Philippines approves draft plan to increase tax incentives for investors
On November 21, 2023, the Taxation Committee of the Philippine House of Representatives approved the proposed amendments to the Enterprise Recovery and Tax Incentives Act, aiming to provide more zero-tariff and value-added tax exemption benefits to enterprises in economic zones and free ports. According to the revision, qualified local and foreign-invested companies in the Philippines can also enjoy tax benefits, and the income tax rate will be reduced from the current 25% to 20%. .
In addition, companies that qualify for additional tax deductions can claim depreciation allowances for assets used in production, including an additional depreciation rate of 10% for buildings; 20% for machinery and equipment; and 50% for labor expenses.
December 28, 2023
HKTDC Economic and Trade Research