US assured Marcos admin, Speaker Romualdez committed to ease of doing business in PH

A HOUSE leader has assured anew the United States (US) that the Marcos administration and the leadership of Speaker Martin G. Romualdez are committed to ease of doing business in the country, stressing a stronger partnership with US companies is underway.

This was stressed by Albay 2nd District Rep. Joey Sarte Salceda, chairman of the House committee on ways and means, after participating as resource person in the US-ASEAN Business Council’s Philippine Business Mission held at the Grand Hyatt Hotel, in Taguig City last September 28.

Salceda reiterated his commitment towards ease of doing business, including his “Four Eases” – Ease of Paying Taxes, Ease of Citizen Services such as business registration, Ease of Social Services, and Ease of Procurement.

Salceda cited his House Bill (HB) No. 419, or the Government Modernization Act, as a measure that aims to reengineer government towards these Four Eases, and asked the council to study and support the measure.

The Mission, which conducts interviews between leading US companies and top Philippine decision makers, consulted Salceda on a variety of economic, fiscal, and strategic issues.

Salceda particularly reassured members of the American business community in the Philippines that his committee will deliver on key measures and interventions that could improve ease of doing business and investment attractiveness of the country.

“I assure the Council: on areas where the national interest and your interests align, we will deliver,” Salceda said.

The council members raised certain tax-specific issues to Salceda, which the House tax panel chair gave prompt responses to.

On tax breaks for US companies that provide more COVID-19 benefits to their workers, Salceda assured the council that “The Committee can help ensure that spending on such benefits is fully deducted (100%) as operating/labor expenses by mandating the BIR to issue simpler and clearer rules for substantiating these expenses.”

Following suggestions that the lower minimum corporate income tax under the CREATE Law be extended, Salceda assured that “the committee will study the proposal to extend MCIT but makes no guarantees, in light of tight fiscal space and the possible impacts of an announced tax break on confidence in the country’s fiscal strength.”

On problems with differing interpretations on VAT-exempt COVID-19 imports, Salceda requested “that the conflicts of interpretation be pointed out. If there are significant differences of interpretation, the Chair commits to calling for a briefing to unify these interpretations.”

Salceda also committed to work with the Department of Trade and Industry (DTI) towards a Digital Investments Program which the council requested.

“The committee supports the recommendation towards a Digital Investment Program,” Salceda said.

“The Chair has also expressed to the DTI that the strategic investment priorities plan cannot be merely a list, but must be a full strategy. A Digital Investments Program including both fiscal and non-fiscal incentives can be a section of the comprehensive SIPP,” Salceda said.

Salceda also cited the panel’s role in boosting investments in startups and tech services, citing the committee’s decisive role in getting the Fiscal Incentives Review Board to craft regulations on allowing BPOs to work from home while sustaining their tax perks.

The Committee also took the lead in creating the country’s tax regime for Employee Stock Option Plans, a compensation option that many tech startups take at the pre-profitable stages.