Bizmen, experts push tax holiday for startups
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MPOSING a tax holiday for startups may help the Philippines become the entrepreneurship hub of Asia, according to Potato Corner CEO Jose Magsaysay Jr. “I like the idea of having a tax holiday for startups. That will really boost...[because the Philippines has a chance] to be the entrepreneurship hub of Asia,” Magsaysay told some members of the media during the Prelude to the International Tax Conference 2023 held Friday in Makati City. For his part, Mon Abrea, Founding Chairman and Chief Tax Advisor of Asian Consulting Group (ACG), said at the same media briefing that the Startup Act in
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the country “initially” had a twoyear tax exemption. “ ’Yung sa Startup Act kasi initially may two-year tax exemption na parang adjustment period preparing you to become an established business pero nawala ’nung final version,” Abrea explained. [The Startup Act initially had a two-year tax exemption that’s like an adjustment period preparing you to become an established business, but it was scrapped in the final version]. Abrea rued that the said Startup measure is lacking tax benefits. In contrast, he said, partly in Filipino, “in Singapore they have it. For two years for the first 100,000 dollars you are exempted. It allows you to
grow and establish yourself.” As representatives from the International Monetary Fund (IMF) and World Bank (WB) are expected to present at the upcoming International Tax Conference on June 15, Abrea pinned his hopes on these “international experts” to set the “best practices” to provide assistance for startups, among others. Senate Bill No. 2217 is a measure exempting start-up enterprises from taxes arising from the first two years of operation. Section 4 of SB 2217 specifically laid out the exemptions from taxes and fees for start-up enterprises. That provision exempts a startup enterprise from all national and local taxes for the first two years of its operation, provided that the
enterprise “is not an affiliate, a subsidiary, or a franchise of any existing company.” Another condition set by the provision: “In the case of a sole proprietorship or partnership, the proprietor or the partners of the Start-up enterprise shall not have any previous or other existing registered companies, partnerships or businesses.” Meanwhile, in the case of a cor porat ion, t he mea su re states that, “Each stockholder of the start-up enterprise shall have at least a 5 percent share in stocks and the corporation shall have no nominal stockholders or stockholders holding the shares in trust for others. See “Bizmen,” A2
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Tuesday, June 13, 2023 Vol. 18 No. 239
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DTI: RE PROJECTS TO FILL n
A THIRD OF BOI APPROVALS
FREEDOM DAY President Ferdinand R. Marcos Jr. is joined at Monday’s 125th Philippine Independence activities at Quirino Grandstand on Monday (June 12, 2023) by First Lady Liza Araneta-Marcos; presidential sons Ilocos Norte 1st District Rep. Ferdinand Alexander, Joseph Simon and William Vincent; Cabinet members; and Manila officials led by Mayor Honey Lacuna-Pangan. The celebration featured a civic and military parade by uniformed personnel of the Armed Forces of the Philippines, Philippine National Police, Philippine Coast Guard, Bureau of Fire Protection, and Bureau of Jail Management and Penology. A set of commemorative stamps was presented to the President by Postmaster General Luis Carlos. JOEY RAZON/PNA
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By Andrea E. San Juan
ENEWABLE Energy (RE) projects are seen to account for a third of the Board of Investments (BOI) P1.5-trillion investments approval target for 2023, according to Trade Secretary Alfredo E. Pascual.
In an interview with reporters, Pascual said, “That’s only for [power] generation.” They are also engaging in talks with a potential investor for renewable energy but related to manufacturing intended for export, Pascual added. In line with this, the Trade chief explained that the process of investing in the country is a tedious one, noting, that the feasibility study lasts from half a year to one year. After this, he said the investor has to apply for registration with BOI
or the Philippine Economic Zone Authority (PEZA), which he said would take another year. At the Offshore Wind Conference held two weeks ago, Pascual invited Chinese firms to bring in their technology and expertise in equipment design and manufacturing for solar and wind power generation. At the weekend, Jaime FlorCruz, the new Philippine Ambassador to Beijing, revealed that a big Chinese wind power company is interested in investing in the Philippines. See “DTI,” A2
D.O.T. NOW SAYS GRAB PROJECT INCLUDES PRO TOUR GUIDES By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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HE Department of Tourism (DOT) appears to have backtracked on earlier announced plans of using a ride-hailing app’s partner-drivers as tour guides. After tourism stakeholders loudly protested and took the DOT to task about its project with Grab Philippines, the agency now says tourists will be able to “book a tour guide directly” using the app. In a news statement issued late Thursday, DOT-National Capital Region (NCR) Director Sharlene Zabala-Batin said the GrabTours Manila project
“will offer tourist transportation” from three DOT-accredited accommodation establishments, namely, Sheraton Manila Bay, Okada Manila, and Solaire Resort and Casino. Their destinations will initially cover two major tourist zones in Manila: Intramuros and Binondo. The DOT didn’t say, however, if it will be accrediting Grab vehicles as tourist transport services.
Hastily-called consultations
SOURCES among the tour guides associations said the DOT hastily called them to a consultation on June 9, after notifying them the late afternoon before, so they could listen to a presentation by Grab representatives. See “D.O.T.,” A2
PBBM: Wise policy, reforms to root out our ‘unfreedom’ By Samuel P. Medenilla @sam_medenilla
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RESIDENT Ferdinand R. Marcos Jr. has vowed to eliminate the root causes of “unfreedom” through “wise policies and reforms” under his administration. In his speech at the 125th Anniversary of the Philippine Independence at the Quirino Grandstand in Manila last Monday, Marcos said the continued existence of poverty, inadequate economic opportunities, inequality and apathy prevent many Filipinos from truly enjoying the “blessing of independence and democracy.” “We will strive to remove the ‘unfreedoms.’ We will aim to feed the hungry, free the bound and banish poverty. These are primordial, moral and existential imperatives
that laid upon your government,” Marcos said. He noted his administration has already laid down the groundwork to implement the necessary reforms to address such issues through the Philippine Development Plan 2023-2028.
Uphill road
HOWEVER, he stressed the important role of each Filipino in the “long uphill road” in the implementation of the said plan. “But as integral actors in our democracy, we are all involved in this collective pursuit of real freedoms. That duty rests with all of us. So once again, I appeal for unity, and solidarity in our efforts to protect our hardfought freedom and achieve genuine national progress,” Marcos said. See “PBBM,” A2
PESO EXCHANGE RATES n US 56.1470 n JAPAN 0.4043 n UK 70.5262 n HK 7.1647 n CHINA 7.8947 n SINGAPORE 41.8196 n AUSTRALIA 37.6915 n EU 60.5545 n KOREA 0.0433 n SAUDI ARABIA 14.9713 Source: BSP (June 9, 2023)