On February 28, 2017, NordCham Philippines held its signature Speed Networking Night in partnership with SGV & Co at the Washington SyCip Development Center in Makati City.
After welcome remarks by Mr. Itos Cruz, SGV & Co. Country Managing Partner, Atty. Jules Riego, Principal, Business Tax Services, provided an update on investment incentives and tax reform in the Philippines. At present, there are three tax reform bills filed at congress:
1) Tax Reform for Acceleration and Inclusion Act (House Bill No. 4774)
2) Act Reducing the Corporate Income Tax Rate (Senate Bill No. 317)
3) Rationalization of Fiscal Incentive Bill (HB 3359).
H.B. 4774 seeks to lower personal income taxes, broaden the Value-Added-Tax (VAT) base, adjust excise taxes on petroleum and automobiles, and reduce estate and donor’s taxes. The proposal will overhaul the current graduated scale paving the way for the exemption of those earning not over P250,000 annually from paying personal income tax. The bill also proposes the increase of VAT exemption threshold for sale of goods and services from P1.9 million to P3.0 million. SBN 317 seeks to gradually lower corporate income tax to 25% by January 2019, while H.B. 3359 proposes various changes in the prevailing incentive schemes provided the government’s investment promotion arms.
Following the update and Q&A on tax reform, the program continued with a speed networking night, a fun and efficient way of coordinated networking.