A representative office in the Philippines is foreign-owned corporation, organized and existing under foreign laws. It cannot derive income within the Philippines and is fully financed by the foreign corporation. Its main purpose is to deal directly with the clients of the parent company to conduct information dissemination, setup communication centers, and market company products. It may be used to provide customer service and support to the company and its products.
*Specific requirement must be authenticated in the Philippine Embassy/Consulate of the parent company’s host country.
A representative office in the Philippines may also act as a quality control center of the products for an export-oriented company, making it an ideal business structure in the country for any company looking for a customer service or marketing center. A representative office is also suited for Pharmaceutical and Cosmetic companies wishing to register their products before dealing with distributors, and is not required to pay income tax since no income is earned from within the country.
A representative office in the Philippines allows for some special tax treatments especially with regard to income tax, which is applicable to foreigners working in a representative office. Triple i’s knowledge of the business and tax systems of the Philippines can help your company quickly establish a representative office in the Philippines, while maximizing your company’s earned incentives.