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24 January 2018

Philippine Government presents second tax reform package

On 15 January 2018, the Philippine Department of Finance (DOF) submitted to the House of Representatives the second package of the tax reform which complements the new Tax Reform for Acceleration and Inclusion Law, and covers corporate income taxes and fiscal incentives. The DOF's proposal includes the following:

  • Gradual reduction of the corporate income tax rate from the current 30% to not lower than 25%
  • Modernizing of fiscal incentives to make the Philippine incentive system time-bound, performance-based, targeted, and transparent
  • "Sunset" provision on fiscal incentives currently enjoyed by existing corporations

The Congress will prepare a bill based on the DOF's proposal, followed by public hearings.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Philippines (SGV & Co.), Makati City

  • Luis Jose P. Ferrer
    luis.jose.p.ferrer@ph.ey.com
  • Fidela T. Isip-Reyes
    fidela.t.isip-reyes@ph.ey.com

Ernst & Young LLP, Philippine Desk, New York

  • Betheena Dizon
    betheena.c.dizon1@ey.net

Ernst & Young LLP, Asia Pacific Business Group, New York

  • Chris Finnerty
    chris.finnerty@ey.com
  • Kaz Parsch
    kazuyo.parsch@ey.com
  • Bee-Khun Yap
    bee-khun.yap@ey.com

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ATTACHMENT

PDF version of this Tax Alert

Document ID: 2018-5189

 
 

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