Nov 272013
TAX incentives are one of the main factors that drive foreign investments into the Philippines; however, confusing interpretations on how to avail of such incentives may be a hindering force that prompts investors to bring their business elsewhere. This ambiguity is made apparent in an administrative tax ruling issued on the deductibility of certain costs incurred by a company registered with the Philippine Economic Zone Authority (PEZA), one of the incentive-giving bodies of the government.