Toyota Motor Philippines Corporation (TMP) has cited fiscal incentives as among the factors why the company continues to have a competitive edge.
Asked for its assessment on government policies to encourage more investment, TMP said its officials gauge government policies “based on impact to strengthening our local manufacturing industries – both vehicle manufacturing and the parts supply chain.” TMP is a unit of listed GT Capital.
“Fiscal incentives on investments in local capabilities, as well as supportive policies like local products promotion (e.g. incentives on patronizing locally manufactured vehicles), are helpful in keeping our production cost competitive while also boosting domestic demand for higher economies of scale,” it said in a statement.
Companies operating in areas registered under the Philippine Economic Zone Authority (PEZA) enjoy, among others, all incentives under Executive Order (EO) 226 that include income tax exemption for a certain period; tax and duty-free importation of capital equipment, spare parts, and raw materials; and tax credits.
TMP is the administrator of the 32-hectare Toyota Special Economic Zone (TSEZ) in Santa Rosa, Laguna, which houses its wholly owned logistics arm, Toyota Motor Philippines Logistics, Inc. (TLI), and its franchised dealership, Toyota Santa Rosa, Laguna, Inc. (TSR)
In the first half of 2025, the company registered a 66 percent annual jump in its net income to P12.5 billion, traced to strong retail sales volume, healthy models mix, and favorable foreign exchange movements.
Last year, the company booked a P15.9 billion net income, making it among the top taxpayers in Santa Rosa, with total taxes and fees amounting to P1.16 billion.
Its logistics arm supports the company’s global supply chain, allowing it to export original equipment manufacturing parts and components.
The company currently has over 4,000 staff and it does not plan to hire more right now since “we are currently on maintenance level of our workforce population.”
GT CAPITAL WEBSITE PHOTO