The Pearl of the Orient has significantly revamped its taxation landscape to lure global businesses. With the implementation of the CREATE MORE Act, businesses can now avail of competitive incentives that rival neighboring Southeast Asian economies.
Breaking Down the New Tax Structure
A primary feature of the current tax system is the lowering of the CIT rate. Registered Business Enterprises (RBEs) availing the Enhanced Deduction incentive are currently eligible to a preferential rate of twenty percent, down from the previous twenty-five percent.
+1
In addition, the length of fiscal availment has been lengthened. High-impact investments can nowadays profit from tax holidays and incentives for up to twenty-seven years, offering long-term certainty for multinational operations.
Notable Incentives for Modern Corporations
According to the newest regulations, businesses operating in the country can utilize several powerful advantages:
100% Power Expense Deduction: Energy-intensive companies can now claim double of their electricity costs, greatly reducing overhead costs.
Value Added Tax Benefits: The rules for 0% VAT on local procurement have been liberalized. Benefits now tax incentives for corporations philippines apply to items and services that are essential to the registered project.
+1
Duty-Free Importation: Registered firms can import machinery, raw materials, tax incentives for corporations philippines and accessories without imposing customs taxes.
Flexible Work Arrangements: Notably, RBEs operating in ecozones tax incentives for corporations philippines can now adopt work-from-home (WFH) setups without risking their fiscal incentives.
Easier Local Taxation
In order to improve the business climate, the government has established the RBE Local Tax (RBELT). Instead of paying multiple municipal fees, eligible corporations may remit a consolidated tax of up to 2% of their gross income. Such a move removes red tape and renders compliance far more straightforward for corporate entities.
+1
How to Register for These Benefits
To be eligible tax incentives for corporations philippines for these fiscal incentives, businesses should enroll with an Investment Promotion Agency (IPA), such as:
Philippine Economic Zone Authority (PEZA) – Ideal for export-oriented firms.
Board of Investments (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 large industrial conglomerate, understanding these laws is essential for optimizing your tax incentives for corporations philippines profitability in 2026.