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Filipino to work in the Philippines for foreign company based abroad (no local office)

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Arresto Menor
A foreign company wants to hire a filipino for work in the Philippines. The foreign company does not have business license in the Phils and it wants to hire the filipino as a contractor in Phils.
What Philippine labor laws apply to this? Does the filipino need to register as his own company to work as a contractor? How are taxes paid?
Thanks in advance.

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