Second round of tax reform to benefit property market
A global property services company said that the second tranche of the Tax Reform for Acceleration and Inclusion (Train) law will help the local property market in the Philippines. The second leg of the tax reform program will benefit the sector because it will pave the way for occupiers to lease anywhere, said Michael McCullough, managing director at KMC Savills Inc. Speaking at a news briefing in Taguig City on Wednesday, he said that Train 2, or the so-called “Trabaho” bill – an acronym for “Tax Reform for Attracting Better and Higher Quality Opportunities” — would provide for a level playing field, considering that occupiers will now begin to locate themselves anywhere, despite not getting accreditation from the Philippine Economic Zone Authority (PEZA). The bill seeks to cut the corporate income tax rate from 30% to 20%, among its other objectives.