Philippine Tax Incentives Quiz

Definitions related to Tax Incentives in the Philippines

• Capital equipment includes machinery, tools, and devices directly or reasonably needed for the registered project or activity of the registered enterprise.
• Direct local employment refers to the employment of Filipinos by RBEs under an employer-employee relationship to perform functions related to the production of goods or services under the registered project or activity.
• Domestic input refers to purchases of locally manufactured goods or locally produced raw materials or domestically outsourced services used directly in the production of goods under the registered project or activity.
• 50% of the value-added of locally manufactured goods should be locally produced or manufactured.
• Domestic market enterprise refers to any enterprise registered with the Investment Promotion Agency other than export enterprise.
• Export enterprise refers to any entity registered with the Investment Promotion Agency to engage in manufacturing, assembling, or processing activity and resulting in the direct exportation or sale of its products or services to another registered export enterprise.
• At least 70% of the total production or output of an export enterprise should be for direct exportation.
• Freeport zones are isolated and policed areas adjacent to a port of entry operated and managed as a separate customs territory to ensure free flow of goods.
• Investment Promotion Agencies (IPA) are government entities in charge of promoting investments, granting and administering tax and non-tax incentives, and overseeing the operations of different economic zones and freeports.
• Examples of IPAs in the Philippines include BOI, PEZA, SBMA, CDC, CEZA, and TIEZA.
• Metropolitan areas refer to Metro Cebu and Metro Davao or other local government units qualified or grouped as such by the National Economic and Development Authority or through laws or executive issuances.
• Other government agencies administering tax incentives refer to government agencies, other than IPAs, that register or administer tax incentives to any specific entities or class of persons pursuant to any law.