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Three economic reforms
bag House approral
THREE ECONOMIC REFORMS
gained ground in the House of
Representatives on Monday eve-
ning, with the measure removing
restrictions on foreigners from
practicing their professions in the
Philippines and another sirnpli{y-
ing taxes on financiil instrumeits
both bagging final approval.
Meanwhile, the tax reform
which slashes corporate ilcome
tax rates but also removes re-
dundant perks was approved on
second reading.
FoRElGll PRoFESSIoNAI' Sl,lEs
With 201 afirmative votes, six
negative votes and seven absten-
tions, House Bi No. 300, which
proposes to amend Republic Act
No. 7042, or the "Foreign Invest-
ments Act (FIA) of 1991", was
passed by the chamber on third
and final reading.
The measure - authored prin-
cipally by Tarlac 2"d District Rep.
Victor A. Yap
- \r'ill allow foreign-
ers to practice their piofessions
in the Philippines in order to fa-
cilitate transfer ofknowledge and
technologies to locals. It "aims to
exclude the 'practice of profes-
Ilff lil,*,0,,0,,
tax reform program (CTRP) also cates of no mardage record, bap-
bagged the chamber's final ap- tismal certificates and marriage
proval.
The bill, introduced by Al-
license certifrcates.
bay 2'd district Rep, Jose Ma. S. CoRPORATE ll{COl,lE TAX
Salceda, proposes a unified 15%
income tax rate on interest, divi-
HB 4l5Z or the proposed "Corpo-
rate Incohe Tax and Incentives
sions' from the coverage of the dend, ard capital gains from the Reform Acf' CITIRA (in tlle past
Foreign Investments Act so as to current range ofzero to 3070. Congress, called the "Tax Reform
attract foreign professionals to Package 4 of the CTRP also for Attracting Better and High-
practice in the Philippines where- proposes the reduction of the quality Oppodunities" or TRA-
in they would be able to bring in stock transaction tax from 0.6% BAHO), was approved on second
technology and knorv-how from to 0.170 and imposition of a 0.170 reading,
abroad and attract foreign direct transactiod tax on debt instru- The bill seeks to cut the cur-
investments, and help generate ments listed and traded on the rent 30% corporate indome tax
more employment opportunities Philippine Dealing Exchange. It rate - described as the highest
in the country." will also remove the initial public among major Asian markets -
Thebill also reduces to 15 from offer tax. by one percentage points every
50 cu[ently the minimum num- The measure will also impose a othet year to 2OEo in 2029.
ber of direct local hires required ,uniform five percent gross receipt Amendments to the original
of foreign investors setting up tax on banks and other financigl version so far include a provisibn-
small- and medium-sized enter- intermediaries, ard will reduce that businesses in ereas beside
prises (SMEs) with minimum the tzz iatue added tax (VAT) Metro Manila will have four
paid-in capital of $10o,00o. to a two percent premium tax on years of income tax holiday and
Counteryart bills - Senate Bill health insurance organizations, three years of reduced corporate
No.4I8 and 419 - havebeen filed pension and pre-rieed insurance. income tax, while those farther
anew in'the Senate by Selators Amendments to the original away will benefit from six years of
Francis N. Pangiliqan and Sher- version of thebill so far include: income tax holiday and four years
win T. Gatchalian, respectively. . dividends received by a do- of reduced corporate income tax.
mestic corporation from another It also gives fiscal incentives
FOURTH TAX REFORI'I domestic firm will not be subject only to exporters and industries
With 186 affirmative votes, six to tax; listed iu the Strategic Invest-
negatives and two abstentions, . exemption from document ments Priority Plan, taking into
HB 304, or the proposed Passive stamp tax of non-monetary docu- account amount of investments,
Income and Financial Interme- ments like diplomas, transcripts employment generation, use of
diary Tax Act (PIFITA), which of records and other school certi- new technologies, adequate en-
makes up the fourth package of fications; oath of office for bann- vironmental protection systems,
the government's comprehensive gays; good standing certification promotion of competitiveness,
Reforms, S1/3 from the Professional Regulation and added SME output, among
Commission, affidavits, certifi- others. - v,.4,. C. trbireraa
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