House of Representatives approves Train 2
The concerns aired by investors, including those in the outsourcing industry, did not stop the House of Representatives from approving on its third and final reading the second package of the controversial tax reform law known as the ‘Train’ law. The comprehensive tax program aims to generate funds for the government’s massive infrastructure investment program, but foreign investors, including outsourcing firm and those located in economic zones, have argued that the second package of Train adjusts, or takes away tax incentives provided to them. According to PwC Philippines in its CEO Survey 2018, many US BPO firms came to the Philippines on the promise of tax incentives by the government. Cebu business leaders, however, said the new tax reform package lowers corporate income tax, which should attract more investors.
