CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Foreign Airlines Push For Philippines Tax Exemptions

Foreign Airlines Push For Philippines Tax Exemptions

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

26 October 2011


The Philippines’ Department of Finance is being put under pressure from foreign airlines to reduce the 2.5% Gross Philippine Billings Tax (GPBT) and the 3% Common Carrier’s Tax (CCT) to which they are subjected.

The GPBT and CCT are levied on all revenues, passengers, cargoes and excess baggage leaving the Philippines.

The House of Representatives Committee on Ways and Means has already approved a bill to recognize the tax exemptions for international air carriers under tax treaties and international agreements signed by the Philippines, but foreign airlines are hoping that it will soon be taken in full parliamentary session.

The airlines, such as Air France-KLM, while threatening to cancel direct flights to the Philippines, have also appealed to President Aquino either to instruct the Department of Finance and the Bureau of Internal Revenue (BIR) to provide either for such tax relief, or to encourage the passage of the bill through parliament.

Aside from any additional income to the Philippines from tourists, it has been projected that an exemption of international air carriers from paying the GPBT and CCT would add considerably to the country's export earnings. However, the Finance Department is reported as saying that such an action would cost the BIR some PHP2.5bn (USD57.5m) in lost annual revenue.

TAGS: compliance | tax | tax compliance | law | aviation | Philippines | fees | travel and tourism | agreements | legislation | tax rates

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »