Philippines customs import and export taxes

Summary:

The article reflects the tax system for imported goods in the Philippines, detailing the basis for computation, the range of tax rates, and the different types of taxes involved.

Overview

Whether an individual or a business entity engages in commercial imports to the Philippines, they are required to pay import duties and other taxes. All import duties and taxes are computed based on the value of the shipment, specifically the Cost, Insurance, and Freight (CIF) value. Additionally, a value-added tax is imposed on imported goods.

Import Duties

Goods imported into the Philippines are generally subject to import duties. The import duty rate typically ranges from 0% to 30%.

Value-Added Tax (VAT)

VAT = 12% x (CIF value + certain applicable duties).

Other Taxes

Some imported goods subject to VAT and import duties may also be subject to excise taxes.