Bill proposes three-year tax exemption for micro firms

A BILL seeking to grant temporary tax relief to micro, small and medium enterprises (MSMEs) has been filed in the Senate, in order to ease the financial burden on smaller firms amid rising costs and tighter market conditions.

- Erika Mae P. Sinaking

Senate Bill No. 1622, filed by Senator Joseph Victor G. Ejercito on Dec. 16, proposes a three-year income tax exemption for micro enterprises and an additional tax incentive for small and medium enterprises that expand their workforce.

Under the proposed measure, single proprietorships, cooperatives, partnerships, and corporations classified as micro enterprises under Republic Act No. 6977, or the Magna Carta for Small Enterprises, will be exempt from paying income tax during the bill’s effectivity period.