PH · Accounting & Tax

Accounting & Tax
Philippines

Accounting and tax advisory for your Philippine Corporation or OPC, 100% remote. You see every return before we file it with the BIR, and we keep track of the deadlines for you.

Pathfinder

Corporate Tax20–25%

VAT12%

Tax YearCalendar

AuthoritiesBIR / SEC

Last updated: 10/2026

Overview

Why Philippines?

The standard corporate tax rate is 25%. Companies with net taxable income of up to PHP 5 million and total assets of up to PHP 100 million (excluding the land the business sits on) pay 20%. Regional operating headquarters (ROHQ) have been subject to the regular rate since 1 January 2022. VAT is 12%.

PEZA (Philippine Economic Zone Authority) offers companies in economic zones tax exemptions under certain conditions. Registered companies can, once approved by PEZA, be exempt from corporate tax for up to 8 years. How much tax is ultimately due depends on your residence, the place of management and your documentation.

Strasia Group handles accounting and tax for your company in the Philippines: ongoing bookkeeping, the regular BIR filings and the annual tax return.

What applies to your company in the Philippines

PEZA: Tax Exemption Subject to ConditionsPEZA-registered companies in economic zones can, once approved, be exempt from corporate tax for up to 8 years. What applies at home depends on your residence and the place of management.

Reduced Rate for SMEsCompanies with net taxable income of up to PHP 5 million and total assets of up to PHP 100 million pay 20% instead of 25% corporate tax.

SRRV or SIRV and a companyCompany formation can be combined with an SRRV or SIRV. Both visas cover long-term residence; residence permission is not automatically work permission. We clarify which activity is allowed before the application.

OPC: Simple StructureThe One Person Corporation (OPC) enables a simple company structure with a single shareholder.

Our Accounting Process

BIR Registration

One-off

Registration with the Bureau of Internal Revenue (BIR) and receipt of the TIN (Tax Identification Number).

Ongoing Bookkeeping

Ongoing

Monthly recording of all business transactions per Philippine Financial Reporting Standards (PFRS).

Regular BIR Filings

Monthly / quarterly

Monthly withholding tax returns (BIR Form 1601-C), quarterly VAT return (BIR Form 2550Q) and quarterly income tax return (BIR Form 1702Q).

Annual Tax Filing

Annual

Filing the annual corporate tax return (BIR Form 1702) and annual financial statements with the BIR and SEC.

Frequently Asked Questions

What is PEZA and what tax benefits does it offer?

PEZA (Philippine Economic Zone Authority) administers the Philippine economic zones. Its tax benefits are not automatic: companies registered with PEZA and operating in an economic zone can, once approved by PEZA, be exempt from corporate tax for up to 8 years and then pay a reduced rate of 5%. If the company is managed from Germany, Austria or Switzerland, it may be taxable there. How much tax is ultimately due depends on your residence, the place of management and your documentation. We discuss the right structure with you in a consultation.

What software does Strasia Group use?

We use modern cloud-based accounting software such as QuickBooks and Xero. Documents can be submitted via Google Drive, Dropbox or post. Communication is via WhatsApp, Telegram and email.

When is the tax return due in the Philippines?

The annual corporate income tax return (BIR Form 1702) is due by the 15th day of the fourth month after the close of the taxable year, so 15 April for a calendar year. Quarterly returns are due within 60 days after the end of each of the first three quarters.

What is an OPC and how is it taxed?

An OPC (One Person Corporation) is a corporation with a single shareholder. It is taxed like any corporation: 25%, or 20% with net taxable income of up to PHP 5 million and total assets of up to PHP 100 million. Liability is limited to the assets of the company.

Can Strasia handle bookkeeping fully remotely?

Yes. We handle all bookkeeping, VAT returns, annual accounts and tax filing fully remotely; you do not need to travel to the Philippines for it.

What are the reporting obligations with the BIR in the Philippines?

Philippine companies file quarterly VAT returns (BIR Form 2550Q) and quarterly income tax returns (BIR Form 1702Q); the monthly VAT declaration (BIR Form 2550M) has not been required since 2023. The annual tax return (BIR Form 1702) is due by April 15. Additionally, withholding tax returns (BIR Form 1601-C) must be filed monthly.

First call about your accounting

Free initial consultation: 60 minutes, no obligation. We quote our own fees in a written offer before any engagement; government fees are shown separately.

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Corporate tax compared

Standard rates on the company’s profit

Philippines25%

standard rate; 20% with net taxable income up to PHP 5 million and assets up to PHP 100 million

Hong Kong8.25% / 16.5%

Profits tax, two-tier: 8.25% up to HKD 2 million profit

Singapore17%

Corporate income tax, partial exemptions only for qualifying income

Dubai (UAE)9%

on the part above AED 375,000; 0% below it and on qualifying free-zone income

Labuan3%

on audited net profit from Labuan trading activity, with substance on site

USA21%

federal rate for corporations, plus state tax where due; an LLC is taxed differently

Germany~30%

15% corporate tax plus solidarity surcharge and trade tax

Netherlands19% / 25.8%

19% up to EUR 200,000 profit

France25%

What you pay yourself depends on where you live and where the company is actually managed. As of 22 Oct 2026, sources: IRD · IRAS · FTA (VAE) · LHDN · IRS · Belastingdienst · impots.gouv.fr

Tax Rates & Compliance Obligations Compared

Criterion	Philippines	Hong Kong	Singapore	Dubai	Thailand
Corporate Tax	20–25%	8.25% / 16.5%	17%	9% above AED 375,000	15–20%
Capital Gains Tax	15%	0%	0%	0%	Part of profit (CIT)
GST / Sales tax / VAT	12%	0%	9%	5%	7%
Tax Filing Deadline	15th day of 4th month post-FY	Depends on financial year end	30 Nov	9 months post-FY	7 months post-FY
PEZA Tax Exemption	Yes (0–8 years)	N/A	N/A	Yes (Freezone)	Yes (BOI)

Corporate Tax20–25%

Capital Gains Tax15%

GST / Sales tax / VAT12%

Tax Filing Deadline15th day of 4th month post-FY

PEZA Tax ExemptionYes (0–8 years)

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Corporate tax rates checked on 22 Oct 2026 (BIR, IRD, IRAS, FTA, Revenue Department Thailand); other figures as of 2026, subject to change. Zero rates apply only to the tax named and under conditions. What you pay yourself depends on your residence and the place of management.

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Accounting & TaxPhilippines