House passes bill to reduce corporate tax rate to attract multinationals

The House of Representatives approved on third and final reading House Bill 9794, which aims to enhance Philippine tax incentives in response to global changes in taxation.

House Ways and Means Committee Chair Joey Salceda explained that the bill addresses issues such as job losses due to conflicting interpretations of VAT rules under CREATE's Implementing Rules and Regulations.

Salceda highlighted that current tax incentive regimes do not meet OECD standards for the global minimum tax, necessitating adjustments to attract multinational companies.

The proposed bill reduces the corporate income tax rate from 25 percent to 20 percent for enhanced deductions (ED) to make it more attractive than the special corporate income tax regime.

Salceda emphasized that high power costs pose a threat to Philippine industries and called for an enhanced deduction for power cost to help companies compete internationally.

The bill, which passed with 238 affirmative votes, will now be sent to the Senate for further action.