Philippines risks losing foreign investment over delayed tax rebates

Multinational companies criticize byzantine tax code, slow VAT refunds

20231005N Dole Bananas REUTERS

Dole, which exports bananas from the Philippines, faces a huge tax hit without a VAT rebate. © Reuters

YUICHI SHIGA, Nikkei staff writer

MANILA -- Multinationals operating in the Philippines are facing delays in receiving refunds on the value-added tax, with the situation growing so dire that some companies are considering withdrawing from the market.

The government offered VAT refunds to entice global businesses to set up shop in the Philippines, but its complex tax system has made applying for the rebates a costly affair.

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