Philippine Tax Administration

Tax regulations are among the most problematic factors for conducting business in the Philippines, suggesting a high degree of bureaucratic complexity and a risk of encountering corruption, which is the most problematic factor ( GCR 2014-2015 ). Officials at the Bureau of Internal Revenue (BIR) are believed to be prone to corruption and known for embezzlement and extortion ( Manila Bulletin , Feb. 2014). Almost a quarter of companies report experiencing extortion, bribes or informal payments in the process of filing taxes ( SEC , 2013). The Philippines government reports losing more than USD 10 billion per year due to tax-related corruption ( Bloomberg Business , Sep. 2013). On average, companies make 36 tax payments a year and spend almost 200 hours filing, preparing and paying taxes, amounting to over 40% of total profit ( DB 2015 ).