The Philippines Stock Exchanges (PSE) will attempt to persuade the Government to loosen up regulations, most importantly the tax rules that apply to real-estate investment trusts.
The tax rules in relation to real-estate investment trusts (REITs) are not appealing to investors and are therefore in need of change Meanwhile the Stock Exchange of Thailand will shortly give investors the opportunity to invest in REITs.
There will also be an attempt by the stock exchanges to change the opinions of the Philippines Department of Finance and the Bureau of Internal Revenues as far as the 12% VAT that is payable on assets transferred to REITs, as well as the 30% income tax rate. Both of these taxes are considered to be too high to compete with neighboring countries. Concerns are expressed from the PSE in relation to the 67% of public majority stake that is required from a REIT after 3 years, after a 40% minimum public holding requirement at initial listing.
