{"id":137232,"date":"2026-04-07T12:07:13","date_gmt":"2026-04-07T12:07:13","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=137232"},"modified":"2026-04-07T12:07:13","modified_gmt":"2026-04-07T12:07:13","slug":"philippines-doing-business-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/philippines-doing-business-in\/","title":{"rendered":"Philippines: Doing Business In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-137232","comparative_guide","type-comparative_guide","status-publish","hentry","guides-doing-business-in","jurisdictions-philippines"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Villaraza &amp; Angangco (V&amp;A Law)<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/The-Firm-High-Reso-Logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Villaraza &amp; Angangco (V&amp;A Law)<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/The-Firm-High-Reso-Logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Doing Business In laws and regulations applicable in Philippines<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the system of law in your jurisdiction based on civil law, common law or something else?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Philippine legal system is a hybrid of civil and common law. The Constitution guarantees fundamental rights, including labor and environmental protections and limits on foreign ownership in certain industries. The Civil Code of the Philippines, the primary law that governs the civil rights of persons, encapsulates the principles and statutes of civil law that govern private relationships and obligations while the Revised Penal Code, including other special penal laws, defines and punishes crimes. Aside from the codified laws, jurisprudence, i.e., decisions of the Supreme Court interpreting a provision of law, are binding on lower courts, and become part of the legal system.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the different types of vehicle \/ legal forms through which people carry on business in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Domestic enterprises can operate as sole proprietorships, partnerships, corporations, or non-stock organizations. Other acceptable corporate vehicles in the Philippines typically take in the form of subsidiary, branch office, representative office, regional headquarters (\u201cRHQs\u201d), and regional operating headquarters (\u201cROHQs\u201d).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can non-domestic entities carry on business directly in your jurisdiction, i.e., without having to incorporate or register an entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, foreign individuals, corporations, or other entities are allowed to engage in business in the Philippines.<\/p>\n<p>Non-domestic entities generally cannot do business in the Philippines without establishing a local presence and registering with the Securities and Exchange Commission (\u201cSEC\u201d). A foreign corporation is deemed to be \u201cdoing business\u201d if it undertakes activities showing continuity of commercial dealings or profit-seeking. Isolated transactions may be undertaken without registration, provided they do not indicate a continuing business intent.<\/p>\n<p>Moreover, under the Philippine Constitution and special laws, the extent of equity held by foreigners in some business activities is restricted or limited as enumerated in the \u201cNegative List\u201d issued pursuant to the \u201cForeign Investments Act of 1991\u201d (\u201cFIA\u201d).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any capital requirements to consider when establishing different entity types?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Capital requirements vary depending on the chosen business structure or entity.<\/p>\n<p>Branch offices must remit at least USD200,000, which can be reduced to USD100,000 if engaged in advanced technology or employing at least 15 Filipino workers. Representative offices require USD30,000, while RHQs and ROHQs have annual funding\/operational remittance requirements ranging from USD50,000 to USD200,000.<\/p>\n<p>Domestic corporations with 40% or less foreign equity generally have no minimum capital requirement unless imposed by special law; if foreign equity exceeds 40%, a USD200,000 minimum applies, likewise reducible to USD100,000 under qualifying conditions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the different types of vehicle established in your jurisdiction? And which is the most common entity \/ branch for investors to utilise?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A representative office, RHQ, ROHQ, and branch office must obtain a License to Do Business from the Securities and Exchange Commission, while a subsidiary must secure a Certificate of Incorporation.<\/p>\n<p>Due to limited functions and, in the case of branches, lack of separate juridical personality, foreign investors typically prefer establishing a subsidiary to conduct business in the Philippines.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the entity operated and managed, i.e., directors, officers or others? And how do they make decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unless otherwise provided in the Revised Corporation Code of the Philippines (\u201cRCC\u201d), the decision-making power of corporations is vested to the Board of Directors. The Board of Directors shall exercise the corporate powers, conduct all business, and control all properties of the corporation. The corporate decision must be approved by the majority of the directors constituting a quorum.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there general requirements or restrictions relating to the appointment of (a) authorised representatives \/ directors or (b) shareholders, such as a requirement for a certain number, or local residency or nationality?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Foreign Investments Negative List (\u201cFINL\u201d), issued under the FIA and constitutional foreign equity restrictions, identifies industries that are fully or partially nationalized and the extent of permitted foreign ownership. In such industries, foreign nationals may sit on the board only in proportion to their allowable equity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Apart from the creation of an entity or establishment, what other possibilities are there for expanding business operations in your jurisdiction? Can one work with trade \/commercial agents, resellers and are there any specific rules to be observed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A foreign company may expand in the Philippines through distributorship, resale, agency, franchise, or licensing arrangements, typically without local registration. These are generally allowed provided they do not constitute \u201cdoing business\u201d under Philippine law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance codes or equivalent for privately owned companies or groups of companies? If so, please provide a summary of the main provisions and how they apply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no mandatory corporate governance code specifically applicable to purely privately owned companies. The Code of Corporate Governance issued by the SEC primarily applies to publicly listed companies, public companies, and certain regulated entities. Privately held corporations are generally governed by the RCC and their own articles of incorporation and by-laws.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the options available when looking to provide the entity with working capital? i.e., capital injection, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Working capital may be provided through equity, debt, or hybrid instruments. Equity may be infused via share subscriptions or additional paid-in capital, while funding may also come from shareholder or third-party loans. Hybrid instruments may be used depending on the desired capital structure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the processes for returning proceeds from entities? i.e., dividends, returns of capital, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Proceeds may be returned through dividends, return of capital, or loan repayments. Dividends may be declared by the board out of unrestricted retained earnings. A return of capital requires the appropriate corporate approvals and, in some cases, regulatory filings. Loan repayments may be made pursuant to the loan agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are specific voting requirements \/ percentages required for specific decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Ordinary matters generally require approval of a majority of the outstanding capital stock. Fundamental actions (e.g., amendments to articles, mergers, asset sales, capital changes, or dissolution) require at least two-thirds (2\/3) approval, in addition to board approval. By-laws or shareholder agreements may impose higher thresholds.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are shareholders authorised to issue binding instructions to the management? Are these rules the same for all entities? What are the consequences and limitations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Management of the corporation is vested in the board of directors. Accordingly, shareholders generally cannot issue binding instructions directly to management. Shareholders may influence corporate actions only through the exercise of their voting rights<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the core employment law protection rules in your country (e.g., discrimination, minimum wage, dismissal etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Core employment protections are governed by the Labor Code and DOLE issuances, including minimum wage, non-discrimination, security of tenure, and mandatory benefits (e.g., social security and health insurance). Employers must also comply with rules on working hours, leave, occupational safety, and lawful termination.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">On what basis can an employee be dismissed in your country, what process must be followed and what are the associated costs? Does this differ for collective dismissals and if so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Procedural due process requires that, prior to dismissal, the employee be given two written notices: (1) a notice specifying the acts or omissions charged, and (2) a notice of the employer\u2019s decision.<\/p>\n<p>For regular employment, termination is valid only for just or authorized causes under the Labor Code. Just causes include serious misconduct, willful disobedience, and fraud or breach of trust, while authorized causes include redundancy, retrenchment, and closure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a system of employee representation \/ participation (e.g., works councils, co-determined supervisory boards, trade unions etc.)? Are there entities which are exempt from the corresponding regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Labor Code, employees exercise their right to self-organization by filing a petition for certification election through a legitimate labor organization to determine the bargaining representative for a bargaining unit.<\/p>\n<p>All private sector employees have the right to self-organization. In the public sector, employees may also organize, except those in confidential or policy-determining positions such as the military, police, and fire services.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system governing anti-bribery or anti-corruption or similar? Does this system extend to nondomestic constellations, i.e., have extraterritorial reach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Anti-bribery and corruption in the Philippines are governed mainly by the Anti-Graft and Corrupt Practices Act (\u201cAGCPA\u201d), the Revised Penal Code (\u201cRPC\u201d) provisions on bribery, and the Plunder Law, with related compliance under the Anti-Money Laundering Act (\u201cAMLA\u201d). These laws generally apply to acts within Philippine jurisdiction or involving Philippine public officials, though certain extraterritorial conduct may still be covered if elements of the offense occur in the Philippines.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the laws relating to economic crime? If such laws exist, is there an obligation to report economic crimes to the relevant authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Economic crimes are governed by the RPC, AGCPA, AMLA, Securities Regulation Code (\u201cSRC\u201d), and other special laws on financial fraud. Reporting obligations mainly apply to regulated entities; under the AMLA, covered institutions must report covered and suspicious transactions to the Anti-Money Laundering Council. Outside regulated sectors, there is generally no general duty to report economic crimes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is money laundering and terrorist financing regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Money laundering and terrorist financing in the Philippines are primarily regulated under the AMLA, as amended, and the Terrorism Financing Prevention and Suppression Act. These laws require covered persons and institutions, such as banks and financial institutions, to conduct customer due diligence, maintain records, and report covered and suspicious transactions to the Anti-Money Laundering Council (\u201cAMLC\u201d).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there rules regulating compliance in the supply chain (for example comparable to the UK Modern Slavery Act, the Dutch wet kinderarbeid, the French loi de vigilance)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Various laws address concerns related to corporate supply chain, including the Anti-Trafficking in Persons Act, the Special Protection of Children Against Abuse, Exploitation and Discrimination Act, and the Labor Code, which prohibit forced labor, child labor, and exploitative labor practices.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe the requirements to prepare, audit, approve and disclose annual accounts \/ annual financial statements in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the Philippines, corporations are required to prepare annual financial statements (\u201cAFS\u201d). Depending on the size and classification of the entity, the financial statements must be audited by an independent certified public accountant accredited by the SEC<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any corporate \/ company secretarial annual compliance requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Corporations are generally required to submit their General Information Sheet (\u201cGIS\u201d), which contains a declaration of the ultimate beneficial owner, and AFS. Some corporations issued with secondary licenses by the SEC have additional reportorial requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for annual meetings of shareholders, or other stakeholders, to be held? If so, what matters need to be considered and approved at the annual shareholder meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Stock corporations must hold an annual shareholders\u2019 meeting on the date fixed in the by-laws or, if none, as set by the board. The meeting typically covers election of directors, approval of the AFS, and other business properly included in the agenda.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any reporting \/ notification \/ disclosure requirements on beneficial ownership \/ ultimate beneficial owners (UBO) of entities? If yes, please briefly describe these requirements.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The SEC requires companies to declare its beneficial ownership by submitting the required information about the ultimate beneficial owners to the SEC.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What main taxes are businesses subject to in your jurisdiction, and on what are they levied (usually profits), and at what rate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Corporations organized under Philippine law are generally subject to corporate income tax of 20% or 25%, depending on net taxable income and total assets. They are also subject to VAT, withholding taxes on certain payments, and excise taxes on specific goods.<\/p>\n<p>Domestic corporations are taxable on all income derived from sources within and without the Philippines while foreign corporation is taxable only on income derived from sources within the Philippines.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular incentive regimes that make your jurisdiction attractive to businesses from a tax perspective (e.g. tax holidays, incentive regimes, employee schemes, or other?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Tax Code allows taxes paid in foreign countries as tax credit or deduction in the taxable income of a taxpayer. Additionally, the BIR may issue tax credit certificates in case of overpayment of taxes.<\/p>\n<p>The Tax Code also offers tax incentives to business engaged in certain activities and industries. These tax incentives include (a) income tax holiday; (b) special corporate income tax rate; (c) enhanced deductions; (d) duty exemption on importation of capital equipment, raw materials, spare parts, or accessories; and (e) VAT exemption on importation and VAT zero-rating on local purchases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any impediments \/ tax charges that typically apply to the inflow or outflow of capital to and from your jurisdiction (e.g., withholding taxes, exchange controls, capital controls, etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outbound payments such as dividends, interest, royalties, and service fees to non-residents are generally subject to withholding tax, subject to reduced rates under applicable tax treaties. Foreign investment registration with authorized agent banks may be required for capital repatriation and profit remittance in foreign currency. Depending on the transaction, capital gains tax or documentary stamp tax may also apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any significant transfer taxes, stamp duties, etc. to be taken into consideration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principal transfer taxes in the Philippines are capital gains tax (\u201cCGT\u201d) and documentary stamp tax (\u201cDST\u201d).<\/p>\n<p>On the sale of shares not traded through the Philippine Stock Exchange, CGT is imposed at 15% of net capital gains. For sales of real property classified as a capital asset, CGT is 6% of the gross selling price or fair market value, whichever is higher.<\/p>\n<p>DST applies to instruments evidencing transfers. For original issuance of shares, DST is generally 75% of 1% of the par value. For real property, it is 1.5% of the selling price, zonal value, or fair market value, whichever is highest.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any public takeover rules?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Public takeovers in the Philippines are regulated under the tender offer rules of the SEC pursuant to the SRC. A mandatory tender offer is generally required when a person or group intends to acquire at least 35% of the voting shares of a public company in a single transaction, or 50% or more of such shares in a series of transactions within a twelve-month period.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a merger control regime and is it mandatory \/ how does it broadly work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Philippine Competition Act and its implementing rules provide a mandatory merger control regime administered by the Philippine Competition Commission (\u201cPCC\u201d). Parties to a merger, acquisition, or joint venture must notify the PCC if both the Size of Party and Size of Transaction thresholds are exceeded. The PCC conducts review to determine whether the transaction raises competition concerns or substantially lessens competition in the Philippine market.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation to negotiate in good faith?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no statutory obligation to negotiate in good faith during pre-contractual negotiations. However, a party may incur liability for damages if it acts in bad faith, including through fraud or misrepresentation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do employees benefit from when their employer is being acquired, for example, are there employee and \/ or employee representatives\u2019 information and consultation or co-determination obligations, and what process must be followed? Do these obligations differ depending on whether an asset or share deal is undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are generally no statutory employee consultation or co-determination requirements in mergers or acquisitions. In a share deal, the employer\u2019s identity remains unchanged, so employment continues uninterrupted with existing terms. In an asset deal, employees do not automatically transfer; the seller may terminate for authorized causes under the Labor Code, and any hiring by the buyer is typically treated as new employment unless otherwise agreed. In all cases, employees remain protected by security of tenure and due process requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any foreign direct investment restrictions, controls or requirements? For example, please detail any limitations, notifications and \/ or approvals required for corporate acquisitions.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign investments may, however, be subject to the receiving bank\u2019s Know Your Customer policies and applicable anti-money laundering rules. In case the foreign investor desires remittances to be serviced by the authorized agent banks or their affiliate\/subsidiary foreign exchange corporations, the investment must have been registered with the Bangko Sentral ng Pilipinas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any exchange control requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign exchange transactions in the Philippines are generally liberalized and may be conducted through authorized agent banks, with no strict capital controls on fund flows. However, the repatriation of investments and remittance of dividends or profits typically require registration with the banking system, and certain cross-border transactions remain subject to reporting and documentation requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most common ways to wind up \/ liquidate \/ dissolve an entity in your jurisdiction? Please provide a brief explanation of the process.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Corporations may be wound up through voluntary liquidation, involuntary liquidation, or shortening of corporate term.<\/p>\n<p>Voluntary liquidation is initiated by the stockholders, with board and shareholder approval, and involves settling liabilities, disposing of assets, and distributing any remaining assets, subject to SEC filing and cancellation of registrations.<\/p>\n<p>Involuntary liquidation may be ordered by the SEC or courts due to violations, insolvency, or creditor action, with a liquidator appointed to wind up affairs.<\/p>\n<p>A corporation may also dissolve by shortening its term, subject to the same approvals and creditor settlement requirements.<\/p>\n<p>In all cases, liquidation must comply with the RCC, with creditors paid prior to any distribution to shareholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">2922<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/137232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=137232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}