Philippines

Corporate - Corporate residence

Last reviewed - 31 December 2019

A domestic corporation is a corporation that is created or organised under Philippine laws. A foreign corporation that is duly licensed to engage in trade or business within the Philippines is referred to as a ‘resident foreign corporation’.

Permanent establishment (PE)

The business profits provision in most Philippine treaties permits the Philippines to tax only those profits attributable to a PE. While Philippine treaties adopt the United Nations (UN) Model Convention, Organisation for Economic Co-operation and Development (OECD) commentaries have often been cited by tax authorities to support their interpretation of treaty provisions. The main implication is that most Philippine treaties contain a rule deeming a PE to arise when services are performed in the Philippines for a specified period of time.