Regional Operating Headquarters (ROHQ) in the Philippines

A Regional Operating Headquarters (ROHQ) is a Philippine entity that allows a multinational corporation to provide qualifying services to its regional affiliates and charge them for it. Unlike an RHQ, which is a cost centre, the ROHQ is a revenue-generating structure — the distinguishing feature that makes it operationally more useful for service-heavy multinationals.

Qualifying Services

An ROHQ can provide a defined list of services to its affiliates, branches, and subsidiaries within the same multinational group, including:

• General administration and planning
• Business planning and coordination
• Sourcing, procurement, and supply chain coordination
• Corporate finance advisory (within the group)
• Marketing control and sales promotion
• Training and personnel management
• Logistics and data management
• Technical support and R&D coordination

These services must be rendered to affiliated entities — an ROHQ cannot sell services to unrelated Philippine or foreign clients. The moment services go outside the group, a different structure (domestic corporation or branch) is required.

Capital Requirement

The foreign parent must remit at least USD 200,000 to the Philippines as the ROHQ’s initial capital. This remittance must occur within 30 days of SEC registration and be evidenced by a bank certificate from a Philippine commercial bank. The SEC may suspend or revoke the ROHQ’s licence if remittance is not confirmed on time.

Tax Treatment

ROHQs pay 25% corporate income tax on their Philippine-sourced income — the standard rate for domestic corporations, following the CREATE Act (RA 11534, 2021) and the CREATE MORE Act (RA 12066, 2024). The preferential 10% rate that previously applied has been removed.

Offsetting this, ROHQs retain certain incentives:

• Exempt from local government taxes and fees (with the exception of real property tax on land improvements and equipment)
• Duty-free importation of equipment and materials used in qualifying operations (subject to BOI endorsement)
• VAT zero-rating on services rendered to foreign affiliates with payment received in foreign currency

RHQ vs ROHQ: The Decision

If your multinational’s Philippine team will only coordinate and communicate with no service fees changing hands, an RHQ is lighter and cheaper (USD 50,000 annual remittance vs USD 200,000 capital). If your team will bill affiliates for services — even internally within the group — you need an ROHQ.

Many multinationals start with an RHQ and convert to an ROHQ as the Philippine team’s scope expands.

Registration

ROHQ registration goes through the SEC and requires parent company documentation, evidence of the multinational’s regional presence, and the initial USD 200,000 remittance within 30 days. Post-SEC, the ROHQ must register with the BIR and obtain local permits. The full process typically takes 8–12 weeks.

See the entity types comparison for a side-by-side of all structures. Book a consultation to determine whether an ROHQ fits your group’s Philippine strategy, or review transparent pricing.