Select Companies Set To Enjoy Tax Holiday In Philippines

by Mary Swire, Tax-News.com, Hong Kong

10 December 2008

The Board of Investments (BOI) in the Philippines has granted five of the country's businesses tax holidays that could run for as long as eight years, it has been announced.

The decision was made after requests from the companies for a tax break revealed that an extra PHP1.6bn (USD2m) could be generated and invested back into the country over a period of four to eight years.

The five companies entitled to the tax break have been named as Chelsea Shipping Corp; Surewell Equities Inc; Citihomes Builders and Development Inc; Digiwave Solutions Inc and SL Agritech Corp.

Of these, the Chelsea Shipping Corp has attracted the most attention after being granted an eight-year exemption on income tax payments, plus the permission to import equipment on a tariff-free basis. These tax exemptions will assist the shipping company in its quest to purchase an oil tanker, which will vastly increase shipments of oil and diesel across the country.

Granting tax exemptions to the other companies will also encourage expansion and development within the country's housing and digital software markets.

The BoI also announced last month that it was looking to increase growth specifically in the country's innovation sector by planning tax cuts for science and technology-based companies in a bid to prevent decline and support the research and development of new products.

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