News » Senator wants long-term ecozone investors exempted from new tax rates

Senator wants long-term ecozone investors exempted from new tax rates

Senator wants long-term ecozone investors exempted from new tax rates

Senate President Pro Tempore Ralph Recto said higher corporate income taxes imposed on investors in special economic zones under a proposed tax bill should only apply to businesses coming into the country, because it could discourage existing companies from expanding in the Philippines.

Recto pushed for the inclusion of a “grandfather rule” — which allows existing investors in the country to enjoy status quo, while a new rule is applied to future investors – in the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill. Under the proposed measure, corporate income taxes in the country will be reduced to 25 per cent, but “profitable” companies enjoying incentives in ecozones will see their taxes double to 10 per cent in a few years.

The Senate is expected to continue deliberations about the CREATE bill next week.

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.