Tax laws Philippines
The Philippines has implemented several tax reforms in recent years to enhance revenue generation and promote economic growth. One significant development is the Tax Reform for Acceleration and Inclusion (TRAIN) Law, enacted in 2017, which introduced changes to personal income tax, estate tax, donor's tax, value-added tax (VAT), documentary stamp tax, and excise taxes on various products. The TRAIN Law aimed to lower personal income tax rates while increasing consumption taxes to fund infrastructure and social programs. However, it faced criticism due to rising inflation and debates over its impact on different sectors.
Recent Developments:
VAT on Digital Services: In October 2024, the Philippines imposed a 12% VAT on digital services provided by international tech companies such as Amazon, Netflix, Disney, and Alphabet. This measure aims to create a level playing field for domestic retailers and is projected to generate significant revenue between 2025 and 2029.
Defense Industry Incentives: President Ferdinand Marcos Jr. signed a law in October 2024 to revitalize the country's defense industry. The law introduces fiscal incentives, including tax breaks and government-backed financing, to attract investments in defense technology and production, supporting ongoing military modernization efforts.
RELATED Blog
0 comments