By Jun Ramirez
The Bureau of Internal Revenue (BIR) is granting a 50 percent income tax discount to businesses that develop, use and distribute technologies that do not harm the environment.
The tax incentive is provided under Revenue Regulations No. 5-2019 signed by Finance Secretary Carlos Dominguez and BIR Commissioner Caesar Dulay.
The guideline was reissued last week implementing the Philippine Green Jobs Law (RA 10771), stressing the role of the business community in reducing pollution and other environmental menace.
Qualified to join the program are businesses engaged in production, manufacturing, processing, repacking and assembly as well as the sale of goods and services.
Specifically, participants are required to come out with the so-called green technologies.
The eco-friendly technologies refer to the development and application of products, equipment and systems used to conserve the environment and natural resources.
To avail of the tax incentives, participants must register with the revenue district office where the business is registered.
The regulations stated the entity “shall be entitled to a special deduction from the taxable income equivalent to 50 percent of the total expense for skills, training and research development expenses.”