As a part of ASEAN movement toward single market between its Member States, Tax Department of Philippines Senate studied which precise measures should be taken by the state.
The decrease of corporate tax rate from 35% to 30% in 2015-2017 was suggested. Corporate tax rate in Philippines is the highest amongst the ASEAN Member States.
Tax rates of other Countries are:
Brunei – 20%; Cambodia – 20%; Indonesia – 25%; Laos – 24%; Malaysia – 25% (decrease is planned to 24% for 2016); Myanmar – 25%; Singapore – 17%; Thailand – 20%; Vietnam – 25 % (decrease to 20% for 2016).
Source: http://www.senate.gov.ph/publications/taxbits%2024th%20vol5%20Mar-April%202014.pdf
There is no surprise that such high tax rates have negative impact on Philippines economy. Even 30% are not so likely to attract a lot of investors to this region. Sure, Philippines probably as many other countries in the world have special legislation encouraging foreign investments and giving to foreign investors beneficiary conditions. But exemptions from 30% are still fair enough.
But there is another point of view to this situation. Having this kind of tax regime you surely have not a lot competition on the islands.
Anna Shevchenko ( Lawyer, Honest&Bright)
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