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