House committee approves fourth package of CTRP

November 21, 2018

The House committee on ways and means on Wednesday approved the fourth package of the Duterte administration's Comprehensive Tax Reform Program (CTRP), which introduce changes on capital income and financial services taxation.

The unnumbered substitute or the “Passive Income and Financial Intermediary Taxation Act of 2019” seeks to make taxation of the sector simpler.

It also reviews taxes imposed on financial intermediaries and the products they offer: on savings and investments; and debt and equity instruments.

According to the Department of Finance (DOF), Package 4 aims to harmonize the country's current 80 financial tax rates to 41 percent as it seeks to deepen the capital markets, among others.

The documentary stamp tax rate will also be reduced which will help non-life insurance industry, among others, with the move seen to help promote more insurance as the country faces more disasters. DMS