Preferential Tax

The document discusses several Philippine laws and economic programs: the Barangay Micro-Business Enterprise provides benefits to small entrepreneurs; Double Taxation occurs when income is taxed twice and tax treaties can help reduce this; the Omnibus Investments Code aims to encourage domestic and foreign investment through tax exemptions and incentives; the Special Economic Act also provides incentives for exporters; and the Senior Citizen Law grants discounts, exemptions, and assistance to senior citizens.

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Preferential Tax

Uploaded by

Cillian Reeves

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Download as DOCX, PDF, TXT or read online on Scribd

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1.

BMBE
The Barangay Micro-Business Enterprise is beneficial especially to small entrepreneurs
who are just starting up in their business in the informal sector. It provides income tax
exemption from their operation and excepts them from the coverage of minimum wage
law provided that the employees are entitled with social security and and healthcare
benefits. Some financial institutions prioritizes BMBE's when taking credits or loans. It
also provides training and assistance programs to the beneficiaries. Another advantage
of BMBE is that it will give employment opportunity to our fellow Filipinos and it will help
our overall economy.
2. Double Taxation
Double Taxation is when income taxes are paid twice from the same income. It happens
when income is taxed both at the corporate and personal levels. These taxpayers can
take use of the benefits given by a legal and effective tax treaty, which can be in the
form of a tax exemption or a preferential tax rate, to prevent or at least reduce the risk of
double taxation.
3.Omnibus Investments Code
Omnibus Investments Code is made to encourage Filipino and Foreign investors. It
gives Tax Exemption incentives to registered enterprises such as Income Tax Holiday
for 3 to 6 years depending on the status and location of the projects, exemptions in
duty-free importations and export tax in spare parts and accessories, breeding stocks
and genetic materials and non-traditional export products. Another benefits of Omnibus
Investment Code is Tax Credits and Additional deduction for labor expenses and Non-
fiscal Incentives.
4. Special Economic Act
Special Economic Act also gives incentives to encourage investors such as tax credits
for exporters using local materials and exemptions from national and local taxes or a
5% of the gross income if not included in the exemption, paid and remitted as 3% to the
national government and 2% to the treasure's office of the municipality.
5. Senior Citizen Law
Senior Citizen Law grants 20% discount and exemption to VAT when purchasing
medicines, medical supplies, medical services, transportation fees, lodging
establishments, restaurants, amusement facilities and funeral and burial services. it also
provides government assistance for senior citizens who seeks employment and
education, housing and access to public transport. another additional government
assistance is the social pension which gives five hundred pesos monthly to senior
citizens and philhealth coverage.