A business group said yesterday two House bills seeking to rationalize the income tax system have provisions that are biased against individual businessmen or professionals.
The Philippine Chamber of Commerce and Industry (PCCI), the largest business organization in the country, expressed concern over the differences in the treatment of taxes for corporate entities and sole proprietors in House Bill Nos. 3927 and 3992, the twin measures being pushed in the House of Representatives to simplify income taxation of corporations and individual taxpayers.
In a position paper submitted by PCCI to the House committee on ways and means, the PCCI stated that the proposals are unfair or biased against individual businessmen or professionals.
In the bills, a corporation can claim bigger direct cost yet avail of a lower income tax rate of 18 percent while an individual taxpayer is allowed limited deductions, with tax rate as high as 32 percent.
Tammy Lipana, chairman of the tax committee of PCCI, said under the proposed schemes, if a corporation does not opt for the 18 percent gross income tax, it shall be allowed to claim practically all its business-related expenses and other deductions allowed in determining its taxable income, whereas if a self-employed individual does not opt for the 40 percent Optional Standard Deduction, he will be allowed to claim only eight items of deductions.
Lipana said this would result in a higher income tax due for an individual compared to that for a corporation.
PCCI’s Francis Chua affirmed that PCCI recommends the adoption of a tax system that is neutral to business in whatever form, whether it be in corporate form or as sole proprietorship.
“A tax system should not cause a distortion in the decisions of businessmen by encouraging businesses to incorporate,” he added.
“The tax system for both corporations and individual taxpayers should be aligned so as to encourage more micro, small and medium entrepreneurs,” Lipana said. –Ayen Infante, Daily Tribune
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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