Philippines
  • PHILIPPINES – Trade Statistics

    PhilippinesThe Philippines, officially the Republic of the Philippines (Republika ng Pilipinas), is an archipelagic nation located in Southeast Asia, with Manila as its capital city. The Philippine archipelago comprises 7,107 islands in the western Pacific Ocean. The Philippines was formerly a Spanish then an American colony. The Philippine Revolution was an attempt to gain independence from Spain, and later from the U.S. in the Philippine-American War. The Philippines ultimately gained its independence from the United States on July 4, 1946 after the Pacific War via the Treaty of Manila. The Philippines then became a fledging democracy until the authoritarian rule of President Marcos led to his overthrow in the People Power Revolution of 1986. Political upheavals alternated with peaceful transition of power on the period that followed.

    The Philippines is a newly industrialized country with an economy anchored on agriculture but with substantial contributions from manufacturing, mining and remitances from overseas Filipinos and service industries such as tourism and, increasingly, business process outourcing, to which it is known for having one of most vibrant BPO industries in Asia.

    Historically, the Philippine economy has largely been anchored on the Manila Galleon Trade during the Spanish era, and bilateral trade with the United States during the American era. Over the past years, trade with its Asian neighbors: Japan, Korea, China, Taipei, Thailand, Malaysia and Singapore has been increasing.

    In a bid to further strengthen the Philippine economy, President Gloria Macapagal-Arroyo pledged to make the Philippines a developed countey by 2020. As part of this goal, she instituted five economic “super regions” to concentrate on the economic strengths of various regions of the Philippines, as well as the implementation of tax reforms, continued privatization of state assets, and the building-up of infrastructure in various areas of the Philippines.

    The Philippine economy grew at its fastest pace in three decades with real GDP growth exceeding 7% in 2007. Higher government spending contributed to the growth, but a resilient service sector and large remittances from the millions of Filipinos who work abroad have played an increasingly important role. Economic growth has averaged 5% since 2001.

  • Official Country and Macro Economics Information

    GDP per capita: (US$) 3,300 (2007 est.)
    Total Export: (US$ Billion) 48.38 (2007 est.)

    Top Export Items:
    Semiconductors and electronic products, automotive and transport equipment, garments, copper products, petroleum products, coconut oil, fruits

    Top Import Items:
    Electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic

    Top Trading Partners:
    US, Japan, China, Singapore, Taipei, Netherlands, Malaysia, Korea
    Official Currency: Philippine Peso  (PhP)

  • Taxation and Customs Clearance Information

    • The individual income tax consists of taxes on compensation income (from employment), business income, and passive income (interests, dividends, royalties, and prizes). For resident foreign corporations, after-tax profits remitted abroad are subject to a 15% tax, except for corporations registered with the Philippine Economic Zone Authority (PEZA), the Board of Investment (BOI), the Bases Conversion Development Authority, or operating in independent special economic zones (e.g. Clark Freeport, Subic Bay Freeport), all of which are eligible for special tax and customs incentives, exemptions and reductions designed to attract foreign, new, necessary and/or export-oriented foreign investment.The national list included export activities, industrial development and mining, agricultural/fishery production and processing, logistics, drugs and medicine, engineered products, environmental projects, IT services, Infrastructure, mass housing projects, R and D activities, social service, tourism, patriotic and documentary motion pictures and new projects with a minimum cost of $2 million. Special economic zones (SEZs) can be designated as export processing, free trade and/or information technology (IT) parks, each designation providing a schedule of tax holidays, exemptions from import duties on capital goods and raw material, and preferential income tax rates with more favorable treatment accorded pioneer industries over nonpioneer or expanding companies.

      Taxes on transactions include a value-added tax (VAT) of 12%. Excise taxes are imposed on selected commodities such as alcoholic beverages, tobacco products, jewelry and petroleum products.

  • Duty

    • All imported goods for consumption are subject to the payment of import duty prior to release of unless otherwise exempted in accordance with law by the Department of Finance. All imported goods are also subject to the payment of VAT at the uniform rate of 12% of the total landed cost. Even if the shipment is duty free, it may still be subject to VAT.A few commodities, like passenger automobiles, jewelry, alcohol, tobacco, etc. may also be subject to the payment of Ad Valorem Tax aside from the import duty and VAT. The rate of Ad Valorem Tax depends on the make-up of the commodity such as the engine displacement cost in case of automobiles, or alcohol content in case of beverages.

      Like VAT, Ad Valorem Tax is an internal revenue tax, the collection of which is delegated to the Bureau of Customs in so far as imported goods are concerned. Imported goods subject to Ad Valorem shall be covered by an Authority to Release Imported Goods (ATRIG) issued by the Bureau of Internal Revenue before they can be released from the port.

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