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Evaluation of Fiscal Incentives in the Philippines

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  • Parel, Danileen Kristel C.

Abstract

The advantages of foreign direct investment to host countries, particularly on economic growth, have long been recognized. The amount of investment that enters a country is influenced by various factors, including tax rates and the provision of fiscal incentives. This paper (1) assesses how the Philippines fares in attracting investments compared with its neighboring countries and (2) evaluates pending incentive reforms in the country. As the corporate income tax does not take into account other tax rules, effective tax rates, which provide a single measure reflecting the combined effect of all tax rates and incentives, were computed and used in the assessment.

Suggested Citation

  • Parel, Danileen Kristel C., 2017. "Evaluation of Fiscal Incentives in the Philippines," Discussion Papers DP 2017-26, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2017-26
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    References listed on IDEAS

    as
    1. Dennis Botman & Alexander Klemm & Reza Baqir, 2010. "Investment incentives and effective tax rates in the Philippines: a comparison with neighboring countries," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(2), pages 166-191.
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    More about this item

    Keywords

    Philippines; fiscal incentives; tax incentives; foreign direct investment; FDI; effective tax rates; tax holiday;
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