Upgrade your membership plan for the full website experience.
View Membership Plans
April 5, 2024

Congress On Course to Pass Priority Laws by June 2024

LEDAC meeting 19th congress
— https://mirror.pco.gov.ph/news_releases/senate-house-commit-to-passing-all-admin-priority-legislations-by-june-2024/
April 5, 2024

On March 19, during the full Legislative-Executive Development Advisory Council (LEDAC) meeting, House Speaker Martin Romualdez reported that the House of Representatives passed 19 priority measures ahead of the June 2024 target. Among these measures are the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE More) and the Value Added Tax (VAT) on Digital Services. The CREATE More Act amends the 2021 CREATE Law by reducing in corporate income tax (CIT) to 20%, continuing tax exemptions for certain companies, granting Motu Proprio power to the President for incentive packages, reduces the creditable withholding tax rate on income payments from one percent (1%) to one-half percent (1/2%), and allowing tax perks under more flexible working arrangements for IT-BPM enterprises within special ecozones, among others. Currently, of six ASEAN nations, the Philippines possesses the highest CIT rate at 25%, surpassing Malaysia (24%), Indonesia (22%), Vietnam (20%), Thailand (20%), and Singapore (17%). On the other hand, the proposed VAT on Digital Services would impose a 12% VAT on digital services consumed in the Philippines. 
In the same meeting, Senate President Juan Miguel Zubiri likewise committed to passing all the administration’s priority measures by June this year, with the majority to be approved before the sine die adjournment scheduled for May 25.
As of this writing a total of 14 priority measures that were included in the Common Legislative Agenda (CLA) of the LEDAC have been enacted into law – these include the Maharlika Investment Fund (July 2023), the Public-Private Partnership Code (December 2023), the Internet Transactions Act (December 2023) and the Ease of Paying Taxes (January 2024). There are currently 43 remaining bills that have yet to be passed into law. The full CLA list can be found here.

Join the Council to continue reading this article
Enhance your business impact in Southeast Asia: Become a member of the US-ASEAN Business Council and tap into a network of possibilities.
Free Related Articles

Membership Plans

Corporate Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • Business missions to all 10 ASEAN markets which engage governments at the highest levels.
  • Off-the-record roundtables and policy briefings with senior government leaders in ASEAN and the U.S.
  • On-the-ground support for promoting your positions/policy priorities with policy makers.
  • Industry-specific, country-specific, cross-sector and regional advocacy through committees that target their engagement based on member priorities.
  • Advocacy on your behalf in situations where your company should not be directly identified or is unable to be present.

Chairman’s Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • All Corporate benefits.
  • Assistance with resolving company-specific trade or investment issues through our six regional offices and U.S.-based staff.
  • Develop effective advocacy strategies to impact policy concerns.
  • Identification of, and engagement with appropriate policy influencers to impact policy concerns.
  • Assistance in conducting follow-up after engaging government leaders (can include providing officials with additional materials, setting up meetings with their staff, getting a readout of the government’s reaction to the discussion).
  • Support for developing arguments that will resonate with target stakeholders.
  • Leading and setting the agenda and policy priorities of the Country and Industry Committees.