Filipino Businesses Call For Concrete Action On Tax Reform
Many a government has promised to simplify and reform their country’s nightmarish tax code, only to fail to deliver before its time is up. But regardless of that fact, when a government fails to deliver, it deserves to be called out. And this week’s villain of the piece is the Philippines, where businesses have once again been imploring the Government to reform the nation’s dysfunctional tax system.
For its part the Government has frequently assured taxpayers that it is committed to tax reform. But commitment and action are not the same thing, and the lack of action is now showing. The Philippines ranked 126th out of 180 countries in PwC’s Paying Taxes Index 2016. This index tells us that companies have to make 36 separate tax payments, a process taking an average of 193 hours per year. What’s more, the Philippines’ tax incentives regime has now become so complicated it is more likely to deter investors than encourage them, involving as it does more than 200 special laws and more than a dozen investment promotion agencies.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look