Congress is expected to pass the second package of the Duterte administration’s tax reform agenda, the Tax Reform for Attracting Better and High Quality Opportunities or TRABAHO (HB 313), this time focused on turning the Philippines into a globally competitive investment hub, with the best investment package legislation can churn out.
Albay Rep. Joey Sarte Salceda, TRABAHO’s principal author, said the measure primarily sought to bring down the current corporate income tax rate from 30 percent to 20 percent, and ensure that the grant of fiscal incentives would help bring in the greatest benefits, such as higher and more dispersed investments, higher quality jobs opportunities, and better technology.
The measure also aims to ensure fairness and transparency in the grant of fiscal incentives and enhance the accountability of corporate taxpayers through refinement in tax administration. It is also often called TRAIN 2, in reference to the Tax Reform for Acceleration and Inclusion that was passed in the first half President Duterte’s term.