What is the Trabaho Bill?

By | September 11, 2018

Trabaho Bill is the tax reform for attracting better and high-quality opportunities
or trabaho is the second package of the comprehensive tax reform program CTRP).

trabaho bill

Image Credit | DOF

 

TRABAHO aims to lower the Philippines corporate income tax rate and create a fair and accountable incentive system to make the Philippines’ business field more competitive.

 

At present, the Philippines has the highest corporate income tax rate in the
ASEAN region.

 

Below are some comparative corporate income tax rate in ASEAN

  • Singapore – 17%
  • Cambodia – 20%
  • Thailand – 20%
  • Vietnam – 20%
  • Laos – 24%
  • Malaysia – 24%
  • Indonesia – 25%
  • China – 25%
  • Philippines – 30%

 

The TRABAHO Bill proposes to reduce the corporate income tax (CIT) by 2 percentage points every 2 years starting in 2021 until it reaches 20% in 2029.

 

The Comprehensive Tax Reform Program or CTRP is a holistic tax reform composed of multiple packages to establish a fairer, efficient, and more progressive tax system and administration.

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