Tax break eyed for micro firms

A BILL that seeks to boost the growth of microenterprises by sparing them from income taxes and easing their tax filing process and registration was filed at the House of Representatives last month.

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Newly registered microbusinesses with assets below P3 million will be exempt from income taxes for three years under House Bill No. 5438 by Party-list Rep. Eduardo C. Villanueva.

“By reducing costs, simplifying compliance and offering crucial relief during a business’ formative years, this measure strengthens the capacity of microenterprises to survive and thrive,” he said in the bill’s explanatory note.

Microenterprises make up about 90% of businesses in the Philippines, with 1.12 million of the country’s 1.24 million registered firms falling under the category, according to government data.