Register Regional Headquarters (RHQ) in the Philippines

Qualification of Regional Headquarters (RHQ)

R.A. No. 8756 defines Regional Headquarters (RHQ) as any foreign business entity formed, organized, and existing under any laws other than those of the Philippines whose purpose is to supervise, coordinate and communicate center to its affiliates, subsidiaries, and branches in the Asia-Pacific Region and other foreign markets. An RHQ cannot derive income in the Philippines. The parent company of the RHQ office may market and sell products to other companies except for the RHQ office in the Philippines.

Requirements

An RHQ is required to deposit an initial inward remittance of US$ 50,000.00 which will be registered with the Board of Investment (BOI). It must submit a certificate of inward remittance from any local bank  that it has remitted the amount of US$50,000 within 30 days from the receipt of the SEC registration certificate.

Incentives for RHQ

  • Exemption from Corporate Income Tax (but RHQs still need to file an annual information return)
  • Exemption from local taxes, fees, and charges
  • Exemption from VAT
  • Tax and duty-free importation of equipment and training materials (provided that equipment or material is not available locally)
  • Importation of motor vehicles are subject to payment of taxes and duties

Incentives for RHQ Employees

  • Expatriates of RHQ can hold Multiple Entry Visa (including spouse or  unmarried children below the age of 21)
  • Withholding tax of 15% on salaries, annuities, and all other compensation
  • Preferential tax rate of 15% for Filipinos holding the positions of executive, managerial, technical positions, or the same positions as of the Expatriates of the RHQ

Documentary Requirements:

  • Application form
  • Name Verification slip
  • Authenticated certificates affirming that the parent/foreign company is engaged in international trade with affiliates/branches or subsidiaries
  • Authenticated certificate presenting authorization of the board of directors in setting up of the RHQ
  • BOI endorsement validating the establishment of the RHQ
  • Certificate of inward remittance of US$50,000 from any local bank