IT-BPM industry favors higher GIE, announced at IBPAP summit
The information technology business process management (IT-BPM) industry is mostly in favor of changing the gross income earned (GIE) tax rate up to, say, 7% from 5% in the government’s second tax reform bill. However, the industry does not want to deal with the local government units in paying for the tax shares, said Senator Sonny Angara, Senate committee chair on ways and means, at the sidelines of the International Innovation Summit 2018. In the 5% GIE rate, which is in lieu of all taxes, 3% goes to the national government, while the remaining 2% is for the city or town that is hosting the economic zone. Angara said the industry wants the national government to directly collect the share of the LGUs. The Tax Reform for Attracting Better and Higher Quality Opportunities (Trabaho Bill) approved by the House of Representatives seeks to reduce corporate income taxes from the current 30% to 20 % and rationalize fiscal incentives.
