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Frequently Asked Questions General RHQ / Rohq

The document discusses the activities allowed for Regional Headquarters (RHQ) and Regional Operating Headquarters (ROHQ) in the Philippines as well as incentives provided. RHQs are limited to supervisory, coordinating and communication functions and cannot derive income or participate in management in the Philippines. ROHQs can provide various qualifying services but only to affiliates. Both are given tax exemptions and holidays. Expatriates working for RHQs/ROHQs receive multiple entry visas for themselves and families, a preferential 15% tax rate, and tax exemptions on imports and travel.

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91 views2 pages

Frequently Asked Questions General RHQ / Rohq

The document discusses the activities allowed for Regional Headquarters (RHQ) and Regional Operating Headquarters (ROHQ) in the Philippines as well as incentives provided. RHQs are limited to supervisory, coordinating and communication functions and cannot derive income or participate in management in the Philippines. ROHQs can provide various qualifying services but only to affiliates. Both are given tax exemptions and holidays. Expatriates working for RHQs/ROHQs receive multiple entry visas for themselves and families, a preferential 15% tax rate, and tax exemptions on imports and travel.

Uploaded by

Eumell Alexis Pale
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Home | Frequently Asked Questions General BOI/PEZA SEC BSP Foreign Investors Royalties, Services, etc.

Registration Retail Trade RHQ / ROHQ Taxes

Business Structures

Others

1. What are the activities that an RHQ/ROHQ can engage in? Regional Headquarters (RHQ) The activities of the RHQ are limited to acting as a supervisory, communications and coordinating center for its subsidiaries affiliates and branches in the region. It is neither allowed to derive any income from sources in the Philippines and to participate in any manner in the management of any subsidiary or branch office it might have in the Philippines nor to solicit or market goods and services whether on behalf of its mother company or its branches, affiliates, subsidiaries or any other company. Regional Headquarters (RHQ) Incentives 1. 2. 3. 4. 5. 6. Exemption from income tax; Exemption from branch profits remittance tax; Exemption from value-added tax; Sale or lease of goods and property, and services to the RHQ are zero-rated; Exemption from all kinds of local taxes, fees or charges imposed by a local government unit, except real property tax on land improvements and equipment; Tax and duty free importation of equipment and materials for training and conferences needed and solely used for the RHQ functions, and which are not locally available, subject to prior BOI approval;

7. Importation of brand new motor vehicle but subject to payment of taxes and duties. Regional Operating Headquarters (ROHQ) The Regional Operating Headquarters may engage in any of the following qualifying services: a. b. c. d. e. f. g. h. i. j. General administration and planning Business planning and coordination Sourcing/procurement of raw materials components Corporate finance advisory services Marketing control and sales promotion Training and personnel management Logistics services Research and development services and product development Technical support and maintenance Data processing and communications

k. Business development Regional Operating Headquarters (ROHQ) Incentives 1. 2. 3. 4. Subject to preferential income tax rate of 10% on taxable income; Exemption from all kinds of local taxes, fees or charges imposed by a local government unit, except real property tax on land improvements and equipment; Tax and duty free importation of equipment and materials for training and conferences needed and solely used for the ROHQ functions, and which are not locally available, subject to prior Board of Investments (BOI) approval; Importation of brand new motor vehicle but subject to payment of taxes and duties.

ROHQ is allowed to offer qualifying services only to its affiliates, branches or subsidiaries as declared in its registration with the Securities and Exchange Commission (SEC). It is not allowed to directly and indirectly solicit or market goods and services whether on behalf of their mother company, branches, affiliates, subsidiaries or any

other company.

2. What are the incentives given to expats working for RHQ/ROHQ?

a.

Multiple Entry Visa: o Expatriates, including spouse and unmarried children below 21 years old will be issued this type of visa; o Non-immigrant visa will be processed within 72 hours from submission of documents to the Bureau of Immigration; o Validity period of 3 years extendible for another 3 years; o Exemption from payment of fees except reasonable administrative costs; o Exemption from securing Alien Certificate of Registration; Withholding tax of 15% on compensation income applicable to both alien and Filipino executives holding managerial and technical positions; c. Tax and duty free importation of used household goods and personal effects; d. Travel tax exemption

Personnel and their dependents.

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