Registration of a Regional Operating Headquarters (ROHQ) in the Philippines

R.A. No. 8756 defines Regional Operating Headquarters (ROHQ) as any foreign business entity formed, organized, and existing under any laws other than those of the Philippines whose purpose is to service its affiliates, subsidiaries or branches in the Philippines, Asia-Pacific Region, and other foreign markets. A ROHQ may derive income for the qualifying services it renders in the Philippines.

Requirements

An ROHQ is required to deposit an initial inward remittance of US$ 200,000.00 and must submit proof of said remittance to the SEC within 30 days from receipt of the license.

Incentives

  • Subject to the preferential rate of 10% on taxable income;
  • Exemption from all kinds of local taxes, fees, or charges except real property tax on land improvements and equipment;
  • Tax and duty-free importation of equipment and training materials (provided that equipment or material is not available locally and subject to prior approval of the BOI).

Incentives for Expatriates

  • Expatriates of ROHQ can hold Multiple Entry Visa (including spouse and  unmarried children below the age of 21);
  • Tax and Duty Free Importation of Personal and Household Effects;
  • Travel Tax Exemption;
  • Preferential tax rate of 15% on salaries, annuities, and all other compensation of expatriates; The preferential tax rate also extends to their Filipino counterparts.

Documentary Requirements:

  • Application form;
  • Name Verification slip;
  • Authenticated certificates affirming that the parent/foreign company is engaged in international trade with at least three (3) affiliates, branches, or subsidiaries;
  • Authenticated copy of the board resolution authorizing the establishment of the ROHQ; and
  • BOI endorsement validating the establishment of the ROHQ.