US INVESTORS stand to reap the benefits of economic growth and reforms such as the Ease of Doing Business Act and the pending Tax Reform for Attracting Better and Higher Quality Opportunities (TRABAHO) Bill, the finance department said.
In a statement, the Department of Finance (DoF) said Secretary Carlos G. Dominguez III told US business leaders in Washington, DC: “Our prospects for faster economic growth in the coming years should be an avenue for stronger collaboration with the US, especially with the private sector.”
“We would like to encourage US businesses to be more engaged in the Philippine market not only in the infrastructure program but also investments that would come as a result of our infrastructure development,” Mr. Dominguez said.
Mr. Dominguez was speaking before members of the United States Chamber of Commerce (USSC). According to Mr. Dominguez, US businessmen are welcome to invest in energy, infrastructure, information and communications technology (ICT), health and education.
Mr. Dominguez said the TRABAHO bill aims to reduce the corporate income tax rate to 20% from the current 30% by two percentage points every year beginning 2021.
He also cited the rationalization of tax incentives which will put a cap on the number of years a company can enjoy these benefits — a provision foreign business groups in the Philippines have expressed doubts about because of the risk it will drive investors away.
Mr. Dominguez said the bill will ensure that incentives are performance-based, specifically-targeted and time-bound to make the Philippines attractive to potential investors.
He cited the prospects for attracting investment in robotics, big data, and other industries of the future.
“You are looking at a Philippines that is invigorated and moving forward very quickly,” Mr. Dominguez said.
He also noted that the government is also seeking to modernize its real property valuation system and simplify tax rates for capital income and other financial instruments. — Reicelene Joy N. Ignacio