Additional Philippines resources
Understanding how economics, politics and government intersect can help businesses navigate the Philippine market with confidence. This chapter outlines key institutions, economic zones, essential contacts and support resources for business success.
Country information
Politics and government
The Philippines is a democratic presidential republic, divided into 82 provinces. It’s legislative branch, or Congress, is made up of two houses: the House of Representatives, consisting of 318 representatives who serve three-year terms, and the Senate, consisting of 24 senators who serve six-year terms.
The President is the head of state and government, appoints and dismisses cabinet ministers and approves congressional legislation. The Vice-President and the President are elected separately, and each serve for a term of six years. The President is not eligible for re-election, while the Vice-President may not serve for more than two consecutive terms. The President may implement or execute existing law through executive orders.
Due to the multi-party electoral system, dozens of parties have at least one seat in the House of Representatives. Once elected, the House is divided into a majority bloc, aligned with the President, and minority bloc, in opposition. Because of the prevalence of the Padrino System of patronage, most representatives, regardless of party, join the majority bloc. As such, the House of Representatives is broadly seen as being aligned with the President and their party.
The Philippine government and judicial structure
Legal system
The Philippine legal system is based on the American system with features of codified civil law and common law. Precedents set by the Supreme Court are accepted as binding. Any amendments to the original Penal Code are made in the form of Republic Acts.
The legal system is presided over by the Supreme Court. There are three appellate courts: the Court of Appeals, the Court of Tax Appeals and the Sandiganbayan, which has jurisdiction over cases of graft and corruption by public officials. The lower courts mirror Australia’s federated system in that there are municipal and metropolitan courts that channel cases up to regional courts.
Uniquely, there exists a parallel Sharia Court system within the Bangsamoro Autonomous Region of Muslim Mindanao (BARMM) .These courts are given jurisdiction over cases involving personal, family and property matters of Muslim Filipinos. Business transactions and dealings almost never fall under the jurisdiction of these courts, and certainly not outside the BARMM.
Key government agencies
Key government agencies and industry associations will need to be consulted throughout the process of setting up a business in the Philippines. Some of these agencies can also be useful for providing advice and initiating contacts.
The main agencies and their areas of authority relating to foreign businesses are:
| Government agency | Responsibilities |
|---|---|
| Department of Trade and Industry (DTI) | Supports the growth of both local industry and foreign trade. |
| Board of Investments (BOI) | Under the DTI, the BOI is responsible for the development of investments and assisting Filipino and foreign investors. |
| Department of Finance (DOF) | Creates fiscal policy, manages taxation, revenue, and public debt, and oversees policy for capital markets and the corporate sector. |
| Securities and Exchange Commission (SEC) | Supervises the corporate sector and capital markets. A key point of contact for registering a corporation in the Philippines. |
| Bureau of Internal Revenue (BIR) | Responsible for assessing, collecting, investigating and enforcing all national revenue taxes, including income taxes and corporate taxes. |
| Bangko Sentral ng Pilipinas (BSP) | The central bank manages the Peso and administers monetary policy in pursuit of price stability. It also carries out oversight of banks and payment systems. |
| Bureau of Customs | Charged with customs controls, including associated revenue collection such as import duties. |
| Anti-Red Tape Authority (ARTA) | Under the Office of the President, ARTA is mandated to increase whole-of-government bureaucratic efficiency through streamlined service delivery. ARTA can assist foreign businesses that encounter bureaucratic difficulties. |
| Department of Labor and Employment (DOLE) | Manages industrial relations and the development of human resources. Administers the Alien Employment Permit for foreigners seeking to work in the Philippines. |
| Philippine Economic Zone Authority (PEZA) | Administers the policy for and development of special economic zones. |
| Intellectual Property Office of the Philippines (IPOPHL) | Tasked with administering policy on Intellectual Policy and protecting IP rights. Responsible for approving technology transfers. |
Special economic zones
Special economic zones (SEZ) are governed by the Philippine Economic Zone Authority (PEZA). These zones are export-focused, and provide fiscal and other incentives for businesses, particularly those using local material inputs for goods sent to export.
There are over 400 SEZs operating in the Philippines, classified into five categories: manufacturing, information technology, agro-industrial, tourism and medical tourism. Businesses looking to leverage the advantages of an SEZ can register with PEZA’s Electronic Application for Registration System at ears.peza.gov.ph.
Key special economic zones
Please refer to pages 46 and 47 of the Doing Business Guide to view the key special economic zones.
The Philippines-Australia bilateral relationship
The Philippines-Australia relationship is built on close partnerships in trade and investment, defence and security, development cooperation, and people-to people links. Over 400,000 Australians have Filipino heritage, making it one of the largest diaspora communities in the country.
The trade and investment relationship is underpinned by regional free trade agreements and strong institutional cooperation. Both Australia and the Philippines are active members of Asia-Pacific Economic Cooperation (APEC), the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). The relationship was elevated to a Strategic Partnership in 2023.
Further information on the bilateral relationship is available from DFAT.
Useful contacts and support resources
Government organisations
Australian Department of Foreign Affairs and Trade (DFAT)
DFAT manages Australia’s international network, including in the Philippines. Australia has an Embassy in Manila.
Australian Trade and Investment Commission (Austrade)
Austrade is the Australian Government agency responsible for facilitating international trade and investment. Austrade can provide advice on the market, potential in-market partners and export marketing services. Austrade has an office in Manila.
Export Finance Australia (EFA)
EFA provides information, support and export finance solutions to Australian businesses looking to expand overseas.
State government agencies
Many state government agencies have overseas representatives or offices. Western Australia has a representative office for education in Manila, while other states, such as New South Wales, Queensland, and Victoria, have offices that cover the ASEAN region.
Business and industry associations
ANZCHAM Philippines
ANZCHAM Philippines is a Manila-based chamber supporting closer business ties between Australia, New Zealand and the Philippines. Provides networking and training events for members, business referrals, and advocacy on behalf of businesses.
Australia Philippines Business Council / Philippines Australia Business Council
The Australia Philippines Business Council (based in Australia) and its counterpart the Philippines Australia Business council (based in the Philippines) promote bilateral trade and investment opportunities between Australia and the Philippines. They offer networking, participation in trade missions, and information on the business environment in the Philippines.
AustCham ASEAN
The ASEAN-Australia Chamber of Commerce represents and promotes Australian businesses operating in Southeast Asia. AustCham ASEAN coordinates a regular program of business seminars, networking and social functions for the business community in Southeast Asia.
Export Council of Australia
The Export Council of Australia is the peak industry body for the Australian export community.
Programs and support
Go Global Toolkit
Austrade's Go Global Toolkit provides information, tools and support to grow your business globally through a range of digital for every stage of the export journey.
Export Market Development Grants (EMDG)
Austrade seeks to help small to medium Australian enterprises grow their exports in international markets through their EMDG grant program.
Industry Growth Program
The Industry Growth Program supports innovative SMEs undertaking commercialisation or growth projects in the National Reconstruction Fund priority areas.
State or territory government trade and investment agencies may also run programs and provide support to businesses looking to expand into international markets. Please consult your relevant state or territory agency for more information.
References
A select list of sources used in the development of this publication are included below.
Australian Department of Agriculture, Forestry and Fisheries
Australian Department of Education
Australian Department of Foreign Affairs and Trade
Australian Trade and Investment Commission (Austrade)
Baker McKenzie
Dezan Shira and Associates
Economist Intelligence Unit
Euromonitor
Fitch Ratings
ILO
IMF
International Federation of Accountants
King & Wood Mallesons
KPMG
PWC
The Heritage Foundation
Transparency International
S&P Global
UNCTAD
UNICEF
US Chamber of Commerce
US Department of State
US International Trade Administration
The Philippines Government (various sources)
We Are Social
World Bank
WIPO
WTO
A note on currency
All money amounts are in Australian Dollars unless otherwise indicated.
Exchange rate used is the historical rate for the previous twelve months.
AUD 1 = USD 0.6482
AUD 1 = PHP 37.201
Acknowledgements
Asialink Business gratefully acknowledges the assistance of Austrade, DFAT and ANZCHAM Philippines in the production of this guide.
Disclaimer
This publication contains country and industry general information and does not address the circumstances of any particular individual or entity. While all efforts have been made by Asialink Business to ensure that the data and information provided herein are accurate, the accuracy of the information in the future cannot be guaranteed.
Users of this document should undertake their own independent analysis and obtain appropriate professional advice, if required, before acting upon such information in any given situation. Asialink Business accepts no liability for any loss which may arise from the use of the information contained in this publication.
Reproduction of any part of this publication without prior written approval of Asialink Business is strictly prohibited. The information in this document is accurate as of May 2026.