Small Business Tax Reform Act

Bam wants simplified tax system and lower taxes for small businesses

Aside from reducing personal income tax, the government must also provide small businesses with lower income tax rate, a simplified process and other privileges to stimulate their growth, according to Sen. Bam Aquino.

While he is certain that the personal income tax reform will be passed, Sen. Bam said the government must include tax reform for small businesses in its tax reform package.

“With all the support from the executive, we’re certain the personal income tax reform will be passed. What we should also focus on is the Small Business Tax Reform Act na makakatulong sa mga maliliit na negosyo na nagsisilbing kabuhayan ng maraming pamilyang Pilipino,” said Sen. Bam, referring to his Senate Bill No. 169.

Sen. Bam’s bill seeks to provide small businesses with a lower income tax rate, VAT exemption and simplified filing of taxes.

 Under the measure, all small businesses shall be exempt from payment of income tax for the first three years of its operation from date of establishment and will be subjected to lower income tax rates thereafter.

Small businesses earning less than P300,000 will be exempted from income tax while those with income ranging P300,000 up to P10,000,000 will be subjected to a 10-percent income tax rate.

 “This bill also proposes the lowering of the income tax rate for MSEs and an exemption from VAT, among other methods to​ ​help our small businesses grow,” said Sen. Bam.

 The measure also pushes for simpler bookkeeping, a special lane and assistance desk for MSEs, exemption from tax audit, annual filing of returns, and payment in installment.

 Sen. Bam stressed the need for simpler taxation, saying the Philippines placed 126th out of 189 economies in Ease of Paying Taxes in a joint study by PWC and the World Bank – Paying Taxes 2016.

 “This must change. The Small Business Tax Reform Act will simplify tax procedures and unburden our small businesses of the complex tax process,” said Sen. Bam.

 By streamlining the country’s tax system, it will boost the chances of our local enterprises to succeed and, in turn, generate prosperity and livelihood for more and more Filipinos.

Senate Bill No. 169: Small Business Tax Reform Act

The key to achieving prosperity for impoverished Filipino families is a strong micro, small and medium enterprise sector. A strong MSME sector also, in turn, strengthens a country’s economy and guards against foreign financial crises.

Currently, MSMEs already account for roughly 32-35% of the country’s GDP. Sadly, despite the growth in number of small enterprises in the Philippines, few are able to sustain their operation and create long-term success.

For this reason, our office has pushed for a number of policies to improve the support system for this vital sector and we will continue to do so until our country’s business environment is ripe for local entrepreneurs to succeed.

This particular legislation deals with the tricky subject of taxation.

According to a joint study by PwC and the World Bank, Paying Taxes 2016, the Philippines is on the 126th spot out of 189 economies in Ease of Paying Taxes.

This must change, which is why we are asserting the Small Business Tax Reform Act as a measure to simplify tax procedures and unburden our small businesses of the complex tax process.

Proposed measures include a simpler bookkeeping, a special lane and assistance desk for small businesses, exemption from tax audit, annual filing of returns, and payment in installment.

This bill also proposes the lowering of the income tax rate for small businesses and an exemption from VAT, among other methods of stimulating growth in small businesses as opposed to hindering it.

Let’s streamline our tax system and boost the chances of our local enterprises to succeed and, in turn, generate prosperity and livelihood for more and more Filipinos.

 

 PDFicon DOWNLOAD SBN 169

Bam wants lower income tax, VAT exemption for small businesses

To further stimulate the growth of small businesses in the country, Sen. Bam Aquino is pushing for a measure that provides them with lower income tax rate, VAT exemption and other privileges.

Under Sen. Bam’s Senate Bill No. 169 or the Small Business Tax Reform Act, all small businesses shall be exempt from payment of income tax for the first three years of its operation from date of establishment and will be subjected to lower income tax rates thereafter.

 As defined in the bill, small businesses are micro and small enterprises whose annual gross revenue does not exceed P50,000,000.

“This bill also proposes the lowering of the income tax rate for MSEs and an exemption from VAT, among other methods of stimulating growth in MSEs as opposed to hindering it,” said Sen. Bam.

 The measure also pushes for simpler bookkeeping, a special lane and assistance desk for MSEs, exemption from tax audit, annual filing of returns, and payment in installment.

 Sen. Bam stressed the need for a simpler taxation, saying a joint study by PWC and the World Bank, Paying Taxes 2016, placed the Philippines 126th out of 189 economies in Ease of Paying Taxes.

 “This must change, which is why we are asserting the Small Business Tax Reform Act as a measure to simplify tax procedures and unburden our small businesses of the complex tax process,” said Sen. Bam.

 By streamlining the country’s tax system, it will boost the chances of our local enterprises to succeed and, in turn, generate prosperity and livelihood for more and more Filipino families.

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