MANILA -- Senate President Vicente Sotto III on Thursday filed the bill that seeks to lower corporate income tax.
Senate Bill No. 1906 or the "Corporate Income Tax & Incentives Reform Act" seeks to review and revise existing tax laws governing businesses.
The proposed measure is the second package of the Tax Reform for Acceleration and Inclusion (TRAIN-2), which aims to lower corporate income tax from 30 percent to 25 percent and modernize incentives to attract new and growing industries.
In his bill's explanatory note, Sotto clarified that the proposed measure does not intend to remove corporate tax incentives but only to “rationalize” the existing tax system.
In his explanatory note, Sotto pointed out that there are at least 654 firms enjoying incentives from the government for the past two to three decades.
“Thus, it is high time to have tax incentives that are performance-based, targeted, transparent, and time-bound in order to ensure that the Filipino people will gain from every peso that the government gives to firms registered in the promotion agencies,” the Senate leader said.
He said the bill would also prevent tax evasion by simplifying the tax system and providing higher penalties to offenders.
“Considering that this is a revenue neutral tax measure, it will not have any inflationary effects but it may one way or another provides support to some 90,000 plus SMEs to be covered by this Act,” Sotto said. (PNA)
