Philippine Government Urges Five-Point Corporate Tax Rate Cut

Philippine Finance Secretary Carlos Dominguez appealed to the nation’s Senate to include an immediate corporate income tax rate cut in a Covid-19 stimulus package now under consideration.

The five-percentage-point reduction, to 25%, should apply starting in July, he said. The legislation also would cut a percentage point from the corporate rate each year until it reaches 20% by 2027, according to a Department of Finance statement Thursday.

• The cut is part of a package that would be one of the largest economic stimulus measures in Philippine history, freeing up almost 42 billion pesos (US $829 million) of business capital in 2020 and 625 billion pesos over the next five years, Dominguez said.
• Earlier in the week the government announced expanded net operating losses carryovers—from three years to five years—for smaller businesses’ 2020 losses.

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