Tech investments to receive generous tax incentives in PH
New investments in the tech industry will be given generous fiscal incentives in the Philippines through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
In a forum organized by the European Chamber of Commerce of the Philippines (ECCP) Department of Trade and Industry (DTI) Undersecretary Rafaelita Aldaba explained that Tier 3 businesses have the longest income tax holiday (ITH) period, special corporate income tax (SCIT) of five per cent for export enterprises, and enhanced deductions.
Tier 3 investments include research and development (R&D) activities that yield significant high-value added results and higher productivity and adopts advanced digital production technologies of the fourth industrial revolution.
Export enterprises with investments in tier 3 activities within Metro Manila are qualified for six years of ITH and seven years for investments outside Metro Manila, and another 10 years of enhanced deductions and SCIT.
Additionally, the government provides six years of ITH for investments in the National Capital Region (NCR) and seven years for investments outside NCR, and an additional five years for enhanced deductions and SCIT.
Aldaba also urged micro and small enterprises to utilize new technologies to improve their business operations.
She stated that new technologies could “create new jobs and change what work looks like, augment human intelligence and skills and make our workplaces safer.”
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