Philippines: DOF to submit 2nd tax reform package in 2018 – 18 Sep 2017

  • The Department of Finance (DOF) is targeting to submit to Congress the second package of its Comprehensive Tax Reform Program (CTRP) by Jan 18.
  • Finance Secretary Carlos Dominguez said the DOF has moved the target submission of the second CTRP package from the 4Q17 to early 2018 as it concentrates first on its fight for the first tax reform bill in the Senate and the bicameral committee.
  • According to earlier reports of the DOF, key features of the second tax reform bill will include the reduction of corporate income tax rate to 28% by 2019 and 25% by 2021 from the current 30%, and the rationalization of fiscal incentives being enjoyed by certain business sectors.
  • The package, however, proposes for a sunset provision for existing incentives, which is a maximum of five years.
  • The DOF said package two would be designed as a revenue-neutral measure, as the loss expected from the lower corporate income tax will be offset by the removal of tax incentives.
  • Meanwhile, the first package of the CTRP, as contained by the Tax Reform for Acceleration and Inclusion Act (TRAIN), is expected to be up for plenary deliberations by 20 Sep 17, Senate Ways and Means Committee chairman Juan Edgardo Angara said.
  • However, Angara said the bill would only likely to adopt about 70% of the original proposal of the DOF with some provisions watered down and some new measures – such as taxes on dividend income, cosmetic products, and plastic tax – introduced.

External Link : http://www.philstar.com/business/2017/09/18/1740025/dof-submit-2nd-tax-reform-package-next-year

18-Sep-2017


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