Regional Headquarters (RHQ) and Regional Operating Headquarters (ROHQ) and their expatriate and Filipino employees are entitled to tax incentives.
Foreign employees and their families may apply for special non immigrant visas.
Let DBC register your RHQ or ROHQ rapidly.
RHQ
• It may not obtain income from sources within the Philippines nor participate in any manner in the management of any subsidiary or branch office it might have in the Philippines.
• Annul remittance of USD50,000.00 to cover operating expenses.
ROHQ
• Is allowed to derive income in the Philippines
• A one time remittance of USD200,000.00 is required.
Tax Incentives for Philippines RHQ
• Exemption from corporate income tax
• Exemption from value-added tax (0%VAT)
+ Sale or lease of goods and property, and services to the RHQ shall be subjected to zero VAT
• Exemption from all kinds of local taxes, fees or charges imposed by a local government unit, except real property tax on land improvement and equip-ment
• Tax and duty free importation of equipment and materials for training and conferences needed and solely used for the RHQ functions, and which are not locally available, subject to prior BOI approval.
+ Equipment disposed of within 2 years after importation subject to payment of taxes and duties
• Importation of brand new motor vehicle but subject to payment of taxes and duties.
Tax Incentives for Philippines ROHQ
• Exemption from all kinds of local taxes, fees or charges imposed by a local government unit, except real property tax on land improvements and equipment.
• Tax and duty free importation of equipment and materials for training and conferences needed and solely used for the RHQ functions, and which are not locally available, subject to prior BOI approval.
+ Equipment disposed of within 2 years after importation subject to payment of taxes and duties
• Importation of brand new motor vehicle but subject to payment of taxes and duties.
Note: ROHQ’s are subject to 12% VAT, 10% corporate income tax and 15% branch office profit remittance when profit remitted to parent company
RHQ and ROHQ Incentives for Expatriates and Filipinos
•Special Multiple Entry Visa
+ Expatriates, including spouse and unmarried children below 21 years old will be issued this type of visa
+ Multiple entry visa will be processed within 72 hours from submis-sion of documents to the Bureau of Immigration
+ Valid three (3) years extendible for another three (3) years
+ Exempt from securing Alien Certificate of Registration (ACR) from the Department of Labor and Employment (DOLE)
•Tax and duty-free importation of used household goods and personal effects
• Travel tax exemption
+ Personnel and their dependents
For Expats and Filipinos
Withholding tax of 15% on compensation applicable to both alien and Filipino executives holding managerial and technical positions. (Revenue Regulation 11-2010)*
* Filipino employees must have a gross annual taxable income of at least PHP975,000.
Once your RHQ / ROHQ has been registered with the SEC, DBC will assist in applying for tax incentives with the BOI.
About David Elefant
Philippines business consultant specializing in assisting companies setup their operations in the Philippines.
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