Executive Breakfast Briefing on the TRABAHO Bill

08.11.18 AHK News

With the upcoming implementation of the “Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) Bill, which is the second package of the Comprehensive Tax Reform Program, many companies had questions regarding the provisions and possible implications of this bill specifically on corporate income tax and fiscal sustainability. To address this, the German-Philippine Chamber of Commerce and Industry invited two experts, Ms. Ma. Teresa S. Habitan, Assistant Secretary of the Department of Finance, and Atty. Jules E. Riego of SGV & Co for an Executive Breakfast Briefing on the topic.  

 

Held last 7th of November at Anvil at the BDO Corporate Center, the Executive Breakfast Briefing on the TRABAHO bill was well attended and well received by guests. 

 

Asec. Habitan started her discussion with a brief explanation on the tax reform package, stating that these packages were for the benefit of the economy in terms of efficiency, equity and simplicity. Tax incentives may be justified if they provide net benefit to society, and while some fiscal incentives contribute to national development, some incentives are unneccessary. She stated that the government wants to focus on incentives that are performance-based, targeted, transparent, and time-bound, with an emphasis on job creation, research and development, countryside development, skills training, and innovation. 

 

Following Asec. Habitan was Atty. Riego who went more into detail on the TRABAHO Bill. He discussed the reduction of corporate income tax (CIT) and compared the Philippines’ current CIT rate with those of neighboring countries like Singapore, Malaysia, and Thailand. Atty. Riego also talked about the changes regarding income tax holidays and VAT incentives. He posed some questions he had on the bill to the audience and to the government as well. 

 

An engaging dialogue between the audience and the speakers followed as some participants voiced out their questions and concerns to the speakers.  

 

The German-Philippine Chamber would like to thank Assistant Secretary Habitan and Attorney Jules Riego for sharing their time and expertise. The Chamber would also like to thank BDO and Anvil for being our official venue partner.