To incorporate a manufacturing company which involves heavy investment (lease land, build factory, import machinery, etc) – it is best to incorporate your company under the Foreign Investment Law (FIL). Under the FIL investors have to bring in a minimum capital of US$500,000 but in return the investors get various tax benefits.
The followings are some of the benefits:
- 5 years tax holiday.
- Exemption from import taxes on raw materials.
- 50% of the profits gained from exporting goods are not taxed.
- long term lease of land for 50 years plus two 10 years extension
Under the law, there are certain industries that foreigners cannot participate in.
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