DOF wants corporate tax reform passed by Congress before June 3

The Department of Finance has called for the passage of the bill seeking to reduce corporate income taxes and rationalize the fiscal incentives system before Congress adjourns session in June. 

Finance Secretary Carlos Dominguez III, who called for the passage of the bill before June 3, made the appeal during a briefing with President Rodrigo Duterte and other Cabinet officials which was aired on state-run PTV on Tuesday, to revitalize the economy after the COVID-19 threat.

He also pushed for food production to spur consumer demand and the continued implementation of the Build, Build, Build infrastructure program. 

Dominguez said the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) will help attract foreign investors. 

Under the bill, the corporate income tax (CIT) rate will be lowered from 30% to 20% over a period of 10 years.

It will also rationalize fiscal incentives given to firms to make these “performance-based, time-bound, targeted, and transparent.”

The bill intends to prioritize incentives to business activities that generate domestic employment; promote research, development and innovation; promote agribusiness; and invest in areas that are less developed or are recovering from disasters and conflicts, among others.

It will also offer additional tax deductions to reward corporations’ good behavior, such as local job creation, exports, and investment in high technology.

Duterte certified the bill as urgent in March. —KG, GMA News