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Written by Webmaster
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Wednesday, 22 November 2006 |
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National Budget
| Total Volume | 2002
| 2003 | 2004 | 2005
| 2006 (prognose)
| in Billion Pesos
| 778.0
| 826.5 | 886.8 | 942.5 | 1,032.0 | n Billion Euro
| 16.0 | 13.5 | 12.7 | 13.7 | 15.7 |
| Deficit | 2002 | 2003 | 2004 | 2005 | 2006 | | in Billion Pesos | 212.7 | 199.9 | 187.1 | 146.8 | 80.2
| | in Billion Euro | 4.4 | 3.3 | 2.7 | 2.1 | 1.2 | | in % of GDP | 5.2 | 4.6 | 3.9 | 2.7 | 1.3 |
Breakdown of budgetary expenditure(2005)
Debt service
| 34.1% | Education
| 14.7% | Internal security
| 5.9% | Infrastructure
| 5.9% | Health and social security
| 5.8% | Defence
| 4.8% | Agriculture
| 2.8% | Miscellaneous
| 26.0% |
Breakdown of budgetary revenue (2005)
Income and corporation taxes
| 41.4%
| Turnover tax and excise duty
| 29.4%
| Customs duties and trading taxes
| 19.3%
| Land tax
| 0.1%
| Non-taxable income
| 9.8%
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Most important tax rates
Corporation tax 32% and 0 /5% in special economic zones (s. u.)
Turnover tax 10%
Income tax 0–35% for foreigners resident and working in the Philippines
25% for foreigners not resident and working in the Philippines
Tax advantages for investors
The Philippines has 96 special economic zones in which foreign countries can avail themselves of tax advantages. These include a four- to eight-year exemption from corporation tax, at the end of which a flat rate of 5% of gross income is levied. Labour and training costs are deductible.
Tax exemptions are also possible outside the special economic zones if investments are made in a sector categorised as eligible in the annually published Investment Priorities Plan. In 2006, these included IT and IT-supported services, electronics, vehicle components, building materials, furniture, giftware, clothing, foodstuffs, fish processing and ecological agriculture.
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Last Updated ( Tuesday, 28 November 2006 )
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