Department of Trade and Industry (DTI) Secretary Ramon Lopez said the government is looking into granting enterprises that will put up their businesses outside Metro Manila longer tax holidays as an incentive.
This is in support of Senator Bong Go’s proposed “Balik-Probinsya” Program to decongest the National Capital Region (NCR) by providing incentives to businesses that will locate in provinces and create more job opportunities for Filipinos.
This will be part of the long-term solutions of the government as it prepares policies for the ‘new normal’ amid the coronavirus disease 2019 (COVID-19) pandemic.
“Longer years [of] income tax holidays in areas outside NCR.”
“Longer years [of] income tax holidays (ITH) in areas outside NCR,” Lopez said.
The trade chief said it is also an opportune time to push for the second package of the comprehensive tax reform program of the administration, the Corporate Income Tax and Incentives Reform Act (Citira).
The bill aims to lower the corporate income tax of enterprises to make the country’s tax rate more competitive in the region. It also targets to rationalize fiscal incentives that the government is providing to companies.
“The proposed tax regime in the Citira is now very relevant amid the COVID-19 crisis.”
The trade head said the proposed tax regime in the Citira is now “very relevant” amid the COVID-19 crisis.
He added the bill will also favor high-technology enterprises locating outside Metro Manila for longer ITH.
Meanwhile, the national government further extended the enhanced community quarantine in NCR until May 15 as it is considered as a high-risk area for COVID-19.