FIRB sets policy on non-income related tax incentives

The Cabinet-level Fiscal Incentives Review Board (FIRB) has set a new policy on the duration of non-income tax- based incentives to guide investment agencies in giving perks to various businesses.

- LOUISE MAUREEN SIMEON

In its latest resolution, the FIRB said there is a need to issue a policy on the duration of non-income tax-based incentives to guide various investment promotion agencies (IPAs) in granting tax perks to projects under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

This is given the lack of an express provision in the law and its implementing rules and regulations.

As such, if the payback period of the project is within the income tax-based incentives period, there will be a limited duration for non-income tax-based incentives to complement the former.

But if the payback period of the project is beyond the income tax-based incentives period, there will be a maximum duration of 12 years for domestic-oriented enterprises and 17 years for export-oriented ones.