The Makati Business Club is backing the improved version of the Corporate Income Tax and Incentives Reform Act measure crafted by the Department of Finance which will slash corporate income tax from 30% to 25% this year.
“We welcome cutting the corporate income tax to 25 percent this year and 20 percent as soon as possible, and delaying any changes to already-granted incentives,” the MBC said in a statement.
MBC asked Congress to immediately pass the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) bill to spur the pandemic-stricken economy back to life.
The group, which comprises mostly the country’s top corporations, said it supports a financial incentives review board system for very large investments above certain set thresholds.
MBC likewise reiterated its support for the DOF’s plan to make incentives performance-based, targeted, time-bound, and transparent.
“Especially for investments below the aforementioned threshold, we urge the government to codify these as soon as possible and then market them aggressively. Most investors decide by comparing packages offered by different countries and may bypass the Philippines if the process entails indefinite discussions with the government,” the local business group said.
Amid the coronavirus crisis, MBC is urging the DOF and Congress to add 5 years to the sunset provisions in CITIRA for existing investors, and offer new investors at least 10 years.
” We would support other improvements and initiatives to make the Philippines more compelling to new investors, including in the services industry, where our young and talented population is a global brand, still in light of the wave of relocators, and our neighbors’ intensified campaigns to attract them,” MBC sad.