Bill proposes three-year tax exemption for micro firms
A BILL seeking to grant temporary tax relief to micro, small and medium enterprises (MSMEs) has been filed in the Senate, in order to ease the financial burden on smaller firms amid rising costs and tighter market conditions.
Senate Bill No. 1622, filed by Senator Joseph Victor G. Ejercito on Dec. 16, proposes a three-year income tax exemption for micro enterprises and an additional tax incentive for small and medium enterprises that expand their workforce.
Under the proposed measure, single proprietorships, cooperatives, partnerships, and corporations classified as micro enterprises under Republic Act No. 6977, or the Magna Carta for Small Enterprises, will be exempt from paying income tax during the bill’s effectivity period.
Small and medium enterprises, meanwhile, will be allowed an additional 25% deduction on labor expenses for every employee they hire.
In the bill’s explanatory note, Mr. Ejercito cited the critical role of MSMEs in the economy.
In 2024, 99.63% or 1.236 million of the country’s 1.24 million registered business establishments fell under the MSME category, according to the Philippine Statistics Authority.
MSMEs face limited access to financing, high operating costs, regulatory compliance burdens, lack of business knowledge, and competition from larger firms, the senator said.
“The government recognizes the critical role of MSMEs in economic development and has introduced various programs and policies to support their growth and sustainability,” Mr. Ejercito said. “This measure seeks to further promote and strengthen the growth and development of MSMEs in all sectors of the economy by providing incentives for their continued operation.”
The proposed tax incentives are also intended to support job creation and help MSMEs adapt as the Philippines moves toward a more digital and globally connected economy.
The bill designates the Department of Finance, in coordination with the Bureau of Internal Revenue, as the issuers of the implementing rules and regulations. — Erika Mae P. Sinaking
Ayrıca Şunları da Beğenebilirsiniz
Is Shiba Inu a Good Investment for 2026 After Steep Price Decline?
Cloud mining is gaining popularity around the world. LgMining’s efficient cloud mining platform helps you easily deploy digital assets and lead a new wave of crypto wealth.
