Tax Incentives in The Philippines: A Regional Perspective

Author/Editor:

Nigel A Chalk

Publication Date:

November 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The Philippines is faced with a policy dilemma in the area of corporate taxation. On the one hand, the country has, over the past few years, witnessed a decline in revenue as a share of output. On the other, it is operating in an increasingly competitive regional market for foreign direct investment. In order to remain competitive, the Philippines offers a broad array of fiscal incentives to entice inward investment and pursue the country's development goals. This paper looks at the fiscal incentives available in the Philippines, compares them with those available in the ASEAN region, and with the evidence on the efficacy of tax incentives in a global context. The paper provides some broad conclusions on the use of the various forms of tax incentives in the Philippines and on their administration.

Series:

Working Paper No. 2001/181

Subject:

Corporate income tax Investment incentives National accounts Tax allowances Tax holidays Tax incentives Taxes

English

Publication Date:

November 1, 2001

ISBN/ISSN:

9781451859195/1018-5941

Stock No:

WPIEA1812001

Pages:

41

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