News & Insights/Philippines Regulatory & Tax Updates (2026)
Regulatory & Tax4 min read
Philippines

Philippines Regulatory & Tax Updates (2026)

The CREATE MORE Act has significantly enhanced the Philippines' investment incentive framework, while 100% foreign ownership is now permitted across key sectors — making the country an increasingly attractive destination for regional expansion.

Corporate Tax

The standard corporate income tax rate is 25%. Small domestic corporations meeting the qualifying criteria benefit from a reduced rate of 20%.

VAT

The standard VAT rate is 12%. VAT registration becomes mandatory once annual turnover exceeds PHP 3 million.

CREATE MORE Act

The enhanced incentive framework offers registered enterprises a choice of 4–7 year income tax holidays, a 5% gross income tax rate for exporters, or an enhanced deductions regime — providing meaningful flexibility for structuring investments.

Ownership

100% foreign ownership is now permitted in retail trade, telecommunications, renewable energy, and export enterprises, significantly broadening the scope for foreign direct investment.