A lawmaker will be pushing for two key reform measures seeking to simplify taxation procedures and provide a three-year tax holiday, among other fiscal and non-fiscal incentives, specifically for micro and small enterprises.
On the sidelines of the Franchise Asia Philippines 2016 Wednesday, Sen. Paolo Benigno Aquino IV said the proposed Start Up Bill and the Small Business Tax Reform Act were expected to free up the micro and small enterprises from harassment due to the tax burden and cumbersome procedures. At the same time, the bills, which will be pushed in the 17th Congress, will help ease the process of doing business for these types of companies.
“The Start Up bill will provide support not only in terms of tax incentives but also in creating a conducive environment for the start ups to do better. The Small Business Tax Reform Act will target to make it simple to compute taxes and allow small enterprises to see the Bureau of Internal Revenue only once a year (as opposed to the current reporting practice of once a month). We have a chance to get these passed with the support of the Department of Trade and Industry. These are in line with the tax reform measures that the current administration is pushing for to make it simpler and easier to do business in the Philippines,” Aquino explained.
One of the proposed incentives was to exempt micro and small enterprises from all value-added taxes and national taxes for the first three years of their operation—a time when these companies have yet to break even.