Daily News

DTI seeking fiscal incentives for relocating firms, worker retention

The Department of Trade and Industry (DTI) has proposed fiscal incentives for companies to retain employment and relocate to the provinces, addressing areas not tackled by the Bayanihan II stimulus bills now being harmonized in bicameral conference sessions. In a letter to House Deputy Speaker Raneo Abu, DTI Secretary Ramon Lopez asked that certain businesses be allowed to register as eligible for incentives under Executive Order 226. Under this order, businesses in preferred areas are given incentives such as income tax holidays, a deduction of taxable income equivalent to 50% of wages, and tax exemptions on imported capital equipment if they meet certain requirements. The DTI is asking that incentives be applied to manufacturers relocating to the Philippines, businesses that retain 90% of their employees during the pandemic, and new outsourcing projects that start in 2020 or 2021 or employ returning overseas Filipino and displaced workers.