The tax reform of PHL is confounding foreign investment policy

This image is about foreign investment policy

The proposal of the Philippine government to rationalize tax incentives under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) concerns Japanese investors interested in joining or expanding the country’s business.

Executive vice president and board member of MUFG Bank Takahiro Onishi said the corporate community in Japan is concerned about “tax issues,” particularly manufacturers in the hubs of the Philippine Economic Zone Authority (PEZA).

The second package of the government’s tax reform plan aims at gradually reducing corporate income tax from 30% to 20% by 2029 and rationalizing fiscal incentives by amending or abolishing the 123 tax benefits laws and consolidating them under a single omnibus incentive code.

In 2016, MUFG Bank purchased a 20 percent stake of P36.9 billion in Security Bank Corp. Since 1953, the Japanese bank has been supporting Japanese companies operating in the country in the Philippines.

PEZA Director General Charito Plaza had a change of heart with regard to the CITIRA bill and agreed to cooperate in the fine-tuning of the law “to address PEZA’s and its industries ‘ concerns.”

Because of its potential to reduce the attractiveness of the country to foreign investors that could potentially lead to thousands of job losses, the second package of the ambitious tax reform program of the Duterte administration was met with opposition from the business community.

The Department of Finance has argued that, because of tax incentives, the government is losing P441 billion in forgone income, with PEZA firms responsible for P345 billion.

Because of its potential to reduce the attractiveness of the country to foreign investors that could potentially lead to thousands of job losses, the second package of the ambitious tax reform program of the Duterte administration was met with opposition from the business community.

The Department of Finance has argued that, because of tax incentives, the government is losing P441 billion in forgone income, with PEZA firms responsible for P345 billion.

Read more related  about the Filipinolive Business: https://www.filipinolive.com/category/business/

Leave a Reply

Your email address will not be published. Required fields are marked *