MANILA: Philippine President Ferdinand Marcos announced on Monday ( Nov. 11 ) a new law that would reduce corporate taxes and provide more fiscal incentives to attract more foreign investments.
The shift reduces the corporate income tax to 20 per cent from 25 per share and allows companies to choose “work-from-home” preparations for up to half their labor, among people.
According to data from the United Nations Conference on Trade and Development, foreign direct investments in the Philippines reached US$ 6.2 billion next month.
But that is a fraction of the US$ 159.67 billion Singapore takes, and Indonesia’s US$ 21.6 billion, while Vietnam’s stands at US$ 18.5 billion.
Businesses often cite high energy costs, foreign equity restrictions, and poor facilities as crucial hurdles to expense.
In a conversation at a signing ceremony where politicians from both parties, Marcos said,” We have made a decisive step toward our vision of a nationally competitive and investment-led Spanish economy.”
” Through this law, we seek to get… both domestic and global opportunities, focussing on strategic business that will form our potential”.
Additionally, the law gives corporations who are already receiving investment opportunities the opportunity to benefit from increased tax deductions, including 100 % energy expense coverage.
This will significantly lower charges for the manufacturing industry, according to Ralph Recto, the finance minister, in a statement.
Prior to the new law, benefits for corporate investments, such as trade obligations and value-added fees, were increased by 10 times to 27 years for businesses established before the new law.
The government did lose US$ 100.6 million in revenue over the next three years, according to a lecture paper from the presidential palace.