A bill reducing the rate of corporate income tax was approved by a joint Philippine congressional panel on Monday. This was done to attract more foreign investment and assist in the recovery of the coronavirus-hit Southeast Asian economy.
By 2029, the bill will decrease the rate of corporate income tax to 20 percent for small enterprises and 25 percent for big firms from 30 percent, the highest in Southeast Asia.
Bicameral committee chairman Congressman Joey Salceda, said that the reconciliation of the Senate and House versions of the bill will get rid of investor uncertainty over the Philippines’ fiscal regime.
“(It) will be like opening the floodgates to investment,” Salceda said.
According to Salceda, the tax reform will generate 1.8 million jobs over the next decade, and result in 931 billion pesos in savings for businesses.
Salceda said the bill will also allow duty-free importation of COVID-19 vaccines expected to arrive this month.