100% Outsourcing. 100% Philippines.

This is part two of our 2-part series on bringing your business to the Philippines.

Branch Office

If you already have a corporation back home, and are merely looking to expand, then your best bet is to set up a branch office.

A branch office is considered a legal extension of the parent company, can engage in the same income generating activities, and as its representative, close sales in its own name. Being the legal representative also makes the parent company legally liable for any liability of the branch in excess of its investment.

Initial investment required is $200,000 if foreign interest exceeds 40%, but may be lowered to $100,000 if advanced technology is involved, or you employ more than 50 people. Corporate taxes are derived from income sourced within and without the Philippines at 30%. After four years of operation, a 2% MCIT will be imposed if the gross taxable income is higher than the 30% already imposed. Again, this is computed without PEZA tax breaks.

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Bringing Your Business to the Philippines: What You Should Know – Part 1

Some business owners are happy to continue outsourcing in the more traditional sense, working with home-based workers over a never-ending […]

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Why Outsourcers Should Respect the Philippine Labor Law

There is an unwritten rule when it comes to home-based Filipino workers, in that they understand that they are not […]

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Observing Philippine Labor Laws When Working With a Filipino VA – Part 2

Special Holidays Special holidays are non-paid holidays, but are nonetheless important simply due to their cultural and religious significance. Holy […]

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Observing Philippine Labor Laws When Working With a Filipino VA – Part 1

Each country has their own labor laws designed to protect their employees, and the Philippines is no different. The Philippines […]

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Knowing Your Filipino VA: Family Comes First

In the Philippines, everything centers around the family: religion, daily activities, even entrepreneurial pursuits. And by family we mean: parents, […]

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Knowing Your VA: What Does “Hiya” Means?

The Filipino’s desire not to be rude stems from “hiya”, which literally means “embarrassment”. No one—from whatever country you’re in—wants […]

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