The second package of the Tax Reform for Acceleration and Inclusion bill (TRAIN-2) has passed the committee level of the House of Representatives on Tuesday, August 7.
The House Ways and Means Committee approved a substitute bill consolidating 12 proposals filed in the Lower House.
Previously called the Corporate Income Tax and Incentives Reform Act (CITRA), the lawmakers decided to rename the measure to Tax Reform Attracting Better and High Quality Opportunities (TRABAHO).
Under TRABAHO, the current 30% corporate income tax will be reduced by 2% every year starting 2021, until it reaches 20% by 2029.
The bill also seeks to rationalize and modernize fiscal incentives given to various businesses in order to urge companies to invest in the Philippines and open up more employment opportunities, particularly in the countryside.
“We are moving to an incentives regime that is biased to development outside of metro or urban areas,” Quirino District Rep. Dakila Carlo Cua, chairman of the House Ways and Means Committee, said.
“We are also lowering the burden on businesses so that they can expand and provide more employment opportunities,” Cua added.