Enhancement of tax incentives relating to BOI registered companies to promote investment growth in the Philippines

Date of Publication

3-2012

Document Type

Master's Thesis

Degree Name

Juris Doctor

Subject Categories

Taxation

College

Ramon V. Del Rosario College of Business

Department/Unit

Management and Organization

Thesis Adviser

Ma. Victoria P. Tibon

Abstract/Summary

Executive Order (EO) No. 226 or the Omnibus Investments Code of the Philippines grants tax incentives to registered BOI enterprises that engage in activities identified as investment priorities or those which promote the general economic development of the Philippines and those that are export oriented (where export is more than 50% of production or 70% of the enterprise is more than 40% owned by foreign investors). The purpose of this study is to determine the implication of improving tax incentives to BOI-registered companies under E.O. 226. Experts state that among developing countries, the empirical evidence seems to indicate that tax incentives have little effect on FDI flows. On the other hand, some authors conclude that tax incentives may not be the most important factors, yet they may be the final consideration of foreign investors in making the decision. The research reveals that one of the major factors affecting the departure of multinationals is the expiration of the incentives availment period directly related to the fiscal incentives provided by E.O. 226. In addition, the researcher discovered that investors and tax consultants highly prioritize the tax incentives granted by the government because it enables them to expand their business as well as influence their bottom-line figures through various tax, operational, and capital deductions, exemptions and savings. On the other hand, authors from the appropriate finance sector of the government reveals that tax incentives play a major role in the investment decisions of BOI-registered companies but there are many difficult and delicate administrative problems connected with its implementation. It appears that the target respondents believe that the current tax incentives under the law are insufficient. The researcher recommends a revision or amendment of E.O. 226 or to come up with a better standard for its implementation which is more liberal than the present the set-up.

Abstract Format

html

Language

English

Format

Electronic

Accession Number

CDTG005135

Shelf Location

Archives, The Learning Commons, 12F Henry Sy, Sr. Hall

Physical Description

1 computer optical disc ; 4 3/4 in.

Keywords

Tax incentives--Philippines; Investments, Foreign—Law and legislation--Philippines; Board of Investments (Philippines)

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Embargo Period

9-19-2024

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