🇵🇭 Doing business in Philippines

What makes up the long-term score

Highlights: Largest English speaking BPO hub in Asia · Strong remittance inflows providing economic stability · Young demographic dividend with median age of 25

Key industries

BPO & IT Services ↑ Strong growth

Philippines is the worlds BPO capital generating $32B+ annually. Over 1.3M workers serve US, UK and Australian clients across voice and non-voice services.

Main investors: US, UK, Australia, Japan

Remittances & Financial Services ↑ Growing

Overseas Filipino Workers send $36B+ annually making Philippines top 5 globally for remittances. Digital banking and fintech growing rapidly.

Main investors: US, Singapore, UAE, Japan

Manufacturing & Electronics → Stable

Philippines is a major electronics exporter particularly semiconductors. Laguna and Cavite provinces host significant Japanese and US manufacturing.

Main investors: Japan, US, South Korea, China

Tourism & Hospitality ↑ Growing

Philippines has 7,000+ islands with world class beaches and diving. Government targeting 12M visitors by 2028 with major resort development underway.

Main investors: US, South Korea, China, Australia

Sector priorities

1. BPO & Knowledge Process Outsourcing: PEZA registered BPO operations get 4 to 8 year income tax holidays and 5% GIT thereafter making Philippines the most cost effective English BPO destination.
2. Renewable Energy: Philippines has exceptional wind and solar resources. Retail competition market and green energy auction programme creating significant investment pipeline.
3. Tourism & Infrastructure: Government Build Better More infrastructure programme and tourism master plan creating significant construction and hospitality investment opportunities.

Talent & work permits

Philippines has one of Asias strongest English speaking talent pools with 500,000+ university graduates annually. Strong affinity for US business culture.

• Foreign workers: Foreign employees need an Alien Employment Permit from DOLE and a 9(g) working visa.
• Localisation: Export enterprises (60% or more of output exported) can generally be 100% foreign-owned. Domestic-market enterprises with foreign equity face minimum paid-in capital rules: US$200,000, or US$100,000 with advanced technology, startup status or at least 15 Filipino employees (RA 11647). Retail, media and education have ownership limits.
• Key consideration: 13th-month pay is mandatory. Employer SSS is 10% (capped at a PHP 35,000 salary credit), PhilHealth 2.5% and Pag-IBIG PHP 200 a month.

Checked 11 November 2026. Sources: Export vs domestic market enterprise rules (NDV Law) · RA 11647 amendments (ASEAN Briefing, Mar 2022) · Philippines payroll and contributions 2026 (Second Talent, Aug 2026)

How to enter: first four steps

Philippines offers PEZA and BOI registered investment routes both offering significant tax incentives. PEZA is most popular for BPO and export oriented manufacturing.

1. Choose investment registration: PEZA for export oriented BPO and manufacturing, BOI for domestic market oriented businesses
2. Register with SEC: Securities and Exchange Commission for corporate registration. Check Foreign Investment Negative List for ownership restrictions in your sector
3. Register with BIR: Bureau of Internal Revenue for tax identification number, VAT and withholding tax registration
4. Obtain PEZA or BOI registration: apply for fiscal incentives including income tax holidays before commencing operations

Indicative cost: 10-person team

Professional-services team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.

First year by industry (10 people)

Regulatory watch

• Feb 2026 · CREATE MORE Act Signed: Philippines CREATE MORE Act signed into law providing enhanced fiscal incentives for foreign investors including reduced special corporate income tax rate of 5%.