THE House Committee on Ways and Means chaired by Albay Rep. Joey Sarte Salceda on Tuesday deliberated on House Bill 8968, which seeks to enhance the Philippine tax incentives policy and administration.
Salceda, principal author of the bill, explained that the proposed measure would ease tax compliance through the: 1) payment of local taxes through investment promotion agencies; 2) harmonization of value-added tax refund rules with the Commission on Audit to avoid disallowances; and 3) filing, payment, and refund of payments through registered business enterprise taxpayer services.
According to Salceda, the measure builds on the gains of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which rationalized the grant of fiscal incentives.
Salceda added that the measure would also empower the President to motu proprio or upon the recommendation of the Fiscal Incentives Review Board (FIRB), grant appropriate financial support package or incentives.
He urged the concerned agencies to submit their inputs, “anything that will enhance the Philippine competitiveness, with respect to incentive policy.”
During the same meeting, Salceda also enumerated some of the provisions under the recently approved substitute bill to HB 8958. These provisions include the: 1) insertion of the phrase “options to buy and sell shares of stock” in the definition of “shares of stock,” 2) reduction of the dividends tax of non-resident aliens from 25 percent to 15 percent, and 3) lowering the tax on the Philippine Charity Sweepstakes and lotto winnings and the documentary stamp tax on ticket cost of lotto and horse race betting from 20 percent to 10 percent.
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