On 19 February 2020, the Senate approved a Bill, entitled “the Corporate Income Tax and Incentives Reform Act”. It was approved by the House of Representatives on 13 September 2019. The bill aims to change the National Internal Revenue Code and the progressive reduction of the corporate tax rate (CIT) from the current 30% to 20% by 2029. The reduction begins from 2021.
Another proposal of this Bill is about incentives. It also restricts fiscal incentives given to selective firms by eliminating the option for corporations, including resident foreign corporations and gives emphasize the small and medium enterprises (SMEs) for incentive purposes.
