MANILA — Senator Paolo Benigno Aquino on Wednesday sought the support of the Bureau of Internal Revenue (BIR) for his bill which targets to simplify taxation for small enterprises.
During his keynote speech at Franchise Asia Philippines 2016 International Conference, Aquino said he will file in the 17th Congress the Small Business Tax Reform Act which will help small enterprises to grow by easing taxation to this sector.
He mentioned that this bill eyes to exclude small businesses from paying taxes for the first three years, the start up phase of an enterprise.
The bill also targets for simplifying tax computation for small businesses as well as making tax payment to be annual that the current monthly tax payment for this sector.
“We’re really hoping for BIR to support this… We’re hoping that we continue the talks with BIR. Hopefully when session starts already, we get their support so we can simplify taxation for small businesses,” Aquino said.
He noted that he already discussed the bill with Trade Secretary Ramon Lopez, noting that the latter is “very supportive” with the tax reform for small businesses.
“For the first three years, you will not tax them because you will allow them to grow and get better…Then if they are already established, that’s when you introduce them to taxation,” the lawmaker added.
“What we are talking about is really free up the small (businesses) from harassment and make doing business easier,” he stressed.
Aquino said the Small Business Tax Reform Act is complementary to Duterte administration’s push to re-bracket income taxes.
“The re-bracketing of income taxes is personal. This one is for small enterprises. We hope that these reforms will be simultaneous and we can get this done within the first year,” Aquino added.
Aside from the Small Business Tax Reform Act, the lawmaker will also file another bill vital for the growth of enterprises, the Start Up Bill which will provide incentives and better business environment. Kris Crismundo/PNA/northboundasia.com