Fees charged by investment promotion agencies need to be updated
The Tax Incentives Review Board (FIRB) is developing a uniform scale of fees collected from companies registered with various Investment Promotion Agencies (IPAs), as part of efforts to pursue tax reforms as part of the turnaround Business and Business Tax Incentives (CREATE) Act.
In light of this, the FIRB Secretariat has requested all APIs to submit copies of their respective fees relating to the granting and administration of the tax incentives, with details of their cost recovery and revenue generation. income.
According to the Ministry of Finance, this fee harmonization initiative is based on the principle that the imposition of such fees should serve primarily to recover costs and should strike a balance between the recovery of the cost of services and the social impact -economical imposition of fees.
There are about 20 APIs, including the Board of Investments, the Philippine Economic Zone Authority, the Base Conversion and Development Authority, and various free zone authorities.
The functions of these APIs include the collection of fees and charges related to the granting and administration of tax incentives to registered investors.
Finance Secretary and FIRB Chairman Carlos Dominguez III earlier said there was a need to assess and rationalize the fees and charges collected by APIs to ensure fairness and shared responsibility between government and investors.
Dominguez also said the assessment of fees and charges is better coordinated with investors to ensure rates are fair and reasonable.
Deputy Finance Secretary Juvy Danofrata, who heads the FIRB Secretariat, said in a statement that regular consultations with APIs will be conducted with their views and suggestions taken into account to ensure their schedule of fees and charges is uniform and fair for all stakeholders.
“The guidelines will be written on the principle of cost recovery subject to a reasonable rate of return,” Danofrata said.
“Revenue implications will also be taken into account when adopting the guidelines for setting fees,” he added.
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