The Philippines has recently transformed its taxation landscape to attract global businesses. With the implementation of the CREATE MORE Act, enterprises can now leverage competitive benefits that match neighboring Southeast Asian economies.
Understanding the New Fiscal Structure
A key highlight of the updated tax system is the lowering of the Corporate Income Tax (CIT) rate. Registered Business Enterprises (RBEs) utilizing the Enhanced Deduction incentive are now eligible to a preferential rate of 20%, down from the previous 25%.
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In addition, the length of fiscal availment has been lengthened. Large-scale projects can now benefit from fiscal breaks and deductions for up to twenty-seven years, providing lasting certainty for multinational operations.
Notable Incentives for Modern Corporations
According to the newest laws, corporations located in the Philippines can tap into several impactful deductions:
Power Cost Savings: Manufacturing companies can today deduct 100% of their power expenses, vastly lowering operational costs.
Value Added Tax Benefits: The rules for 0% VAT on local procurement have tax incentives for corporations philippines been liberalized. Benefits now apply to items and services that are directly attributable to the business activity.
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Import Incentives: Corporations can bring in capital equipment, inputs, tax incentives for corporations philippines and spare parts without imposing customs taxes.
Flexible Work Arrangements: Notably, RBEs based in tax incentives for corporations philippines economic zones can nowadays implement flexible work setups without losing their fiscal eligibility.
Streamlined Regional Taxation
To boost the ease of doing business, the government has introduced the Registered Business Enterprise Local Tax. Instead of dealing with diverse local charges, eligible enterprises can pay a single fee of not more than 2% of their earnings. This eliminates bureaucracy and makes compliance much simpler for corporate offices.
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Why to Register for Philippine Incentives
To apply for these corporate incentives, investors tax incentives for corporations philippines should register with an IPA, such as:
Philippine Economic Zone Authority (PEZA) – Ideal for manufacturing firms.
BOI – Suited for local industry leaders.
Other Regional Zones: Such as the SBMA or Clark Development Corporation (CDC).
Overall, the Philippine corporate tax incentives represent a world-class approach built to promote development. Regardless of whether you are a technology startup or a massive manufacturing conglomerate, navigating these laws is essential tax incentives for corporations philippines for optimizing your profitability in 2026.