ASEAN KEY DESTINATIONS
Philippines may cut investor tax perks
In briefing, Trade Secretary Gregory Domingo said that Department of Finance (DOF) Secretary Cesar Purisima proposed the tweaking the country's fiscal incentives regime by slashing or removing the income tax holiday (ITH) of firms originating from countries that have tax treaties with the Philippines.
"Because if they [companies] belong to a country with a tax treaty [with the Philippines], they are not so sensitive to ITH," Domingo said.
He said that while such firms enjoy ITH in the Philippines, they still pay taxes in their own countries. "We can collect their taxes here instead."
The DTI chief said the two departments are currently studying the various tax treaties that the Philippines have entered into to determine the options for foreign investors covered by such treaties.
The Philippines has tax treaties with Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Israel, Italy, Japan, Malaysia, New Zealand, Norway, Pakistan, Romania, Russia, Singapore, Spain, South Korea, Sweden, Thailand, the Netherlands, the UK and the US.
Domingo said the government is also looking at imposing stricter rules on granting incentives for projects that serve the domestic market while making it easier for exporters to avail of perks.
The official said DTI and DOF would submit a joint position to Congress in line with efforts to rationalize fiscal incentives.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below