Philippines

Business Environment

Business practices

Closed hours and days: Banks: from 9.00 to 17.00.

Public holidays

Compensation day

Periods when companies usually close

Standards

National standards organizations
Integration in the international standards network: The Bureau of Product Standards (BPS), is responsible for the promotion, co-ordination and institution of the activities relating to the approval and standardisation of products on the Philippine market. The main objective consists in supporting the various economic agenda for the promotion and control and to ensure the quality through the development of the technical standards, and the certification of products.
The system of certification of the BPS authorisers the use of the PS mark( Philippine Standards) for the companies which during the manufacture of their products, observe the relevant national and international standards. The BPS is a member of the ISO.
Classification of standards
Online consultation of standards
Certification organizations

Legal framework

Independence of justice: The judiciary in Philippines though generally independent, is hampered by corruption and inefficiency.
Equal treatment of nationals and foreigners: To a large extent, the foreign nationals can expect an impartial trial from the country’s judicial system.
The language of justice: Philippines has two judicial languages: Filipino and English.
Sources of the law and legal similarities: Philippines is a Republic state based on parliamentary democracy having Presidential form of government. Philippines (official name: Republic of Philippines) is made up of more than 7,000 islands and has the highest birth rate in Asia.
President is both the chief of the state and head of the government. President is elected by a popular vote to serve a single six-year term who then presides and appoints the cabinet members. President holds the executive powers which include implementation of the law in the country and running the day-to-day affairs. President is also the commander-in-chief of the armed forces.
The legislature in Philippines is bicameral. The parliament called Congress consists: Senate (the upper house) having 24 seats with its members elected at large by popular vote to serve six-year terms and the House of Representatives (the lower house) having up to a maximum of 250 seats with its members elected by popular vote to serve three-year terms. President has the power to veto acts of the legislature, and in turn a supermajority (generally two—thirds) of legislators may act to override his veto. The people of Philippines enjoy considerable political rights.
The judiciary in Philippines though generally independent, is hampered by corruption and inefficiency. The main source of the law is the constitution of 1987. The country’s legal system is based on Spanish and Anglo-American law. Philippines accepts compulsory ICJ jurisdiction though with reservations. Philippines has two judicial languages: Filipino and English.
The rule of law is not necessarily respected in the Philippines. Arbitrary and unlawful arrests by Filipino forces, disappearances, kidnappings and extrajudicial killings continue in the country. To a large extent, the foreign nationals can expect an impartial trial from the country’s judicial system. A high degree of corruption exits in the country, especially in politics and business.
Consulting national laws online

Intellectual Property

National organizations: The organisation responsible for the protection of intellectual property in the Philippines is the Office of Patents, Trademarks and Transfer of technology (BPTT) of the Ministry of Trade and Industry.
The country signed the Agreement of Bern for the Protection of Literary and artistic Works, the Agreement of Paris on Industrial Property and the agreement establishing the World Intellectual property Organisation (WIPO).

National regulation and international agreements

Type of property	Law	Validity	International agreements signed
Patent
Trademark			Trademark law treaty Nice agreement concerning the International classification of goods and Services for the Purposes of the registration of Marks Protocol relating to the Madrid Agreement concerning the International Registration of Marks
Design
Copyright
Industrial Models

Tax rates

Consumption taxes

Tax rate: 12%
Reduced tax rate: Zero-rate for exports and several items.

Corporate taxes

Tax rate

Capital gains taxation

In the Philippines, capital gains are taxed between 5% and 10% (for unlisted companies securities). Besides, land surplus, as for private individuals, is taxed to 6%.

Other corporate taxes

Individual taxes

Tax rate

Allowable deductions and tax credit

The taxpayers benefit in the Philippines(Filipinos) of various deductions according to their status (marriage, child).

Sources of fiscal information

Tax Authorities: Bureau of Internal Revenue; Bureau of Customs
Other domestic resources

Accounting rules

Tax year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting regulation bodies
Professional accountancy bodies
Certification and auditing: The accounting frame was established by the ASC and created by the PICPA in November, 1981 in order to establish and improve the general and analytical accounting standards.
Accounting news