What Are the Business Taxes in the Philippines?

Learn about the different kinds of business taxes to determine what suits your corporation.

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What business taxes should you know before incorporating in the Philippines?

There are basically two kinds of taxes: local taxes and national taxes. These taxes are governed by the National Internal Revenue Code.  The regular conduct or pursuit of a commercial or an economic activity, including transactions incidental to it, by any person, are treated as “In the course of trade or business” which shall be held liable to pay business taxes.

What are the different kinds of business tax?

Value-Added Tax

An indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods properties or services.

Excise Tax

Applies to goods manufactured or produced in the Philippines for domestic sales or consumption or to any other disposition, things imported, as well as services performed in the Philippines. 

Other Percentage Tax

Applies to any person whose sales or receipts are exempt under Section 109(B) of the Tax Code from the payment of value-added tax and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts; Provided, that your annual gross sales and/or gross receipts do not exceed Php 3,000,000.00.

Income Tax

A tax on all quarterly and yearly profits arising from property, profession, trades or offices, or as a tax on a person’s income, emoluments, profits and the like. Different tax treatments apply to different classifications of taxpayers or income earners.

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we will assist you with all your accounting needs

Reach out to us to schedule an appointment with our Sales Team and let's talk about your business plans in the Philippines.

Here are more useful information to further understand Jumpstarters Manila's accounting services 

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Summary of Monthly and Quarterly Tax Compliance Services

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The Deductible Expenses for the Corporations in the Philippines

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Income Taxation of Corporations in the Philippines

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8% Preferential Tax Rate for Self-Employed in the Philippines

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Registration at Bureau of Internal Revenue