MANILA — The lowering of corporate income tax (CIT) rates had been seen to attract more investments from Hong Kong-based companies, Hong Kong Chamber of Commerce of the Philippines, Inc. (HKCCPI) President Anthony Chan said.
On the sidelines of the Hong Kong Trade Development Council (HKTDC) High-Level Investment Mission Networking Luncheon Tuesday, Chan told the Philippine News Agency that investors from Hong Kong and also from mainland China welcome the proposed reforms in the second package of the Tax Reform for Inclusion and Acceleration (TRAIN).
He noted that the modernization of tax incentives, which may lead to the scrapping of some tax perks extended under the old system, is less of a concern for investors.
“In general, the lowering of tax rates is very encouraging and investment-friendly to foreign investors. If you are talking about incentives, it’s not for long term. In the long term, it’s the lowering of tax that is very positive for investors,” the HKCCPI executive said.
After lowering the personal income tax rate through the first package of TRAIN Law, the government eyes to reduce CIT rate from 30 percent to 25 percent with the TRAIN Package 2.
Meanwhile, some 40 business leaders from Hong Kong and Shanghai are on an investment mission here. They are reportedly scouting for opportunities in the sectors of engineering and construction, real estate, architecture, energy, wastewater treatment, transportation, manufacturing, legal and accounting, among others.
Hong Kong Chinese General Chamber of Commerce Chairman and Co-Mission Leader Jonathan Choi said the business delegation now has more confidence in the Philippine market because of the improved relationship between Manila and Beijing.
He said both Filipino and Chinese companies should take advantage of the improved relations by embarking on more business partnerships and cooperation. “The relationship of Philippines, China, Hong Kong, I think, is [now at its] best. The time is really good. So, the partnerships of businesses can create jobs, investments, and tax for the Philippines,” said Chan. (Kris Crismundo/PNA)
