Philippines

Ease of Doing Business in

Philippines

This page summarizes Doing Business 2013 data for Philippines. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region East Asia & Pacific
Income Category Lower middle income
Population 94,852,030
GNI Per Capita (US$) 2,210
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
138 136 down -2

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
51.7 51.4 down 0.3
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 161 158 up -3
Dealing with Construction Permits 100 101 up 1
Getting Electricity 57 53 up -4
Registering Property 122 120 up -2
Getting Credit 129 127 up -2
Protecting Investors 128 124 up -4
Paying Taxes 143 136 up -7
Trading Across Borders 53 56 up 3
Enforcing Contracts 111 109 up -2
Resolving Insolvency 165 166 up 1

Economy Profile

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Subnational Data


Paying Taxes

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This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 143 DB 2012 Rank 136 Change in Rank down-7
DB 2013 DTF** (% points) 56.3 DB 2012 DTF** (% points) 56.3 Improvement in DTF** (% points) 0.0
Indicator Philippines East Asia & Pacific OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

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Payments (number per year)
47 25 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

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Time (hours per year)
193 209 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

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Profit tax (%)
21.1 16.7 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

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Labor tax and contributions (%)
11.3 10.9 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

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Other taxes (%)
14.2 6.9 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Total tax rate (% profit)
46.6 34.5 42.7
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 1 online filing 42 30% taxable profit 21.1
Local business tax 1 1% previous year turnover 8.8
Employer paid - Social security contributions 12 38 7.02% to 7.45% gross salaries 7.6
Real property tax 1 2% assessed property value 4.2
Employer paid - Health insurance 12 1.12157% to 1.24615% gross salaries 1.7
Employer paid - Housing development fund 12 2% or P 100 per worker gross salaries 1.7
Tax on interest 1 20% interest 0.5
Community tax certificate 1 P 10,500 fixed fee 0.3
Environmental tax 1 P 10,000 0.2
Employer paid - Employer's compensation 0 paid jointly P 10 per employee per month 0.2
Vehicle tax 1 basic fee + 24% vehicle weight 0.1
Value added tax (VAT) 1 online filing 113 12% value added 0 not included
Tax on check transactions 1 P 1.5 per check number of checks 0
BIR certificate 0 paid jointly P 500 fixed fee 0
Tax on insurance contracts 1 P 0.5 per each P 4 insurance premium 0 small amount
Stamp duty 1 various rates contract value 0 small amount
Totals: 47 193 46.6

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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