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 2022, the country’s strategic investment priority plan listed the priority investment areas under three tiers. Tier I includes all activities in the 2020 Investment Priorities Plan, unless listed under Tier II or III. Tier II includes, but not limited to, green ecosystems, health-related activities, defense-related activities, industrial value-chain gaps, and food security related activities. Tier III includes, but not limited to Research & Development and activities adopting advanced digital production technologies of the fourth industrial revolution, highly technical manufacturing and production of innovative products and services, and establishment of innovation support facilities. 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 7.6 percent in the third quarter of 2022. The main contributors to the growth, with their corresponding increases, were: Wholesale and retail trade; repair of motor vehicles and motorcycles, 9.1 percent; Financial and insurance activities, 7.1 percent; and Construction at 12.2 percent. Major economic sectors, namely: Agriculture, forestry, and fishing, Industry, and Services all posted positive growths of 2.2 percent and 5.8 percent, and 9.1 percent, respectively. 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 100 years. It currently has 35 partners and principals, and more than 1,600 people who are committed to delivering quality assurance, tax, and advisory services through its main office in Makati City and branch offices in Cebu City and Iloilo City.