Gatchalian says Senate bill on tax to benefit local micro companies

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Senator Sherwin Gatchalian said it would be much easier for small businesses to pay taxes once Senate Bill 2224 or the Ease of Paying Taxes measure is passed into law.

Gatchalian, principal author of the measure and chairperson of the Senate Ways and Means Committee, also said he is confident this would help create more jobs and boost the country’s economy.” Aside from eliminating the requirement to withhold taxes, the proposed measure also provides for a reduction of penalties on micro and small enterprises.

This also includes a 50 percent reduction on the interest rate in cases when there are deficiencies or delinquencies in the tax due; a reduced fine of P500 as a penalty for failure to file certain information returns which originally amounts to P1,000 for each failure; and a reduced compromise penalty rate of at least 50 percent for violations on invoicing requirements for VAT-registered persons, issuance of sales or commercial invoice, and printing of sales or commercial invoice.

 

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