Philippines

The Philippines is strategically located off the southeastern coast of mainland Asia, with a flying time of four hours or less to most major Asian countries. Its strategic location allowed it to bridge Eastern and Western cultures, producing a rich history of Asian, European, and American influences. The Philippines has been counted as the third-largest English-speaking country in the world. The capital of the Philippines is Manila, and the currency is the Philippine peso (PHP).

The Philippines adheres to the principles of a democratic republican state with a presidential form of government. For 2020, the country’s priority investment areas include all qualified manufacturing activities, including agro-processing; agriculture, fishery, and forestry; strategic services; healthcare and disaster risk reduction management services; mass housing; infrastructure and logistics, including LGU-PPPs; innovation drivers; inclusive business models; environment and climate change-related projects; and energy. The government continues to give tax incentives to investors that do business in the Philippines in these priority areas. 100% foreign ownership remains permissible in many areas of investment, although certain industries are subject to foreign ownership limitation.

The Philippine gross domestic product (GDP) posted a growth rate of -8.3 percent in the fourth quarter of 2020, resulting in the -9.5 percent full-year growth rate for 2020. On an annual basis, the growth rates are as follows: Agriculture, Forestry, and Fishing at -0.2 percent, followed by Services at -9.1 percent, and Industry at -13.1 percent.

PwC in the Philippines (Isla Lipana & Co.) supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms. Isla Lipana & Co. has provided professional services in the Philippines for almost 100 years. It currently has 31 partners and principals, and more than 1,600 people who are committed to delivering quality in assurance, tax, and advisory services through its main office in Makati City and branch offices in Cebu City and Iloilo City.