits for exporters using
Philippines, and engage in any: industry) local materials as inputs
 Export manufacturing 2. Application evaluation by  Value-added tax zero-rating on
 IT service export ERD of PEZA local purchases of goods and
 Tourism 3. Application presented to services
 Medical Tourism PEZA Board for approval  Exemption from expanded
 Agro-industrial Export 4. Upon approval, issuance of withholding tax
Manufacturing Board Resolution Approval
 Agro-industrial Bio- 5. Submission of SEC
Fuel Manufacturing Registration, Reservation
letter in an ecozone
  Logistic and location, Application for
warehousing services ECC with PEZA
 Economic Zone and Environment Safety Group
Development and (payment of P6,000 for
Operation registration)
 Facilities Providers 6. Signing of registration
 Utilities agreement by applicant and
PEZA
7. Issuance of PEZA
Certificate of Registration
from PEZA Director
General

CREATE Act To help ease Applies for all corporations FOR REQUIREMENTS AND 25% RCIT on taxable income.
burden on PROCEDURES OF FILING
corporate 20% RCIT on taxable income of
taxpayers Export enterprises and For RCIT or MCIT payment, click domestic corp. with taxable income
during the domestic market enterprises the link: not exceeding P5M and total assets not
pandemic. must be registered to PEZA to Income Tax - Bureau of Internal exceeding P100M.
qualify for ITH, exempt on Revenue (bir.gov.ph)
custom duty, and VAT exempt.
Deadline: 1% MCIT on gross income of all.

Annual: On or before the 15th day 1% on Percentage tax

of the fourth month following the
close of the taxpayer’s taxable year Tax holiday for 4-7 years for all
Quarter: On or before the 60th day  Qualified export enterprise
following the close of each of the followed by 5% SCIT for 10
quarters of the taxable year years.
 Qualified domestic market
enterprises, followed by 5years
For Percentage tax payment, click enhanced deductions.
the link:
 Percentage Tax - Bureau of Internal Exempt from customs duty and VAT
Revenue (bir.gov.ph) on import of capital equipment, raw
materials, spare parts, accessories
Deadline:   Within twenty-five (25) directly used in registered project or
days after the end of each taxable activity.
quarter
0% VAT on local purchases of goods
or services directly used in registered
project or activity.
For VAT payment, click the link:
Value-Added Tax - Bureau of
Internal Revenue (bir.gov.ph)

Deadline: Within twenty-five (25)

days following the close of each
taxable quarter.

TRAIN LAW To make tax Applies for all, especially for To claim zero-rated or VAT VAT exemption
system individual taxpayers and exempt, company must make sure  Companies with annual sales
simpler, fairer, businesses with annual sales of that transactions are VAT exempt of equal or less than P3M
and more P3M and below. or zero-rated as prescribed by Tax  Condominium association dues
efficient. Code.  Leases below P15K
 Low-cost housing
No specific procedure for claiming  Socialized housing P450K and
VAT exempt or zero-rated, but below
companies are required to issue  Tourism enterprises
 VAT invoice
 Renewable energy
 VAT official receipt
 Cooperatives
Both must state if VAT-exempt sale
or zero-rated Sale.  PWDs and Senior Citizens
 Health and education
 Agricultural products and raw
 foods.

VAT-free
 Sale of drugs for diabetes, high
cholesterol, and hypertension.
 Socialized and mass housing
projects P2M and below.

Additional information (Not a

discount)
 Increased price per liter for
sugar-sweetened beverages,
 Increased excise tax for
petroleum, automobile,
tobacco, mineral products, and
nonmetallic minerals and
quarry resources
 5% tax for cosmetic surgery
and procedure.
 6% tax on net donations above
P250K yearly
 6% on net value of estate with
standard deduction of P5M

DE MINIMIS To reduce tax Applies to all companies. Policy to place inclusion of: Lesser tax paid by the company as
paid by 1. Meal allowance allocation more goes to employees.
company while 2. Giving clothing allowance
giving 3. Giving monetized unused
employees vacation leave credit
benefits to 4. Medical cash allowance
encourage 5. Rice subsidy
health and 6. Actual medical assistance
efficiency. 7. Laundry allowance
 8. Employee’s achievement
awards
9. Retirement plans
FRINGE To reduce tax Applies to all companies. Policy to place inclusion of Fringe Lesser tax paid by the company as
BENEFITS paid by Benefits Not Taxable: more goes to employees
company while Fringe benefits not taxable  De Minimis Benefits stated
giving 1. Fringe benefits in the previous
incentives to authorized and  Scholarship program for
employees exempted from tax employee to acquire
other than under special laws competence for company
rank-and-file 2. Contributions of the  Free transportation services
employees. employer for the for employees
benefit of the employee  Mobile phone allowance for
to retirement, employees required to
insurance, and handle off client inquiries
hospitalization benefit  Housing units for
plans. employees to ensure
3. Benefits given to the availability of employees.
rank-and-file
employees, whether
granted under a
collective bargaining
agreement or not.
4. De minimis benefits as
defined in the rules and
regulations to be
promulgated by the
Secretary of Finance,
upon recommendation
of the Commissioner.
Corporate To contribute Applicable to all large taxpayer Participate in CSR activities Lesser tax paid by company as amount
Social to sustainable corporations – domestic and  Charitable activities incurred by practicing CSR are treated
Responsibility economic foreign.  Youth and sport as expense, which is deducted to
development development taxable income.
while  Cultural and educational
benefitting purposes
companies  Service to veterans, senior
ethically. citizens, PWDs
 Health activities
 Disaster relief and
assistance activities