Package 3

Under Package 3, the Department of Finance proposes the following:

(1) Reduce the corporate income tax rate to 25% over time, and simplify other corporate income tax provisions to improve compliance.
(2) Rationalize the fiscal incentives to make it more transparent, targeted, performance-based and time-bound, as well as sunset provisions to existing incentives.
(3) Expand the coverage of the Fiscal Incentives Review Board to include all incentive recipients beyond Government-Owned and Controlled Corporations (GOCCs).
(4) Replace the 5% gross income earned tax rate to a reduced corporate income tax rate of 15%.
(5) Strictly limit VAT zero-rating to direct exporters.
(6) Give full VAT refund in cash and abolish tax credit certificates.

Disclaimer: Latest available information pending updates from Congress or the Department of Finance.

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