Taxes and duties in The Philippines
Relevant taxes for the seafood industry in the Philippines are:
Corporate tax: Companies pay 30% corporate tax.
Withholding tax: All other taxable income earned by domestic and resident foreign corporations is subject to a 20% final withholding tax. However, regionally operating headquarters are taxed at 10% on taxable income. Special economic zone enterprises registered with the Philippines Economic Zone Authority (PEZA) are taxed at the rate of 5% on gross income.
Personal income tax: Income of residents in Philippines is taxed progressively up to 32% but this is only charged for income generated in the Philippines. Most foreigners that are employed in the Philippines are taxed at the maximum rate.
Commercial tax: 12% VAT is charged on gross selling price to all importation, sale, barter, exchange or lease of goods or properties and sale of services.
Customs duty: Customs duty for imported goods are charged at rates ranging from 0% to 65%. Please note that the Bureau of Customs system that calculates and charges duties is not very transparent and assistance from a professional customs broker / agent is strongly advised.
Export duties: There are no export taxes for seafood.
Additionally new companies can register for tax discount and exemptions if they meet certain requirements. These requirements vary per industry and per year. For more information please contact the Board of Investment (BoI).