BusinessMirror
  • News
    • News
    • Top News
    • Regions
    • Nation
    • World
    • Asia Today
  • Business
    • Business
    • Agri-Commodities
    • Asean Economic Community
    • Banking & Finance
    • Companies
    • Economy
    • Entrepreneur
    • Executive Views
    • Export Unlimited
    • Harvard Management Update
    • Monday Morning
    • Mutual Funds
    • Stock Market Outlook
    • The Integrity Initiative
  • Sports
  • Opinion
    • Opinion
    • Columns
    • Editorial
    • Editorial cartoon
  • Life
    • Life
    • Art
    • Design&Space
    • Digital Life
    • Journey
    • Motoring
    • 360° Review
    • Property
    • Show
    • Tech
    • Tourism
    • Y2Z
  • Features
    • Biodiversity
    • Education
    • Envoys & Expats
    • Explainer
    • Faith
    • Green
    • Health & Fitness
    • Mission: PHL
    • Our Time
    • Perspective
    • Photo Gallery
    • Science
    • Today in History
    • Tony&Nick
    • When I Was 25
    • Wine & Dine
  • BMPlus
    • BMPlus
    • SoundStrip
    • Live & In Quarantine
    • Bulletin Board
    • Marketing
    • Public Service
    • CSR
  • The Broader Look
Subscribe
BusinessMirror
BusinessMirror
  • News
    • News
    • Top News
    • Regions
    • Nation
    • World
    • Asia Today
  • Business
    • Business
    • Agri-Commodities
    • Asean Economic Community
    • Banking & Finance
    • Companies
    • Economy
    • Entrepreneur
    • Executive Views
    • Export Unlimited
    • Harvard Management Update
    • Monday Morning
    • Mutual Funds
    • Stock Market Outlook
    • The Integrity Initiative
  • Sports
  • Opinion
    • Opinion
    • Columns
    • Editorial
    • Editorial cartoon
  • Life
    • Life
    • Art
    • Design&Space
    • Digital Life
    • Journey
    • Motoring
    • 360° Review
    • Property
    • Show
    • Tech
    • Tourism
    • Y2Z
  • Features
    • Biodiversity
    • Education
    • Envoys & Expats
    • Explainer
    • Faith
    • Green
    • Health & Fitness
    • Mission: PHL
    • Our Time
    • Perspective
    • Photo Gallery
    • Science
    • Today in History
    • Tony&Nick
    • When I Was 25
    • Wine & Dine
  • BMPlus
    • BMPlus
    • SoundStrip
    • Live & In Quarantine
    • Bulletin Board
    • Marketing
    • Public Service
    • CSR
  • The Broader Look
  • Economy

DOF pushes for passage of measure to simplify income taxation system

  • Rea Cu
  • December 14, 2018
  • 16 views
  • 2 minute read
Total
0
Shares

The Department of Finance (DOF) on Thursday pushed for the passage of House Bill (HB) 8645, or the Passive Income and Financial Intermediary Taxation Act under Package 4 of the Comprehensive Tax Reform Program (CTRP), saying the proposed law will simplify the country’s income taxation system and benefit small savers.

Finance Undersecretary Karl Kendrick T. Chua said unifying and lowering the tax rates on interest and other forms of passive income will benefit 75 percent of deposit account holders who are mostly small savers, Bangko Sentral ng Pilipinas
(BSP) data show.

It was explained that under the current setup, those with more funds to invest and more time to park these funds in banks are taxed lower than those who can only afford to invest for a shorter period.

Chua said that HB 8645, if passed into law, will simplify the 80 tax base and rate combinations in the financial sector that are dependent on various conditions, such as type of product, type of lending, issuer, currency, maturity, taxpayer, residency, business status, and various special laws resulting in the multiple rates, even among comparable financial instruments and transactions.

Other key features of the bill include: reducing the number of rates of withholding taxes; harmonizing business taxes at a single rate of 5 percent; removing or minimizing barriers to capital market development, such as the tax on initial public offering; rationalizing the documentary stamp tax of the financial sector to promote capital mobility; and adopting a regionally competitive tax system to make tax rates on passive income, which is the highest in Asean, at par with other economies in the region.

“These variations in the tax rates and the unequal tax treatment of equivalent or comparable financial instruments, between financial institutions and nonfinancial institutions offering the same service or product, or between interest and dividend, give rise to arbitrage and leveraging. This means that investment decisions are made not because of the competitiveness of the product or service, but because of tax considerations,” Chua said.

0
0
0
0
0
0
0
0
Previous Article
  • Economy

Marina drafts P94.57-B devt plan for next 10 years

  • Lorenz S. Marasigan
  • December 14, 2018
Know more
Next Article
  • Economy

PHL ranking in B2C E-commerce index jumps four notches in 2018

  • Cai U. Ordinario
  • December 14, 2018
Know more

Know more

Know more
  • 136
  • 2 min
  • Economy
  • Nation
  • Top News

Ilijan natgas plant reopens, starts power delivery to the grid–DOE

  • Lenie Lectura
  • June 2, 2023
Know more
  • 106
  • 1 min
  • Economy
  • Nation
  • Top News

Palace EO seeks to boost integrated financial management system in government

  • Samuel P. Medenilla
  • June 2, 2023
Bureau of Customs headquarters in Manila
Know more
  • 195
  • 2 min
  • Economy
  • Top News

Customs’ annualized collection rate in May grows 17.36% to P77 billion

  • Jasper Y. Arcalas
  • June 2, 2023
Natural rock formation of limestones on the coast with windmills for electric power production. Aerial view of tourist attraction Kapurpurawan Rock Formation in Ilocos Norte Philippines,Luzon.
Know more
  • 111
  • 1 min
  • Economy
  • Top News

118 bidders prequalify for 2nd round of Green Energy Auction program 2

  • Lenie Lectura
  • June 2, 2023
Know more
  • 108
  • 2 min
  • Economy
  • Top News

DTI launches import surge monitoring system as RCEP takes effect in PHL

  • Andrea E. San Juan
  • June 2, 2023
Scenic view of TPLEX on the way to Baguio City.
Know more
  • 185
  • 2 min
  • Economy
  • Nation
  • Regions
  • Top News

Neda Board okays P23.4-B TPLEX Extension Project

  • Samuel P. Medenilla
  • June 2, 2023
Know more
  • 148
  • 2 min
  • Economy
  • Top News

Factory output on rebound in May

  • Jasper Y. Arcalas
  • June 2, 2023
Know more
  • 181
  • 3 min
  • Agri-Commodities
  • Economy
  • Top News

Guimaras mango gets IPOPHL 1st ‘GI’ seal

  • Andrea E. San Juan
  • June 2, 2023
Malay Aklan wind farm, wind energy, renewable energy, Philippines, energy efficiency
Know more
  • 246
  • 2 min
  • Economy
  • Green
  • Nation
  • Top News

P205-M savings in energy efficiency plan seen to grow

  • Lenie Lectura
  • June 2, 2023
Know more
  • 197
  • 3 min
  • Economy
  • Top News
  • Tourism

Group pushes preservation, promotion of indigenous food products in Negros

  • Ma. Stella F. Arnaldo
  • June 2, 2023
Know more
  • 150
  • 3 min
  • Economy

DENR order revises guidelines on mineral exploration reporting

  • Jonathan L. Mayuga
  • June 1, 2023
Know more
  • 125
  • 2 min
  • Economy

SMPC readies second coal shipment to Japan

  • Lenie Lectura
  • June 1, 2023
Know more
  • 131
  • 2 min
  • Economy

FPA urged to further enhance services to agriculture sector

  • Raadee S. Sausa
  • June 1, 2023
Know more
  • 140
  • 3 min
  • Economy

ERC achieves full resolution rate for citizens’ concerns

  • Lenie Lectura
  • June 1, 2023
Know more
  • 318
  • 2 min
  • Economy

Mayor Abby revives free movies program for over 82,000 Makati senior citizens

  • Claudeth Mocon-Ciriaco
  • June 1, 2023
Know more
  • 197
  • 3 min
  • Economy
  • Top News

Poll: Gen Z workers seek training, balance, good pay

  • Andrea E. San Juan
  • June 1, 2023
Department of Finance Secretary Benjamin E. Diokno
Know more
  • 603
  • 2 min
  • Economy
  • Top News

VAT drive missing P539B–DOF

  • Jasper Y. Arcalas
  • May 31, 2023
Know more
  • 274
  • 2 min
  • Economy

Government saves P205M from energy efficiency program in Q1–DOE

  • Lenie Lectura
  • May 30, 2023
Know more
  • 299
  • 3 min
  • Economy

House approves bamboo development bill

  • Jovee Marie de la Cruz
  • May 30, 2023
Know more
  • 274
  • 2 min
  • Economy

Displaced Batangas sugar mill workers receive House and DSWD assistance

  • Jovee Marie de la Cruz
  • May 30, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe

BusinessMirror
  • About Us
  • Contact Us
  • Advertise with us
  • Privacy Policy
  • Cookie Policy
  • Podcast
  • Text-Only Homepage

Input your search keywords and press Enter.