Finance Secretary Carlos Dominguez III has asked the Senate to consider the reduction of the corporate income tax rate to 25 percent from 30 percent starting July 2020 to stimulate the economy amid the coronavirus disease (Covid-19) pandemic.
Dominguez is pushing for the immediate passage of the “calibrated” comprehensive tax reform program Package 2, otherwise known as Corporate Recovery and Tax Incentives for Enterprises Act (Create).
In a statement, Dominguez described Create as “one of the largest economic stimulus measures in the country’s history.”
The five-point rate deduction this year will be followed by a further one-point yearly rate cut until 2027, with the tax rate down to 20 percent after five years.
The measure will make available close to P42 billion in business capital for 2020 and another P625 billion spread over the next five years, the finance department said. (Jojo Mangahis)