Senate junks second tax reform package


The second package of the comprehensive tax reform program of the government, which seeks, among others, to remove the incentives given to business process outsourcing (BPO) industry, has failed to secure the approval of the Senate. According to Senate Majority Leader Juna Miguel Zubiri, no senator was willing to sponsor the second part of Tax Reform for Acceleration and Inclusion (Train 2) at this time. The bill calls for a one-percentage point reduction in the 30% corporate income tax for domestic corporations, resident foreign corporations and non-resident foreign corporations starting 2019, provided that the cut will not reach lower than 20%. Zubiri also said he was briefed on the possible exodus of industries from the Philippines if the incentives are lost. He added that thousands of Filipinos will become jobless if overseas companies decided to close up shop.

Read more here.