Yes, but with restrictions depending on the business type and ownership percentage.100% foreign ownership is allowed in certain industries
Yes. A foreigner can be a director, Corporate Secretary must be held by Filipino citizens.
Yes. You can’t operate a business legally on a tourist visa. Options include:
No, foreigners cannot own land.
If your business qualifies under BOI, PEZA, or CEZA, you may get:
Corporate Income Tax
Value-Added Tax (VAT) or Percentage Tax
Withholding Taxes (on salaries, rentals, suppliers, etc.)
Excise Tax (for certain products)
Local Business Tax (LBT) – collected by city/municipality
Annual Registration Fee (₱500 per company)
25% for most domestic and resident foreign corporations
20% for corporations with net taxable income ≤ ₱5 million and total assets ≤ ₱100 million (excluding land)
Non-resident foreign corporations: taxed at 25% on income from Philippine sources
VAT (Value-Added Tax) is a 12% tax on sales of goods, services, or lease.
You must register for VAT if:
Your annual gross sales/receipts exceed ₱3 million
You are voluntarily registering (even below threshold)
VAT = 12% of sales (for bigger businesses, required above ₱3M revenue)
Percentage Tax = 3% (optional for small businesses below ₱3M if not VAT-registered)
Withholding Tax on Compensation – based on graduated tax table
Employer contributions to:
SSS (Social Security System)
PhilHealth
Pag-IBIG Fund
Businesses are required to withhold part of the payment to suppliers, employees, and contractors, then remit it to the BIR.
Go to the BIR RDO (Revenue District Office) with jurisdiction over your office
Submit forms and documents (SEC, DTI, Mayor’s Permit, lease, etc.)
Get:
Every April 15 of the following year (e.g., 2024 ITR due on April 15, 2025)
Corporations file BIR Form 1702
Yes. Through BOI, PEZA, or other investment promotion agencies, you may qualify for:
Income tax holiday (ITH)
5% GIE (Gross Income Tax) in lieu of all local/national taxes
Duty-free importation of equipment
VAT zero-rating on local purchases
25% surcharge on unpaid tax
12% annual interest on unpaid tax
Compromise penalties depending on violation
BIR may also audit or investigate non-compliant businesses.
As of 2023 (CREATE Law), the corporate income tax rate is:
25% for most domestic and resident foreign corporations
20% for domestic corporations with net taxable income ≤ ₱5 million and total assets ≤ ₱100 million
It depends on your nationality.Many countries (e.g., USA, UK, EU, ASEAN) can enter visa-free for up to 30 days.For longer stays, you need to apply for a visa in advance
Yes. You can extend your stay up to 36 months (non-visa required nationals) or 24 months (visa-required) by going to the Bureau of Immigration (BI).
First extension: 29 days (total 59 days)
After that, you can apply for further extensions every 1-2 months
You need a 9(g) Pre-arranged Employment Visa
Must be sponsored by a Philippine-registered company
Requires an Alien Employment Permit (AEP) from DOLE before applying for the visa
A long-term visa that allows a foreigner to live and invest in the Philippines
Requires a minimum investment of US$75,000
Must be placed in approved businesses or government-listed industries
Holders can stay indefinitely as long as the investment is active
A visa for retirees who want to live in the Philippines long-term.
There are different SRRV types, but generally:
Age 35–49: deposit $50,000
Age 50+: deposit $10,000 to $20,000, depending on income/pension
SRRV allows multiple-entry, indefinite stay, and tax & customs perks.
Yes, conversion is possible while in the Philippines — you don’t need to leave.
You must submit all necessary documents to the Bureau of Immigration, including a new visa application, sponsor requirements, and certifications.
A short-term visa for tourism, business meetings, or family visits.
May be valid for 59 days or more
Can be extended at the BI
Cannot be used for employment or regular business operation
The 9(g) visa is usually valid for 1 to 3 years, renewable based on your employment contract and AEP status.
Company endorsement letter
Employment contract
Alien Employment Permit (AEP)
Valid passport and previous visas
Medical clearance
NBI or police clearance
Yes. They can apply for a 13(a) dependent visa or be included under your visa as dependents, depending on the visa type.
