An Act Harmonizing The Grant And Administration Of Fiscal And Non-Fiscal Incentives, And For Other Purposes
- This bill will streamline the administration of fiscal incentives. At present there are about 180 laws which created a myriad of incentive-providing authorities.
- It aims to consolidate all Investment Promoting Agencies (IPAs) into one centralized agency. Thus, the Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA) will be merged to form the Philippine Investment Promotion Administration (PIPA). This would then prevent locators from cherry-picking incentives by registering with different IPAs to avail themselves of the best possible incentives package.
- Incentives are given to registered domestic enterprises that locate in any of the 30 poorest provinces, bring in investments of P500 million and above, or generate at least 200 jobs. They also get reduced income tax rate of 15%, net operating losses carry over during the first 5 years, and accelerated depreciation.
- Registered export enterprises would enjoy reduced income tax rate of 15% with option to choose between the preferential rate of 15% and 5% on gross income earned in lieu of all taxes except VAT, duty-free importation on capital equipments, extended NOLCO and accelerated depreciation, among others.
- The savings to be generated from this measure shall be earmarked for infrastructure (50%) and for education (50%).
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