Draft for discussion. Subject to change.Draft for discussion. Subject to change.
Comprehensive tax reform programProposed package 2:
Corporate income tax reform and fiscal incentives modernization
Short presentationas of July 23, 2018
DEPARTMENT OF FINANCE 1
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
I. Background:corporateincometaxandfiscalincentivesregime
II. Rationaleforreform:costandbenefits
III. Proposedreform
Content
DEPARTMENT OF FINANCE 2
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Background
DEPARTMENT OF FINANCE 3
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Features Rate Legalbasis
Regularcorporateincometax(CIT)rate
Domesticcorporationandresidentforeigncorporations
Non-residentforeigncorporation
30%ofnettaxableincome
30%ofgrossincome
Sec.27(A)and28(A)oftheNationalInternalRevenueCode(NIRC)
Sec.28(B)ofNIRC
MinimumCIT(MCIT)fordomesticcorporationsandresidentforeigncorporations
2%ofgrossincome
Sec.27(E)and28(A) (2)ofNIRC
Optionalstandarddeduction(OSD)inlieuofitemizeddeductions
40%ofgrossincome
Sec.34(L)ofNIRC
4
Regular corporate income tax (CIT) regime
DEPARTMENT OF FINANCE
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 5
17%20% 20% 20%
24% 24% 25%
30%
0%
5%
10%
15%
20%
25%
30%
35%
Singapore Cambodia Thailand Vietnam Lao PDR Malaysia Indonesia Philippines
Source: PWC and ADB
Comparative CIT rates in ASEAN
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 6
• 14Investmentpromotionagencies(IPAs):theBOI,PEZA,and12otherspecialeconomiczoneauthorities,whichareauthorizedtogranttaxincentivesundertheirrespectivecharters.
• 123 investmentlaws(3NIRC,69speciallaws,and51franchise)and192non-investmentlawsthatprovidetaxincentives.
• IncomeTaxHoliday(ITH) isthecenterpieceoftheincentivessystemfollowedbythe5% GrossIncomeEarned(GIE)tax,andcustomsdutyexemption.TheGIEisgivenindefinitelyandisinlieuofincome,VAT,andlocaltaxes.
• Since2015,TaxIncentivesManagementandTransparencyAct(TIMTA)lawrequiresreportingofthetaxincentivesgrantedforregisteredinvestments.
• 50yearsofpickingwinnersthrutheIPP,whichstartedin1968(RA5186).
Tax incentives system
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 7
14 investment promotion agencies
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DEPARTMENT OF FINANCE 8
SpecialrateROHQ,Internationalcarriers,proprietary
educationalinstitutionsandnon-profithospitals,non-residentcorporations, cinematographicfilm
owner, lessor,anddistributor
ExemptionsGOCCs(GSIS,SSS,PHIC,PCSO*,LWDs)
Regionalorareaheadquarters,Sec.30(AtoK)– labor,agricultural,mutualsavingsbanks,non-stockcorporations,
chamberofcommerce,non-stockandnon-profiteducationalinstitutions,government
educationalinstitutions.
*TaxableasofJan2018
NationalInternalRevenueCode
Exemptionsandspecialrates
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123 investment-relatedfiscal incentive laws by sector
Sector No.oflawsAgrarianreform/agriculture/food 8
Airtransportservices 4Automobile 1
Banks/financialinstitutions 5Bookpublishingindustry 1
Communication/postalservices 42Duty-freeshopping 1Disabledpersons 1
Ecozones (locators/developers/operators) 11
Energy/oilindustry 14Environment/pollutioncontrol 3
Exporters 2Gamesandamusement 5
Health 1Housing 1
Infrastructure 1Ironandsteelindustry 1
DEPARTMENT OF FINANCE 9
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
123 investment-relatedfiscal incentive laws by sector
Sector No.oflawsJewelry 1Labor 2
Micro,smallandmediumscaleenterprises 2Mining 2
Shipping industry 3Sports 1Tourism 2Veterans 2
VarioussectorsregisteredunderBOI 4Localgovernment code 1
Nationalinternalrevenuecode 1Customsmodernization andtariffact 1
Total 123
DEPARTMENT OF FINANCE 10
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
11
Country MaximumyearsofincentivesPhilippines 4+8extension+GIEforever
Brunei Darussalam 20Cambodia 9Indonesia 20Lao PDR 20Malaysia 5+5extensionMyanmar 5to7Singapore 15Thailand 13Vietnam 2to4
The Philippines gives the most generous special income tax rate among the ASEAN countries.
DEPARTMENT OF FINANCE
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DEPARTMENT OF FINANCE 12
• Taxinvestmentallowances• HigherdeductionsforR&D,training,labor,etc.
• Accelerateddepreciation• Netoperatinglosscarryover• Customsdutyexemption• Exportsubsidies
Other incentives
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CIT revenue is rising as the economy grows
DEPARTMENT OF FINANCE 13
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CountryCIT revenues
(percent of GDP, 2016)
Headline CIT rate (percent,
2016)
Revenue productivity
(percent, 2016)
Vietnam 7.1 20 35.6Malaysia 6.0 24 25.2
Singapore 3.3 17 19.5China 3.9 25 15.8
Indonesia 2.5 25 10.0Revenue productivity is calculated as the ratio of tax revenue as a share of GDP divided by the tax rate.Sources: OECD, and individual country statistics offices.
However, efficiency is quite low.
DEPARTMENT OF FINANCE 14
Thailand 4.0 20 20.1
Philippines 3.7 30 12.3
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
Investment tax incentives: cost
DEPARTMENT OF FINANCE 15
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16
2015 estimated forgone revenue due to tax incentives
TypeoftaxRevenue(inbillions
PHP)Incometax 86.3
Customsduties 18.1Import VAT(gross) 159.8LocalVAT(gross) 37.0Local BusinessTax TBD
Leakage TBDTotal 301.2
DEPARTMENT OF FINANCE
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
Note:VATandlocaltaxincentiveswerenotincludedintheestimation.
17
Estimates of tax incentives From 2011 to 2014
Taxincentives(in billionPHP) 2011 2012 2013 2014
Incometaxincentives 61.3 87.3 77.5 88.2ITH 45.6 64.4 56.4 58.4SpecialRate 15.7 22.9 21.2 29.7
Customsdutiesincentives 83.0 69.8 69.3 38.0Total 144.3 157.1 146.8 126.2RatiotoGDP 1.5% 1.5% 1.3% 1.0%RatiotototalNGexpenditures 9.3% 8.8% 7.8% 6.4%RatiotototalNGrevenues 10.6% 10.2% 8.6% 6.6%
DEPARTMENT OF FINANCE
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18
TypeofIncentiveAmountoftaxincentives
(inbillionPHP)
Ratio to2015GDP(%)
Ratioto2015NG
expenditures(%)
Ratio to2015NGrevenues
(%)
Incometax holiday 53.8 0.4 2.4 2.6SpecialRate(5%GIE) 32.5 0.2 1.5 1.5TotalincentivesonincomeTax 86.3 0.7 3.9 4.1Totalincentivesoncustomsduties 18.1 0.1 0.8 0.9Total 104.4 0.8 4.7 5.0
2015 tax incentives estimates(following the TIMTA law)
DEPARTMENT OF FINANCE
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19
IPATaxexpenditureonincometaxholiday
(ITH)
Taxexpenditureonspecialincometax
rate
Taxexpenditureoncustomsduties
Totaltaxexpenditure
PhilippineEconomicZoneAuthority(PEZA) 25.9 25.8 14.9 66.6
BoardofInvestments(BOI) 26.8 1.9 0.7 29.4ClarkDevelopmentCorporation(CDC) 0.3 2.1 1.6 4.1SubicBayMetropolitanAuthority(SBMA) 0.6 2.0 0.4 3.0AuthorityoftheFreeportAreaofBataan(AFAB) 0.0 0.2 0.6 0.8CagayanEconomicZoneAuthority(CEZA) - 0.5 0.0 0.5TourismInfrastructureandEnterpriseZoneAuthority(TIEZA) 0.1 - - 0.1Poro PointManagementCorporation (PPMC) - 0.1 0.0 0.1ZamboangaCitySpecialEconomicZoneAuthority (ZCSEZA) 0.0 0.0 - 0.0BasesConversion andDevelopmentAuthority(BCDA) 0.0 - - 0.0
Total 53.8 32.5 18.1 104.4
2015 tax incentives by IPA and by type of tax incentive (in billions PHP)
DEPARTMENT OF FINANCE
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20
Sector Totaltaxexpenditureonincomeandduty
Percentagetototaltaxexpenditure
Manufacturing(industrialgoods,machines,electronics, electricalproducts,etc.)
30.8 29.4
Services(callcenter,BPO,etc.) 14.0 13.4
Services (warehousing,logistics, utilities,operatorofseaportsandairports,etc.)
7.8 7.5
Manufacturing (vehicles, vehicleaccessories, transportequipment) 7.6 7.3
Energy (coal,diesel,etc.) 6.1 5.9
Energy(renewable) 5.1 5.0
Services (softwaredevelopment, IT-relatedservices, gamingandothercomputer-relatedactivities, etc.)
4.8 4.6
Manufacturing (wood,glass,paper,plastic, ceramic,rubberproducts,etc.)
3.9 3.7
Economicandlow-costhousing 3.6 3.5
Tourism (accommodation, hotels,resort,etc.) 2.6 2.5
Manufacturing(food,foodprocessing) 2.4 2.3
Others(agriculture andfishery,othermanufacturing, otherservices,etc.) 15.7 15.0
Total 104.4 100.0
2015 top beneficiaries of tax incentives by sector (in billions PHP)
DEPARTMENT OF FINANCE
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21
MajorSector SpecialRegime(SpecialIncomeTaxRate)
RegularRegime
ETRoftaxincentiverecipients(%)
ETR ofregularfirms(%)
AgricultureandFishery 6.3 30EconomicandLow-costHousing 9.1 30
Energy 10.0 30Manufacturing 10.2 30MiningandQuarrying - 30PPPProjects - 30Services 12.0 30Tourism 9.6 30Unfilled/UnspecifiedRegisteredActivity 13.5 30
Due to tax incentives, tax rates are very unequal.
DEPARTMENT OF FINANCE
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22
IPA ImportVAT LocalVAT
Exempt Exemptpurchases 0%purchasesAFAB 1,363.5 3.3 9.4BOI 77.2 8,896.9 2,666.3CDC 9,195.9 961.4 1,571.2CEZA 1.7 0.2 30.3PEZA 147,828.4 3,313.1 17,565.9PPMC 0.2 0.0 0.3SBMA 1,358.2 761.9 947.1TIEZA - 0.0 0.0ZAMB - 67.7 201.4TOTAL 159,825.1 14,004.5 22,991.8
2015 tax incentives on value added tax (VAT), per IPA (in millions PHP)
DEPARTMENT OF FINANCE
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Investment tax incentives: benefits
DEPARTMENT OF FINANCE 23
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
PHL foreign direct investment (FDI) has been growing…
DEPARTMENT OF FINANCE 24
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
But can be better…
DEPARTMENT OF FINANCE 25
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2.0 2.3 2.3
3.7
6.1
8.7
9.4
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Philippines Thailand Indonesia Malaysia Vietnam Lao PDR Cambodia
Source: World Bank
ASEAN FDI in 2015 (% of GDP)
DEPARTMENT OF FINANCE 26
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DEPARTMENT OF FINANCE 27
At the aggregate, FDI reached record highs in recent years despite declining approved foreign investments.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 28
Historically, PEZA attracted the most foreign investments, followed by the BOI.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 29
First quarter approved investments generally peak during election years.
145 6
119
32
64
18 21
4
47
22 19
50
37
2226 23
14
0
20
40
60
80
100
120
140
PHPbillion
sApprovedforeigninvestmentsinQ1
Source:PSANote:Purple barsrepresentelectionyears.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 30
51
46 47 4749
46 47
43
37
3235
3231
28 29 28 28
0
5
10
15
20
25
30
35
40
45
50
55
1.0
1.6
2.2
2.8
3.4
4.0
4.6
Percento
fGDP
PHPtrillions
Philippinetotalexports
Exports(total,PHPtrillions),left
Exports(total,percentofGDP),right
Sources: PSA,DOFstaffestimates
As a result, overall exports has dropped as a share of GDP, reflecting loss of competitiveness.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 31
0
20
40
60
80
100
120
140
Percento
fGDP
TotalexportsofASEAN5countriesasashareofGDP
Philippines Indonesia Malaysia
Thailand Vietnam
Sources:WDI,DOFstaffestimates
The Philippines has one of the lowest exports as a share of GDP among the ASEAN5.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 32
Real labor productivity has been increasing, yet real wages have been stagnant
80
100
120
140
160
180
Indicesofrealoutputperworker,andrealminimumandaveragewages(2001=100)
Reallaborproductivity Realminimumwage
Realaveragewage
Sources:National WagesandProductivity Commission,PhilippineStatisticsAuthority, andDOFstaffestimates
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 33
The lack of incentives is not a leading problem for doing business in the Philippines
0 5 10 15 20 25
Poorpublichealth
Inflation
Foreigncurrencyregulations
Crimeandtheft
Inadequatelyeducatedworkforce
Insufficientcapacitytoinnovate
Poorworkethicinnationallaborforce
Restrictivelaborregulations
Governmentinstability/coups
Accesstofinancing
Policyinstability
Taxrates
Taxregulations
Corruption
Inadequatesupplyofinfrastructure
Inefficientgovernmentbureaucracy
Score
MostproblematicfactorsfordoingbusinessinthePhilippines,2017
Source:WorldEconomicForumNote:Fromthelistoffactors,respondentstotheWorldEconomicForum'sExecutiveOpinionSurveywereaskedtoselectthefive mostproblematicfactorsfordoingbusinessintheircountry andtorankthembetween1(mostproblematic)and5.Thescorecorrespondstotheresponsesweightedaccordingtotheirranki ngs.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 34
Cost-benefit analysis• Cost of tax incentives in 2015: PHP 301 billion, not
counting local taxes and leakages.• Initial cost-benefit analysis shows that on average,
there is no difference between the performance offirms receiving incentives and firms not receivingincentives in terms of employment, exports,investments, and productivity. This means manyincentives are redundant.
• Many firms receiving incentives across industries paymore dividends than incentives they receive, which is asign of profitability, making incentives also redundant.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
The proposed package 2 reform
DEPARTMENT OF FINANCE 35
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 36
Corporate income tax rate• HB 7458 – Rep. Cua, Rep. Aurelio, and Rep. Gonzales
• Automatic reduction in CIT rate by 1 ppt every year starting 2019until it reaches 20% in 2028.
• HB 7214 – Rep. Suansing, E. and Rep. Suansing, H.• Beginning Jan 1, 2020, reduce the CIT rate by 1 ppt for every 0.15
percent of GDP (or PHP 26 billion in 2018) reduction ofinvestment tax incentives two years ago.
• The goal is to reduce the CIT rate from 30% to 25% by 2022,while expanding the tax base by 0.75 percent of GDP (or PHP 130billion in 2018 prices).
• HB 7364 (Rep. Batocabo and Rep. Garin)• No provision.
• HB 231 (Rep. Singson)• No provision.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
37
Corporate income tax rateH.B. No.7458
(Rep.Cua,Rep.Abu,andRep.Gonzales)
H.B. No.7214(Rep.Suansing,H.andRep.Suansing,E.)
Status Pendingwith CommitteeofWaysandMeanssinceMay15,2018
Pendingwith CommitteeofWaysandMeanssinceFebruary26,2018
Reductionofthecorporateincometax(CIT)rate
Automatic reduction intheCITrate1percenteveryyearstarting2019untilitreaches20percent
Conditionalreduction in theCITrateby1percentagepointforevery0.15percentofGDP(orPHP26billionin2018)reductionofinvestmenttaxincentivestwoyearsago.
Menuofincentives One singlemenuforallIPAs One singlemenuforallIPAs
Role ofFiscalIncentivesReviewBoard(FIRB)
• FIRB tobeoveralladministratorofIPAs
• DOFtochairFIRBandco-chairallIPAs
• SOFtohavevetopower
• FIRB tobeoveralladministratorofIPAs
• DOFtochairFIRBandco-chairallIPAs
• SOFtohavevetopower
Repeallist • Repealof67laws • Repeal of123laws
DEPARTMENT OF FINANCE
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 38
Tax admin provisions• Enhance the e-invoicing/receipting system and e-sales
reporting system.• Expand the authority of the commissioner to require
other taxpayers to comply with the e-invoicing/receipting system and e-sales reportingsystem.
• Grant of incentives to early adoption of the e-invoicing/receipting system and e-sales reporting system.
• In relation to improvement on tax avoidance and transfer pricing rules, expand the authority of the BIR commissioner to:
• Distribute, apportion, allocate, and impute income anddeductions to disregard and counteract tax avoidancearrangements on transactions involving related parties.
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 39
• Improve compliance by simplifying tax rules for corps.• Reduction of OSD for both individuals and corporations to 20% of gross income
as defined under Section 32 • Clarification on the service of subpoena by authorized revenue officers • Clarifications on the service of letter of authority• Submission of tax-related information to the Secretary of Finance • Clarification of rules on the non-recognition of gains or loss in bona fide statutory
corporate reorganizations• Improve the general anti-avoidance rules: allocation and imputation of income
and deduction and stricter definition of related parties• Clarification of the definition of liquidating dividends• Removal of the tax credit certificate • Adjustment of the threshold value for Commissioner-approved abatement or
compromise • Allowing BIR to prosecute tax cases • Application for extension of the period of limitation of assessment • Further clarifications to the e-Sales Reporting and E-Receipting Systems • Adjustment of penalties
Proposed CIT reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
Performance-basedClear attainment of actual investment, job creation, exports, country-side development, and research and development, else incentives arerevoked.
TargetedTo minimize leakages and distortion in the tax system, tax incentivesshould be given to activities with significant positive externalities asspecified in the strategic investments priority plan.
Time boundThere should be a sunset provision in the grant of tax incentives.
TransparentMonitoring of tax incentives should be institutionalized and reportedby government.
General principles of the incentives reform
DEPARTMENT OF FINANCE 40
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 41
• Governanceofincentives• TheFiscalIncentivesReviewBoard’s(FIRB)functionisexpandedasfollows:
• ToserveastheoveralladministratorofallIPAsandincentives• ToreviewallIPApolicydecisions• ToapproveallIPAgrantofinvestmenttaxincentives• TogranttaxsubsidiestoGOCCsandgovernmentoffices(currentfunction).
• TheDOF,aschairofFIRB,shallhavevetopowerasthecustodianoffiscalprudenceandresponsibility.TheSecretaryofFinancecancancelorsuspendthegrantofincentivesuponthereviewandrecommendationoftheFIRB.
• DOFtobeco-chairofBOI,PEZA,andallotherIPAs.• NEDAtobeamemberinall14IPAs.
Proposed reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 42
• Broadenthetaxbase• Repealof123speciallawsoninvestmenttaxincentivesandconsolidateintoasingleomnibusincentiveslaw.
• RepealNIRCexemptionsofGOCCs,proprietaryeducationalinstitutionsandhospitals,RHQs,ROHQs,incomeofresidentforeigncorporationfromforeigncurrencytransactions,nonresidentcinematographicfilmowner,lessorordistributorandownerorlessor,vessels,aircraft,machineriesandotherequipment.
Proposed reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 43
• Rationalizeinvestmenttaxincentives• OnesinglemenuofincentivesapplicabletoallIPAs.• Nodoubleregistrationofactivities.• Onlynewinvestment/activitiesshallbegrantedincometaxincentives.Expansionsaresignsofprofitabilityandneednotbegivenincentives.
• Expansionscanavailonlyofexemptionfromcustomsdutyofcapitalequipment.
• Definitionofexporter:atleast90%ofsalesareactuallyshippedouttoaforeigncountry.
• Domesticfirmsallowedifinthestrategicinvestmentspriorityplan.• One-yearrelocationincentiveforfirmsmovingoutofMegaManila.• Superiorincentivesforlaggingregions,conflictandcalamity-strickenregions.
Proposed reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 44
• Incentivesmenu• Incometaxholiday.• Replacethe5%grossincomeearned(GIE)taxinlieuofalltaxeswithareducedcorporateincometaxrateof15%basedonnettaxableincome.
• Otherincome-basedincentives:investmenttaxallowance,doubledeductionforresearchanddevelopmentandtrainingexpenses,50%deductionforlabor,deductionforinfrastructureandreinvestmentofprofit.
• Exemptionfromcustomsduty.• NomoreVATincentives:AllfirmstopayVATandprovetheyexporttobeabletogetarefund.
• TheVATwillnolongerbeusedasaninvestmentincentiveandcannotbeusedintheseparatecustomsterritoryargument,especiallyforverticalzones(i.e.,buildings).
• Nomorelocaltaxincentives:LGUlocalbusinesstaxwillnotbecommittedbyNG.
Proposed reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 45
• Existing income tax holiday (i.e., 4 years) will be allowed to continue but no extension.
• Existing GIE incentives will be allowed 2 to 5 more years as transition period.
• Receiving for more than 10 years: 2 years • Receiving between 5 and 10 years: 3
years• Receiving below 5 years: 5 years
Proposed reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
Note: BOIandCEZAisnot includedsincetheirsubmissionscoveronlytheperiod2009to2015and2015,respectively.
46
IPA Numberofyears Totalnumberoffirms
15-20 21-25 26-29PEZA 352 98 13 463SBMA 112 21 - 133CDC 39 9 - 48AFAB 6 3 - 9ZCEZA 1 - 1Total 510 131 13 654
Number of firms registered with tax incentives for 15 years and above
DEPARTMENT OF FINANCE
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
DEPARTMENT OF FINANCE 47
• Others• A3-yearSIPPshallbeformulatedbyBOIandapprovedbythePresident.
• BOIshallensurethatthemoretargetedlistincludeactivitieswithsignificantpositiveexternalities.
• OnlythePresidentmayproposeactivitiesorprojectsnotintheIPPthatmaybegrantedtaxincentives.
• Integratetaxexpenditurereportingintothebudgetprocess.• Incentiveswillnotbebudgetedbutshouldbereportedasataxexpenditurefortransparencypurpose.
Proposed reform
Draft for discussion. Subject to change.Draft for discussion. Subject to change.
16
Thankyou.
DEPARTMENT OF FINANCE 48