BOI moves to iron out kinks for firms seeking local business tax exemption
The Board of Investments (BOI) partnered with another bureau under the Department of Finance to help BOI-registered firms in seeking tax exemptions after receiving reports of “difficulties” in getting the incentives.
In a statement on Tuesday, the BOI teamed up with the Bureau of Local Government Finance (BLGF) to extend assistance to BOI registered firms seeking local business tax (LBT) exemption and other investment-related concerns.
The Local Government Code allows BOI-registered companies to be exempted from paying LBT from the date of their registration to up to four to six years. In spite of this, however, BOI said it had received concerns regarding getting LBT exemption.
Both agencies signed a memorandum of agreement in late November this year, which builds on earlier discussions made since December 2016.
“It is important that we offer a conducive environment to investors, a place where they could easily transact with government agency requirements,” said BOI managing head Ceferino Rodolfo in a statement.
Under the MOA, BGLF will provide BOI with copies of all relevant local finance and memorandum circulars, local tax opinions and rulings, and real property tax opinions and rulings on all matters dealing with local treasury and assessment at the provincial, city, and municipality level.
In turn, BOI will assist BLGF in disseminating such information to all its clients.
According to the statement, BLGF will also authorize BOI representatives or personnel to assist clients in the submission and follow-up of its concerns with the LGUs on matters dealing with local treasury and assessment at the provincial, city, and municipal level.
BOI, meanwhile, will also provide BLGF a list of BOI-registered enterprises for validation purposes, especially those requesting or issued with certification of local business tax exemption that needed data, information, or document through proper channels and coordination. /atm
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