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The Philippines Ends Preferential Tax Treatment of Employees of Regional Headquarters, Offshore Banking Units, and Petroleum Service Contractors

|Approved Changes|Philippines
Philippines

The Philippines Bureau of Internal Revenue has issued a tax advisory that all employees of regional headquarters and regional operating headquarters of multinational companies; offshore banking units; and petroleum service contractors and subcontractors, enjoying preferential tax treatment prior to 2018 are now subject to regular income tax rates. The change is a result of the Tax Reform for Acceleration and Inclusion (TRAIN) Act approved in December 2017. With the change, tax should be with…

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