## Tax Incentives in The Philippines: A Regional Perspective

_IMF Working Papers, November 1, 2001_

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## Bibliographic details
- Authors: Nigel A Chalk
- Published: November 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451859195.001

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### Overview
- The Philippines faces a policy dilemma in corporate taxation: a decline in revenue as a share of output alongside increasing regional competition for foreign direct investment.
- To remain competitive, the Philippines offers a broad array of fiscal incentives to entice inward investment and pursue development goals.
- The paper examines fiscal incentives available in the Philippines, compares them with those available in the ASEAN region, and with evidence on the efficacy of tax incentives in a global context.
- The paper provides broad conclusions on the use of various forms of tax incentives in the Philippines and on their administration.

### Key Findings and Themes
- Decline in revenue as a share of output is identified as a central fiscal concern.
- Competitive pressures in the regional market for foreign direct investment motivate the use of fiscal incentives.
- The Philippines' incentive framework is multidimensional, including instruments such as tax allowances, tax holidays, accelerated depreciation, duty drawback, and special economic zone (SEZ) enterprise regimes.
- The analysis situates Philippine incentives in an ASEAN and global evidence context to assess efficacy.

### Comparison with ASEAN and Global Evidence
- The paper compares Philippine fiscal incentives with those available across the ASEAN region.
- It relates country practices to global empirical evidence on the efficacy of tax incentives for attracting investment and influencing location decisions.
- The framework considers categories such as import duty treatment, double taxation issues, and incentives targeted at footloose companies versus location-specific investments.

### Conclusions on Use and Administration
- The paper offers broad conclusions on:
  - The appropriate use of various forms of tax incentives in the Philippines.
  - Administrative considerations in implementing and managing fiscal incentives.
- Policy-relevant topics covered include corporate income tax design, investment incentives, tax holidays, and tax allowances.

### Subjects and Keywords
- Subjects: Corporate income tax, Investment incentives, National accounts, Tax allowances, Tax holidays, Tax incentives, Taxes
- Keywords: accelerated depreciation; companies expense; Corporate income tax; corporate tax incentives. ASEAN.; double taxation; duty drawback; economic zone; footloose company; Global; import duty; investment decision; investment incentive; Investment incentives; location decision; personal income; SEZ enterprise; Tax allowances; Tax holidays; Tax incentives; WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/tax-incentives-in-the-philippines-a-regional-perspective-15399_