Why Invest in the Philippines
Why the Philippines?
Young, skilled, and English-proficient workforce powering global industries
Resilient GDP growth, among the fastest countries in Asia
13th largest consumer market by 2030, driven by a growing middle class
Gateway to ASEAN’s 680+ million consumers and regional supply chains
Supportive investment climate with pro-business government policies
Fueling Competitiveness Through Incentives
The Tax Code offers a competitive package of incentives that cut costs, simplify compliance, and provide long-term stability, making it easier for investors to grow and succeed in the Philippines.
Competitive incentive package
Income tax holiday
for four to seven years depending on the location and tier classification of the project.
5% special corporate income tax rate
based on the gross income which is in lieu of all national and local taxes, and local fees and charges.
Enhanced Deductions Regime (EDR)
with a reduced corporate income tax rate of 20% based on net taxable income.
Customs duty exemption on importation
of capital equipment, raw materials, spare parts, or accessories, including goods used for administrative purposes.
VAT zero-rating on local purchases and VAT exemption on importation
of goods and services directly attributable to the registered project.
2% Registered Business Enterprise local tax (RBELT)
2% Registered Business Enterprise local tax (RBELT).
Flexible Options for Incentive Sequencing
For registered exporters
Option 1
ITH for 4-7 years
SCIT for 10 or 20 years
2% RBELT
Duty and VAT exemption and VAT zero-rating
Option 2
ITH for 4-7 years
EDR for 10 or 20 years
2% RBELT
Duty and VAT exemption and VAT zero-rating
Option 3
SCIT for 14 to 27 years
Duty and VAT exemption and VAT zero-rating
Option 4
EDR for 14 to 27 years
Duty and VAT exemption and VAT zero-rating
2% RBELT
For domestic market enterprises (DMEs)
Option 1
ITH for 4-7 years
EDR for 10 to 20 years
2% RBELT
Duty exemption on importation; VAT exemption and VAT zero-rating exclusive for high-value DMEs
Option 2
EDR for 14 to 27 years
Duty exemption on importation; VAT exemption and
VAT zero-rating exclusive for high-value DMEs
RBELT
Broad Range of Enhanced Deductions:
10% or 20% additional depreciation allowance for buildings and machinery and equipment, respectively
50% additional deduction on direct labor expenses
100% additional deduction on research and development expenses
100% additional deduction on technical training expenses
50% additional deduction on domestic input expense
100% additional deduction power expenses
Up to 50% deduction for reinvestment allowance for manufacturing and tourism projects
50% additional deduction on expenses relating to exhibitions, trade missions, or trade fairs
Net Operating Loss Carry-Over which is deductible for up to 5 years after the ITH period, or after the year of loss for RBEs opting for enhanced deductions
What are the Registrable Projects/Activities?
The Strategic Investment Priority Plan (SIPP) features initiatives that drive sustainable development and long-term growth. Eligible businesses can explore the following opportunities:
Tier 1: Building the Foundations
Essential sectors driving inclusive and sustainable growth
COVID-19 Qualified Activities
Manufacturing
Activities in Support of Government Programs
Strategic Services
Mass Housing
Infrastructure and Logistics
Agriculture, Fishery, Forestry
Healthcare
Innovation Drivers
Inclusive Business (IB) Models
Environment
Energy
Export Activities
Special Laws
Tier 2: Strengthening Competitiveness
Filling value-chain gaps and future-proofing industries
Green Ecosystems
Health-related Activities
Defense-related Activities
Industrial Value-chain Gaps
Food Security-related Activities
Tier 3: Shaping the Future
Filling value-chain gaps and future-proofing industries
Research and Development
Highly Technical Manufacturing and Production of Innovative Products and Services
Innovation Support Facilities
Infrastructure Advantage
The Strategic Investment Priority Plan (SIPP) features initiatives that drive sustainable development and long-term growth. Eligible businesses can explore the following opportunities:
A. Airport
| Major Philippine Airports | Location | Address |
|---|---|---|
| Ninoy Aquino International Airport (NAIA) | Luzon | Pasay City, 1300 Metro Manila |
| Clark International Airport (CRK) | Luzon | Clark International Airport, Andres Bonifacio Avenue, Clark Freeport Zone, Pampanga Philippines 2023 |
| Mactan-Cebu International Airport (CEB) | Visayas | Lapu-Lapu Airport Rd, Lapu-Lapu City, 6016 Cebu, Philippines |
| Bacolod-Silay Airport (BCD) | Visayas | Airport Road, Silay City, 6116 Negros Occidental, Philippines |
| Davao International Airport | Mindanao | Davao International Airport, Carlos P. Garcia National Highway, Davao |
| General Santos International Airport (Tambler Airport) | Mindanao | Filipino-American Friendship Ave, General Santos City, 9500 South Cotabato, Philippines |
B. Seaport
| Major Philippine Seaports | Location | Address |
|---|---|---|
| Port of Manila | Luzon |
PNR Building South Harbor Manila Philippines Luzon Island, Manila Bay, West Philippine Sea |
| Port of Batangas | Luzon |
Batangas Port Access Road,
Barangay Santa Clara,
Batangas City, Philippines Luzon Island, Batangas Bay, West Philippine Sea |
| Port of Subic | Luzon |
New Seaport Administration Building,
Waterfront Road corner Sampson Road,
Subic Bay Freeport Zone,
Philippines 2222 Luzon Island, Subic Bay, West Philippine Sea |
| Port of Lucena | Luzon |
20 San Antonio Street,
Lourdes Subdivision,
Brgy. Isabang,
Lucena City,
Quezon Province Luzon Island, Tayabas Bay, Inland Seas |
| Port of Cebu | Visayas |
CPA Executive Building,
CIP Complex,
Sergio Osmeña Jr. Blvd.,
Cebu City,
6000 Cebu,
Philippines Cebu Island, Mactan Channel, Inland Seas |
| Port of Iloilo | Visayas |
Iloilo Domestic Port (Passenger Terminal) Address: PPA Terminal Building, Fort San Pedro Drive, Iloilo City Proper, Iloilo City. Visayas Container Terminal (International) Address: VCT Administration Building, Baseport, Iloilo Commercial Port Complex, Loboc, Lapuz, Iloilo City. Panay Island, Iloilo Strait, Inland Seas |
| Port of Davao | Mindanao |
Sasa Wharf (main port) Address: Km. 10, Port Area, Sasa, Davao City. Sta. Ana Pier Address: Pier area, T. Monteverde Street, Sta. Ana, Davao City. Mindanao Island, Davao Gulf, Philippine Sea |
| Port of Cagayan De Oro | Mindanao |
CDO Port Departure Area: Zone 1, Julio Pacana Street, Cagayan De Oro City, 9000 Misamis Oriental, Philippines. Mindanao Island, Macajalar Bay, Inland Seas |
| Port of General Santos | Mindanao |
Makar Wharf,
Labangal,
General Santos City. Mindanao Island, Sarangani Bay, Celebes Sea |
| Port of Zamboanga | Mindanao |
R.T. Lim Boulevard,
Zamboanga City,
Philippines
Mindanao Island, Basilan Strait, Celebes Sea |
C. Ecozones
| Major Philippine Ecozones | IPA | Location | Address |
|---|---|---|---|
| Suntrust Ecotown Tanza | PEZA | Luzon | Sahud-Ulan, Tanza, Cavite |
| Mactan Economic Zone | PEZA | Visayas |
Lapu-Lapu City, Mactan, Cebu Baguio City Economic Zone |
| Light Industry & Science Park IV | PEZA | Luzon | Barangays Bulinan, Luta Sur, Luta Norte, San Fernando, San Pedro West, and Poblacion, Malvar, Batangas |
| Hermosa Ecozone Industrial Park | PEZA | Visayas | Hermosa, Bataan |
| Freeport Area of Bataan | AFAB | Luzon | AFAB Administration Building, Freeport Area of Bataan, Mariveles, Bataan, Philippines 2106 |
| Aurora Pacific Economic Zone and Freeport | APECO | Luzon | Casiguran, Aurora |
| Cagayan Special Economic Zone | CEZA | Luzon | Santa Ana and Aparri, Cagayan |
| Clark Freeport Zone | CDC | Luzon | Angeles City and Mabalacat, Pampanga, and Capas and Bamban, Tarlac |
| Subic Bay Freeport Zone | SBMA | Luzon | Olongapo and Subic, Zambales, and Hermosa and Morong, Bataan |
| Poro Point Freeport Zone | PPMC | Luzon | Poro Point, San Fernando, La Union |
| Zamboanga City Special Economic Zone Authority | ZCSESA | Mindanao | Zamboanga City |
| John Hay Special Economic Zone | JHMC | Luzon | Baguio City, Benguet |
| Phividec Industrial Estate-Economic Zone | PHIVIDEC | Mindanao | Tagoloan and Villanueva, Misamis Oriental |
| Polloc Freeport and Ecozone | BEZA | Mindanao | Parang, Maguindanao del Norte |
| New Clark City | BCDA | Luzon | Bamban and Capas, Tarlac |
Note: The table highlights the top 4 PEZA economic zones.
D. Tourism Enterprise Zones
| Tourism Enterprise Zones | IPA | Location | Address |
|---|---|---|---|
| San Vicente Flagship Tourism Enterprise Zone (FTEZ) | TIEZA | Luzon | Long Beach Area of San Vicente, Palawan |
| Mt. Samat FTEZ | TIEZA | Luzon | Ground Floor, Amanda's Events Place, Four Lanes/EGSA, Brgy. Tuyo, Balanga, Bataan |
| Panglao Bay Premiere FTEZ | TIEZA | Visayas | Barangays Bolod and Tawala, Panglao, Bohol |
| The Rizal Park Complex FTEZ | TIEZA | Luzon | Ermita, Manila |
| Corregidor Island FTEZ | TIEZA | Luzon | Cavite City |
| Clark TIEZA-TEZ | TIEZA | Luzon | Prince Balagtas Extension, Clark Special Economic Zone, Pampanga |
Recent Reforms Driving Investor Confidence
Investors’ Lease Act (2025)
Up to 99 years for industrial and commercial use, ensuring long-term security.
Ease of Paying Taxes (EOPT) Law (2024)
Simplified, digital tax compliance that reduces costs and improves ease of doing business.
CREATE MORE Act (2024)
Expanded tax incentives, simplified VAT refunds, and improved administration of tax incentives.
Executive Order No. 18 (2023)
Established Green Lanes for strategic investments, providing faster endorsements and priority approvals.
Public Service Act Reforms (2022)
More foreign ownership allowed in telecoms, transport, and key sectors.