\n<\/p>\n
\n Benefits for Japanese investors highlighted <\/p>\n
MANILA, PHILIPPINES –\u00a0Media
On March 26, President Rodrigo R.
\u00a0<\/p>\n
With the new law, the Philippine
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Finance Secretary Carlos Dominguez
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CREATE’s Far-Reaching Impact <\/b><\/p>\n
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CREATE will help attract
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CREATE slashes the corporate income
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CREATE also rationalizes the
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In particular, enterprises whose
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For exporters, either one of two
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For non-exporters, they can utilize
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Moreover, enterprises that choose to
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Alongside this development, government-owned
\u00a0<\/p>\n
BCDA President and CEO Vivencio B.
\u00a0<\/p>\n
With the enactment of CREATE, the
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“Our Japanese partners benefit from
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“We [Filipinos] share similarities
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Aside from CREATE, the Philippines’
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Philippine-Japan Relations <\/b><\/p>\n
\u00a0<\/p>\n
Recently, the Philippines and Japan
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Japan was the Philippines’ top export
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In recent separate courtesy calls Bangko
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The Ambassador said Japanese
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The BSP Governor told the Ambassador
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The Ambassador also reiterated
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The Ambassador lauded the BSP
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In his meeting with the Finance
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The Philippines’ key indicators \u00a0<\/b><\/p>\n
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The Philippines’ favorable economic
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The Philippines has managed to keep
last year, Japan Credit Rating Agency upgraded the Philippines’ credit rating by a notch to “A-” while Rating and Investment Information Inc. (R&I), also a Japan-based debt watcher, upgraded the country’s rating by a step to BBB+. All cited encouraging economic prospects.\u00a0\u00a0<\/p>\n Philippines issues Samurai bonds<\/b><\/p>\n Favorable assessment from the Japanese debt watchers bodes well for the financing activities of the Philippines as it issues Samurai bonds. The Philippines returned to the Samurai bond market March 30, with the issuance of a three-year zero-coupon bond.\u00a0<\/p>\n The bond was priced at 21 basis points above benchmark, the tightest spread the country has achieved since returning to the Samurai market in 2018. Strong investor demand led to a hike in the size of the offering from the initial JPY30 billion to JPY55 billion.<\/p>\n These materials are distributed by BCW on behalf of the Government of the Republic of the Philippines. Additional information is on file with the US Department of Justice.<\/i><\/p>\n<\/p><\/div>\n\n Benefits for Japanese investors highlighted MANILA, PHILIPPINES –\u00a0Media
OutReach\u00a0– 12 April 2021 –\u00a0The Philippines has enacted a landmark law that cuts corporate income
tax by as much as 10 percent and rationalizes fiscal incentives, thereby serving
as the biggest stimulus for businesses in the country’s history.
On March 26, President Rodrigo …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/13976"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=13976"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/13976\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=13976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=13976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=13976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nOutReach<\/a>\u00a0– 12 April 2021 –\u00a0The Philippines has enacted a landmark law that cuts corporate income
\ntax by as much as 10 percent and rationalizes fiscal incentives, thereby serving
\nas the biggest stimulus for businesses in the country’s history. <\/p>\n
\n
\n
\n
<\/p>\n
\nDuterte signed Republic Act No. 11534 or the “Corporate Recovery and Tax
\nIncentives for Enterprises Act” (CREATE) into law after a joint Philippine
\nCongressional panel ratified it in February. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ngovernment is providing about P1 trillion (nearly JPY2.3 trillion) worth of tax
\nrelief to businesses over the next 10 years. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nIII said in a statement that the enactment of CREATE into law “signals to the
\nrest of the world that the Philippines is back in the game to attract
\ninvestments, create jobs, and achieve inclusive growth.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
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\njob-generating investment domestically and internationally from countries such
\nas Japan. It will also aid the speedy recovery of businesses and the Philippine
\neconomy at large following the onset of the COVID-19 pandemic. <\/p>\n
\n
<\/p>\n
\n
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\ntax (CIT) from 30 percent to 20 percent for small enterprises with net taxable
\nincome of P5 million (about 11 million yen) and below, and with total assets of
\nnot more than P100 million (about 220 million yen), excluding land. It will also
\nreduce CIT for large firms to 25 percent, which is within the range in other
\nASEAN countries. \u00a0<\/p>\n
\n
<\/p>\n
\n
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\ncountry’s fiscal incentives system in a manner that will enable the government
\nto provide competitive and well-targeted incentives to investors in priority
\nindustries and locations. <\/p>\n
\n
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\n
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\ninvestments qualify under the government’s Strategic Investment Priority Plan
\n(SIPP) may avail themselves of an income tax holiday (ITH) of between four and
\nseven years. Once the ITH lapses, other tax perks may still be applied for. <\/p>\n
\n
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\n
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\noptions for tax incentives are available following the expiration of the ITH.
\nOne is a preferential tax of 5 percent on gross income earned (GIE) for 10
\nyears. The other is the “enhanced deductions” scheme, which allows a more
\ngenerous list of allowable deductions from taxable income for a period of 10
\nyears. <\/p>\n
\n
<\/p>\n
\n
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\nthe “enhanced deductions” scheme for a period of five years after their ITH
\nexpires.<\/p>\n
\n
<\/p>\n
\n
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\nbe located in areas outside the National Capital Region (NCR) will enjoy
\nadditional ITH for three years, while those located in areas recovering from
\ndisaster or conflict will enjoy ITH for two years. \u00a0<\/p>\n
\n
<\/p>\n
\n
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\nand -controlled corporation Bases Conversion and Development Authority (BCDA),
\nwhich engages in public-private partnerships for vital infrastructure and real
\nestate development, has cited the value that Japanese investors find in doing
\nbusiness in the Philippines. \u00a0<\/p>\n
\n
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\n
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\nDizon noted that many Japanese firms have been doing business in the
\nPhilippines in industries such as real estate and manufacturing. In Clark, an
\narea north of Manila developed by BCDA, there are 43 Japanese firms in
\noperation, including those in various types of manufacturing, business process
\noutsourcing, software development, warehousing, freight forwarding, tourism
\nestate, and office space. <\/p>\n
\n
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\n
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\nPhilippines hopes to attract even more Japanese investors and businesspeople as
\nwell as other foreign investors. <\/p>\n
\n
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\n
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\nthe presence of industrial zones that are supported by transport and logistics
\nfacilities. Further, the country’s location in the Asia-Pacific allows them
\naccess to major trading routes,” Dizon said. <\/p>\n
\n
<\/p>\n
\n
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\nwith the Japanese in terms of hard work, perseverance, and family values,
\nmaking the quality of our labor force ideal for these firms,” he added. <\/p>\n
\n
<\/p>\n
\n
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\neconomic managers are pushing for the speedy enactment of other reforms that
\nwill further liberalize the economy such as the amendments to the Foreign
\nInvestment Law, the Public Service Act, and the Trade Liberalization Law. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
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\nreaffirmed their commitment to further build on their strong economic
\npartnership. <\/p>\n
\n
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\n
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\nmarket and second biggest source of imports in 2020. Japan was also the Philippines’
\nbiggest source of foreign direct investments (FDIs) last year, accounting for 47.35
\npercent of total net equity FDIs other than reinvestment earnings.\u00a0 <\/p>\n
\n
<\/p>\n
\n
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\nSentral ng Pilipinas (BSP) Governor Benjamin E. Diokno and Philippines’ Finance
\nSecretary Carlos Dominguez III, Japan Ambassador to the Philippines Koshikawa
\nKazuhiko cited plans to expand Japanese investment in the Philippines. <\/p>\n
\n
<\/p>\n
\n
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\ncompanies are exploring ways of realigning their supply chains to other
\ncountries, including the Philippines. <\/p>\n
\n
<\/p>\n
\n
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\nthat the Philippines and Japan will mutually benefit from enhanced economic
\nties\u2014i.e., the Philippines from Japanese investments and Japan from the
\nPhilippines’ young, educated, and English-speaking workforce. <\/p>\n
\n
<\/p>\n
\n
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\nJapan’s full support to the Philippines’ efforts to develop micro, small, and
\nmedium enterprises (MSMEs). In fact, Japan International Cooperation Agency (JICA)
\nhas engaged in a joint initiative with the BSP for the Credit Risk Database
\nproject, which was launched in December last year. The project involves the
\ncreation of a centralized credit database for MSMEs, which is expected to
\nsignificantly enhance their access to bank loans. <\/p>\n
\n
<\/p>\n
\n
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\nGovernor for the proactive response of the central bank in mitigating the
\nimpact of the COVID-19 pandemic on the economy, such as through cuts in the
\npolicy rate and the reserve requirement for banks. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nSecretary, the Ambassador also congratulated him for the landmark CREATE law. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nrecovery prospects are well recognized internationally, partly due to its sound
\nmacroeconomic fundamentals that have provided the country with ample fiscal and
\nmonetary space to squarely deal with the effects of the pandemic. For this
\nyear, the government expects the economy to grow anywhere between 6.5 and 7.5
\npercent. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nits investment grade credit ratings, amid a wave of credit rating downgrades
\nand negative outlook revisions globally. The country was rated “BBB” by Fitch
\nand the equivalent “Baa2” by Moody’s (both ratings are one notch higher than
\nthe minimum investment grade), and a higher rating of “BBB+” by S&P (delete as R&I upgrade is mentioned in the
\nparagraph below)<\/p>\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"