LOWER corporate income tax (CIT) rates are expected to attract more investments from Hong Kong-based companies, Hong Kong Chamber of Commerce of the Philippines, Inc. president Anthony Chan said.
Investors from Hong Kong and mainland China welcome the proposed reforms in the second package of the Tax Reform for Inclusion and Acceleration Law, Chan said on the sidelines of the Hong Kong Trade Development Council High-Level Investment Mission Networking Luncheon.
The modernization of tax incentives – which may lead to the scrapping of some tax perks extended under the old system – is less of a concern for investors, he told PNA on April 24.
“In general, the lowering of tax rates is very encouraging and investment-friendly to foreign investors,” he said. “If you are talking about incentives, it’s not for long term. In the long term, it’s the lowering of tax that is very positive for investors.”
After lowering personal income tax through the first package of TRAIN Law, the government pushes to reduce the CIT rate to 25 percent from 30 percent under the second package.
Some 40 business leaders from Hong Kong and Shanghai are currently on an investment mission in the Philippines.
They are scouting for opportunities in engineering and construction, real estate, architecture, energy, wastewater treatment, transportation, manufacturing, legal and accounting, among others.
The delegation has more confidence in the Philippine market because of the improved relationship between Manila and Beijing, Hong Kong Chinese General Chamber of Commerce Chairman and Co-Mission Leader Jonathan Choi said.
Filipino and Chinese companies should take advantage of the improved relations by embarking on more partnerships and cooperation, he said.
“The relationship of the Philippines, China, Hong Kong, I think, is [now at its] best. The time is really good. So the partnerships of businesses can create jobs, investments and tax for the Philippines,” said Chan. (PNA)
