News » CITIRA uncertainty affects PEZA investment pledges

CITIRA uncertainty affects PEZA investment pledges

The lack of clarity on the proposed Corporate Income Tax and Incentives Reform Act (CITIRA) has affected the investment pledges approved by the Philippine Economic Zone Authority (PEZA), which dropped to PHP16.4 billion (US$324 million) in the first quarter of 2020, down 27% year-on-year.

PEZA director general Charito Plaza said the measure, which is still pending in Congress, seeks to reduce the corporate income tax rate from 30% to 20% in 10 years and rationalise fiscal incentives currently enjoyed by select firms. Apart from this, the COVID-19 pandemic has also affected PEZA’s export manufacturers and exporters of IT-enabled services.

Investments in the IT sector were down by 42% to PHP2.3 billion compared to PHP4 billion in 2019. The number of IT projects also dropped by 25%, to 30 from 40 in 2019.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.