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Page 1: Introduction to PHILIPPINES
Page 2: Introduction to PHILIPPINES
Page 3: Introduction to PHILIPPINES

Introduction to PHILIPPINES

With a population of about 100 million people, the Philippines, which comprises more than 7,000 islands, is the 12thmost populous country in the world. An additional 12 million Filipinos live overseas, representing one of the world'slargest diasporas. Economic transformation efforts have been effective over the last decade, and the country hasenjoyed macroeconomic stability, robust economic growth, a solid external financial position, moderate fiscal deficitsand declining government debt-to-GDP ratios.

The Philippines have been hard hit by the COVID-19 crisis. After a particularly severe second wave, the number of newCOVID-19 cases is not yet stabilised and the vaccination rate remains very low. The resulting health restrictions areweighing on domestic demand and the tourism sector. After contracting by more than 9% in 2020, GDP shouldrebound moderately in 2021.

However, real GDP is projected to continue to grow strongly in the medium term (above 6%), supported by domesticdemand. New challenges have emerged, as the external environment has become less growth-supportive, andoverheating risks have emerged as the current account deficit continues to widen and credit growth remains strong -although from a low base. In addition, poverty and inequality challenges remain. Duterte’s personality and style ofgoverning also represent a potential risk to the country’s political and institutional stability.

Summary

BNP Paribas presence

BNP Paribas has been present in the Philippines since 1975 with a branch in Manila. The bank offers a broad range ofproducts and services to its corporate and institutional clients, including loan syndication, bond underwriting, exportfinance, project and aviation finance; interest rate, foreign currency and commodity hedging and derivatives;correspondent banking and global trade solutions.

Currency

Currency

Philippine Peso (PHP).

Exchange Rates

2015 2016 2017 2018 2019

Exchange rate PHP per USD 45.503 47.492 50.404 52.661 51.80

Source: IMF, International Financial Statistics, July 2020.

Page 4: Introduction to PHILIPPINES

Central Bank

The Philippines central bank is the Bangko Sentral ng Pilipinas (BSP) (www.bsp.gov.ph).

Bank supervision

The Philippines banking sector is supervised and regulated by the BSP.

Bank accounts

Resident / non-resident status

A company is considered resident in the Philippines if it is incorporated in the Philippines or is licensed to tradeor conduct business there.

Bank accounts for resident entities

Inside Philippines Outside Philippines

Local Currency• Permitted without restriction, convertible subjectto compliance with foreign exchange transactionrules

• Not permitted

Foreign Currency• Permitted, convertible subject to compliance withforeign exchange transaction rules

• Permitted, convertible subject tocompliance with foreign exchangetransaction rules

Bank accounts for non-resident entities

Inside Philippines Outside Philippines

Local Currency • Permitted, convertible with restrictions • Not permitted

Foreign Currency • Permitted convertible with restrictions • Not applicable

Lifting fees

Lifting fees are not applied on payments between resident and non-resident accounts.

Page 5: Introduction to PHILIPPINES

BNP Paribas Cash Management Capabilities

Liquidity Management

Physical cash pooling

Notional pooling - Balance compensation

Notional pooling - Interest optimisation

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Collections

Cash collections

Cheque collections

Direct debit collections

Domestic incoming transfers

Virtual IBAN

Virtual accounts

International incoming transfers

Card acquiring

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Page 6: Introduction to PHILIPPINES

Payments

Cash withdrawals

Cheque payments

Direct debit payments

Domestic outgoing transfers

Commercial cards

Virtual cards

International outgoing transfers

SWIFT gpi

Real-time international payments through BNP Paribas' network

Card issuing

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Channels

Local e-Banking

Global e-Banking - Connexis

SWIFT/ host to host

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Page 7: Introduction to PHILIPPINES

Payments & Collections

Market overview

The Philippines has a low card penetration rate; cash remains the dominant payment method in the country. In 2017,only 22.6% of adults had a bank account. However, the Philippine government is committed to accelerating the use ofelectronic payments. Most recently, the BSP launched the QRPH, the national QR standard. The use of e-paymentsrose from 1% in 2013 to 10% in 2018. The value of e-payments rose from 8% to 20% over the same period. By the endof 2020, the BSP hopes that 30% of all payments will be digital. In Q4 2019, the Philippines had a smartphonepenentration rate of 65%, of this total, 54% used mobile banking.

Electronic banking services are available from most banks. There is no national electronic banking standard in thePhilippines, so companies use bank’s proprietary services. Digital banking services are available. It is expected thatCovid-19 will accelerate the adoption of online and mobile banking accounts. The central bank predicts that the shareof digital transactions will reach 50% by 2023.

Payment systems

PhilPaSS Type • Real-time gross settlement.

Participants • 173 direct.

Transaction types processed• High-value and urgent PHP-denominated interbank transactions.• Net obligations from the EPCS payment system.

Operating hours • 09:00–17:45 PHT, Monday to Friday.

Clearing cycle details (cut-off times)

• Payments are cleared and settled in real time between09:00–18:00 PHT.• Cut-off time = 18:00 PHT.

System holidays

• PhilPaSS is closed on all Philippine bank holidays.• The Philippines’ bank holidays are:• 2nd half 2020: 21, 31 August, 1, 30 November, 25, 30, 31 December.• 2021:1 January, 1, 2, 9 April, 1, 13* May, 12, 24 June, 20* July, 21, 30August, 1, 30 November, 25, 30, 31 December.

PDDTS Type • Online real-time gross settlement.

Participants • 47 banks.

Transaction types processed• Online domestic and third-party account-to-account USD-denominated interbank transactions.

Operating hours • 06:00–16:00 PHT, Monday to Friday.

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Clearing cycle details (e.g.cut-off times)

• Payments are cleared and settled in real time between09:00–16:00 PHT.• Cut-off time = 16:00 PHT.• Citibank Philippines is the sole settlement bank for the PDDTS.

System holidays • PDDTS is closed on all Philippine bank holidays, as listed above.

EPCS Type • Interbank account transfer system.

Participants• 76 direct.

Transaction types processed • Low-value domestic interbank PHP-denominated transactions.

Operating hours • 09:00–16:00 PHT, Monday to Friday.

Clearing cycle details • Payments are cleared and settled between 09:00–16:00 PHT.• Funds are available to payees on a same-day basis.• Final settlement takes place via PhilPaSS.

System holidays • The EPCS is closed on all Philippine bank holidays, dates as above.

CICS Type • Multilateral net settlement system.

Participants • All financial institutions in the Philippines.

Transaction typesprocessed

• Cheque payments.

Operating hours• 09:00–16:30 PHT, Monday to Friday for cheque payments.• 22:00–07:30 PHT, Monday to Friday for returns.

Clearing cycle details (e.g.cut-off times)

• Cheques are truncated, with images and information exchangeddigitally.• Multilateral net settlement takes place across participants’ accountsheld at the BSP via PhilPaSS.• Final settlement takes place via PhilPaSS.

System holidays

• The ECCS is closed on all Philippine bank holidays, dates as above.•* The date shown may vary by plus or minus one day. These datesare derived by converting from a non-Gregorian calendar (e.g.,Muslim or Hindu) to the Gregorian calendar. Some of these datescannot be determined in advance with absolute accuracy, even bythe governing authorities. In the case of Muslim dates in particular,the feast days are determined by the sighting of a new/full moon.

Credit transfers

Credit transfers are used by companies to pay salaries and suppliers, and to make tax and treasury payments.

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High-value and urgent PHP-denominated credit transfers are settled on a same-day basis via PhilPaSS.Low-value and non-urgent PHP-denominated credit transfers are processed via the EPCS.USD-denominated credit transfers can be processed on a next working-day basis via the PDDTS.PESO Net and InstaPay (up to PHP 50,000 per transaction) process electronic retail credit transfers.PESO Net facilitates fund transfers, which are not time critical, from one account to one or several accounts.Funds will be available in the recipients account within the same banking day, or immediately upon clearing.There are 58 participants in PESO NET.InstaPay enables the real-time transfer of funds up to PHP 50,000 24/7/365. Thirty-two financial institutionscurrently participate in InstaPay.Cross-border transfers can be made via SWIFT and settled through correspondent banks abroad.

Direct debits

Direct debits are used for low-value regular payments, such as utility bills.Direct debits are processed on a next working-day basis via the EPCS.

Cheques

The cheque is a popular cashless payment instruments, used by both consumers and companies.Cheques are processed electronically via the CICS. Funds are available within two days.

Card payments

There were nine million credit cards (just 2% of households have credit cards) and 43 million ATM (debit) cardsin circulation in 2019.Most payment cards are co-branded with MasterCard, Visa, BanKard, BPI Express Card, Unicard, Diners Cluband American Express.Domestically issued debit cards are usually issued in the form of ATM cards linked to the holders’ depositaccount.All cards issued in the Philippines are expected to have EMV chips.

ATM/POS

There were 21,278 ATMs in the Philippines at the end of 2019.Payments are processed on a same-day basis via the BancNet, MegaLink, ExpressNet, Nationlink and EncashATM and POS networks.Final settlement of payments transacted at the BancNet and MegaLink networks takes place via PhilPaSS.

Electronic wallet

The dominant electronic wallet schemes are reloadable pre-paid cards used to withdraw cash and pay utilitybills, and single purpose e-cards used for public transport, such as the Beep card. There are approximately 70million re-paid cards in circulation.E-cards in the Philippines have a maximum monthly limit of PHP 100,000.Payments are processed and cleared via the individual schemes.Mobile wallet schemes, such as GCash and PayMaya, are available.QR codes are also available. A National QR Code Standard has been adopted, the QRPH.The number of active e-money wallets increased by 74% between 2018 and 2019, to 8.8 million. There were 20.6 million pre-paid cards

Page 10: Introduction to PHILIPPINES

linked to e-money accounts.

Channels

Market overview

Liquidity management

Domestic: notional pooling

Domestic notional cash pools are not permitted in the Philippines.

Domestic: cash concentration

Domestic cash concentration structures are available in domestic and foreign currency.Central bank reporting requirements may apply.

Cross-border notional pooling

Cross-border notional cash pools are not permitted in the Philippines.

Cross-border cash concentration

Cross-border cash concentration structures are are not commonly used due to limit restrictions on cross-bordertransfers.Central bank reporting requirements may apply.

Short term investments

Market overview

Interest payable on credit balances

Interest-bearing current accounts in PHP or foreign currencies are permitted in the Philippines.

Demand deposits

Demand deposits denominated in PHP or major foreign currencies are available.

Time deposits

Time deposits are available in PHP or major foreign currencies for terms up to 12 months.

Certificates of deposit

Domestic banks issue certificates of deposit with terms ranging from one month to one year. They can beissued paying fixed or variable interest.

Page 11: Introduction to PHILIPPINES

The minimum investment amount is typically PHP 50,000.

Treasury (government) bills

The Philippines Bureau of Treasury auctions Treasury bills for terms of three, six and 12 months.The minimum investment amount is PHP 50,000.

Commercial paper

Domestic commercial paper is issued by companies with a maturity of 365 days or less.The issuance of commercial paper needs to be registered with the SEC and requires a rating from a Philippinecredit rating agency.

Money market funds

Money market funds are available as short-term investment instruments.

Repurchase agreements

Repurchase agreements are widely available with maturities ranging from one day to three months.

Banker's acceptances

Banker's acceptances are available in the Philippines.

BNP Paribas insights

BNP Paribas Trade Finance Capabilities

Trade payments

Documentary credits

Documentary collections

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Guarantees

Bank guarantees

Standby letters of credit

Page 12: Introduction to PHILIPPINES

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Supply chain management

Receivables

Payables

Inventory

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

Trade channels

Connexis Trade

Connexis Supply Chain

SWIFTNet Trade for Corporates

Connexis Connect

Supported by BNP Paribas

Not required / permitted in PHILIPPINES or not supported by BNP Paribas

International trade

General trade rules

As a member of the Association of Southeast Asian Nations (ASEAN), the Philippines has entered into the

Page 13: Introduction to PHILIPPINES

ASEAN Trade in Goods Agreement (ATIGA) between member states (Brunei Darussalam, Cambodia, Indonesia,Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam). The Philippines is also a member of theASEAN Free Trade Area (AFTA) and is committed to reducing and eliminating tariffs between members.As a member of the Asia-Pacific Economic Cooperation (APEC) forum, the Philippines has agreed to liberalisetrade and investment rules between members.

Trade agreements

The Philippines has signed an FTA with Japan and the European Free Trade Association (EFTA) member states.ASEAN has signed free trade agreements (FTAs) with Australia, China, Hong Kong, Japan, India, New Zealandand South Korea. It is negotiating an FTA with the EU.

Imports / exports

ImportsElectronicproducts

Mineralfuels

Machineryandtransportequipment

Iron andsteel

Textilefabrics

Grains Chemicals Plastics

PrimaryImportsources

China (18.1%)

Japan(11.4%)

SouthKorea(8.8%)

USA(7.4%)

Thailand(7.1%)

Indonesia(6.7%)

Singapore(5.9%)

Exports

Semi-conductorsandelectronicproducts

Transportequipment

GarmentsCopperproducts

Petroleumproducts

Coconutoil

Fruit

Exportmarkets

Japan (16.4%)

USA(14.6%)

HongKong(13.7%)

China(11.0%)

Singapore(6.1%)

Thailand(4.3%)

Germany(4.1%)

SouthKorea(4.0%)

Import / export volumes

2015 2016 2017 2018 2019

Exports- goods USD m 43,197 42,734 51,814 51,985 53,382

- services USD m 29,065 31,204 34,832 38,397 40,974

Imports- goods USD m 66,506 78,283 92,029 102,958 99,848

- services USD m 23,610 24,161 26,139 26,789 27,928

Current account as % GDP 2.5 - 0.4 - 0.7 - 2.7 NA

Page 14: Introduction to PHILIPPINES

Source: IMF, International Financial Statistics, July 2020.

Trade finance - imports

Documentation

The following documentation is required in order to import goods into the Philippines:customs declarationcommercial invoicebill of ladingcertificate of originpacking listdelivery order.

Import licences

Prior clearance or a licence from the relevant government regulatory agency is required for the importation ofregulated items.Import taxes and tariffsTariffs are generally set in one of four categories: 0%, 1%, 3%, and 5%, although tariffs can be as high as 50%.A VAT rate of 12% is levied on imports.

Import taxes and tariffs

Tariffs are generally set in one of four categories: 0%, 1%, 3%, and 5%, although tariffs can be as high as 50%.A VAT rate of 12% is levied on imports.

Financing requirements

Foreign exchange purchased in connection with imports must generally be remitted directly to non-residentbeneficiaries on the date of purchase.An importer’s foreign currency deposit account can be credited with purchased foreign exchange, pending itsremittance to non-residents.

Risk mitigation

None

Prohibited imports

The Philippines prohibits the import of certain items in order to protect health and safety, industrial policyand/or for national security.

Trade finance - exports

Page 15: Introduction to PHILIPPINES

Documentation

The following documentation is required in order to export goods from the Philippines:customs declarationcommercial invoicebill of ladingpacking listexport license.

Export licences

Licences are required when exporting items regulated for environmental, health and security reasons.Prior clearance from the relevant government regulatory agency is required for regulated exports.

Export taxes and tariffs

None

Financing requirements

None

Risk mitigation

The Philippine Export-Import Credit Agency (PhilEXIM), the Philippines’s national export credit agency, providesstate-supported export credit finance and insurance.

Export credit finance and insurance are available from private companies and commercial banks.

Prohibited exports

The Philippines prohibits exports in line with international treaty obligations.Specific exports are prohibited in order to protect fauna and flora.

Regulatory requirements

Reporting regulations

The BSP requires companies to submit a monthly Cross-border Transaction Survey (CBTS). These reports mustprovide details of all resident to non-resident transactions including transactions settled in resident accountsabroad.All transactions between resident accounts and accounts held by non-residents must be reported to therelevant government departments. Details must include transactions involving resident accounts abroad and allborrowing in foreign currency.

Page 16: Introduction to PHILIPPINES

Companies are also required to notify the Bureau of Customs of all inward and outward foreign currencytransfers exceeding USD 50,000 or its equivalent. Up to USD 10,000 or its foreign currency equivalent can alsobe brought in or out of the country.BSP authorisation is required for domestic currency imports and exports in excess of PHP 10,000.Banks are required to report the details of sales of foreign exchange to residents for investments purposes tothe International Operations Department of the BSP.

Reporting Method

CBTS reports must be submitted 22 days after the end of the reference month.Companies must report cross-border transactions and foreign direct investments on a monthly or quarterlybasis respectively.Foreign direct investment by companies in the Philippines must be accompanied by an application forregistration which must be filed with the BSI within a year of the transfer of assets or inward remittances.Banks electronically submit information to the International Operations Department of the BSP on a monthlybasis.

Exchange controls

Exchange controls are administered by the BSP.Capital transactions and transactions affecting the trade balance must be conducted through the formalexchange market, which is composed of banks and other institutions licensed to operate by the BSP. Foreignexchange can be traded by banks on a forward basis.Except for imports from, and exports to, ASEAN countries, the use of PHP for international payments andreceipts is not permitted.Resident investors may purchase USD 1 million from the banking system without supporting documentation(other than an application to purchase FX) for Non-Trade Current Account Transactions with Non-Residents.Resident investors may purchase FX USD 60 million without prior BSP approval.Foreign exchange of any amount can be purchased by residents from accredited banks to cover advancepayment requirements for import transactions without BSP approval.Foreign exchange purchases for importobligations can be achieved by the submission of applications containing supporting documentation to licensedforeign exchange dealers.Prior BSP approval is required for imports and exports of PHP in excess of PHP 50,000 in the form of cash,cheques, money orders and other bills of exchange.As a member of the Association of Southeast Asian Nations (ASEAN), the Philippines is a participant in theASEAN Swap Arrangement and the Bilateral Swap Arrangements under ASEAN+3.

Taxation

Resident / non-resident

A corporation is resident if it is incorporated in the Philippines or, if incorporated outside the Philippines, it has abranch in the Philippines.

Tax authorities

Bureau of Internal Revenue (national taxes);City/Municipal Treasurer's Office (local taxes); andBureau of Customs.

Tax year/filing

A company’s tax year can be either a calendar or fiscal year of an accounting period of 12 months ending on thelast day of any month other than December. With the approval of the Securities and Exchange Commission andthe Commissioner of Internal Revenue, companies can change their tax year from one to the other.

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Every company must file a quarterly summary declaration of its gross income and deductions on a cumulativebasis for the preceding quarter or quarters, upon which income tax is levied, collected and paid. The tax socomputed is reduced by the amount of tax previously paid or assessed during the preceding quarters, andneeds to be paid not later than 60 days from the close of each of the first three quarters of the company’staxable year.The final self-assessed tax return for the whole year must be filed by the 15th day of the fourth month after theend of the calendar or fiscal year-end, along with any balance of tax payable. Where the three quarterlypayments exceed the final tax due, it can be claimed as a refund or a tax credit against future income taxpayments.A Philippine head office and its Philippine branches may file consolidated returns for corporate income tax andVAT purposes. Otherwise, consolidated returns are not permitted and each company must file a separatereturn.

Financial instruments

The Philippines has no specific rules for the taxation of financial instruments; however, see Stamp duty sectionbelow.

Interest and financing costs

The amount of interest paid or incurred within a taxable year on indebtedness in connection with thetaxpayer’s profession, trade or business is allowed as a deduction from gross income.However, the allowable tax deduction for interest expense is reduced by an amount equal to 33% of thecompany’s interest income that has been subjected to final withholding tax.No deduction is allowed if the indebtedness is incurred to finance petroleum exploration.

Foreign exchange

Foreign exchange gains and/or losses are taxed as a separate item. Only the realised portion of a foreignexchange gain or loss is taxable or deductible.Income tax returns (ITRs) must be prepared in the Philippine peso (PHP), whether or not taxpayers haveadopted a different functional currency for their financial statements and books of accounts. Therefore, allentries in the ITR are in PHP. The translation of the functional currency should be done on a monthly basisusing the average exchange rate (under the Philippine Dealing System (PDS)) during each month.All tax returns other than the ITR also need to be filed in PHP using the historical peso amount or the actualconversion/prevailing PDS rate on the transaction date, whichever is applicable.As provided under Revenue Regulation No 1–79, if income is received in a foreign currency other than USdollars (USD), it is first converted into USD at the average annual exchange rate of the foreign currency versusthe USD for the year in which the income was earned. Revenue Memorandum CircularNo 26–85 provides the following rules as amended, to govern the conversion of USD to PHP.The conversion rate to be applied is the prevailing interbank reference rate for the day of the transaction. In theevent that this foreign exchange rate is impractical or not feasible, the average interbank reference rate duringthe year applies. For the purpose of converting a foreign tax liability in USD to PHP, the prevailing interbank rate at the time ofpayment is applied when payment is made before the due date of the tax, or the prevailing interbank referencerate at the due date of tax when paid on or after the due date of the tax; certain foreign taxes are tax-deductible.

Advance tax ruling availability

The tax authorities will issue an advance ruling on the tax consequences of a contemplated transaction at therequest of a taxpayer.

Page 18: Introduction to PHILIPPINES

Capital gains tax

Generally, capital gains are taxed at the rates applicable to a company’s taxable income.Capital losses may only be offset against capital gains of similar transactions.Gains on the sale of shares listed and traded on the stock exchange are taxed at 0.6% of the gross selling price.Gains on the sale of shares not traded on the stock exchange are subject to a 15% withholding tax.Net capital gains realised by foreign corporations not exceeding PHP 100,000 are taxed at 5%, while net capitalgains in excess of PHP100,000 are subject to 10% final tax.

Withholding tax (subject to tax treaties)

Payments to: Interest Dividends Royalties Other income

Resident entities 20% (see note 1) None 20% 1-15%

Non-resident entities 20% 15%/30% (see note 2) 30% 4.5-30% (see note 3)

Except interest from bank deposits and foreign currency loans granted by offshore banking units and foreign1.currency depository banks where the withholding tax is 7.5%. Also see the section on corporate taxation fordetails on the scope and application of the Philippine final withholding tax.Dividends distributed by a Philippine company to a non-resident are taxed at a rate of 15%, provided the2.country of the non-resident foreign corporation allows a tax credit of 15%. Otherwise, the dividends are taxedat 30%.Other payments to non-residents may be subject to a final tax (e.g. management fees at 30%, certain payments3.related to vessels at 4.5% or aircraft, machinery and other equipment at 7.5%).Branch profit remittances to head offices are subject to a 15% branch profit remittance tax. 4.

Tax treaties / tax information exchange agreements (TIEAs)

Philippines has exchange of information relationships with 43 jurisdictions through 45 double tax treaties andno TIEAs.

Thin capitalisation

Specific thin capitalisation rules have yet to be issued in the Philippines. However, Revenue Audit MemorandumOrder No 1–98 provides that it is necessary to determine the reasonable ratio of debt to equity considering allrelevant factors.

Transfer pricing

Revenue Regulations No 02–2013 provides guidelines on the arm’s-length principle for transfer pricing. Suchregulation adopts the arm’s-length methodologies set out under the OECD Transfer Pricing (TP) guidelines.Revenue Audit Memorandum Order No. 1-2019 (the Transfer Pricing (TP) Audit Guidelines) providesstandardised audit procedures and techniques applicable to taxpayers with related-party and/or intracompanytransactions. The audit procedure consists of three phases: preparation; implementation; and reporting.The Philippine transfer pricing rules apply to both domestic and international related-party transactions.

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Stamp duty

A documentary stamp tax (DST) is levied on financial instruments, including shares, bonds, leases, saleagreements, loan agreements, debentures, certificates of indebtedness, bank cheques, warehouse receipts, billsof lading, letters of credit, mortgages, powers of attorney, insurance policies and proxies. DST is levied at ratesof 0% to 1.5% of the relevant value (e.g. par value, consideration received etc.), depending on the type of asset.The DST return must be filed within five days after the close of the month when the taxable document wasmade, signed, issued, accepted or transferred, and the tax thereon must be paid at the same time.The tax return must be filed with, and the tax due be paid through, the authorised agent bank within theterritorial jurisdiction of the revenue district office for the location in which the taxpayer is resident or has itsprincipal place of business. In places where there is no authorised agent bank, the return is filed with therevenue district officer collection agent, or duly authorised treasurer of the city or municipality in which thetaxpayer has their legal residence or principal place of business.

Cash pooling

The Philippines has no specific tax rules that apply to cash pooling arrangements.

Financial transactions / banking services tax

There is no specific financial transactions or services tax.

All tax information supplied by Deloitte Touche Tohmatsu and Deloitte Highlight 2020 (www.deloitte.com).

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Market data updated as of 21 - 10 - 21

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