To lure potential foreign investors, the Philippines needs “more clarity” in its policies, a Fitch Solutions analyst said.
The country entered the pandemic with declining foreign direct investments from the previous year and uncertainty on corporate tax reform, Fitch Solutions senior country risk analyst Michael Langham said.
“More clarity is needed for foreign investors to make this long term direct investments,” Langham said.
“Just increasing more policy certainty at the moment. The COVID-19 situation has created enough uncertainty as it is, investors don’t need to see other tax and policy uncertainty on top of that,” he added.
The Philippines should address the corporate income tax rate, seen as “less attractive” compared to its Asian peers, Langham said.
The Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), formerly known as CITIRA bill is currently pending in Congress. It seeks to cut the corporate income tax rate to 25 percent from 30 percent as early as July is