Exploring the Financial, Legal, and Tax Environments of Business in the Philippines: A Literature-Based Analysis

This study explores the financial, legal, and tax environments that collectively shape the business landscape in the Philippines. Through a literature-based analysis, it synthesizes empirical studies, government reports, and policy reviews from 2010 to 2025 to understand how reforms in these areas influence competitiveness, investment, and institutional stability. The financial sector, driven by the Bangko Sentral ng Pilipinas (BSP), has undergone a digital transformation emphasizing financial inclusion, fintech innovation, and sustainable finance (Velez, 2025; Quimba et al., 2021). However, challenges such as regulatory lag, digital literacy gaps, and uneven infrastructure persist. The legal environment, meanwhile, has advanced through corporate governance reforms and stronger investor protection under recent Securities and Exchange Commission (SEC) initiatives, though enforcement weaknesses continue to hinder consistent implementation (Saldaña, 2024; OECD, 2024). In the fiscal sphere, tax reforms such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act of 2021 and the subsequent CREATE MORE package of 2024 have streamlined corporate taxation and rationalized incentives to attract investment (Reside & Burns, 2016; Department of Finance, 2023). Findings reveal that these three pillars financial, legal, and tax interact dynamically, influencing firm behavior, investment flows, and governance outcomes. Integrated policy design is therefore essential, as reforms in one area directly affect the efficacy of others. For instance, tax incentives are most effective when supported by transparent legal frameworks and efficient financial systems. The study concludes that while the Philippines has made significant institutional progress, sustainable development requires continued coordination among financial regulators, fiscal authorities, and legal institutions. Strengthening digital infrastructure, enforcing governance standards, and harmonizing fiscal policies are key to building a stable, competitive, and inclusive business environment that can support long-term growth and global integration.