In recent years, the Philippines has experienced a consistent increase in both local and foreign investors establishing FinTech companies within the country. These companies specialize in a wide range of services, including E-Payments/Wallets, Remittance, Lending, Blockchain/Cryptocurrency, WealthTech, and Alternative Finance, which encompasses Digital Banks and Insurtech, among others.
Our Services
Investing in a new territory can be stressful if you are not aware of the requirements of that new territory. We, at KPMG in the Philippines, can help you lighten that burden. We leverage our wide network, diverse experience and deep expertise as we provide the following services:
We can present to you an overview of the setting-up requirements, discussions on the appropriate company vehicle(s), relevant tax implications, minimum capital requirements, foreign ownership restrictions, incentives available, etc.
We can assist you in securing the right type of visa and work permit for your internationally mobile workforce. Our immigration consulting includes an understanding of different visa and work permit options depending on the individual circumstances of each employee and our compliance will guarantee that the employee is properly documented from the time he arrives in the country until he leaves.
We can aid in the tax return preparation of the FinTech entity to comply with the monthly, quarterly and annual reportorial requirements of the BIR. We can also assist in preparing the annual income tax returns of expatriates assigned to the Philippines.
We can set-up the right vehicle for you with the SEC, register the same with the BIR, LGU and other government agencies. We can assist you in registering the FinTech entity with the BSP. We can apply for you for tax incentives with PEZA or BOI, as the case may be. For post registration, we can also assist you in securing any tax treaty relief applications (TTRAs) to avail of tax treaty rates for dividends.
We are equipped to provide transfer pricing (TP) advisory services. We can also assist you in the preparation of the TP documentation as well as assistance accomplishing the Information Return on Transactions with Related Party (BIR Form No. 1709).
Registration and Regulations for FinTech Companies in the Philippines
Local and foreign investors who wants to set-up a FinTech company in the Philippines is primarily required to register with the Philippine Securities and Exchange Commission (SEC) to be legally allowed to operate in the country. The SEC recently launched the PhiliFinTech Innovation Office (PIO) that will regulate and further promote FinTech in the Philippines.
For FinTech companies to engage in remittance, money-changing, foreign exchange and virtual currency exchanges, they are required to register with the Bangko Sentral ng Pilipinas (the Philippine Central Bank). BSP Circular Nos. 942 and 944 were created and issued to supervise and regulate the FinTech companies in the Philippines. The BSP likewise established the Financial Technology Sub-Sector (FTSS), a new unit to oversee FinTech companies.
In addition to the above, registrations with the following are needed: (1) Local Government Unit (LGU) where the business is located; (2) Bureau of Internal Revenue (BIR); and (3) Other Government Agencies such as the Social Security system (SSS), Philippine Health Insurance Corporation (PhilHealth); and (3) Home Development Mutual Fund (Pag-Ibig Fund).
Tax Incentive Schemes
Tax incentives and other benefits can be availed of under the Philippine investment laws if the local or foreign investors will register their businesses with the government agencies concerned who are mandated to administer these laws or if they engage in areas of investments that are prioritized by the government. The agencies granted the regulatory power to administer fiscal and non-fiscal incentives are the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI).
