Taxation and Tax Rates (Con't) 



4. Customs Duties

Tariff duties on goods are levied on an ad valorem or a specific rate basis. The majority of goods imported by businesses are subject to rates ranging from five percent to 60 percent.

The majority of imported articles are subject to two different taxes: Tariff duty and VAT. Tariff duty is computed by multiplying the CIF value of the goods by the duty rate. The duty thus determined is added to the value of the goods determined with reference to the CIF price. VAT is then levied on the total sum of the CIF value, duty, and excise tax, if any. Goods imported for re-export are generally exempted from import duty and VAT.

As a part of the BOIís Investment Promotion Program, BOI-promoted companies are eligible to receive exemptions or reductions from import  duties on raw and essential materials as well as machinery.

Further, companies that belong to the BOIís Investor Club Association (IC) are eligible to use the ICís Raw Materials Tracking System. For companies that take advantage of this service, release of raw materials can be done in three hours or less. For more information, please contact the Investor Club at:

Tel 936-1429-40, ext 314, 315, 318


Export duties are imposed on only a few items, including rice, hides, skins and leather, scrap iron or steel, rubber, teak and other kinds of wood.

Two exceptions to the obligation to pay customs duties apply to the importation of machinery, equipment, and materials for the use by:

  • Oil and gas concessionaires and their contractors.

  • Certain companies promoted by the BOI.


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