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Cost of Getting Started


Stock Corporations

Filing Fee

1/5 of 1% of the Authorized Capital Stock but not less than P1,000.00

Legal Research Fee

1% of the Filing Fee but not less than P10.00

By-laws (fixed)


Stock and Transfer Book/Stamping


Non-Stock Corporations

Filing Fee of Articles of Incorporation




Membership Book/Stamping



Recording Fee for Articles of Partnership

1/5 of 1% of the partnership's capital but not less than P1000.00

Legal Research Fee

1% of the Filing Fee but not less than P10.00


Board of Investments

Registration for incentives availment
under EO 226

Main Fees to be Paid
(In Pesos)

Filing Fees for Application for Registration (under Book 1):


Project Costs not exceeding P 4 million



Project Costs exceeding P 4 million but not over P 20 million



Project Costs exceeding P 20 million but not over P 50 million



Project Costs exceeding 50 million


Fee for Certificate of Registration

1/10 of 1% of project cost but not less than P3,000.00 and not to exceed P 15,000.00

*/ Subject to increase


Department of Trade and Industry

Registration of Business Name - Single Proprietorship
(Bureau of Trade Regulation and consumer Protection -- BTRCP)

Main Fees to be Paid
(In Pesos)

Application Fee



Single Proprietorship


Plus P15.00 Documentary stamp for each application



Clark Development Corporation (CDC) One-Time Fees

1. Registration of Enterprises


Project Cost not exceeding P 4 million

P 2,000.00


Certificate of Registration & Tax Exemptions

P 2,000.00


Permit to Operate (Annually)

P 1,000.00


Temporary Permit to Operate

P 500.00

2. Processing and issuance of Environmental Compliance Certificate (ECC)

P 300.00

3. Construction

In accordance with the National Building Code by CDC

NOTE : Regular fees including Clark Special Economic Zone Locations Association shall also be charged to cover expenses for security, road lighting, garbage collection, etc.


Philippine Economic Zone Authority (PEZA)


1. Registration of Ecozone Enterprises


a. Application for New Project (non-pioneer)

P 3,600.00


b. Application for New Project (pioneer)

P 6,000.00


c. application for any Amendments in Registration

P 1,200.00


d. Application for Conversion from Non-Pioneer to Pioneer

P 2,400.00


e. Application for Expansion for Production Capacity

P 2,400.00

2. Registration Fees


a. Registration for New Projects

P 6,000.00


b. Registration for Expansion of Project - New Project

P 3,600.00


c. Telecom Services and Other Utilities

P 6,000.00 + 10% of monthly gross revenues from operations


d. All other Services Enterprise

P 3,600.00



Availment of Incentives



a. Endorsement of 5% Gross Income Tax and of Income Tax Holiday

P 1,200.00


b. Extension of ITH Entitlement Period

P 1,200.00


1. Certificate of Registration

P 120.00

2. Filing approval of application

P 120.00

3. Other Documents

P 120.00



1. Taxation in the Philippines


The country's taxation system is governed by the Tax Reform Act 1997, passed into law on December 11, 1997 and became effective on 01 January 1998. The law was aimed at the expanding the country's tax base and maintaining the healthy fiscal standing of the government.


1.1 Corporate Income Taxes

Domestic/Resident Foreign Corporations
Regular Income Tax Rate

32% of net taxable income

Non-Resident Corporation Regular Income Tax

32% of the gross amount of Philippine-source income such as dividend, rents, royalties, compensation, and remuneration for technical services.


1.3 New Taxes for Corporation Under the Tax Reform Act of 1997

Minimum Corporate Income Tax (MCIT) - A 2% MCIT on gross income on an annual basis is imposed on corporations whose regular corporate income tax liability is less than the MCIT beginning the fourth taxable year following the year they commenced business operation. Any excess of the MCIT over the normal tax shall be carried forward and credited against the normal tax for the three (3) immediately succeeding taxable years.

Fringe Benefits Tax - Fringe benefits granted to supervisory and managerial employees are subject to 32% tax on the grossed-up monetary value of the fringe benefit. Fringe benefits given by OBUs regional operating headquarters of multinational companies, petroleum contractors and subcontractors to qualified alien employees and in certain cases, to Filipino employees, are taxed at 15% of the grossed-up monetary value of the fringed benefit.

Improperly Accumulated Earnings Tax
- a 10% tax is imposed on the improperly accumulated earnings of a corporation, except in the case of publicly held corporations, banks, and other non-bank financial intermediaries and insurance companies. When a corporation allows its earnings or profits to accumulate beyond its reasonable needs, it shall be assumed that the purpose is to avoid tax on stockholders, unless proven to the contrary.


1.4 Preferential Income Tax Rates for Non-Resident Corporations

Interest on foreign loans


Dividends received form domestic corporations

In general, 32%. This is reduced to 15% if the recipient foreign corporation is resident of a country which:
  • Does not impose any tax on dividends received from foreign sources, or
  • Allows a credit against the tax due from the nonresident foreign corporation taxes deemed to have been paid in the Philippines equivalent to 17%

Income derived form any foreign currency transaction with FCDUs and OBUs


Gains from sale of unlisted shares of stock in a domestic corporation

5% capital gains tax (CGT) on net gains not exceeding P100,000 and 10% on the excess

Rents and other fees paid to nonresident corporate lessors of aircraft, machinery and other equipment

7 1/2% on gross rentals or fees

Rents of charter fees paid to non-resident corporate owners of vessels chartered by Philippine Nationals

4 1/2% on gross rentals or fees

Fees paid to non-resident cinematographic film owners or lessors

25% on gross income


1.5 Individual Taxation

Non-resident aliens not engage in trade and business flat income tax rate


Resident citizens/aliens (gainfully employed) Graduated income tax rates



Who Shall File:


An individual whose gross compensation income does not exceed his total personal and additional exemptions ;


An individual whose compensation derived from one year employer does not exceed P60,000 and the income tax on which has been correctly withheld;


An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee occupying the same position as that of the alien employee of regional or area headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors, and offshore banking units, non-resident alien not engaged in trade or business), and


An individual who is exempt from income tax.

Married individuals shall file single return for the taxable year to include the income of both spouses, separately computing their individual income tax based on their respective taxable income. Where it is impracticable for the spouses to file one return, each spouse may file a separate return.



If Taxable Income is:

Tax Due is:

If Taxable Income is:

Tax Due is:

Not over P10,000




Over P10,000 but not over P30,000

P500+10% of the excess over P10,000

Over P140,000 but not over P250,000

P22,500+25% of the excess over P140,000

Over P30,000 but not over P70,000

P2,500+15% of the excess over P30,000

Over P250,000 but not over P500,000

P50,000+30% of the excess over P250,000

Over P70,000 but not over P140,000

P8,500+20% of the excess over P70,000

Over 500,000

P125,000+34% of the excess over P500,000


1.6 Value Added Tax (VAT)

Sale of goods, other properties, and services in the Philippines, as well as importation of goods to the Philippines, are subject to the 10% VAT. VAT is imposed on the gross selling price (in case of sale of goods) and gross receipts (in case of sale of services).

1.7 Stock Transaction Tax

1/2 of 1% of gross selling price is imposed on the sale, barter, exchange or other disposition of shares through the facilities of stock exchange.


1.8 Percentage Tax



Banks - income from lending and financial leasing activities

1%, 3%, or 5% of gross receipts depending on the maturity date of the instruments, tax exempt if maturity period is over seven years.

Life insurance companies doing business in the Philippines

5% of the total premium collected

Electric, water and gas utilities

2% of gross receipts

Domestic common carriers of passengers

3% of gross receipts

International carriers

3% of gross receipts

Finance companies - income from lending and financial leasing activities

1%, 3%, or 5% of gross receipts depending on the maturity date of the instruments, tax-exempt if maturity period is over seven years

Other non-VAT registered businesses

3% of gross sales or gross receipts not exceeding P550,000.


1.9 Income Tax Rate for Special Corporation Entity




International Carriers


Gross Philippine Billings originating from the Philippines

Non-resident foreign corporation

33% (1999)
32% (2000)

Gross income from Philippine sources

Non-resident owner or lessor of aircraft, machinery and other equipment


Gross retails or fees

Offshore banking units (OBUs) and foreign currency deposit units (FCDUs) authorized by the BSP


Income from foreign currency transactions with local commercial banks, including branches of foreign banks that maybe authorized by the BSP to transact business with OBUs and FCDUs, including any interest income from foreign currency loans granted to residents.

Subcontractors engaged in Petroleum operations, Subcontractors engaged in Petroleum operations

8% final tax

Gross income from service contract

Regional operating headquarters


Taxable income from authorized incentives

SOURCE: How to invest in the Philippines, Joaquin Cunanan & Co.
* data as of April 2003


1.1 Selling Rates of Industrial Lots

P 2800/sqm and above*

1.2 Standard Factory Bldg. in Export Processing Zone

$ 2.5/sqm and above

1.3 Lease rates of Lots in Export Processing Zone

$ .40/sqm.

SOURCE: Philea rates depend on the location or site of the industrial land






P 70,000-10,000/sq. m

P 550-650/sq.m

Ortigas/Quezon City

P 45,000-60,000/ sq. m

P 400/sq. m and above

* data as of April 2003


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