Philippines set to cut corporate taxes to attract investors
The Philippines plans on cutting corporate tax rates and implementing structural reforms that can withstand political successions, as part of its bid to open doors to foreign investment as the country tries to revive its economy from the impact of COVID-19.
Trade Secretary Ramon Lopez told Bloomberg in a televised interview that the country would implement a “much lower corporate income tax rate in the months to come”, starting from a cut of tax rates from 30% to 25% initially, and eventually to 20%.
The bill, which is currently pending in the Senate, seeks flexibility in granting incentives as the country competes for high-value investments.
As part of the government’s effort to woo investors, its Board of Investments, part of the Department of Trade and Industry, launched a dedicated campaign on Tuesday to highlight the country’s potential as an ideal business destination in Asia.
The campaign focuses on attracting investments from priority sectors such as automotive, aerospace, electronics, copper-nickel products, and IT and business process management.
In Q2, the Philippines entered a technical recession – its first in 29 years – as the economy shrank a record 16.5% on the back of strict lockdown measures ravaging domestic demand and business investment.