Government Agencies Dedicated to Help Foreign Investors

The rising Foreign Direct Investment (FDI) in the Philippines for the past few years hit a record blow of 8 billion USD in 2016 with US and Japan as main investors. The dynamic flow which lies in the manufacturing, finance and BPO sectors can be contributed to the English fluency, workforce skills as well as geographic and cultural favorability of the region. In support of strengthening foreign relations, we've compiled a list of government agencies that could help foreign investors set up and settle down in the Philippines.

1.Bureau of Internal Revenue BIR is a Department of Finance agency that collects more than 50 percent of government total revenues through taxes. The existing power and duties of the agency is governed by a bilateral agreement that manages any issues of double taxation and tax evasion. Philippine tax treaties award compensations to foreign investors through preferential tax rates or tax exemption with the following conditions:

a. Income tax exemption for professions such as teacher, artist, researcher, athlete, trainee, student, director's fee, personal service and independent personal service rendered not more than 183 days, pension,government service, sales of shares/alienation of property

b. Preferential tax rates on interest, royalties, dividends, shipping and air transport

To acquire a tax relief, BIR must first rule and confirm that transactions are eligible for preferential tax rates after the company or individual secures a Tax Treaty Relief Application (TTRA) BIR form 0901 along with the required documents.

2. Department of Trade and Industry DTI is the primary regulatory arm of "country's trade, industry and investment activities." The agency encourages a steady foreign investment inflow by liberalizing Philippine economy welcoming foreign players in the market with its reformed incentive system. Attached to the department is another essential agency called Philippine Economic Zone Authority (PEZA) with head office based in Metro manila. In the Special Economic Zone Act of 1995 (RA Act No. 79160, PEZA oversees the development of Special Economic Zones, provides competitive incentives to foreign investors and promote, facilitates and extends help to operations of foreign businesses.

Priorities are given to investment in sectors such as export manufacturing, Information Technology, tourism, Agro-industrial export manufacturing, Agro-industrial Bio-fuel Manufacturing, logistics and warehousing services, facility and utility providers. Incentives are categorized into fiscal and non fiscal incentives. Fiscal incentives correspondingly include Income Tax Holiday, 5% special tax on gross income and local and national tax exemption after expiry of ITH, tax and duty free importation of specific materials or items, exemption from wharfage dues, export tax, and impost or fees and VAT zero-rating of local purchase. Non Fiscal incentives cover simplified import-export procedures, non resident Foreign national employed by PEZA-included Economic Zone and special non immigrant visa with multiple entry privileges for non resident Foreign Nationals in PEZA-registered Economic Zone.

3. Board of Investments

BOI is another attached agency of DTI that leads in promotion of investments assisting both local Filipinos and foreign nationals. By registering your business in BOI, eligibility allows tax breaks and compensations for those businesses within investment priorities and economic development and for those related to export-oriented industry.

4. GSIS, SSS, Philhealth and Pag-ibig Social Security System provides pension fund while Government Service Insurance provides state-pensioned fund, both being a social service insurance program to workers in professional, private and informal sectors. These programs cover Social Security, Medicare and Employees Compensation.

Philhealth is a mandated health insurance program by the government that ensures health insurance coverage for Filipinos, quality and affordable health care services, and responsible management of economic resources.

Pag-Ibig is a government-controlled corporation under the Housing and Urban Development Coordinating Council in charge of the national savings program as well as house financing servicing Filipinos employed by local and foreign-based employers.

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https://en.portal.santandertrade.com/establish-overseas/philippines/foreign-investment

http://enterph.com/blog/government-agencies-foreign-investors-need-know/

http://investphilippines.gov.ph/incentives/philippine-economic-zone-authority/

http://www.dti.gov.ph/about